85-1109 `NHITE - C�7V CLERK
PINK � - FINANCE G I TY OF SA I NT PAU L Council
CANARV - DEPARTMENT ryry
BLU� ..j MAVOR File NO• _//� `
1
� �� � Cou i ol ion
Presented By
Referred T Committee: Date
Out of Com ittee By Date
RESOLUTION RECITING A PROPOSAL FOR A
FI ANCING PROGRAM FOR A MULTI-FAMILY RENTAL
OUSING DEVELOPMENT, GIVING PRELIMINARY
PPROVAL TO THE PROJECT AND THE PROGRAM
PURS ANT TO MINNESOTA STATUTES, CHAPTER 462C,
AU HORIZING THE HOUSING AND REDEVELOPMENT
AUT ORITY OR HOUSING FINANCE BOARD TO ISSUE
HO SING REVENUE BONDS AND AUTHORIZING THE
SUB ISSION OF FINANCING PROGRAM FOR APPROVAL
TO THE MINNESOTA HOUSING FINANCE AGENCY AND
A THORIZING THE PREPARATION OF NECESSARY
DOCUMENTS AND MATERIALS IN CONNECTION
WITH THE SAID PROJECT AND PROGRAM
(SCENIC CREST APARTMENTS PROJECT)
WH REAS,
(a) Minnesota Statutes, Chapter 462C
(t e "Act') confers upon cities, or housing
an redevelopment authorities or port
au orities authorized by ordinance to
ex rcise on behalf of a city the powers
co ferred by the Act, the power to issue
re nue bonds to finance a program for the
pu oses of planning, administering, making
or urchasing loans with respect to one or
mo multi-family housing developments within
the boundaries of the city;
COUIVCILMEIV Requested by Department of:
Yeas Nays
Fletcher
°'ew [n Favor
Masanz
Nicosia
Schelbel __ Against BY
Tedesco
Wilson
Form Approved by City Attorney
Adopted by Council: Date
Certified Passed by C neil Secretary BY---���d�/'
gy,
t#pproved by 1Vlavor: ate Approved by Mayor for Submission to Council
By By
,�
" �� �'S /���`
.
, (b) The Housing and Redevelopment
Au hority of the City of Saint Paul,
i Mi nesota (the "HRA" ) has been designated, by
or inance, to exercise, on behalf of the City
of St. Paul, Minnesota (the "City" ) the
po ers conferred by Minnesota Statutes,
Se tion 462C .01 to 462C.08 ;
� (c) The HRA and the Minneapolis
Co unity Development Agency (the "CDA" ) have
' en ered into a Joint Powers Agreement dated
De ember 1, 1984 creating the
Mi neapolis/Saint Paul Housing Finance Board
(t e "Board" ) , which is authorized to
i ex rcise on behalf of the HRA and CDA and the
Ci ies of Minneapolis and St. Paul the powers
� co ferred by the Act;
(d) The City has received from Gary
He enes, David McGuire, Wayne Rixmann and Ken
, No dling (jointly, the "Developer" ) a
i pr posal that the City undertake a program to
, fi ance a Project hereinafter described,
th ough the issuance of revenue bonds or
ob igations (in one or more series) (the
"B nds" ) pursuant to the Act;
(e) The City desires to: facilitate
th development of rental housing within the
co unity; encourage the development of
af ordable housing opportunities for
re idents of the City; encourage the
de elopment of housing facilities designed
fo occupancy, in part, by low income persons
� an families; and encourage the development
� of blighted or underutilized land and
i st uctures within the boundaries of the City;
� an the Project will assist the City in
I ac ieving these objectives.
(f) The Developer is currently engaged
j in the business of real estate development.
Th Project to be financed by the Bonds is
th acquisition and rehabilitation of a
mu ti-family rental housing development of
ap roximately 108 rental units together with
fu ctionally related facilities located on
. . (!�-�s-//0 9
i '
�
' Ru h Street or Hudson Road in the City of St.
Pa 1, and consists of the acquisition of
bu ldings and equipment and the
re abilitation thereof which will result in
th provision of additional decent, safe and
sa itary rental housing opportunities to
j pe sons within the community;
(g) The City has been advised by
re resentatives of the Developer that con-
ve tional, commercial financing to pay the
ca ital costs of the Project is available
i on y on a limited basis and at such high
! co ts of borrowing that the economic
fe sibility of operating the project would be
si nificantly reduced, but the Developer has
al o advised the City that with the aid of
mu icipal financing, and resulting low
, bo rowing costs, the Project is economically
mo e feasible;
(h) A public hearing on the Project and
- th _ financing program therefor was held on
''� - Se tember 20 , 1985 , after notice was
' pu Jished, all as required by Minnesota
St tutes, Section 462C.05 , subd. 5, at which
pu lic hearing all those appearing at said
he ring who desired to speak were heard;
( i) No public official of the City has
ei her a direct or indirect financial
in erest in the Project nor will any public
! of ieial either directly or indirectly
be efit financially from the Project:
I
(j ) The Developer has submitted to the
H a form of Memorandum of Understanding
ex cuted by the Developer, expressing certain
un erstandings by and between the HRA and the
, De eloper pertaining to the Project, and the
� fi ancing therefor.
NO THEREFORE, BE IT RESOLVED by the City Council of
t e City of aint Paul, Minnesota, as follows:
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1. The City hereby gives preliminary approval to the
pr posal of he Developer that the City undertake the Project,
de cribed ab ve, and the program of financing therefor,
pu suant to innesota Statutes, Chapter 462C, consisting of the
ac uisition nd rehabilitation of multi-family rental housing
fa ilities w' thin the City pursuant to the Developer's
sp cificatio s and to a revenue agreement between the HRA and
th Develope on such terms and conditions with provisions for
re ision fro time to time as necessary, so as to produce
in ome and r venues sufficient to pay, when due, the principal
an interest on the Bonds in a total principal amount not to
ex eed $3,00 ,000 to be issued pursuant to the Act to finance
th acquisit'on and rehabilitation of the Project; and said
ag eement ma also provide for the entire interest of the
�e eloper th rein to be mortgaged to the purchasers of the
Bo ds, or a rustee for the holder(s) of the Bonds; and the
Ci y, acting by and through the HRA or the Board, hereby
un ertakes p eliminarily to issue its bonds in accordance with
su h terms a d conditions;
2. At the option of the HRA or Board, the financing
ma be struc ured so as to take advantage of whatever means are
av ilable an are permitted by law to enhance the security for,
or marketabi ity of, the Bonds; provided that any such
fi ancing st ucture must be consented to by the Developer.
3. On the basis of information available to the City
it� appears , nd the City hereby finds, that the Project consti-
tu es a mult'-family housing development within the meaning of
su division of Section 462C.02 of the Act; that the Project
wi 1 be occu ied in part by low income persons and in part by
lo or moder te income persons; the availability of the
fi ancing un er the Act and the willingness of the City to
fu nish such financing will be a substantial inducement to the
De eloper to undertake the Project, and that the effect of the
Pr ject , if ndertaken, will be to encourage the provision of
ad itional m lti-family rental housing opportunities to
re idents of the City, to assist in the redevelopment of
bl ghted and arginal land and to promote more intensive
de elopment nd use of land within the City;
4. The Project, and the program to finance the
Pr ject by t e issuance of revenue bonds, is hereby given
pr liminary pproval by the City subject to the approval of the
fi ancing pr gram by the Minnesota Housing Finance Agency
( " HFA" ) and subject to final approval by the HRA or Board, the
De eloper an the purchasers of the Bonds as to ultimate
de ails of t e financing of the project;
- - i
, ' . (���-��Q q
� 5. Pursuant to Chapter 72, Saint Paul, Minnesota,
Am nistrativ Code, the City hereby authorizes and directs The
Ho sing and edevelopment Authority of the City of Saint Paul,
Mi nesota (t e "HRA" ) to issue the housing revenue bonds to
fi ance the roject and to take all actions necessary or
de irable in connection therewith, and no further approval or
au horizatio of the City shall be required; provided that the
HR may in i s discretion authorize and direct the Board to
is ue the Bo ds and the City hereby consents thereto;
6. In accordance with subdivision 5 of Section
46 C.05, Min esota Statutes, the Executive Director of the HRA
is hereby aut orized and directed to submit the program for
fi ancing the project to MHFA, requesting its approval, and
otmer office s, and employees and agents of the City and HRA
ar hereby authorized to provide MHFA with preliminary
in ormation as it may require;
7. The Developer has agreed and it is hereby
de ermined that any and all costs incurred by the City or HRA
in connectio with the financing of the Project whether or not
th project i carried to completion and whether or not
ap roved by HFA will be paid by the Developer;
8. Briggs and Morgan, Professional Association,
ac ing as bo counsel, and such investment bankers as may be
se ected by t e HRA or Board with the consent of the Developer,
ar authorize to assist in the preparation and review of
ne essary doc ments relating to the Project and the financing
pr gram therefor, to consult with the City Attorney, Developer
an purchaser of the Bonds (or trustee for the purchasers of
th Bonds) as to the maturities, interest rates and other terms
an provision of the Bonds and as to the covenants and other
pr visions of the necessary documents and submit such documents
to ! the HRA or Board for final approval;
� 9. Nothing in this Resolution or the documents
pr pared purs ant hereto shall authorize the expenditure of any
mu icipal fun s on the Project other than the revenues derived
fr m the Proj ct or otherwise granted to the City, HRA or Board
fo this purp se. The Bonds shall not consitute a charge, lien
or encumbranc , legal or equitable, upon any property or funds
of the City, RA or Board except the revenue and proceeds
pl dged to th payment thereof, nor shall the City or HRA be
su ject to an liability thereon. The holder of the Bonds
sh 11 never h ve the right to compel any exercise of the taxing
po er of the ity or HRA to pay the outstanding principal on
i
WHITE � - CITV��LERK
PINK -�FINANCE GITY OF SAINT PALTL Council .
CANARV - DEPARTMENT File NO• /�S//D�
BLUE r MAVOR
�
= Co nc ' e lut 'on
Presented By
Referred T Committee: Date
Out of Com ittee By Date
th Bonds or the interest thereon, or to enforce payment
th reon agai st any property of the City, HRA or Board. The
Bo ds shall ecite in substance that Bonds, including the
in erest the eon, are payable solely f rom the revenue and
pr ceeds ple ged to the payment thereof. The Bonds shall not
co stitute a debt of the City or HRA within the meaning of any
co stitution 1 or statutory limitation.
10. In anticipation of the approval by MHFA and the
is uance of he Bonds to finance all or a portion of the
Pr ject, and in order that completion of the project will not
be unduly de ayed when approved, the Developer is hereby
au horized t make such expenditures and advances toward
pa ent of t at portion of the costs of the Project to be
fi anced fro the proceeds of the Bonds, as the Developer
co siders ne essary, including the use of interim, short-term
fi ancing, s bject to reimbursement from the proceeds of the
Bo ds if any when delivered but otherwise without liability on
th part of he City, HRA or Board.
11. The Developer may assign its rights hereunder and
un er the Me orandum of Understanding on the terms and
co ditions e pressed in the Memorandum of Understanding.
Ad pted by the City Council of the City of Saint
Pa 1, Minnes ta this day of September, 1985.
COUNCILMEN Requested by Department of:
Yeas � Nays �
Drew Irt FBVOi
Masanz
Nicosia
scheibe� __ Against BY
Tedesco
Wilson
Adopted by Council: Date AUG 2 0 1985 Form Approved by City Attorney
Certified Pass d uncil S t y By ���-v ' �
By `
Approve y � avor. ate A�1G 2 3 1985 App y Mayor for Submi
By _
PUBUSHED Al}� 3 � 1g8'S
� �� � � � . DE PARTMENT ' � //B�' N� 19 2 6
�0�t �nC • � CONTACT � �
�y� -/S�7 �-b PHONE �
� 6 .S � DATE 1 ��� '`�. F� ,
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ASSIGN NUMBER FOR OUTING ORDE Cli Al1 Locations for Si nature :
� Department Dir ctor � Director of �Managemen��Pl�y�rTORN�Y
Finance and Ma agement Ser ices Director City Clerk
Budget Di recto �'J,� ` ?-� � �
2 City Attorney
WHAT WILL BE ACHIE ED BY TAKIN ACTION ON THE ATTACHED MATERIALS? (Purpose/
, � � , ,a Rationale) • �
. �eSa�U��o-� � h a� �2 �ie �.� ,H�Y�; a��r d�wt � �� �7�i� iss� e Q � ,b�a�s��-�
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COST/BENEFIT BUDG TARY ANQ PE SONNEL IMPACTS ANTICIPATED: � �� '�"
' � ��,'�s o�f'���`� Z-d ��
�c �i�sf,o�; � -�� r��� ;l� � �i� � /4� �
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FINANCING SOURCE A D BUDGET AC IVITY NUMBER CNARGED OR CREDITED: (Mayor's signa-
ture not re-
Total Amount ofllTransaction ;-, _ -,-�� ' ; quired if under
� ; $10,000)
Funding Source: I ��j'i;;; � � �,�3�� �
Activity Number�
ATTACHMENTS List nd Number Al1 Atta.chments : �IJ,,��,C� �� /�Q����
r /V
/��� d�!/��O ti �--- �
DEPARTMENT REVIEW CITY ATTORNEY REVIEW
�Yes No Coun il Resoluti n Required? Resolution Required? �Yes No
Yes No Insu ance Requir d? Insurance Sufficient? Yes No
Yes No Insu�ance Attach d:
� (SEE EVERSE SIDE FOR INSTRUCTIONS)
Revised 12/84 � �
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�Os
CITY OF SAINT PAUL
INTERDEPARTMENTAL MEMORANDUM ,
DATE: AUGUST , 1985
T0: ALBERT LSON, CITY CLERK
FROM: SHERI P MBERTON, DEPT. OF PED ,d.P
SUBJ CT: CITY CO CIL PUBLIC HEARING FOR AUGUST 20, 1985
�
Attac�hed is a cop of the Publ.ic Heari.ng Notice , which was p�blished
in thle St. Paul L gal Ledger az�d the St. Paul Pioneer Press and
Dispa�tch on Satur ay, August 3, 1985.
Please place this Public Hearing on the City Council Agenda for
Tues ay, August 2 , 1985. A City Council Resolution will be forwarded
to y u by the Cit Attorney's Office, prior to the City Council Meeting.
Than you.
SAP: f
Atta ment
cc: ecky Hartm , Tom Sanchez
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NOTICE OF PUBLIC HEARING ON
PR POSAL FOR A PROGRAM TO FINANCE A
MULT -FAMILY RENTAL HOUSING DEVELOPMENT
( CENIC CREST APARTMENTS PROJECT)
To whom it may co cern:
Notice ' s hereby given that the City Council of the
City of Saint Pau , Minnesota will meet in the City Council
Chamber at the C' ty Hall in the City of Saint Paul, Minnesota at
10: 00 o clock a.m on August 20, 1985, to consider the proposal
of GARY HEGENES, AVID McGUIRE, WAYNE RIXMANN & REN NORDLING (the
"Develo er") that the City undertake a program to finance the
develop ent herei after described, pursuant to the City's housing
plan un er Minnes ta Statutes, Chapter 462C, by the issuance of
revenue obligatio s.
The Dev lopment
The dev lopment consists of the acquisition
and reh bilitation and equipping of a 74,214
square oot (approximately) multi-family •
rental ousing development of approximately
-� 108 res dential rental units located at
Ruth an Hudson Road in Saint Paul,
Minneso a. Not less than 20� of the units
in the evelopment will be occupied by
persons of low income, a category presently
defined under federal law to mean persons or
familie whose income is 80$ or less of the
median ncome (adjusted for family size) for
the St. Paul area as determined by the United
States epartment of Housing and Urban
Develop ent. Total approximate development
costs o the Project will be approximately
$3,360, 00. The Development will be owned
and ope ated by the Developer or a
partner hip or other entity to be formed in
which t e Developer or its principals will be
general partners. Non-housing components
may be 'ncluded within the development but
substan ially all (90�) of the development
will co sist of rental housing and
functio ally related facilities.
The est 'mated principal amount of bonds or other obli-
gations to be iss ed to finance the Development will be
approxi ately $3, 00,000. The Bonds or other obligations may be
issued y the Min eapolis/Saint Paul Housing Finance Board (the
"Board") or by th Housing and Redevelopment Authority of the
City o Saint Pau , Minnesota (the "HRA") .
1
, �. � � ��,���09
Said bon s or other obligations, as and when issued,
will not constitut a charge, lien or encumbrance upon any pro-
perty of the City, the HRA or the Board except the Development
and the evenues t be derived from the Development. Such bonds
or oblig tions wil not be a charge against the City's or HRA`s
general redit or axing powers but are payable from sums to be
paid by he owner f the Development pursuant to revenue
agreemen s.
Further ' nformation concerning the Development, and the
financi g programs therefor, may be obtained from the Housing
Divisio , Departme t of Planning and Economic Development, City
Hall An ex - 12th loor, 25 West 4th Street, St. Paul, Minnesota
55102 ( elephone 292-1577) .
At the time and place fixed for the public hearing, the
City Co ncil of the City of Saint Paul, Minnesota will give all
persons who appear at the hearing an opportunity to express their
views w'th respect to the proposal. Written comments will be
conside ed if sub itted to the Housing Division on or prior to
the dat of the hearing. .
Dated t is lst day of Auaust, 1985.
(BY ORDER OF THE CITY COUNCIL OF
THE CITY OF SAINT PAUL, MINNESOTA)
BY s/Albert Olson
City Clerk
2
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�-� ��t� ,, '+ . CITY OF SAINT PAUL
DEPARTMENT OF PLANNING AND ECONOMIC DEVELOPMENT
o = a DIVISION OF DOWNTOWN DEVELOPMENT
a �==j��i�u a' 25 West Fourth Street,Saint Paul,Minnesota 55102
�o ^° 612-292-1577
+�s.
GEORGE UTIMER
MAYOR
St, aul Dispatc and Pioneer Press August 1, 1985
345 edar St.
St. aul, MN 55 O1
Atte tion: Rose ary Frank
, RE: LEGAL NOTICE
NOTICE OF PUBLIC HEARING
ON PROPOSAL FOR A PROGRAM
TO FINANCE A MULTI-FAMIZY
RENTAL HOUSING DEVELOPMII�IT
; (SCENIC CREST APARTMENTS
RENTAL HOUSING)
Gent emen:
Att ched is a No ice of Public Hearing on a Proposal for a Programl to
Fin ce a Multi- amily Rental Housing Development (Scenic Crest Ap�t-
ment Pro�ect) .
Ple se publish t is Notice in the St. P aul Pioneer Press and Disp atch
for Saturday ,. Au ust 3, 1985.
If ou have any uestions , please do not hesitate to contact me at
292 1577 , extens on 231.
Sin erely,
Ct. �J'��
She yl A. Pembe ton
Rea Estate Adm istrator
SAP rmf
Att chment
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, L�'� �'�=-�/09
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Itfr.° - • , �/� '�q�� ��ff ` ;;..�Aa � �.� ...
., . ..� AV��701'aL'iV��i����� ��w �� 4� aF� y� .
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(SC�iIC CRL�3T Al.I�1L'!'�IIEN'1'�PR4JF.C'� � ;j � '� '
.; _a`�e ..�. � _ , ��R� . . . �t . .
To wti��r if maq caicern• ° _ _. .�=� ~ • . .'� °- . >�-;:s,� r ::
' Nntice,is he Y given that t�e �ity f�a►�ncil of fhe: � , °� �_
G�+li!`�t �il1,'.
Miniiesota will eet fn the City Council.Charnbers at the City�Ial��#�tp . n�,>
Sai�t Pa��. , .a.�aw`a i4 t 20,� �fi��a���:
. �
��Po�o G� NES. -
�����(t �veloper")that.the Gitq under'take a�ppt����
develoP�t ter d bec�.putsuast�1ao,the Cit3►;��.��a�;�p;�er
Minae�a StsiY� �,,Ctia�te�C;by.th��stkt�q�,,Qt.�'e,y��uuq�li�t#,ioua� •-;�:
The Dev�1 t .. .�,- . ,�'.., .
. ;� - _
. " -Tt�-ste- � �t �ts ae.t���a isrt�o�€ �ia_���t�"� =
; ,���� - �<�-
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�t tl� ��1�� -- -- �
Iii, .
�r�� �fbrawM�lV�t --
a�i����i��i► _
. ,-- .�-�.�(' ?"- ��.�_����+�.�__ r,
� m for family s )for the St:Paui area as determined by the gtes ''�"`'
D�rner�t,� 4.�Iousiag �qd-�n Developa�eat. Totsi a�s�o
� ��deve�opme�#; , oi the Pra�eet wiil be appro�eimately i3.380,�• �- ,
Developma�nt will be o�� and operated by E8e Develbper or a
� +��� >���ed�-w "a-. �.�Uerek?�';oss:�t�;
=`���" � ls�get��"P� V� ,inpow ,�g: -
incluaad the deretopment .btit`su�trt���a�1pC���).�� '
' t�tvelopment wiil consist of i�ental fiouain� anc�: 3�'i� 'lat
iacilities. �r•;- , �>. ,
The estima P�P��t-of�borsda rmot�er obligatios�s to be iasued to
�he Deve t wiA be#3 OQD�0(1., e, ds or a��;o t
�ssued by the po lis/Sai�E�"at��`H" " � �Vairdi r
the Housing aad Redevelopmeat Authorl of Eh@ Gi
:tth�': ►•�- �`.F, . °� °i ��t``� ,�1.
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.{��as' �t�o��diget�ot3�','�; t�'� „� , ' , -
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