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? Yes No
Yes X No Insurance Attached:
(SEE REVERSE SIDE FOR INSTRUCTIONS)
Revised 12/84
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