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85-1571 WHITE - GTV CIERK � PINK - FINANCE �G I TY OF SA I NT PA U L Council CANARV - DEPARTMENT F]ie NO. �� /��� BI.UF.� - M4MOR � � Cou c ' Resolution . � Presented By Referred To Committee: Date Out of Committee 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 PROGRI�M FOR APPROVAL TO THE MINNESOTA HOUSING FINANCE AGEbTTCY AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH THE SAID PROJECT AND PROGRAM (VIRGINIA CIRCLE PROJECT) w 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 p�aer to issue revenue bonds to finance a program for the purposes of planning, administering, making or purchasing loans with respect to one or more multi-family housing developments within the boundaries of the city; COUNCILMEN Requested by Department of: Yeas Drew Nays Masanz [n Favor Nicosia Scheibel Sonnen A gai n s t BY Tedesco W i Ison Form Approved_by City Att ney Adopted by Council: Date Certified Yassed by Council Secretary BY gy. A►pproved by Mavor: Date Appro d by Mayor for Submis n t Couqcil By B � ' � � �� ��-�.�7i (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 l, 1984 creating the Minneapolis/St. 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 David VanLanschoot and Gene Peterson (collectively, 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-family rental housing development , • � . ��'��_ IS'I l of approximately 16 rental units located at the intersection of Wheelock Parkway and Arlington Street, in the City of St. Paul, and consists of the acquisition of land and the construction of buildings thereon which will 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 financing, 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 November 26, 1985, after notice was published, all as required by Minnesota Statutes, Section 462C.05, subd. 5, at which public hearing all those appearing at said hearing who desired to speak were heard and written comments were accepted and considered; (i) LJo 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 HRA 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, 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 $600,000 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 tlze HRA 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-family 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; . . . ' . C�j--�"� 157/ 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 Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "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 MHFA, requesting its approval, and other officers, and employees and agents of the City and HRA 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 MHFA 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; WHITE - CITV CLERK � PINK � - FINqNGE GITY OF SAINT PAUL Council CANARV - DEPARTMENT F11C NO. ��-/��� BLUE• ��- MAVOR Council Resolution Presented By Referred To Committee: Date Out of Committee By Date 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 froin 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 property of the City, the HRA or the Board, except such property as may be expressly pledged for the security of the Bonds. The Bonds shall recite in substance that Bonds, including the interest thereon, are payable solely fran the revenue and proceeds pledged to the payment thereof. The Bonds shall not constitute a debt of the City or HRA within the meaning of any constitutional or statutory limitation; 10. In anticipation of the apprwal by MHFA arr3 the issuance of the Bonds to finance all or a portion of the Proj ect, ar�d in order that completion of the proj ect will not be unduly delayed when approved, the Developer is hereby authorized to make such experr3itures arrl advances toward payment of that portion of the costs of the Project to be financed fran the proceeds of the Bonds, as the Developer considers necessary, including the use of interim, short-term financing, subject to reimbursement fran the proceeds of the Bonds if any when delivered but otherwise without liability on the part of the City, the HRA or the Board . COUNCILMEN Requested by Department of: Yeas p�� Nays Masanz � (n Favor Nicosia -�-- Scheibel sonnen � _ Against BY Tadesco W i Ison Adopted by Council: Date NOV 2� 1985 Form Approved by City Attorney Certified Passed ' Sec ry BY � By A►ppro y Mavor: Date �NOV 2 17�� Appro y Mayor for is uncil BY - BY .'PUBI{SNE� D E C 7 - 198.� PED Housing . .DEPARTMENT C����""�/��I No 350 , Garv Peltier CONTACT . 7494 - 259 PHONE � �� � DATE Q/ Q ASSIGN NUMBER FOR ROUTING ORDER Cli All Locations for Si nature : partment Director � Director of Management/Mayor Finance and Management Services Director 5 City Clerk Budget Director 1 Ken Johnson � City Attorney WHAT'WILL BE ACHIEVED BY TAKING ACTION ON THE ATTACHED MATERIALS? (Purpose/ Rationale) : Preliminary approval of proposed rental housing project with revenue bond financing COST/BENEFIT, BUDGETARY AND PERSONNEL IMPACTS ANTICIPATED: �? c�-. Developer fees pay all PEO costs; no personnel impact NOV �l�`� MAy� ,2G �9�� RSOFFiCE , FIiVANCING SOURCE AND BUDGET ACTIVITY NUMBER CHARGED OR CREDITED: (Mayor's signa- Initial $2,000 fee, and ture not re- Total Amount of Transaction: closing and ongoing fees quired if under $10,00Q) Funding Source: N/A Activity Number: To be received in activity 36614 ATTACHMENTS (List and Number All Attachments) : Resolution DEPARTMENT REVIEW CITY ATTORNEY REVIEW �Yes No Council Resolution Required? Resolution Required? Yes No Yes x No Insurance Required? Insurance Sufficient? 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