84-1668 WHITE - CITV GLERK
• BLUE • - MAVOR E GITY OF SAINT PAUL Council v
CANARV - OEPARTMENT
,
File N 0.
ou cil 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
HOU5ING 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
DOCUMENTS AND MATERIALS IN CONNECTION
WITH THE SAID PROJECT AND PROGRAM
(J.J. HILL BUILDING 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;
COUfVCILME[V Reques artment of:
Yeas Nays
Fletcher
°►8N1 In Favor
Masanz �
Nicosia
SCheibel _ Ag81[1St BY �
Tedesco
Wilson
Form Approved by City Attorney
Adopted by Council: Date ���t��
Certified Passed by Council Secretary BY 7A�iG�
By,
A►pproved by Mavor: Date Approved by Mayor for Submission to Council
By _ BY
, _i
,�'(,� ��= /��'�
(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 Asset
Development Services, Inc. (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) "_'he 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 103,000 square feet contain-
ing approximately 120 rental units located at
281 East Kellogg Boulevard in the Lowertown
"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;
1
. � ���y i���'
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 £inancing 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 or include the Program in the
Joint Pro ram authorized by City Council Resolution No.Sy-l37J�,
adopted £;r �, 1984 and previously submitted to the MHFA
by the HRA and MCDA, jointly, which Joint Program was approved
by the MHFA on October 25, 1984, requesting Nff3FA approval, and
other officers, and employees and agents of the City and HRA
are hereby authorized to provide NIEiFA 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
� , ��y i���
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 the
� 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
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
WHITE - C�TV CLERK
PINK i - FINANCE G I TY O F SA I NT PA IT L Council i
CANARV - DEPARTMENT (//�(//J
'-BLUE - MAVOR File NO. � /r v
1
Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
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.
The Developer has stated in the Memorandum of Understanding that it under-
stands 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.
COUNCILMEIV Requested by De artment of:
Yeas fisleher�N y , � �
FN � )
°fe1N In Favor
Masanz
��Ic�ocia
saaatbaF— � __ A ga i n s t BY
Tedesco
1Afilew�-
Adopted by Council: Date DEC �� 8 19$�r Form Ap oved by City Attorney
Certified Pa.s ncil S t BY�e��(.�`./ - �.(///''�'�'�
B
Appro by Ylavor: te �ECi � � 19a�+ Approved by Mayor for Submission to Council
By .
PUBLISNED u}�C 2 � 1984
������� �
P�'� �EPART�tENT
�1or1��'►'� f�ONTACT
�'�/9'S� �-ttf'- a.�"S PHONE r p
/02 /3 � DATE 1 ��/� ��
(Routing and Explanation Sheet)
Ass Number for Routin Order Cli All L�ations for bral Si nature :
artment Di rector . .
City Attorney
Di rector of Management/Ma�yor .
Finance and Management Services Director
J`�' City Clerk
Budget Dir�ctor
� �1�7�5'0 .
� G�ou�e�lman Sc,he�bel _
What Will be Achieved by Taking Action on the Attached Materials? (Purpose/Rationale);_
17?u,�.-t�:- �° ' ,�-� ,�,,,.� �� � "
.��� . _ l� . . ��-���
/f'.Qixo-✓�tc.o n� �ae u.uu.t,�,�c, g� .1`J. �C .�� rzt a�/ :�, ��o�� -
� � U �
�o�ee.-� �c,�-c,GQ. .� ,c��-e(.ud.c�G .vx� FN./�,4, �E'.e�:�-C.�a-x� •
Fi��dg�tar�ersannel Imp ca ts Mtici�ated:���� � '
C�`CQ.�a-x. QixG� l�G�nt,v� GI.Ce, C'.4-l�<.2�� � ����
G� ����
���a.
Funding Source and Fund ActivitY Number Charged or Credited:
Attachments (List and Nur�er all Attachments) :
�. e;�� cau,�,� ���a�,
DEPARTMENT REVIEW CITY ATTORNEY REVIEI�1
Yes No Council Resolution Required? Resolutian Required? Yes No
Yes �lo Insurance Required? Insurance Sufficient? Yes No
Yes No Insurance Attached?
Revision of October, 1982
1�PP R�vprsP SidP for �Instructions)
� - `�����
_ ..�� �
_._ :Oi
CITY OF SAINT PAUL
INTERDEPARTMENTAL MEMORANDUM
FTLED
I�cv �9 i! a� �►�� '��
DATE: NOVEMBER 29, 1984 (;?TY CI.�RK'5 QF�10E
T fl�r + 4{ kl' .
,;+ ] /k',�l_� Ii,l�.
T0: AL OI,SON, CITY CLERK
FROM: SHERI PEMBERTON, DEPT. OF PED �"
SUBJECT: CITY COUNCIL PUBLIC HEARING FOR DECII�ER 18, 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, December 1, 1984.
Please place this Public Hearing on the City Council Agenda for Tuesday, '
December 18, 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
Nanc West •
cc: Becky Hartman,,. Y
,
� . . . - � �-�y-i���
541AA
NOTICE OF PUBLIC HEARING ON
PROPOSAL FOR A PROGRAM TO FINANCE A
MULTI-FAMILY RENTAL HOUSING DEVELOPMENT
(J.J. HILL BUILDING 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 December 18 , 1984, to• consider the
proposal of Asset Development Services, Inc. (the "Developer" )
that the City undertake a program to finance the development
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 DEVELOPMENT
The Development consists of the acquisition,
construction, rehabilitation and equipping of
a multi-family rental housing development of
approxiinately 103,000 square feet containing
approximately 120 rental units located at 281
East Kellogg Boulevard. The Development is
located in the Lowertown "area of chronic
economic distress" designated as such by the
Minnesota Housing Finance Agency. As .
required by Federal Iaw, not less than 15$ of
the units in 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
Department of Housing and Urban Development.
The Development 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 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
$5,900,000. 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 "HRA") and the Minneapolis Community Development Agency,
provided that such bonds may be issued by the HRA alone, or for
only the Developanent, if the HRA so determines.
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 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. PauY, 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 29th day of November, 1984.
,
(BY ORDER OF THE CITY COUNCIL OF
THE CITY OF SAINT PAUL,
MINI�TESOTA)
By Albert Olson
City Clerk
.�
/� �'�—���
G�
- o�xotica op ro�,tr.as��r �a e�a: � aner�,��ti,�.-� �a
��'A�'� �TO or �•�vill eN conttltute a chsr8e.llm
�E 1���T1��, �ncambe�oe up°°�''➢�rtY ot thi CYfy
�lAL�011�ifi� � °t 8e'int Psuy, or the HttA exaPt'the
� � �aP�t aiid tLe re�r�ea�be derired
i�,.t.$111�—T trom,.tir Dev�e�qDment. 3�ch boads•.ar
��. ��11ons wi11.�t bt a cMa�i epiAat the
T� Ci�'r-or FIItA•� pnenl credit or tazin�.
�hQ�n it�!aU'�Meem:, , a Po�►ees Mtt we p�ble frma'sums to be p�d.
l�otlee�s�d►ae.lwt the(�tg� ' DY the owaer ot:6e Developm�t PunuaM to
oi the�l;Y of�int p�yi,�(Ieee�ota a�iil akat `' , revmue��,
ln the p,�,p���at the GEtJ�1 � , Furtbei; isFarmatloc, conecralag the ,
��he#�i o�$Aiut�1,:ltinnqwf�at 14:00 " �'e#oP1�at. md tht IInandn
°���� 18,16l4.to coryii� � ;� theref�,�7 be obta3ned from the H'�
tha Drcpo�i o�"��Veiapeidnt Servins, � , Diyisiun. Departmmt of Planning a�nd
����?thit46lC[b�m�lltske ` . Economic�DevelcDaient, CitY.Hall AnceR- ,'
a vz'ote.m to fforlNl,y„�},,,elopenedtlqeatad ! Isn� noor, �S west !tn 34reee.`st. Paul; �
in the City o�aR�,p�n!�!daitfer dtsctibad. , � ;x�otit'bJltl�(tekpqp�p�py_}�y
w+rnwat w ma pt��s�rlae unaer ac uu 4sme snd vC.rn riaee rar Che puWic. '
��0�° �.�' l84C. bl;the ' h�rinB:the Cit Council at th�.ptY of 8aint
i�o��vF�' Paul. MB+neaota will Y
, ��io?na. _ 6�ve al1 yersons who t
��L0�1lEI�T ap�r at the htating an upPortupily ;p
. The..Q}vpJ+PAt�t,sopslsts.p� t4e exPrees their vlews_evSth respec� to the
' °�e�dti� �; ri.mueai�n , p,ovo�a., .
�'� `�l� �.�milj�i Dated thls�lth day oi November,19M. ,.
�� . , d3 eDPraodmate� (@Y OBDE�1t OF� ':
tlil;`9ie �a ' - CiT7f qottxGq,;.,
���mf4s eloeapta ai ' OF T C1TY QF SAiNT PAUL,-
"t�n rasr'itsllo��tson�ewra: T�e ` 1uUri��rAi `:
�P�1itltls 1ilrlia la t�le LnweKoMn • aY:AI.BERT Qb$ON; . � '.'
"a�ea'of dtr�t"�ic dtetress'• . City�►�rk ", .
�4ated 1� !W!� b� thr I@nnaote' . ° (Drcemaer l.}9Bf) _
�fl�ieoi�Yee�:Ar r.q„i,.d liy
!�k 1iw,el�dClerrfl�a f5'.6 oltbeio�b •
ln Qie�wat�roee�}�,y� . .;_
Peiebns �st' aliY lncbme: � at�ory . . . '.'
p�►��1Y �d nn�!`t't�d�riil tiw tr : . . . . , . .
�A�sas�Ir.�wiaelnmmtis , . . . , . . ,
!0�'r.ot Mp ot;hr aMi�trieaase for t6e —— — - _ _, _
Sk Pad a�+m a d�io�d fiy the i7nited
���nt bR�a�Uriu-
Ds�+dapmmt.'pLe Dev�! wlll L,;,
owsed atM opeisted g7 t!u Developer or a •
�*�A�A er�eRtitt to be formod m
vhicd d�a_�dop�;�?ill_ba a seqa'sl,:. ,
partner or prit�ipal,,DTon-bonstq`
mmpaRienta m�y be,�ncluded avithin tye
DevelopL'swit but,subsEeintially all(pp�,)
of the LieveTopnlmt iefil condst oi rental'
housia� end fuectionally' rtlated
fadllti6s.
7he atimated�1 amount oi Donds or
other o�li[attoqis to be-isnted to.flnance the
Development wrill be ;5,900,ppp, It is �
anUdpated t�t tRe DeveIopm�t� together
wi�h cert�iat otper rental� housiny,
develapmenis,p.ill be lSafanced'by bonds`io be
isaued, jofntly, bq°_the Housing and
, Redevdopm�t Aufbor!!�'cf tLe Clty ui 3sint
Pan1. Ymnes�a (the. �•HM•�) and the
Mfensapolis Go�muaity De�etopment
A�F. Pmvi�l..that�ch bonds may be
��6��bT�hR HAA alooe,�or tor only t6e
��"e�t.;�if tke HRA so deta�mi�s.
� � � ����ri���
- . ___ __ _ __ __ _ .
, r'= ." The estlmated princfpal:amamt��lbends os
ottxr obligati�s to�e iauad to-6nance the
Development wi1'.�e =5,�0,0�. It 1s .
116TICS O!lD�L1C��tNN�1 ; antidpated that ttr Deve�apm�t.toLethez ,
g�(�j�,�4 ���.` wiEh certaiia o er Y$atal hausia*
'�S��A�LY , developmmts,wlll Bn�nced by bouds to be
��y,R��d�� ' iasued, joiatly,�.by-tpe Housing snd ,
RadeVelopmmt Aafhotlt��ot�e City of Saint
{T.l.HI�1�M�ep Pq�ti� ffiinnesots <tbe �•HRA")-and the
Idlnneapolis Community Development .�
Tn w.hom it may oaoeem: �6��F. PitOVided tLat a�h bonda-may 6e �
issaed bq the HRM alone, or for ocly t6e :
�1s'htrab9 i�wn.that the C�k7 Cowrcil DeveleD�nt�if the HI44 so determilus. . ;
ot the pl�ofl4�int PauLNlne�roia�rU�.maet
Lt the f�t;ouoetl Ch�bais at�e QtA Ha11 3aid bonds oz otFxr obll`stioas. u-#�d
wha�bwed.will net eonslitute s cherge;liett
f�►the C�'03 8�3pt Pan4�eaota at 10:00 or m�.vmbrana upon any property of the C4ty
o'Clock a.io.ou Deoember IS,1 to con� of Saln! Paul, or tde HAA accept the
tn��e�Db�raopK'�ffia tbe c�t,p�� nevelopm�c eaa t!�►xvmwes to be aert,rea
fmm the_ Developmeat. Snch bonds os
a pae�nm W}lc�qee tlNitvdupmmt ioated pbligatioas wlll not be a charge esainst the
in the City a�6t.?aul pnainattez dacribed,
Pueswat to-tKe dt7'e LoudnB Dlan �mdv. C�tS's or Iil�►'s gepeeai credit or faxtog -
llieedola Statates..(�npter 409C. bY.ttte . �Pdwers but ac+e.DeYeble irau sume to 6e paAd
o ���� �_, by the oamer of the Developaxnt pwsuent to"
itny�s �,. 1� revmue egseements.
�DSY6LOPl[�NT
T11e DavElopmsnt ponsiats o� the Fnrtber isformation concezaing the
aoQWfdtiao, cemteuction. rehaMlltetioc Developm�ot, md the tinancinB DpE�e
thereior,may be obtained frQm the Hous[na
M��`�{!a maltl-f�tnibr rmtat Division, Departmeat of P1anNny aad
bO°� ���� ����7 $onomic Devebpment,Citq Hall Annex-
1�3,0�3 's�nare` f+�ie� r6ntaicia= 14tL tloor. 25 Wrat"�fi Streef, &. Paul,
�pp�dmtbd,�1�"�in6it YINts loptt�d a! Mi�nescffta�il�{teleplfone 4D2-15�.
�f BasY"1Es13e�:Satleracrd. The At t6e time anA�lace fixed for tqe public
���������O�O hearing,the City Council of the(Sty of Seint
••siea � Chro�e"K�a�Omi�•dietrasa" Pau4 ����td will give all peraons who
Ae�at�d b !we► by'Ib� 18nn�wl� '
��W l�m��!•.�.��d b7' aPPear at the h�rtng an opportunity to
���,���;�a��b exp�ss thelr views with respect to the
fe tt�e IIsvdop�aeat tfiil be'o�ied b� P�seL _
peitoha n!.lsr incoute. a elte`o� . Dat�this 29t6 day of November.1984.
pra�enUy d�ned� fedoeal law te' �QR�ER pF THE CITY COUNCIL
�e►P�tsms o�'�edtiw wh�e�oom�1s O1Ce�.'HE.C1TY OF SAINT PAUL,
N%or lap at�Yb��iaoome for the,. blII�l�¢OTA)
8!.-Pwul are�as da�neA by the iJntta� _BY AI HERT OL3C)1±�
8h0er DqNelmmt ot Ra�atu��'tlrb�nl City Cler&
flevelopm�at.The Devdppm�nY wi$=be.
owo�d aud opereted by tl►e Developer or a (December i.1964)
pai4Mlpl�aset�eatity to be tormed in
wWd� fl�t•:AsldOp�' will be a aeneaal 4�
partafT o;,psi,aeipal. Nou-6onsing
aompoa�let�mny be inetuded�th}n She . . .
Devdoyownt but wbstantiell�all(9096) . . .,. . . .
of she nevaopmene tivtn conaist ot reneal :
, housing aad (unctionally reiated
��•