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85-1505 WMITE - CITV CLERK PINK - FINANCE G I TY O F SA I NT PA U L Council �/ CANARV - pEPARTMENT Flle NO. �� /� �LUE - MAVOR .Co cil Resolution . , Presented By c Referred o CommiUee: -Date Out of Committee By Date - WHEREAS, the Council of the City of Saint Paul has previously hereto adopted certain guidelines for intervention in public utility rate cases ; and WHEREAS , pursuant to said guidelines, one of the options with respect to such intervention was to form a coalition with other parties for the purpose of intervention; and WHEREAS , Northern States Power Company has filed with the Minnesota Public Utilities Commission a request for a $129 ,000,000 elec�ric rate increase for its Minnesota customers (MPUC Docket No. E-002/GR-85-558) ; and WHEREAS , pursuant to the aforementioned guidelines , the City Council did on October 17 , 1985, by Resolution (Council File No. 85-1410) , decide to support an effort to develop a con- sortium of cities ; to be a member of such consortium when developed; and to con�ribute up to $20, 000 toward the cost of such intervention; and WHEREAS , a consortium for intervention in said rate case is in the process o� being formed; and WHEREAS , the deadline for filing petitions to intervene in said case is November 8 , 1985 ; and WHEREAS, the Suburban Rate Authority has previously here�o filed in the aforemen-tioned rate case as an Intervenor; now, therefore, be it COUNC[LMEN Requested by Depactment of: Yeas p�� Nays n�asanz [n Favor Nicosia Scheibel Sonnen _ A gainst BY Tedesco W i Ison Form Approved by City Attorney Adopted by Council: Date Certified Passed by Council Secretary BY gy Approved by 1Aavor: Date Approved by Mayor for Submission to Council BY BY WHITE - CITY CLERK PINK - FINANCE GITY OF SAINT PALTL Council .� i CANARY - DEPARTMENT �'/J�(�f�' �LUE � MAVOR Flle � NO• -- � —/`� - Council Resolution Presented By Referred To Committee: Date Out of Committee By Date RESOLVED, that the City Attorney' s Office is hereby directed to negotiate appropriate terms with the Suburban Rate Authority and other interested parties to support the intervention efforts of the Suburban Rate Authority in concert with the Suburban Rate Authority; and, be it FURTHER RESOLVED, that the terms of any such agreement with the Suburban Rate Ruthority and other parties include payment by the City as and for the costs of such intervention an amount not to exceed $20,000. COUNCILMEN Requested by Department of: Yeas p�� Nays �J Masanz � In Favor �{i�ia-- Scheibel d sonnen _ Against BY Tedesco Wilson �oV — 7 �7U5 Form Approved ity Attorn Adopted by Council: Date Certified P� •s d uncil S r BY By t#pprove a or: Date —N� - 8 1 85 Approved by Mayor for Submission to Council By �r� BY ,> �R.�<< "'� esr�;,.� o l� 1���,. WMITE - CITV CLERK � .P�� •.- FINANCE GITY OF SAINT PAUL Council �n{-L�7 CANARV - DEPARTMENT File NO. ��/ ` /� BLUE - MAVOR � � . � � . � Council Resolution Presented � -�`^'��� Refe r To Committee: Date e Out f ommittee By Date _RESOLUTION RECITING A PROPOSAL FOR A FINANCING PROGRAM FOR A MULTI-FAMILY RENTAL HOUSING DEVELOPMENT, GIVING PRELIMINARY APPROVAL TO THE PROJECT AND THE PROGRAM PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C, AUTHORIZING THE HOUSING AND REDEVELOPMENT AUTHORITY OR MINNEAPOLIS/SAINT PAUL HOUSING FINANCE BOARD TO ISSUE HOUSING REVENUE BONDS AND AUTHORIZING THE SUBMISSION OF FINANCING PROGRAM FOR APPROVAL TO THE MINNESOTA HOUSING FINANCE AGENCY AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMEDTTS AND MATERIALS IN CONNECTION WITH THE SAID PROJECT AND PROGRAM (SHEPARD PARK DEVELOPMENT AREA PROJECT) WHEREAS, (a) Minnesota Statutes, Chapter 462C (the "Act) confers upon cities, or housing and redevelopment authorities or port authorities authorized by ordinance to exercise on behalf of a city the powers conferred by the Act, the pawer to issue revenue bonds to finance a program for the purposes of planning, admi.nistering,. making �or purchasing loans with respect to one or more multi-family housing developments within the boundaries of the city; . COUIVCILMEN Requested epartment of: Yeas Nays Fletcher Drew IIl Favor Masanz Nicosia scnetbe� __ Against BY Tedesco Wilson Form Ap roved by City Attor ey , Adopted by Council: Date Certified Yassed by Council Secretary BY By Approved by ;Navor: Date Approv by Mayo o Submis 'on to Council BY � '_ � ' _ � � • �'i,� �� /Sa10 . . ' . � (b) The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "HRA") has been designated, by ordinance, to exercise, on behalf of the City of St. Paul, Minnesota (the "City" ) the powers conferred by Minnesota Statutes, Section 462C.01 to 462C.08; (c) The HRA and the Minneapolis Community Development Agency (the "CDA" ) have - entered into a Joint Powers Agreement dated December 1, 1984 creating the Minneapolis/Saint Paul Joint Housing Board (the "Board" ) , which is authorized to exercise on behalf of the Cities of Minneapolis and St. Paul and the HRA and CDA the powers conferred by the Act; (d) The City has received from Shepard Park Partnership (the "Developer" ) a proposal that the City undertake a program to finance a Project hereinafter described, through the issuance of revenue bonds or obligations (in one or more series) (the "Bonds" ) pursuant to the Act; (e) The City desires to: facilitate the development of rental housing within the community; encourage the development of affordable housing opportunities for residents of the City; encourage the development of housing facilities designed for occupancy by persons of low or moderate income; and encourage the development of blighted or underutilized land and structures within the� boundaries of the City; and the Project will assist the City in achieving these objectives. (f) The Developer is currently engaged in the business of real estate development. The Project to be financed by the Bonds is the acquisition, construction and equipping of a multi-fami.ly rental housing development of approximately 500 rental units located at the northeast corner of Stewart Avenue and Madison Street, in the City of St. Paul, and consists of the acquisition of land and the construction of buildings thereon which will � . . , _ . � (��'�-i..�� ' result in the provision of additional rental housing opportunities to persons within the community; (g) The City has been advised by representatives of the Developer that con- ventional, 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 of operating the project would be significantly reduced, but the Developer has also advised the City that with the aid of municipal finaneing, and resulting low borrowing costs, the Project is economically more feasible; (h) A public hearing on the Project and the financing program therefor was held on October 29, 1985, after notice was published, and a copy of the program was submitted to the Metropolitan Council on or before the date said notice was published, all as required by Minnesota Statutes, Chapter 462C, at which public hearing all those appearing at said hearing who desired to speak were heard and written comments were accepted and considered; (i) No public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project; (j) The Developer has submitted to the HR.A a form of Memorandum of Understanding executed by the Developer, expressing certain understandings by and between the HRA and the Developer pertaining to the Project, and the financing therefor. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota, as follows: 1. The City hereby gives preliminary approval to the proposal of the Developer that the City undertake the Project, _ ' : . � . � � � �s—i�.s�� described above, and the program of financing therefor, pursuant to Minnesota Statutes, Chapter 462C, consisting of the acquisition, construction and equipping of multi-family rental housing facilities within the City pursuant to the Developer' s specifications and to a revenue agreement between the HRA or Board and the Developer on such terms and conditions with provisions for revision from time to time as necessary, so as to produce income and revenues sufficient to pay, when due, the principal and interest on the Bonds in the total principal amount of approximately $25,000,000 to be issued pursuant to the Act to finance the acquisition, construction and equipping of the Project; and said agreement may also provide for the entire interest of the Developer therein to be mortgaged to the purchasers of the Bonds, or a trustee for the holder(s) of the Bonds; and the City, acting by and through the HItA or Board, hereby undertakes preliminarily to issue its bonds in accordance with such terms and conditions; 2. At the option of the HRA or Board, the financing may be structured so as to take advantage of whatever means are available and are permitted by law to enhance the security for, or marketability of, the Bonds; provided that any such financing structure must be consented to by the Developer• 3. On the basis of information available to the City it appears, and the City hereby finds, that the Project consti- tutes a multi-family housing development within the meaning of subdivision 5 of Section 462C.02 of the Act; that the Project will be primarily occupied by persons of low or moderate income; the availability of the financing under the Act and the willingness of the City to furnish such financing will be a substantial inducement to the Developer to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the provision of additional multi-farnily rental housing opportunities to residents of the City, to assist in the redevelopment of blighted and marginal land and to promote more intensive development and use of land within the City; 4. The Project, and the program to finance the Project by the issuance of revenue bonds, is hereby given preliminary approval by the City subject to the approval of the financing program by the Minnesota Housing Finance Agency ( "MHFA" ) and subject to final approval by the HRA or Board, the Developer and the purchasers of the Bonds as to ultimate details of the financing of the project; 5. Pursuant to Chapter 72, Saint Paul, Minnesota, Aministrative Code, the City hereby authorizes and directs the ' ' � � � . �',l�' �'',5'=/S�jo . , HRA to issue the housing revenue bonds to finance the Project and to take all actions necessary or desirable in connection therewith, and no further approval or authorization of the City shall be required; provided that the HRA may, in its discretion, authorize the Board to issue the Bonds and to implement the program approved hereby, and the City hereby consents thereto; 6. In accordance with subdivision 5 of Section 462C.05, Minnesota Statutes, the Executive Director of the HRA is hereby authorized and directed to submit the program for financing the project to NIfiFA, requesting its approval, and other officers, and employees and agents of the City and HRP, are hereby authorized to provide MHFA with preliminary information as it may require; 7. The Developer has agreed and it is hereby determined that any and all costs incurred by the City, the HRA or the Board in connection with the financing of the Project whether or not the project is carried to completion and whether or not approved by NII-iFA will be paid by the Developer; 8. Briggs and Morgan, Professional Association, acting as bond counsel, and such investment bankers as may be selected by the HRA or Board, are authorized to assist in the preparation and review of necessary documents relating to the Project and the financing program therefor, to consult with the City Attorney, Developer and purchasers of the Bonds (or trustee for the purchasers of the Bonds) as to the maturities, interest rates and other terms and provisions of the Bonds and as to the covenants and other provisions of the necessary documents and submit such documents to the HRA or Board for final approval; 9. Nothing in this Resolution or the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived from the Project or otherwise granted to the City, the HRA or the Board for this purpose. The Bonds shall not consitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City, the HRA or the Board except the revenue and proceeds pledged to the payment thereof, nor shall the City, the HRA or the Board be subject to any liability thereon. The holder of the Bonds shall never have the right to compel any exercise of the taxing power of the City or HRA to pay the outstanding principal on the Bonds or the interest thereon, or to enforce payment thereon against any