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99-617Council File # ��,�, Presented B7 Referred To : �� RESOLUTION CITY OF SAINT PAUL, MINNESOTA �� -� Green Sheet # �5 RESOLUTION AUTHORIZING RAMSEY COUNTY TO UNDERTAKE A Mi3LTI-FAMILY 3 RENTAL HOUSING DEVELOPMENT IN THE CITY OF SAINT PAUL, 4 5 (SKYLINE TOWER PROJECT) 7 WIlEREAS, 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 (a) Minnesota Statutes, Chapter 462C (the "Act") authorizes cities, or housing and redevelopment authorities or port authorities authorized by ordinance to exercise on behal£ of a ciry the powers conferred by the Act, or a county housing and authorized redevelopment authority by speciallaw ar its county to exercise the powers conferred by the Act, the power to issue revenue bonds to finance a program for the purpose of planning, administering, making or purchasing loans with respect to one or more muiti-family housing developments within the boundaries of the city; (b) The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "St. Paul HRA") has been designated, by ordinance, to exercise, on behalf of the city of Saint Paul, Minnesota (the "City") the powers conferred by Minnesota Statutes, Section 462C.01 to 462C.08; (c) Ramsey County has scheduled a public hearing for July27, 1994, to consider approval of a resolution authorizing the Ramsey County Housing and Redevelopment Authority (the "Ramsey County HRA") to submit an application to the Minnesota Department of Finance for a tax exempt revenue allocation and authority to exercise the County's powers under Minn. Stat., Sec. 469.004 and Ch. 462C; (d) The City and the County have received from Common Bond Communities, Ina (the "Developer") a proposal that the City and County undertake a program to finance the Project hereinafter described, through the issuance of revenue K:SHARED\SANZI--IEEZ1�SkylmeCiryCounry.RCS2 ' 1� bonds or other obligations (which may be issued in one or more C�4 �1- 2 series) (the "Bonds") pursuant to the Act; 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (e) 'I`he City and County desire to: facilitate the development of rental housing within the community; encourage the development of affordable housing opportunities for residents of the City and the County; encourage the development of housing facilities designed for occupancy by persons of low or moderate income; and prevent the emergence of blighted or underutilized land and structures within the boundaries of the City and the County; and the Project will assist the City and County in achieving these objectives. (fl The Developer is currently engaged in the business of real estate development. The project to be financed by the Bonds wi ll consist of the acquisition, renovation and equipping of a residential rental project for low and moderate income tenants located at 1247 St. Anthony Avenue, in Saint Paul (the "Project"). (g) The City and the County haue been advised by representatives of the Developer that conventional, commercial financing to pay the capital costs of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility or operating the Project would be significantly reduced, but the Developer has also advised the City and the County that with the aid of municipal financing, and resulting low borrowing costs, the Project is economicaliy more feasible; 29 (h) No public official of the City or the County has 30 either a direct or indirect financial interest in the Project nor will 31 any public ofFicial either directiy or indirectly benefit financially 32 from the Project; 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota, that pursuant to Minn. Stat., Section 4b9.004, subd. 1 a, the City hereby authorizes Ramsey County, acting through the Ramsey County HRA, to undertake the Project and financing therefore, subject to the following limitations: a. this authorization relates only to the Project and the financing program for the Project; and b. nothing in this resolution or in the financing program, or in any agreement, indenture, contract or instrument relafing to the Project or the Bonds shall authorize or permit the Ramsey County HRA to levy a taY on any taxable property within tt�e city limits of the City of Saint Paul, and _ 1 2 3 4 5 6 7 8 9 10 � , c. nothing in this resolution obiigates the City to give its approval to the Project and the program of fmancing therefor, and d. nothing in this resolution authorizes the expenditure of any City funds on the Project. �� B�'' ` � \..—�. Approved by Mayor: By: Adopted by Council_ Date f\�� ) Adoption Certified by Counc� Sec ry Approv�y�Mayor fcjE' �ubmis�i� to CoUncil � � GREEN SHEET 7n1Ha0Da� DFIARTFNlowECTOR V �` -� a TOTAL # OF SIGNATURE PAGES �oN H�a,E�rr� s � � � c✓�GLr� `�0 r �, r ��p�vaya� �vr �Z�ir.�c s-e� G�avti � Uh� < � a� ��l , d, �. � F`.,�,- ��.�,.� re�ehL�e be�� 2 �.b�L� � S ( S '� �� . '�1 ✓l C(M G PLANNING CQMMISSION CIB COMMITTEE CIVIG E,RV��QMMISSION J�f Has ihts persoNfirm evervrorked under a contractbor fhis department? YES NO Has ihis pe�rm ever been a city empbyeeT YES NO ooesu,;s aersoMm+ c�sess e san na ram,axva�sessec bv amr curtenc ci�r empayest VES NO Is Nis persoMrm a targe[ed ventlor7 VES NO TIAIMGPR06LEM i55UE, OF'PORiUN1IY �YYllo, Wltat, Wn Wtle�e, WIry) f � TG� 2 e r.�-�9�` /�� r �2 dyr � Ptq. � / �-�f��Ga.Y//'z-t-.� �'✓ �?On S��?d�la(��v�a`r �h/"iil �� . Odvi-�p l�dd l�,�..2 u,3-e 4/ � S� �� / .� e�..� /�� '-�� u �e �0 � J� �d 6�c Gr.�� v �e�,�«-� � fi`� s�j/'� 70�e1-��s��v�� c� '�/liY'1 Yf � P L 2 � VJ J' � IFAPPROVED /� vi�7� / �U � � ,�� e� G�e� ��d si r-L l'��-Hi/j� �. •-,�-- S ^ � � COST/REVENUEBUD6EfED(CIRCLEON� SOURCE �� b\"l No 09831 InhlaYDats QIYCOUICi I� ❑�,�.�. ❑.,�.�,,,�� rnroR Iat,�ssnrwTl � {CLIP ALL l.0 TtONS FOR SIGNATURE) GovHC�/ r�o`�.� sP��`� � ��'� �v�� - �� ,`h �,��o� � �-� � d� �v � i—r cfr� �- s p� e c��vS-� o e- f �,. /J !� -"� S� �i £ �Uw� �uu,cd��ZiM i «re�ll� ACTNITY NU616ER YE+ ��`/ � < NO Cour?c� Re�ea�cn Ce�iter JUN 2 � 1999 DEPAR"I'MENT OF PLANNING & ECONOMIC DEVELOPMENT Bnan Sweeney, Interim Director CTTY OF SATNT PAUL Norm Caleman, Mayor June 24, 1999 To: Council President Bostrom Councilmember Benanau Councilmember Blakey Councilmember Coleman Councilmember Harris Councilmember Lanhy Councilmember Reiter Fr: r� Brian Sweeney�� 25 West Fourth Sbeet Saint Paui, MN 55102 Skyline Tower Apartments Project Ramsey County Tax Exempt Revenue Bond Application _ \ 1 Telephone: 6I2-266-6655 Facsimile: b12-228326I Purpose To inform the City Council of the proposed tax exempt revenue bond financing structure for the acquisition and rehabilitation for the Skyline Tower rental housing project which would involve the participation of Ramsey County. Such participation by Ramsey County would need authorization by the City Council, pursuant to Minn. Stat., Secs. 462CA 1 and 496.004, in order for Ramsey County to submit an application by August 1, 1999, to the Minnesota Department of Finance. The proposed tax exempt revenue bonds are not nor can be an obligation of the City or County for payment, project revenues are the sole source of payment. Background Several months ago representatives from the CommonBond Communities visited with City Council members to advise that CommonBond Communities was acfively pursuing the purchase of the Skyline Tower Project located at 1247 St. Anthony Avenue, District 11. Their proposal would be to acquire and rehabilitate the project units and develop an Advantage Center which would help tenants obtain education and career development to improve their economic potential. Briefly, the Skyline Tower apartments is a federally subsidized (HUD Section 236 Program) affordable rental housing project containing 506 units. The unit mix is comprised of 46 K:\SHARED\SANCHEZ'I1SkylineTOwerCiTyCouncil.mem 1 �� t� efficiencies, 322 one-bedroom and 138 two-bedroom units. There aze 22 units on each of the 23 floors. At the end of 1998 the average annual household income was under $10,000. Over half of the households aze on public assistance or receive social security benefits and about half work part-time. About 70% aze East African nvuiigrants or African-American; 20% are Southeast Asian and less than 10% aze white. Over 70% of households aze female headed. There are appro�mately 30Q cYrildren and less than 50 residents over 65 yeazs of age. Proposed Project Financing The proposed Skyline Tower Apartment project financing would use ta�c exempt revenue bonds and low income housing ta�c credits that are special for tax exempt bonds and aze not out of the City's annual allocation. The proposed Sources and Uses are as follows: Sources City Tas Exempt Bonds County Tax Exempt Bonds Znd Mortgage 4% T� Credits Surplus Cash Note Total $10,000,000 5,000,000 5,500,000 9,127,000 920.000 $30,547,004 Uses Acquisition Rehabilitation Soft Costs/fees Total $13,000,000 14,000,000 3.547.000 $30,547,000 It is proposed that the IIRA use funds provided by PiperJaffray to purchase the HIJD mortgage. By the IIRA holding the mortgage the federal Interest Reduction Payment ("IRP") remains with the project. HUD requires that a local jurisdiction must hold the mortgage when the I�CTD insurance is terxninated inorder for the IRP to remain in piace. The bond purchaser would use the bonds to purchase the mortgage form the HRA. The IRP funds would be used to pay for the second mortgage. The Minnesota Housing Finance Agency will be asked to provide the services of annual property inspection and tenant certification, both of which HUD currently performs but cease with the ternvnation of HiJD insurance. Ramsey County Participation The City does not have sufficient tax exempt revenue bond authority available for 1999. The participation by Ramsey County would be in their application to the Minnesota Department of Finance, pursuant to Minn. Stat., Ch. 474A, for an allocation of revenue bond authority from a limited pool of revenue bonds. The City as a suballocator cannot submit an application for revenue bonds from this pooi. The Ramsey County Commissioners are being asked to schedule a public hearing for July 27th at which they would solicit public comment and determine if an applicafion is to be submitted to the Minnesota Department of Finance far this project. This acrion bv Ramsev Countv would be proiect specific and would not occur if the CitY had sufficient ta�c exempt revenue bond authoritv. The City Council wili be asked at their 3uly 21 st meeting to consider a resolution, pursuant to Minn. Stat., Secs. 462C.01 and 496.004, that would authorize: Ramsey County to undertake and finance the project through the issuance of taY exempt K:\SHARED\SANCHEZ11SkylineTowerCityCouncil.mem 2 ��-��-� revenue bonds, if a successful applicant from the pool of revenue bonds allocated by the Minnesota Department of Finance, jointly with the City. This authorization by the City Council must occur prior to the Ramsey CounTy Boazd's consideration of an applicafion to the Minnesota Department of Finance. Attached is a resolution for the City CounciPs consideration at their July 14, 1999, meeting. Fnture Action If the Ramsey County Board authorizes an application then the City Council will be requested to approve a resolution authorizing the F3RA to exercise the powers granted in Minn. Stat. Secs. 462C.01 and 462C.08 to issue and sell up to $10,000,000 in tax exempt revenue bonds. cc: Mayor Coleman Susan Kimberly a� R:\SFL9RED\SANCHEZ11SkylineTOwerCityCouncil.mem 3 Council File # ��,�, Presented B7 Referred To : �� RESOLUTION CITY OF SAINT PAUL, MINNESOTA �� -� Green Sheet # �5 RESOLUTION AUTHORIZING RAMSEY COUNTY TO UNDERTAKE A Mi3LTI-FAMILY 3 RENTAL HOUSING DEVELOPMENT IN THE CITY OF SAINT PAUL, 4 5 (SKYLINE TOWER PROJECT) 7 WIlEREAS, 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 (a) Minnesota Statutes, Chapter 462C (the "Act") authorizes cities, or housing and redevelopment authorities or port authorities authorized by ordinance to exercise on behal£ of a ciry the powers conferred by the Act, or a county housing and authorized redevelopment authority by speciallaw ar its county to exercise the powers conferred by the Act, the power to issue revenue bonds to finance a program for the purpose of planning, administering, making or purchasing loans with respect to one or more muiti-family housing developments within the boundaries of the city; (b) The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "St. Paul HRA") has been designated, by ordinance, to exercise, on behalf of the city of Saint Paul, Minnesota (the "City") the powers conferred by Minnesota Statutes, Section 462C.01 to 462C.08; (c) Ramsey County has scheduled a public hearing for July27, 1994, to consider approval of a resolution authorizing the Ramsey County Housing and Redevelopment Authority (the "Ramsey County HRA") to submit an application to the Minnesota Department of Finance for a tax exempt revenue allocation and authority to exercise the County's powers under Minn. Stat., Sec. 469.004 and Ch. 462C; (d) The City and the County have received from Common Bond Communities, Ina (the "Developer") a proposal that the City and County undertake a program to finance the Project hereinafter described, through the issuance of revenue K:SHARED\SANZI--IEEZ1�SkylmeCiryCounry.RCS2 ' 1� bonds or other obligations (which may be issued in one or more C�4 �1- 2 series) (the "Bonds") pursuant to the Act; 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (e) 'I`he City and County desire to: facilitate the development of rental housing within the community; encourage the development of affordable housing opportunities for residents of the City and the County; encourage the development of housing facilities designed for occupancy by persons of low or moderate income; and prevent the emergence of blighted or underutilized land and structures within the boundaries of the City and the County; and the Project will assist the City and County in achieving these objectives. (fl The Developer is currently engaged in the business of real estate development. The project to be financed by the Bonds wi ll consist of the acquisition, renovation and equipping of a residential rental project for low and moderate income tenants located at 1247 St. Anthony Avenue, in Saint Paul (the "Project"). (g) The City and the County haue been advised by representatives of the Developer that conventional, commercial financing to pay the capital costs of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility or operating the Project would be significantly reduced, but the Developer has also advised the City and the County that with the aid of municipal financing, and resulting low borrowing costs, the Project is economicaliy more feasible; 29 (h) No public official of the City or the County has 30 either a direct or indirect financial interest in the Project nor will 31 any public ofFicial either directiy or indirectly benefit financially 32 from the Project; 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota, that pursuant to Minn. Stat., Section 4b9.004, subd. 1 a, the City hereby authorizes Ramsey County, acting through the Ramsey County HRA, to undertake the Project and financing therefore, subject to the following limitations: a. this authorization relates only to the Project and the financing program for the Project; and b. nothing in this resolution or in the financing program, or in any agreement, indenture, contract or instrument relafing to the Project or the Bonds shall authorize or permit the Ramsey County HRA to levy a taY on any taxable property within tt�e city limits of the City of Saint Paul, and _ 1 2 3 4 5 6 7 8 9 10 � , c. nothing in this resolution obiigates the City to give its approval to the Project and the program of fmancing therefor, and d. nothing in this resolution authorizes the expenditure of any City funds on the Project. �� B�'' ` � \..—�. Approved by Mayor: By: Adopted by Council_ Date f\�� ) Adoption Certified by Counc� Sec ry Approv�y�Mayor fcjE' �ubmis�i� to CoUncil � � GREEN SHEET 7n1Ha0Da� DFIARTFNlowECTOR V �` -� a TOTAL # OF SIGNATURE PAGES �oN H�a,E�rr� s � � � c✓�GLr� `�0 r �, r ��p�vaya� �vr �Z�ir.�c s-e� G�avti � Uh� < � a� ��l , d, �. � F`.,�,- ��.�,.� re�ehL�e be�� 2 �.b�L� � S ( S '� �� . '�1 ✓l C(M G PLANNING CQMMISSION CIB COMMITTEE CIVIG E,RV��QMMISSION J�f Has ihts persoNfirm evervrorked under a contractbor fhis department? YES NO Has ihis pe�rm ever been a city empbyeeT YES NO ooesu,;s aersoMm+ c�sess e san na ram,axva�sessec bv amr curtenc ci�r empayest VES NO Is Nis persoMrm a targe[ed ventlor7 VES NO TIAIMGPR06LEM i55UE, OF'PORiUN1IY �YYllo, Wltat, Wn Wtle�e, WIry) f � TG� 2 e r.�-�9�` /�� r �2 dyr � Ptq. � / �-�f��Ga.Y//'z-t-.� �'✓ �?On S��?d�la(��v�a`r �h/"iil �� . Odvi-�p l�dd l�,�..2 u,3-e 4/ � S� �� / .� e�..� /�� '-�� u �e �0 � J� �d 6�c Gr.�� v �e�,�«-� � fi`� s�j/'� 70�e1-��s��v�� c� '�/liY'1 Yf � P L 2 � VJ J' � IFAPPROVED /� vi�7� / �U � � ,�� e� G�e� ��d si r-L l'��-Hi/j� �. •-,�-- S ^ � � COST/REVENUEBUD6EfED(CIRCLEON� SOURCE �� b\"l No 09831 InhlaYDats QIYCOUICi I� ❑�,�.�. ❑.,�.�,,,�� rnroR Iat,�ssnrwTl � {CLIP ALL l.0 TtONS FOR SIGNATURE) GovHC�/ r�o`�.� sP��`� � ��'� �v�� - �� ,`h �,��o� � �-� � d� �v � i—r cfr� �- s p� e c��vS-� o e- f �,. /J !� -"� S� �i £ �Uw� �uu,cd��ZiM i «re�ll� ACTNITY NU616ER YE+ ��`/ � < NO Cour?c� Re�ea�cn Ce�iter JUN 2 � 1999 DEPAR"I'MENT OF PLANNING & ECONOMIC DEVELOPMENT Bnan Sweeney, Interim Director CTTY OF SATNT PAUL Norm Caleman, Mayor June 24, 1999 To: Council President Bostrom Councilmember Benanau Councilmember Blakey Councilmember Coleman Councilmember Harris Councilmember Lanhy Councilmember Reiter Fr: r� Brian Sweeney�� 25 West Fourth Sbeet Saint Paui, MN 55102 Skyline Tower Apartments Project Ramsey County Tax Exempt Revenue Bond Application _ \ 1 Telephone: 6I2-266-6655 Facsimile: b12-228326I Purpose To inform the City Council of the proposed tax exempt revenue bond financing structure for the acquisition and rehabilitation for the Skyline Tower rental housing project which would involve the participation of Ramsey County. Such participation by Ramsey County would need authorization by the City Council, pursuant to Minn. Stat., Secs. 462CA 1 and 496.004, in order for Ramsey County to submit an application by August 1, 1999, to the Minnesota Department of Finance. The proposed tax exempt revenue bonds are not nor can be an obligation of the City or County for payment, project revenues are the sole source of payment. Background Several months ago representatives from the CommonBond Communities visited with City Council members to advise that CommonBond Communities was acfively pursuing the purchase of the Skyline Tower Project located at 1247 St. Anthony Avenue, District 11. Their proposal would be to acquire and rehabilitate the project units and develop an Advantage Center which would help tenants obtain education and career development to improve their economic potential. Briefly, the Skyline Tower apartments is a federally subsidized (HUD Section 236 Program) affordable rental housing project containing 506 units. The unit mix is comprised of 46 K:\SHARED\SANCHEZ'I1SkylineTOwerCiTyCouncil.mem 1 �� t� efficiencies, 322 one-bedroom and 138 two-bedroom units. There aze 22 units on each of the 23 floors. At the end of 1998 the average annual household income was under $10,000. Over half of the households aze on public assistance or receive social security benefits and about half work part-time. About 70% aze East African nvuiigrants or African-American; 20% are Southeast Asian and less than 10% aze white. Over 70% of households aze female headed. There are appro�mately 30Q cYrildren and less than 50 residents over 65 yeazs of age. Proposed Project Financing The proposed Skyline Tower Apartment project financing would use ta�c exempt revenue bonds and low income housing ta�c credits that are special for tax exempt bonds and aze not out of the City's annual allocation. The proposed Sources and Uses are as follows: Sources City Tas Exempt Bonds County Tax Exempt Bonds Znd Mortgage 4% T� Credits Surplus Cash Note Total $10,000,000 5,000,000 5,500,000 9,127,000 920.000 $30,547,004 Uses Acquisition Rehabilitation Soft Costs/fees Total $13,000,000 14,000,000 3.547.000 $30,547,000 It is proposed that the IIRA use funds provided by PiperJaffray to purchase the HIJD mortgage. By the IIRA holding the mortgage the federal Interest Reduction Payment ("IRP") remains with the project. HUD requires that a local jurisdiction must hold the mortgage when the I�CTD insurance is terxninated inorder for the IRP to remain in piace. The bond purchaser would use the bonds to purchase the mortgage form the HRA. The IRP funds would be used to pay for the second mortgage. The Minnesota Housing Finance Agency will be asked to provide the services of annual property inspection and tenant certification, both of which HUD currently performs but cease with the ternvnation of HiJD insurance. Ramsey County Participation The City does not have sufficient tax exempt revenue bond authority available for 1999. The participation by Ramsey County would be in their application to the Minnesota Department of Finance, pursuant to Minn. Stat., Ch. 474A, for an allocation of revenue bond authority from a limited pool of revenue bonds. The City as a suballocator cannot submit an application for revenue bonds from this pooi. The Ramsey County Commissioners are being asked to schedule a public hearing for July 27th at which they would solicit public comment and determine if an applicafion is to be submitted to the Minnesota Department of Finance far this project. This acrion bv Ramsev Countv would be proiect specific and would not occur if the CitY had sufficient ta�c exempt revenue bond authoritv. The City Council wili be asked at their 3uly 21 st meeting to consider a resolution, pursuant to Minn. Stat., Secs. 462C.01 and 496.004, that would authorize: Ramsey County to undertake and finance the project through the issuance of taY exempt K:\SHARED\SANCHEZ11SkylineTowerCityCouncil.mem 2 ��-��-� revenue bonds, if a successful applicant from the pool of revenue bonds allocated by the Minnesota Department of Finance, jointly with the City. This authorization by the City Council must occur prior to the Ramsey CounTy Boazd's consideration of an applicafion to the Minnesota Department of Finance. Attached is a resolution for the City CounciPs consideration at their July 14, 1999, meeting. Fnture Action If the Ramsey County Board authorizes an application then the City Council will be requested to approve a resolution authorizing the F3RA to exercise the powers granted in Minn. Stat. Secs. 462C.01 and 462C.08 to issue and sell up to $10,000,000 in tax exempt revenue bonds. cc: Mayor Coleman Susan Kimberly a� R:\SFL9RED\SANCHEZ11SkylineTOwerCityCouncil.mem 3 Council File # ��,�, Presented B7 Referred To : �� RESOLUTION CITY OF SAINT PAUL, MINNESOTA �� -� Green Sheet # �5 RESOLUTION AUTHORIZING RAMSEY COUNTY TO UNDERTAKE A Mi3LTI-FAMILY 3 RENTAL HOUSING DEVELOPMENT IN THE CITY OF SAINT PAUL, 4 5 (SKYLINE TOWER PROJECT) 7 WIlEREAS, 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 (a) Minnesota Statutes, Chapter 462C (the "Act") authorizes cities, or housing and redevelopment authorities or port authorities authorized by ordinance to exercise on behal£ of a ciry the powers conferred by the Act, or a county housing and authorized redevelopment authority by speciallaw ar its county to exercise the powers conferred by the Act, the power to issue revenue bonds to finance a program for the purpose of planning, administering, making or purchasing loans with respect to one or more muiti-family housing developments within the boundaries of the city; (b) The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "St. Paul HRA") has been designated, by ordinance, to exercise, on behalf of the city of Saint Paul, Minnesota (the "City") the powers conferred by Minnesota Statutes, Section 462C.01 to 462C.08; (c) Ramsey County has scheduled a public hearing for July27, 1994, to consider approval of a resolution authorizing the Ramsey County Housing and Redevelopment Authority (the "Ramsey County HRA") to submit an application to the Minnesota Department of Finance for a tax exempt revenue allocation and authority to exercise the County's powers under Minn. Stat., Sec. 469.004 and Ch. 462C; (d) The City and the County have received from Common Bond Communities, Ina (the "Developer") a proposal that the City and County undertake a program to finance the Project hereinafter described, through the issuance of revenue K:SHARED\SANZI--IEEZ1�SkylmeCiryCounry.RCS2 ' 1� bonds or other obligations (which may be issued in one or more C�4 �1- 2 series) (the "Bonds") pursuant to the Act; 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 (e) 'I`he City and County desire to: facilitate the development of rental housing within the community; encourage the development of affordable housing opportunities for residents of the City and the County; encourage the development of housing facilities designed for occupancy by persons of low or moderate income; and prevent the emergence of blighted or underutilized land and structures within the boundaries of the City and the County; and the Project will assist the City and County in achieving these objectives. (fl The Developer is currently engaged in the business of real estate development. The project to be financed by the Bonds wi ll consist of the acquisition, renovation and equipping of a residential rental project for low and moderate income tenants located at 1247 St. Anthony Avenue, in Saint Paul (the "Project"). (g) The City and the County haue been advised by representatives of the Developer that conventional, commercial financing to pay the capital costs of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility or operating the Project would be significantly reduced, but the Developer has also advised the City and the County that with the aid of municipal financing, and resulting low borrowing costs, the Project is economicaliy more feasible; 29 (h) No public official of the City or the County has 30 either a direct or indirect financial interest in the Project nor will 31 any public ofFicial either directiy or indirectly benefit financially 32 from the Project; 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota, that pursuant to Minn. Stat., Section 4b9.004, subd. 1 a, the City hereby authorizes Ramsey County, acting through the Ramsey County HRA, to undertake the Project and financing therefore, subject to the following limitations: a. this authorization relates only to the Project and the financing program for the Project; and b. nothing in this resolution or in the financing program, or in any agreement, indenture, contract or instrument relafing to the Project or the Bonds shall authorize or permit the Ramsey County HRA to levy a taY on any taxable property within tt�e city limits of the City of Saint Paul, and _ 1 2 3 4 5 6 7 8 9 10 � , c. nothing in this resolution obiigates the City to give its approval to the Project and the program of fmancing therefor, and d. nothing in this resolution authorizes the expenditure of any City funds on the Project. �� B�'' ` � \..—�. Approved by Mayor: By: Adopted by Council_ Date f\�� ) Adoption Certified by Counc� Sec ry Approv�y�Mayor fcjE' �ubmis�i� to CoUncil � � GREEN SHEET 7n1Ha0Da� DFIARTFNlowECTOR V �` -� a TOTAL # OF SIGNATURE PAGES �oN H�a,E�rr� s � � � c✓�GLr� `�0 r �, r ��p�vaya� �vr �Z�ir.�c s-e� G�avti � Uh� < � a� ��l , d, �. � F`.,�,- ��.�,.� re�ehL�e be�� 2 �.b�L� � S ( S '� �� . '�1 ✓l C(M G PLANNING CQMMISSION CIB COMMITTEE CIVIG E,RV��QMMISSION J�f Has ihts persoNfirm evervrorked under a contractbor fhis department? YES NO Has ihis pe�rm ever been a city empbyeeT YES NO ooesu,;s aersoMm+ c�sess e san na ram,axva�sessec bv amr curtenc ci�r empayest VES NO Is Nis persoMrm a targe[ed ventlor7 VES NO TIAIMGPR06LEM i55UE, OF'PORiUN1IY �YYllo, Wltat, Wn Wtle�e, WIry) f � TG� 2 e r.�-�9�` /�� r �2 dyr � Ptq. � / �-�f��Ga.Y//'z-t-.� �'✓ �?On S��?d�la(��v�a`r �h/"iil �� . Odvi-�p l�dd l�,�..2 u,3-e 4/ � S� �� / .� e�..� /�� '-�� u �e �0 � J� �d 6�c Gr.�� v �e�,�«-� � fi`� s�j/'� 70�e1-��s��v�� c� '�/liY'1 Yf � P L 2 � VJ J' � IFAPPROVED /� vi�7� / �U � � ,�� e� G�e� ��d si r-L l'��-Hi/j� �. •-,�-- S ^ � � COST/REVENUEBUD6EfED(CIRCLEON� SOURCE �� b\"l No 09831 InhlaYDats QIYCOUICi I� ❑�,�.�. ❑.,�.�,,,�� rnroR Iat,�ssnrwTl � {CLIP ALL l.0 TtONS FOR SIGNATURE) GovHC�/ r�o`�.� sP��`� � ��'� �v�� - �� ,`h �,��o� � �-� � d� �v � i—r cfr� �- s p� e c��vS-� o e- f �,. /J !� -"� S� �i £ �Uw� �uu,cd��ZiM i «re�ll� ACTNITY NU616ER YE+ ��`/ � < NO Cour?c� Re�ea�cn Ce�iter JUN 2 � 1999 DEPAR"I'MENT OF PLANNING & ECONOMIC DEVELOPMENT Bnan Sweeney, Interim Director CTTY OF SATNT PAUL Norm Caleman, Mayor June 24, 1999 To: Council President Bostrom Councilmember Benanau Councilmember Blakey Councilmember Coleman Councilmember Harris Councilmember Lanhy Councilmember Reiter Fr: r� Brian Sweeney�� 25 West Fourth Sbeet Saint Paui, MN 55102 Skyline Tower Apartments Project Ramsey County Tax Exempt Revenue Bond Application _ \ 1 Telephone: 6I2-266-6655 Facsimile: b12-228326I Purpose To inform the City Council of the proposed tax exempt revenue bond financing structure for the acquisition and rehabilitation for the Skyline Tower rental housing project which would involve the participation of Ramsey County. Such participation by Ramsey County would need authorization by the City Council, pursuant to Minn. Stat., Secs. 462CA 1 and 496.004, in order for Ramsey County to submit an application by August 1, 1999, to the Minnesota Department of Finance. The proposed tax exempt revenue bonds are not nor can be an obligation of the City or County for payment, project revenues are the sole source of payment. Background Several months ago representatives from the CommonBond Communities visited with City Council members to advise that CommonBond Communities was acfively pursuing the purchase of the Skyline Tower Project located at 1247 St. Anthony Avenue, District 11. Their proposal would be to acquire and rehabilitate the project units and develop an Advantage Center which would help tenants obtain education and career development to improve their economic potential. Briefly, the Skyline Tower apartments is a federally subsidized (HUD Section 236 Program) affordable rental housing project containing 506 units. The unit mix is comprised of 46 K:\SHARED\SANCHEZ'I1SkylineTOwerCiTyCouncil.mem 1 �� t� efficiencies, 322 one-bedroom and 138 two-bedroom units. There aze 22 units on each of the 23 floors. At the end of 1998 the average annual household income was under $10,000. Over half of the households aze on public assistance or receive social security benefits and about half work part-time. About 70% aze East African nvuiigrants or African-American; 20% are Southeast Asian and less than 10% aze white. Over 70% of households aze female headed. There are appro�mately 30Q cYrildren and less than 50 residents over 65 yeazs of age. Proposed Project Financing The proposed Skyline Tower Apartment project financing would use ta�c exempt revenue bonds and low income housing ta�c credits that are special for tax exempt bonds and aze not out of the City's annual allocation. The proposed Sources and Uses are as follows: Sources City Tas Exempt Bonds County Tax Exempt Bonds Znd Mortgage 4% T� Credits Surplus Cash Note Total $10,000,000 5,000,000 5,500,000 9,127,000 920.000 $30,547,004 Uses Acquisition Rehabilitation Soft Costs/fees Total $13,000,000 14,000,000 3.547.000 $30,547,000 It is proposed that the IIRA use funds provided by PiperJaffray to purchase the HIJD mortgage. By the IIRA holding the mortgage the federal Interest Reduction Payment ("IRP") remains with the project. HUD requires that a local jurisdiction must hold the mortgage when the I�CTD insurance is terxninated inorder for the IRP to remain in piace. The bond purchaser would use the bonds to purchase the mortgage form the HRA. The IRP funds would be used to pay for the second mortgage. The Minnesota Housing Finance Agency will be asked to provide the services of annual property inspection and tenant certification, both of which HUD currently performs but cease with the ternvnation of HiJD insurance. Ramsey County Participation The City does not have sufficient tax exempt revenue bond authority available for 1999. The participation by Ramsey County would be in their application to the Minnesota Department of Finance, pursuant to Minn. Stat., Ch. 474A, for an allocation of revenue bond authority from a limited pool of revenue bonds. The City as a suballocator cannot submit an application for revenue bonds from this pooi. The Ramsey County Commissioners are being asked to schedule a public hearing for July 27th at which they would solicit public comment and determine if an applicafion is to be submitted to the Minnesota Department of Finance far this project. This acrion bv Ramsev Countv would be proiect specific and would not occur if the CitY had sufficient ta�c exempt revenue bond authoritv. The City Council wili be asked at their 3uly 21 st meeting to consider a resolution, pursuant to Minn. Stat., Secs. 462C.01 and 496.004, that would authorize: Ramsey County to undertake and finance the project through the issuance of taY exempt K:\SHARED\SANCHEZ11SkylineTowerCityCouncil.mem 2 ��-��-� revenue bonds, if a successful applicant from the pool of revenue bonds allocated by the Minnesota Department of Finance, jointly with the City. This authorization by the City Council must occur prior to the Ramsey CounTy Boazd's consideration of an applicafion to the Minnesota Department of Finance. Attached is a resolution for the City CounciPs consideration at their July 14, 1999, meeting. Fnture Action If the Ramsey County Board authorizes an application then the City Council will be requested to approve a resolution authorizing the F3RA to exercise the powers granted in Minn. Stat. Secs. 462C.01 and 462C.08 to issue and sell up to $10,000,000 in tax exempt revenue bonds. cc: Mayor Coleman Susan Kimberly a� R:\SFL9RED\SANCHEZ11SkylineTOwerCityCouncil.mem 3