84-1408 WHITE - CI7V CLERK
PINK - FINANCE COl1flC11 f_ /_ / '/ �
BLUERV!- MAVORTMENT GITY OF SAINT PAITL File NO. v � �` �
,
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 HOUSING REVENUE BONDS
AND AUTHORIZING THE SUBMISSION OF
FINANCING PROGRAM FOR APPROVAL TO THE
MINNESOTA HOUSING FINANCE AGENCY AND
AUTHORIZING THE PREPARATION OF NECESSARY
DOCDMENTS AND MATERIALS IN CONNECTION
WITH THE SAID PROJECT AND PROGRAM
(ENERGY PARK PHASE II 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 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 Requested by Department of:
Yeas Nays
Fletcher
Drew IIl FBVO[
Masanz
Nic�ia
scneibe� __ Against BY
TedesCo
Wilson
Form Approved by City Attorney
Adopted by Council: Date
Certified Passed by Council Secretary BY
gy
Approved by INavor: Date _ Appr by Mayor for Subm' io to Co�ncil
By B
. ,, � . � �yl_�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.01 to 462C.08;
(c) The City has received from AHW
Corporation (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 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, a portion
of which is 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 equipping
of a multi-family rental housing development
of approximately 194,000 square feet contain-
ing approximately 168 rental units located on
the eastern side of Energy Park north of
Energy Park Drive in the Energy Park "area of
chronic economic distress", 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;
. . � . . �— �y— is�A�
(f) 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;
(g) A public hearing on the Project and
the financing program therefor was held on
October 18, 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
either 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 certain
understandings by and between the HRA and the
Developer pertaining to the Project, and the
financing therefor.
( j) It is proposed, subject to
Paragraph 2 of this Resolution, that bonds to
finance the Project hereinafter described
should be issued by the HRA, jointly with the
Minneapolis Community Development Agency (the
"MCDA" ), as part of an issue to finance the
Project and other multi-family rental housing
developments.
NOW THEREFORE, BE IT RESOLVED by the City Council of
the City of Saint Paul, Minnesota, as follows:
l. 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,
, ,_ � . � � ' ���� ��o�
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 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 a total principal amount of
approximately $8,000,000 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 HRA, hereby
undertakes preliminarily to issue its bonds in accordance with
such terms and conditions;
2. The Bonds are anticipated to be issued by the HRA
and MCDA, jointly, together with bonds (as part of the same
issue) issued to finance other multi-family rental housing
developments, and are proposed to be structured to utilize
credit enhancement provided by the Federal National Mortgage
Association, or if such credit enhancement is not feasible,
then at the option of the MCDA and HRA, 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 and Developer.
In the alternative, the HRA may issue bonds alone, or to
finance only the Project, if the HRA so determines.
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 and subdivision 3 of
Section 462C.05 of the Act; that the Project will be occupied,
in part, 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;
� , � . . . l� ����°��
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, the
Developer and the purchasers of the Bonds as to ultimate
details of the financing of the project; and the City further
approves the issuance of the bonds as part of a joint HRA and
MCDA issue to finance a joint program for the Project and other
multi-family rental housing developments or for the Project
only;
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, alone
or jointly with the MCDA, 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;
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 N�iFA 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 or HRA
in connection with the financing of the Project, or a pro rata
share of such costs for a financing for the Project and other
projects, 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 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 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 for final approval;
. . • . . . � ��/-/y��
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 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. 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 or HRA. The Bonds shall recite in
substance that Bonds, including the interest thereon, are
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.
10. In anticipation of the approval by NgiF'A and 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 expenditures and advances toward
payment of that portion of the costs of the Project 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 but otherwise without liability on
the part of the City or HRA.
11. The Memorandum of Understanding 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 Development. The City Council hereby agrees that the
Developer may assign and transfer all its rights, duties and
obligations hereunder and under the 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 is a general partner or
principal. The Developer has stated in the Memorandum of
Understanding that it understands and agrees that the
Memorandum of Understanding shall be null and void from and
WHITE - CITV CLERK COUIICII
PINK - FINANCE GITY OF SAINT PALTL �'!� /jL(��
CANAR`1- D�P-ARTMENT
BLUE - MAVOR File NO•
�
Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
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 is not
a general partner or principal.
COUIVC[LMEN Requested by Department of:
Yeas ��F�� ys � .�j��
� ��
�"°"'' In Favor
Masanz
Nicosia
schetbe� � __ Against BY
7edesco
Wilson
DCT 18 �gg� Form Approved by City Attorney
Adopted by Council: Date
Certified P•s- b n '1 S ar BY O !
i 1�uZ
�pp d by Nlavo te QCT �� Wu't Appro by Mayor for Sub ' s'on to Council
By BY
PUBLISNED NOV 3 �9s4
. � � ' ���%�/�/D �
:O-'
CITY OF SAINT PAUL
INTERDEPARTMENTAL MEMORANDUM
DATE: OCTOBER l, 1984
T0: AL OLSON, CITY CLERK
FROM: SHERI PEMBERTON, DEPT. OF PED �aP
SUBJECT: CITY COUNCIL PUBLIC HEAItING FOR OCTOBER 18, 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. Wednesday, October 3, 1984.
Please place this Public Hearing on the City CounEil Agenda for Thursday,
October 18, 1984. A City Council Resolution will be forwarded to you
by the City Attorney's Office, prior to the City Counc3l Meeting.
Thank you.
SAP:rmf
Attachment
cc: Becky Hartman, Nan.cy West
. , ...:{.- . . �_ ��-iya�
NOTICE OF PUBLIC HEARIt1G Oi�T
PROPOSAL FOR A PROGRAM TO FINAhtCE A
MULTI-FAMILY RENTAL HOUSING DEVELOPMENT
(ENERGY PARK PHASE II PROJECT)
To whom it may concern:
Notice is hereby given that the City Council o� the
City of Saint Paul, Minnesota will meet in the City Council
Chambers at the Ci4y Hall in the Gity of Saint Paul, Minnesota
at 10:00 0' clock p.m. on October 18, 1984, to consider the
proposal of AHW Corporation (the "Developer") i�hat the City
undertake a program to finance the development hereinafter
described, pursuant to the City' s housing plan under �Iinnesota
Statutes, Chapter 462C, by the issuance of revenue obligations.
The Development consists of the construction
and equipping of a multi-family rental
housing development of approximately 180,000
square feet containing approximately 168
rental units located on the eastern side of
Energy Park on Energy Park Drive, Saint Paul,
Minnesota. Z`he Development is located in the
Energy Park "area of chronic economic
distress" designated as such by the Minnesota
Housing Finance Agency. As required by
Federal law, not less than 15� of t�e units
�n the Development will be occupied by
persons of low 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 St. Paul area as
determined by the United States Depar�.ment of
Housing and Urban Development. The
pevelopment will be owned and operated by the
J�eveloper or a partnershig or other entity to
be formed in which the Developer will be a
general partner. Non-housing components may
be included within the Development but
substantially all (90�) of the Development
will consist of rental housing and
functionally related facilities.
The estimated principal amount of bonds or other obli-
gations to be issued to finance the Development will be
$8,000,000. It is anticipated that the DeveZo�ment, together
with certain other rental housing developments, will be
�. . �r • ' - �.- ��/ r�°�
%�-
financed by bonds to be issued, jointly, by The Housing and
Redevelopment Authority of the City of Saint Pau1, Minnesota
(the "HRA") and the Minneapolis Community Development Agency,
provided that such bonds may be issued by the HRA alone, or for
only the Developinent, if the HRA so determines.
Said bonds or other obligations, as and when issued,
will not constitute a charge, lien or encumbrance upon any
prop�rty of the City of Saint Paul, or the HRA except the
Development and the revenues to be derived from the
Development. Such bonds or obligations will not be a charge
against the City' s or HRA' s general credit or taxing powers but
are payable from sums to be paid by the owner of the
Development pursuant to revenue agreements.
Further information concerning the Development, and
the financing programs 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
given all persons who appear at the hearing an opportunity to
express their views with respect to the proposal.
Dated this lst day of October , 1984.
{BY ORDER OF THE CITY COUNCIL OF
THE CITY OF SAINT PAUL,
MINNESOTA)
g�s ALBERT A. OLSON
City Clerk
�
1
wNITE - CITY CLERK . r y '"
PINK - FINANCE GITY OF SAINT PAUL Council /J� � ��0�'
C4NAqV - OEPARTMENT File NO. " �
BLUE - MAYOR
� - '
Cou�cil �Zesol�tio�
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 HOUSING REVEDTUE BONDS
AND AUTHORIZING THE SUBMISSION OF
' FINANCING PROGRAM FOR APPROVAL TO THE
MINNESOTA HOUSING FINANCE AGENCY AND
� AUTHORISING THE PREPARATION OF NECESSARY
DOCUMENTS AND MATERIALS IN CONNECTION
WITH THE SAID PROJECT AND PROGRAM
(ENERGY PARK PHP,SE II 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 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 Requested by Department of:
Yeas Nays
Fletcher
o�ew �• - � !n Favor
Masanz
Nicosia
schetbe� Against BY
Tedesco '
Wilson
_ Form Approved by City Attorney
Adupted by Council: Date ,
Certified Passcd by Council Secretary By
gy.
,anoroved bv 1".a�•or: Date �., Approved by Mayor for Submission to Council
• . . . (�` ��/4��P�
�b) The Hou�ing 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 City has received from AAW
Corporation (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
t�e Act, �
� (d) The City desires to: facilitate
the development of rental housing within the
coTrnnunity; encourage the development of
affordable housing opportunities for
residents of the City; encourage the
development of housing facilities, a portion
of which is 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 equipping
� � of a multi-family rental housing development
� - � of approximately 194,000 square feet contain-
� ing approximately 168 rental units located on
the eastern side of Energy Park north of
� Energy Park Drive in the Energy Park "area of .
chronic economic distress", 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;
� � - . C������o�
. (f) 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;
(g) A public hearing on the Project and
the financing program therefor was held on
October 18, 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
either 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 certain
understandings by and between the HRA and the
• Developer pertaining to the Project, and the
financing therefor.
( j) It is proposed, subject to
Paragraph 2 of this Resolution, that bonds to
finance the Project hereinafter described
' should be issued by the HRA, jointly with the .
Minneapolis Coirnnunity Development Agency (t2ze
"MCDA"), as part of an issue to finance the
Project and other multi-�amily rental housing
developments.
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,
. - . . @� ��_,�o�
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 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 a total principal amount of
approximately $8,000,000 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 HRA, hereby
undertakes .preliminarily to issue its bonds in accordance with
such terms and conditions;
2. The Bonds are anticipated to be issued by the HRA
and� MCDA, jointly, together with bonds (as part of the same
issue) issued to finance other multi-family rental housing
developments, and are proposed to be structured to utilize
credit enhancement provided by the Federal National Mortgage
Association, or if such credit enhancement is not feasible,
then at the option of the MCDA and HRA, 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 and Developer.
In the alternative, the HRA may issue bonds alone, or to
finance only the Project, if the HRA so determines.
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 and subdivision 3 of
Section 462C.05 of the Act; that the Project will be occupied,
in part, 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;
»
. . �'i,t�,�r/�/�/6�
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 AgenC�►
( "MHFA") and subject to final approval by the IIRA, the
Developer and the purchasers of the Bonds as to ultimate
details of the financing of the project; and the City further
approves the issuance of the bonds as part of a joint HRA and
MCDA issue to finance a joint program for the Project and other
multi-family rental housing developments or for the Project
only;
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 reversue bonds, alone
or jointly with the MCDA, to finance the Project and to take
all actions necessary or desirable in connectiosci therewith, and
no further approval or authorization of the Cit� shall be
required;
6. In accordance with subdivision 5 0� Section
462C.05, Minnesota Statutes, the Executive Director of the HRA
is hereby authorized and directed to submit the g�rogram for
financing the project to MHFA, requesting its ap�roval, and
other officers, and employees and agents of the City and HRA
are hereby authorized to provide MHFA with prel�i.nary
information as it may require;
7. The Developer has agreed and it is hereby
determined that any and all costs incurred by the City or ftRA
in connection with the financing of the Project� or a pro rata
share of such costs for a financing for the Project and other
projects, whether or not the Project is carriec� �o completion
and whether or not approved by �A will be paid by the
Developer;
" 8. Briggs and Asorgan, Professional Association, .
acting as bond counsel, and such investment banlc�rs as may be
selected by the Developer with the consent of tl�s HRA, are
authorized to assist in the preparation and rev��w of necessary
documents relating to the Project and the financing program
therefor, to consult with the City Attorney, Deu�loner and
purchasers of the Bonds (or trustee for the purc�asers of the
Bonds) as to the maturities, interest rates and mther terms and
provisions of the Bonds and as to the covenants and other
provisions of the necessary documents and sub�mit such documents
to the HRA for final approval;
��1��� .�
9• Nothing in this Resolution or the docume
prepared pursuant hereto shall authorize the expendit
municipal funds on the Project other than the reven nts
from the Project or otherwise granted to the Cit or ure of any
this ues derived
Pur'pose. The Bonds shall not consitute a y H� fOr
encumbrance, legal or equitable �ar e
. the City or HRA exce t � uPon any property or�fundS or
P the revenue and proceeds of
payment thereof, nor shall the City or HRA be subjeCteaota t�e
liability thereon. The holder of the Bonds shall neve
the right to compel an ny �
City or HRA to y exercise of the taxin r have
the interest thereon, eorutotenforCePrincipal onPthergondshor
property of the City or H�, PaYment thereon against any
substance that Bonds The Bonds shall recite in
payable solel � including the interest thereon, are
y from the revenue and proceeds
Payment thereof. The Bonds shall not constituteda edebt ofe
City or HRA within the meaning of any constitutional or
statuto the
ry limitation.
10. In anticipation of the a
issuance of the Bonds to finance all orPaovai by �A and the
Project, and in order that com letion of .�ertiaz� of the
be unduly delayed when a P ProJ�ct will not
authorized to make such exp nditures andeadPaz�CeS tereby
Payment of that portion of the costs of the Pro3ect�torbe
financed from the
considers necessarproceeds of the Bonds, as the Developer
financin �'� including the use of interiun, short-term
Bonds ifgansubject to reimbursement from the
Y when delivered but otherwise Witho telaab�l�.ity eon
the part of the City or HRA.
11. The Memorandum of Understanding pro�ides
HRA understands and agrees that the Developer r.ia that the
partnership or other entit �' fo� a
of the Development. The City Council her bt awill be
Developer may assign and transfer all its ri hts �he owner
Y grees that the �
obligations hereunder and under the Memorand m of tJnderst�d
to such new entity, and that the HRA anding
assignment or transfer; shall agree to such
that of the City CouncilPexpressedhherein extendsgonement and
entity in which the Developer is a eneral lY to a new
principal. The Developer has stated in theP emo andum of
Understanding that it understands and agrees that the
Memorandum of Understanding shall be null and void fr
om and
,
wM,rE - c�TY c�e�+K Council ,/ f�
PiNK - FINANCE (jITY OF SAIIV�T PAUL File tv0. ���ra" -
C�H�RV - OE��qTMENT
9LUE -MA;OR . . ' . -
Co�ncil :�e�Ql���o�
Presented By �
Referred To Committee: Date
Out of Committee By Date
� 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 is not
a general partner or principal.
COUNCILN[EN Requested by Department of:
IV a s
Yeas Fletcher Y
Drew In Favor
Masanz
N�cos�a A ainst ey
Scheibel g
7edesco
Wilson
Form Approved by Ci#y Attorney
Adopted by Council: Date
By
Certified Passed by Council Secretary
By� �
Approved by Mayar for Submission to Council