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84-1287 WHITE - C�TV CLERK PINK �- FINANCE G I TY O F SA I NT PA U L Council ^ CANARV - DEPARTMENT J[, I/J BLUE� - MAVOR File NO. y � _/�� C � � ' Council Resolution Presented By Referred To Committee: Date Out of Committee By Date RESOLUTION RECITING A PROPOSAL FOR A FINANCING PROGRAM FOR TWO M[JLTI-FAMILY RENTAL HOUSING DEVELOPMENTS, GIVING APPROVAL TO THE PROJECTS AL�TD THE PROGRAM PURSUANT TO MINNESOTA STATUTES, CHAPTER �62C, AUTHORIZING THE HOUSING AL�TD REDEVELOPMENT AUTHORITY TO� ISSUE HOUSING REVEN[JE BONDS AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AATD MATERIALS IN CONNECTION WITH THE SAID PROJECTS AND PROGRAM (900 COMO LAKE AND HIGHLAND PARK RETIREMENT RESIDENCE PROJECTS) 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 po�wers conferred by the Act, the power 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 Requeste . artment of: Yeas Nays � Fletcher �a��� In Favor Masanz Nicosia scheibe� __ A gai n s t BY TedesCo Wilson Form Approved by City Attorney Adopted by Council: Date / Certified Yassed by Council Secretary BY ��Vj BY t�pproved by Ylavor: Date _ Approved by Mayor for Submission to Council sy _ By , �� �y-���� (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 .O1 to 462C .0$; (c) The City has received from Como Villa Partnership, a Minnesota Limited Partnership and Highland Park Retirement Residence Limited Partnership (collectively the "Developers" ) a proposal that the City undertake a program to finance the two Projects 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 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 lo�w or moderate income and elderly persons; and encourage the development of blighted or underutilized land and structures within the boundaries of the City; and the Projects will assist the City in achieving these objectives. (e) The principals of the Developers are currently engaged in the business of real estate development. The Projects to be financed by the Bonds are: (i) the 900 Como Lake Project, which con�ists of the acquisition, construction and equipping of a multi-family rental housing development of approximately 99 rental units in a structure or structures of approximately 111,000 square feet located at 900 Como Avenue, St. Paul, Minnesota, and (ii) the Highland Park Retirement Residence Project, which consists of the acquisition, construction and equipping of a multi-family rental housing develogment of approximately 112 rental units . ���y,��I in a structure or structures of approximately 117,415 square feet located at the northwest corner of the intersection of Rockwood Street and Madison Street, St. Paul, Minnesota. The development of the Projects will result in the provision of additional rental housing opportunities to persons within the community; (f) The City has been advised by representatives of the Developers that con- ventional, commercial financing to pay the capital costs of the Projects is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Projects would be significantly reduced, but the Developers have also advised the City that with the aid of municipal financing, and resulting low borrawing costs, the Projects are economically more feasible; (g) A public hearing on the Projects and the financing program therefor was held on September 25, 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) The Minnesota Housing Finance Agency has approved a financing program for each of the Projects; (i) No public official of the City has either a direct or indirect financial interest in the Projects nor will any public official either directly or indirectly benefit financially from the Projects; (j) The Developers have submitted to the HRA a form of Memorandum of Understanding executed by each of the Developers, expressing certain understandings by and between the HRA and each of the Developers pertaining to the Projects, and the financing therefor. �������a NOW THEREFORE, ,BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota, as follaws: 1. The City hereby gives approval to the proposal of the Developers that the City undertake the Projects, 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 Developers' specifications and to a financing agreement between the HRP, and each of the Developers relating to the issuance and sale of the Bonds in a total principal amount of approximately $13,000,000 ($6,000,000 with respect to the 900 Como Lake Project and $7,000,000 with respect to the Highland Park Retirement Residence Project) to be issued pursuant to the Act to finance the acquisition, construction and equipping of the Projects; and said agreement may also provide for the entire interest of the Developers therein to be mortgaged for the benefit of the purchasers of the Bonds, or a trustee for the owner(s) of the Bonds; and the City, acting by and through the HRA, hereby undertakes preliminarily to issue its bonds in accordance with such terms and conditions; 2. The Bonds will be structured to utilize mortgage insurance provided by the Federal Housing Administration, or if such mortgage insurance is not feasible, then at the option of the Developers, 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 approved by the HRA. 3. On the basis of information available to the City it appears, and the City hereby finds, that the Projects consti- tute multi-family housing developments within the meaning of subdivision 5 of Section 462C.02 of the Act and are multi-family developments designed primarily for occupancy by elderly persons within the meaning of subdivision 4 of Section 462C.05 of the Act; that the Projects will be primarily occupied by persons of low income and by elderly persons; th e availability of the financing under the Act and the willingness of the City to furnish such financing will be a substantial inducement to the Developers to undertake the Projects, and that the effect of the Projects, 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; � �,���- i��� 4. The Projects, and the program to finance the Projects by the issuance of revenue bonds, is hereby given preliminary approval by the City, subject to final approval by the HRA, the Developers and the purchasers of the Bonds as to ultimate details of the financing of the Projects; 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 Projects and to take all actions necessary or desirable in connection therewith, and no further approval or authorization of the City shall be required; 6. The Developers have agreed and it is hereby determined that any and all costs incurred by the City or HRA in connection with the financing of the Projects whether or not the Projects are carried to completion will be paid by the Developers; 7. Briggs and Morgan, Professional Association, and Dorsey & Whitney, acting as co-bond counsel, and Dain Bosworth Incorporated, acting as investment bankers, 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, Developers 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 for final approval; 8. Nothing in this Resolution or the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Projects other than the revenues derived from the Projects or otherwise granted to the City or HRA for this purpose. The Bonds shall not consitute 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 liability thereon. Th e holder of the Bonds shall never have the right to compel any exercise of the taxing pawer 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 or HRA. TYie Bonds shall recite in substance that Bonds, including the interest thereon, are , ��y,i��� payable solely from 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. 9. In anticipation of the issuance of the Bonds to finance all or a portion of the Projects, and in order that completion of the project will not be unduly delayed when approved, the Developers are hereby authorized to make such expenditures and advances taward payment of that portion of the costs of the Projects to be financed from the proceeds of the Bonds, as the Developers consider necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the Bonds if any when delivered but otherwise without liability on the part of the City or HRA. 10. Each of the Memoranda of Understanding executed by the HRA and each of the Developers provides that the HRA understands and agrees that the Developer may form a partnership or other entity, which new entity will be the owner of the related Project. The City Council hereby agrees that each Developer may assign and transfer all its rights, duties and obligations hereunder and under the appropriate Memorandum of Understanding to such new entity, and that the HRA shall agree to such assignment or transfer; provided that the HRA' s agreement and that of the City Council expressed herein extends only to a new entity in which the Developer or its principals are general partners or principals. Each Developer has stated in the appropriate Memorandum of Understanding that it understands and agrees that the Memorandum of Understanding shall be null and void from and after the date of transfer or conveyance if the Developer transfers or conveys the Project, or the Developer' s right to develop the Project, to an entity in which the Developer or its principals are not general partners or principals. WMITE - C�TV CLERK PINK � - FINANCE G I TY OF SA I NT PA LT L Council �.f� �jI� CAN/�RV - OEPARTMENT /�J/i,.�/ J� / BLUE" - MAVOR File NO• v ` /�`� ( - ' � Council Resolution Presented By Referred To Committee: Date Out of Committee By Date 11. Except to the extent any earlier resolutions of the City Council with respect to the Project and the financing therefor may be inconsistent with this resolution, this resolution shall not be construed to amend, repeal or vitiate such earlier resolutions. Adopted by the City Council of the City of Saint Paul, Minnesota this 25th day of September, 1984. COUIVCILMEN Request y e � ent of: Yeas -Fleleher FL.�/N�iJs . •�� �2g� �_ [n Favor Masanz Nicosia � scne�bei __ Against BY Tedesco Wilson Adopted by Council: Date SEP 2 5 �8� Form Appro y City Attorney Certified Pas e ouncil Se t BY ��� `" ��'� By t#p by 1Aavor: Dat� �?EP Z Approved by Mayor for Submission to Council By PUBIfSNEO 0 CT 6 198� . �� ��-%��� t NOTICE OF PUBLIC HEARING ON A PROPOSAL FOR A PROGRAM TO FINANCE MULTI-FAMILY RENTAL HOUSING DEVELOPMENTS � �900 COMO LAKE DEVELOPMENT,� °� -,EHIGHLAND PARK RETIREMENT RESIDENCE DEVELOPMENT� Notice is hereby given that the City Council of the City of Saint Paul, Minnesota will meet in the City Council Chambers at the City Hall in the City of Saint Paul, Minnesota at 10:00 o ' clock a.m. on September 25 , 1984, to consider the proposals of Como Villa Partnership, A Minnesota Limited Partnership ( "Como Partnership" ) and Highland Park Retirement Residence Limited Partnership ( "Highland Partnership" ) (the , "Developers" ) , that the City undertake a program to finance the developments hereinafter described, pursuant to the City ' s housing plan under Minnesota Statutes, Chapter 462C, by the issuance of revenue obligations . The Developments The 900 Como Lake Development consists of the construction and equipping of an approximately 111,090 square foot multi-family rental housing development of ap�rorima�cely 99 rental units designed for occupancy primarily by elderly persons ' and located at 900 Como Avenue in Saint Paul, Minnesota. The Highland Park Retirement Residence Development will be owned and operated by Highland Partnership or a partnership or other entity to be formed in which Highland Partnership or its . principals _ will be general partners. The 900 Como Lake Development will be owned and operated by Como Partnership or a partnership or other entity to be formed in which the Como Partnership or its principals will be general partners. The Highland Park Retirement Residence Development consists of the construction and equipping of an approximately 112,780 square foot multi-family rental housing development of approximately 112 rental units designed for occupancy primarily by elderly persons and located at the Northwest corner of the intersection of Rockwood Street and Madison Street in Saint Paul, Minnesota. As required by Federal law, not less than 20� of the units in each development will be occupied by persons of low or moderate income, a category presently defined under federal law to mean � persons or families whose income is 80� or less of the median �income for the Saint Paul area as determined by the United States Department of Housing and Urban Development. Non-housing components may be included within the developments but sub- . stantially all (90$ ) of each development will consist of rental housing and functionally related facilities . _ . • ���y�����7 Under the proposal , the Housing and Redeveloprnent Authority , on behalf of the City of Saint Paul , will issue revenue bonds to finance the developments, in one or more issues or series, in an aggregate principal amount not to exceed $13,000,000; or, if issued as separate issues or series with respect to each development, in an aggregate principal amount not to exceed $6,000,000 with respect to the 900 Como Lake Development and not to exceed $7,000,000 with respect to the Highland Park Retirement Residence Development. Said bonds or other obligations, as and when issued, will not constitute a charge, lien or encumbrance upon any property of the City of Saint Paul , or its H.ousing and Redevelopment q uthority, except the Developments and the revenues to be derived from the Developments and other revenues ' specifically .pledged thereto. Such bonds or obligations will not be a charge against the City's general credit or taxing powers but are payable from sums � to be paid by the owners of the Developments pursuant to revenue agreements. Further information concerning the developments, and the financing program therefor, may be obtained from the Housing Division, Department of Planning and Economic Development, City Hall Annex - 12th floor, 25 West 4th Street, St. Paul, Minnesota 55102 (telephone 292-1577 ) . At the time and place fixed for the public hearing, the City Council of the City of Saint Paul, Minnesota will give ' all persons who appear at the hearing an opportunity to express their views with respect to the proposal . Dated this 6th day of September, 1984 . � (BY ORDER OF THE CITY COUNCIL OF THE CITY OF SAINT PAUL, MINNESOTA) . By ALBERT OLSON City Clerk . ��.��y-�.��� �-L�.°: CITY OF SAINT PAUL INTERDEPARTMENTAL MEMORANDUM F�L�p S�� 6 4 0:� p�{ 'g� DATE; SEPTEMBER 6, 1984 �1��C��RK`S pFFJC£ �L, ?�'lN,y, T0: AL LSON, CITY ERK��,�� � FROM: H RI PEMBERTON, T. OF PED SUBJECT: CITY COUNCIL PUBLIC HEARING FOR SEPTEMBER 25, 1984 ' Attached is a copy of the Public Hearing Notice, which will be published in the St. Paul Legal Ledger and the St. Paul Pioneer Press and Dispatch on Saturday, September 8, 1984. Please place this Pub lic Hearing on the City Council Agenda for Tuesday, . September 25, 1984. .A City Council Resolution will be forwarded to you by the City Attorney's Office, prior to the City Council meeting. Thank you • SAP:rmf cc: Becky Hartman Warren Frost/Gloria Bostrom