84-1620 WHITE - CITV CLERK
PINK - FINA�,:CE � COUI1C11
CANARV - DEPARTMEN'1� GITY OF SAINT PAUL /���
BLUE - MAVOR File NO• �
�
� - Co il 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 HOUSIL�TG FINANCE AGENCY AND
AUTHORIZING THE PREPARI�TION OF NECESSARY
DOCUMENTS AND MATERIALS IN CONNECTION
WITH THE SAID PROJECT AND PROGRAM
(CATHEDRAI, HILL 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;
COUNC[LMEN Requested by Department of:
Yeas Nays
Fletcher �` �"� �I
Drew [n Favor
Masanz
Nicosia
scnetbei _ Against BY
Tedesco
Wilson
rm pproved by City Attorney
Adopted by Council: Date ` r �
Certified Yassed by Council Secretary BY J�
By
/lpproved by lVlavor: Date _ Approved by Mayor for Submission`to Council
BY BY
. . �-- �L�,_��� o
(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 John F.
McQuillan (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 as
follows:
(i) the construction and equipping of
an approximately 75,000 square foot
structure, including approximately 7,400
square feet of commercial/retail space,
containing 48 rental units located on
adjacent lots at 411 to 433 Selby Avenue
in the City; (ii) the acquisition and
rehabilitation of a structure consisting
of approximately 3,500 square feet
located at 176 Arundel Street, adjacent
to the lots set forth in (i) above,
which structure shall be rehabilitated
to contain six rental units; (iii) the
construction and equipping of an
• � G'F ��_ ��, � �a
approximately 21,000 square foot
structure or structures containing
approximately 24 rental units located on
adjacent lots at 445 to 467 Dayton
Avenue in the City; and (iv) the
acquisition and rehabilitation of two
structures consisting of approximately
10,650 square feet located at 441-443
Dayton Avenue in the City, adjacent to
the lots set forth in (iii) above, which
structures shall be rehabilitated to
contain a total of approximately 10
rental units.
The Project consists of the acquisition of
land and the construction, rehabilitation and
equipping 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
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
December �, 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;
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(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
certain other municipalities or housing and
redevelopment authorities located in the
State of Minnesota, 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:
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, rehabilitation 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 $6, 500,000 to be issued pursuant to the
Act to finance the acquisition, construction, rehabilitation
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 certain other municipalities or housing and redevelopment
authorities located in the State of Minnesota, jointly,
together with bonds (as part of the same issue) issued to
finance other multi-family rental housing developments. In the
alternative, the HRA may issue bonds alone, or to finance only
the Project, if the HRA so determines.
. C�.��/��D
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;
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 issue
between the HRA and certain other municipalities or housing and
redevelopment authorities located in the State of Minnesota to
finance a joint program for the Project and other multi-family
rental housing developments or by the HRA only 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 Yiousing revenue bonds, alone
or jointly with certain other municipalities or housing and
redevelopment authorities located in the State of Minnesota, 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 MHFA with preliminary
information as it may require;
' ���/-/�� a
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;
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 tlze
City or HRA within the meaning of any constitutional or
statutory limitation.
10. In anticipation of the approval by MHFA 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
WHITE - CITV CL�f�K � COUflCll �} /
PINK - FINANCE
CANARV - DEPARTMENT GITY OF SAINT PALTL J( [/�
BLUE - MAVOR File NO• v -�T�D
�
Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
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
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.
COU[VCILMEI�1 Requested by Department of:
Yeas �r���� �
�+� D2E-cd [n Favor �
Masanz —
Nicosia
scne�bei � _ Against BY
Tedesco
Wilson
DEC 4 — �9p�f Form Ap ed by City Attorney
Adopted by Council: Date r
Certified Y s- Council , tar BY ���
V �
Bl' C
Approv Nlavor: Date GC' 7 — ��� Approved by Mayor for Submission to Council
By BY
PUBLlSHED D E C 151984
• � � �,/_ ���/���
.�'
;�
CITY OF SAINT PAUL
INTERDEPARTMENTAL MEMORANDUM
�'tcEa
DATE: NOVEMBER 16, 1984 ���Y �� �� �u� b��`t ��`t
T0: AL OLSON, CITY CLERK ��jv ��l F?,�,� ���'`v�
FROM: SHERI PEMBERTON, DEPT. OF PED � . ' �'`�`��
SUBJECT: CITY COUNCIL PUBLIC HEARING FOR DECEMBER 4, 1984
Attached is a copy of the Public Hearing Notice, which was published in
the St. Paul Legal Ledger and the St. Paul Pioneer Press and Dispatch
on Saturday, November 16, 1984.
Please place this Public Hearing on the City Council Agenda for Tuesday,
December 4, 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
Attachment
cc: Becky flartman, Gloria Bostrom
bcc: Chron, Paper Bond File
�1��%e�-/�al�
(�
NOTICE OF PUBLIC HEARING Ol�
PROPOSAL FOR A PROGRAM TO FINANCE A
MULTI-FAMILY RENTAL HOUSING DEVEIAPMENT
(CATHEDRAL HILL PROJECT)
To whom it may concern:
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 0' clock a.m. . on Decembex 4 , 1984, to consider the
proposal of John E. McQuillan the � Developer") that the City
undertake a program to finance the develop�nent located in the
City of St. Paul hereinafter described, pursuant to the City' s
housing plan under Minnesota Statutes, Chapter 462C, by the
issuance of revenue obligations.
THE DEVEIA PMENT
The Developanent consists of the acquisition,
construction, rehabilitation� and equipping of
a multi-family rental housing development con-
sisting of the following: ( i) the construc-
tion and equipping of approximately 75, 000
square foot structure, including
approximately 7,400 square feet of
commercial/retail space and 4£3 rental units
� lqcated on adjacent lots at 411 to 433 Selby
� Avenue in the City; (ii) the acquisition and
rehabilitation of a structure consisting of
approximately 3, 500 square feet located at:
176 Arundel Street, adjacent to the lots set
forth in (i) above, which structure shall be
rehabilitated to contain six rental units;
(iii) the construction and equipping of an
approximately 21,000 square foot structure or
structures containing approximately 24 rental
• units located on adjacent lots at 445 to 467
Dayton Avenue in the City; and (iv) the
acquisition and rehabilitation of two
structures consisting of approximatel.y 10,650
square feet located at 441-443 Dayton Avenue
in the City, adjacent to the lots set forth
in (iii) above, which structures shall be
: rehabilitated to contain a total of approxi-
mately 10 rental units. As required by
Federal law, not less than 20� of the
- � �y- i���
units in the DeveloFxnent 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 Department of
Housing and Urban Development. The
Developanent will be owned and operated by the
Developer or a partnership or other entity to
be formed in which the Developer will be a
general partner or principal. Non-housing
coanponents may be included within the
Developdnent but substantially all (90�) of
the DeveloFanent 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
$G,500,000. It is anticipated that the Development, together
with certain other rental housing developments, will be
financed by bonds to be issued, jointly, by the Housing and
Redevelopment Authority of the City of Saint Paul, Minnesota
(the "HR.A") and certain other municipalities or housing and
redevelopment authorities located in the State of Minnesota,
provided that such bonds may be issued by the HRA alone, or for
only the Development, if the HRA so determines.
Said bonds or other obliga�ions, as and when issued,
will not constitute a charge, lien or encumbrance upon any
property 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 fran sums to be paid by the owner of the
Develop�nent pursuant to revenue agreements.
Further information concerning the Development, and
the financing programs therefor, may be obtained from the
Housing Division, Depart��nent 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 a7.1 persons who appear at the hearing an opportunity to
express their views with respect to the proposal.
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Dated this 16th day of November, 1984.
(BY ORDER OF THE CITY COUNCIL OF
- THE CITY OF SAINT PAUL,
MINNESOTA)
gy /s/ Albert Olson
City Clerk