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84-1191 WHITE - C�7V GLERK PINK - FIINANCE GITY OF SAINT �PAUL Council CA�'�'R" - DcPARTMENT l� BLU� - MAVOR . [ille NO. �� // � � � � Council 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 TO ISSUE HOUSINC REVENUE BONDS AND AUTHORIZING THE SUBMI$SION OF FINANCING PROGRAM FOR APPF�OVAL TO THE MINNESOTA HOUSING FINANCE1AGENCY AND AUTHORIZING THE PREPARATI(�N OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH THE SAID PROJECT AND PROGRAM (LOWERTOWN LOFTS PARTNERSHIP PROJECT) WHEREAS, • (a) Minnesota Statutes, Chapter 462C (the "Act") confers upon cities, or housing and redevelopment authorities or port authorities authorized by orc�inance to exercise on behalf of alcity the powers conferred by the Act, the power to issue revenue bon�ds to finance a program for the purposes of planning, administeringi, making or purchasing loans with respect to one or more multi—familiy housing developments within the boundaries of the city; (b) The Housing and Redevelopment Authorit�y of the City of Saint Paul, Minnesota (the "HRA") has been designated. by or�inance, 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; , COUNCILMEN Requested by Department of: Yeas Nays , Fletcher , � Drew In Favor Masanz NiCOSia schetbe� __ Against ' BY ti Tedesco , Wilson � � Form A`p¢Eoved by City Attorney Adopted by Council: Date I � , J f/ Certified Passed by Council Secretary I By�1,�•�•Ll N By ! Approved by ;Navor: Date i Approved Mayo or bmi ion to Council By _ P NKE - r7NA CE RK � G I T Y O F s A I 1�T T �A LT L Council n � CAM:ARV - DEPARTMENT File NO• V �_ // � BLUE - MAYOR � � Council Resolution Presented By � Referred To ' Committee: Date Out of Committee By , Date J 2 '� • v- (c) The City has received from Lowertown Lofts Partnership, a Minnesota limited partnership to be formed with Asset Development Services, Inc, and a St. Paul Art Collective as general partners (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; (d) The City desires to: facilitate the devQlopment of rental housing within the community; encourage the development of affordable housing opportunities for residents of the City; encourage th� 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. (e) 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 renovation of multi—family rental housin; development of approximately 30 studio living units located on the u�pper three floors of 255 East Kellogg Boulevard, and consists of the acquisitlion of land and the construction of buildings thereon which will result in 'the provision of additional rental housing opportunities to persons within the community; (f) The City has been advised by represent�ltives 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 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; i COUNC[LMEN i Requested by Department of: Yeas Nays Fletcher Masanz �R �8V0[ � Nicosia l sche�bei __ Against i By Tedesco I Wilson I Form Approved by City Attorney Adopted by Council: Date Certified Passed by Council Secretary BY By t#pproved by Mavor: Date _ Approved by Mayor for Submission to Council By - BY M�HITE - C�ITV CLERK PINK - PINANCE GITY OF SAINT PAITL Council ��_ / CAMARV - OEPARTMENT BLUE - MAVOR File NO�. // / � Council Re,!solution Presented By ' Referred To Committee: Date Out of Committee By Date � � � (g) A public hearing on the Project and the financing program therefore was held on September 4, 1984, 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; (h) No public official of the City has eith�r a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project; (i) The Developer has submitted to the HRA a form of Memorandum of Understanding executed by the Developer, expressing certaifl 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 equjpping of multi—family rental housing facilities within the City pursuant to ti�e Developer's specifications and to a revenue agreement between the HRA and �he Developer on such terms and conditions with provisions for revision i�rom 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 a total principal amount not to exceed $540,000 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 thehd der(`s) of the Bonds; and the City, acting by and through the HRA, hereby un�ertakes preliminarily to issue its bonds in accordance with such terms and �onditions; COUIVCILMEN ' Requested by Department of: Yeas Nays Fletcher Drew In F�vor Masanz Nicosia scnelbe� __ Against i BY Tedesco Wilson , Form Approved by City Attorney Adopted by Council: Date Certified Passed by Cauncil Secretary I BY By t�pproved by lNavor. Date ' Approved by Mayor for Submission to Council I By i By WHITE - CJTV CLERK PINK - FINANCE GITY OF SAI 'NT PAUL Council CANARY - DEPARTMENT X/� (//� BLUE - MAYOR File NO. u - // / � � � Council Re�olution Presented By I Referred To I Committee: Date Out of Committee By Date --1 J�- — 2. At the option of the Developer, the financing may be structured so as to take advantage of whatever means are avaiilable and are permitted by law to enhance the security for, or marketabili�y of, the Bonds; provided that any such financing structure. must be approved by the HRA. 3. On the basis of information available tolthe City it appears, and the City hereby finds. that the Project constitut�s a multi—family housing development within the meaning of subdivision 5 of S�ction 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 l�ct 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 promotg 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 programlby the Minnesota Housing Finance Agency ("MHFA") and subject to final applroval by the HRA, 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, Administrative 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; � COUNCILMEN Requested by Department of: Yeas Nays Fletcher Drew [❑ F8V0[ Masanz NiCOSia sche�bel __ Against � BY Tedesco Wilson i ; Form Approved by City Attorney Adopted by Council: Date Certified Passed by Council Secretary By By t�pproved by �Vlavor. Date � Approved by Mayor for Submission to Council BY BY WHITE - ClTV CLERK PINK - FINANCE G I TY O F SA I�TT PA U L Council /! CANARV - DEPARTMENT Flle NO. +� � //� BLUE - MAYOR 1 � Council Re�olution Presented By _;_ Referred To Committee: Date Out of Committee By Date ' �'" 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 proaect to MHFA, requesting its approval, and other officers, and employees and agents of the City and HRA are hereby authorized to provide MHFA with prelimina�ry information as it may require; 7. The Developer has agreed and it is hereb� determined that any and all costs incurred by the City or HRA 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 Dev�loper; 8. Briggs and Morgan, Professional Association, acting as bond counsel, and such investment bankers as may be selected by the Developer with the consent of the HRA, 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 Attor�hey, Developer and purchasers of the Bonds (or trustee for the purchasers of the Bonds) as to the maturities, interest rates and other terms and provi�ions of the Bonds and as to the covenants and other provisions of the necessary documents and submit such documents to the HRA for final approval ; l 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 or HRA for this purpose. The Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City or HRA except the revenue and proceeds pledged to the payment thereof, nor shall the City or HRA be subject to any liabil�ity 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 princ�ipal on the Bonds or the interest thereon, or to enforce payment thereon against any property of the City or HRA, The Bonds shall recite in substanc'e that Bonds, including the interest COUNCILMEfV Requested by Department of: Yeas Nays � Fletcher °'ew [n Favor Masanz � Nicosia SCheibel __ AgeipSt BY _ Tedesco I Wilson I Form App ed by City Attorney Adopted by Council: Date � Certified Passed by Council Secretary I, BY-�a�l� •/•/�c/ By tapproved by Mavor: Date Approved by Mayor for Submission to Council BY I BY WHITE �p GrTV CLERK � . PINH� - FINANCE GITY OF SAINT PAUL Council A CANARV - DEPARTMENT File NO. ,��/r / � BLUE -MAYOR � � Council Re olution Presented By Referred To Committee: Date Out of Committee By Date � � — , thereon, are payable solely from the rev�nue 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 approval by MHFA �nd the issuance of the Bonds to finance all or a portion of the Project, and in order that completion of the project will not be unduly delayed when approved, the Developer is hereby authorized to make such expenditu es and advances toward payment of that portion of the costs of the Proj ,ct to be financed from the proceeds of the Bonds, as the Developer considers necessary, including the use of interim, short—term financing, subject to reimbursement from the proceeds of the Bonds if any when delivered by oth,erwise without liability on the part of the City or HRA. � Adopted by the City Council of the City of Saint Paul, Minnesota this day of September, 1984. , I , COUNCILMEN Request De ent of: Yeas ��,�,,. _llNy� ' �� -�.�r ��t Masanz In Favor Nicosia Scheibel � __ Against BY - Tedesco Wilson ��*� � '��,(� ��orm Approved by' City Attorney Adopted by Council: Date Certified Y . b Council e By �7��i1�/'�ifi�/�Cl.�� sy Approv y iNavor. Da �7EP I O 19� Approved by Mayo for ub ' sion to Council By PUBLlSHED S E P 151984 � j ��/- �/gi PED DEPARTFIENT � Steve Thompson CONTACT I 292-1577 ext. 250 pHONE v 8/29/84 DATE 1 ' �� r � ' (Ronti�g and Explanation Sheet) Assign Number for Routing Order (C1ip Al1 Loca�io�s for Mayoral Signature): . ��Department Di rector . . � l) �� City Attorney a-� � Director of Management/Mayor i ��,-�.,.�t:�:;�r � �4�, .. Fi nance and Management Servi ces Di rector i �� . � `�.'�' ��.�G!� �r�� ` �p� City Clerk �� `k��itGC �_ +;^y �' �-;� � Budget Director ��o�`�""� � /��---� S 1��%''�':�:�r�j� :�.��'"- � ?� � 2 �� ;lZ / -� � , i�hat Will be Achieved by Taking Acti�n on the J�tt�ched Materfals? (Purpose/Rationale): Preliminary approval for issuance of $540,000 n housing revenue bonds for financing Lowertown artist housing project creating 30 1 w to moderate income rental units in building at 255 E. Kellogg. Financial Bud ta and Personnel I acts Ant ci ted: Total financing for this $1,350,000 roject in luides Neighborhood Partnership Program (NPP) funds, other PED rental housing program fin�ancing, and Foundation support. , Fundin Source and Fund Activit Nu r Cha dr Credited: To be assigned. � Attachments tist and Number all Attiachments : Resolution � DE1�4RTMENT REVIEW CITY ATTORNEY REVIEW X Yes No Council Resolutian Required Resolution Required? X Yes No Yes X No Insurance Required? Insurance Sufficient? Yes No Yes X No Insurance Attache�? Revision of October, 1982 I ' fSPe RPVPI"�P SidP for �Instructions) i , . � � ��- ir �i +��: FfLEO ��fG �Z E� 5� A� �� CITY OF SAINt PAUL INTERDEPARTMENTAL MEMORANDUM��Y CI.ERK'S (3�FICE S�' Ps"�IJ�.� l-SIPIN. DATE: AUGUST 16, 1984 T0: AL OLSON, CITY CLERK FROM: SHERI PEMBERTON, PED � I SUBJEGT: CITY COUNCIL PUBLIC HEARING F(�R SEPTEMBER 4, 1984 Attached is a copy of the Public Hearin� Notice, which will be published in the St. Paul Legal Ledger and the Sti Paul Pioneer Press and Dispatch on Saturday, August 18, 1984. Please place this Publie Hearing on the City Council Agenda for Tuesday, September 4, 1984. A City Council Reso�utian will be forwarded to you by the City Attorney's Office, prior to the City Council meeting. Thank you. � SAP:rmf cc: Becky Hartman Steve Thompson ' i I ___ � �� -ii9i . � FILEC PROPOS�LEFOR RU�ROGRAM TOt1FIIOJ,ANCE�'7� �� 1 a� �� MLILTI-FAMILY REr.7T� HOUSING DEV�.'LOPt��t T��5 QF�� (LO��TERTOjV\ LOFTS I PAP.TiJERSI3IP PROJECT��' ay�� ,�� CE To whom it may concern: . i Notice is hereby gi�ven that the City Council of tYie City of Saint Paul, I�iinnesota will meet in the City Council Chambers at the Citv Hall in �tl1e City of Saint Paul, Minnesota at 10:00 o'c1ocY. a.m, oa Se�teraber 4 , 1984, to consider the proposal of Lowertown Lofts �artnership, a t•Zinnesota limited partnership to 'Ae forr,�ed by e St. .Paul Art Collective and Asset Developnent Services, nc. (tYie "Develoner") that the City undertake a program to inance tne developr.ient Yiereinafter described, pursuant to the C�ty' s housing plan under I�Iinnesota Statutes, Chapter 462C, by t e issuance of revenue obligations. The Development i The development co�sists of tlie acquisition, cons:ruction and r�novation of the upper � three floors oi th� building at 255 E. � F:ellogc� Boulevard for use as 30 studio living uni�s for low and �oderate incomz tenants. • As required by r^ed ral law, not less tnan 20% of the units in th� developnent will be occuPied by p�rson� of Iaa inco?:►e, a category presently deTined nder federal law to mean persons or familie� ��'nose income is 80% or less oi the raedian income for tile St. Paul area as deterriinedl by the United States De�ar.`_ment of ►iousling and Urban Developnent. Total anproximate ilevelop:aent ccsts will be approximately $l, 3I60,000 an3 t�e amount to be £inanced by rentali housing develo�nent 'uonds will be approxi�nately S540,000. The Developnent will b�e owned and operated by the Develoner or a partnership or ot�ier entity to ' • " be for*ned in t•inicn tne D°veloper or its principals will U� general partners. Substan- ' tially all (90 0) of tlze development will - � consist of ren�al 'housing and functionally related facilitie�. I . I i i � I i I . : . � � � - ir �`/ , . . , , ' The estimated principal anoun�. of bonds or other �Uli- gations to be issued to partial�y finance the Aevelopment �vill not exceed $540,000. Said bonds or other obligations, as and when issued, will not constitute a charge, llien or encumbrance unon any � property of the City of Saint Paul, or its housing and redevelopment autlzority excentlthe Development and tYie revenues to be derived from the Development. Such bonds or obligations will not be a cnarge against tHe City' s general credit or • taxing powers but are payable frorn sums to be paid. by tYie o�mer of the Develonr.►ent »ursuant to I revenue agre2ments. Further infornation �oncerning the Develonment, and t'ne financing prograr►s therefor, may be oUtained from the Housing Division, De�vartment o� Planning ,and Economic Development, City Hall Annex - 12th floor, 25 Z�est 4th Street, St. Paul, t�linnesota 55102 (tel�phone 292-1577) . At the time and plac� fixed �or -the public hearing, the City Council of the City o� Saint Paul, I�4innesota will given all nersons w:zo apPear a�t t'ne hearing an opPortunity to " express their views with respect to ths nroposal.. Dated this 16th day iof August, 1984. . ( Y OP.DER OF THE CI`!'Y COUJ�CIL O�' . i�E CITY OF SAIIQT PAUL, M�NrTESOTA) I g�, �S� A1 bert Ol son City Clerk I . i , I . ;I . I >. . _ ._. .. �. ._ ,. . � - . . ' ' . `'� } � �'; �� ,� � � �- lst �/�/b' 'l�� 2lnd 9"�.?-� 3rd %D - �- �� A�dopted �$-�---r-l"�j�. ,�,� -..,. Yeas i Nays :V��.�� . nxEj� ��q-�� ,�� xE �-' Fj� S Jr i�l '� � ai��r � FLETCI�ER � F - ��. �'.�,L —//�� ;��?�� . � � 1-1L1a7�4 ./� ' • y . � / /��/ .. � L.,b,t-" , . 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