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280667 WHITE — CI7V CLERK �� PINIE — F1?JANCE COUIICII CANqRV — OyPARTMENT GITY OF SAINT PAUL -^t BLUE — MAVOR a�� f , File N 0. � � ouncil Resolution Presented By � ' � Referred To Committee: Date Out of Committee By Date _. RESOLUTION RECITING PROPOSALS FOR ONE OR MORE FINANCING PROGRAMS FOR A MULTI-FAMILY RENTAL HOUSING DEVELOPMENTS, GIVING PRELIMINARY APPROVAL TO THE PROJECTS AND THE PROGRAMS PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C, AUTHORIZING THE HOUSING AND REDEVELOPMENT AUTHORITY TO ISSUE HOUSING REVENUE BONDS AND AUTHORIZING THE SUBMISSION OF FINANCING PROGRAMS FOR APPROVAL TO THE MINNESOTA HOUSING FINANCE AGENCY AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AL�TD MATERIALS IN CONNECTION WITH THE SAID PROJECTS AND PROGRAMS (JACKSON PROJECT AND SIBLEY PROJECT) WHEREAS, (a) Minnesota Statutes, Chapter 462C (the "Act) authorizes cities, or housing and redevelopment authorities, 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; COUNCILMEIV Requested by Department of: Yeas Nays Fletcher GaO� [n Favor Masanz — Nicosia scnetbe� __ Against BY TedesCo Wilson Form Approved by City Attorney Adopted by Council: Date � I��i�;GGl�� Certified Yassed by Council Secretary BY g�. t�pproved by Mavor: Date _ Approved by Mayor for Submission to Council By BY . � . �,��r-� 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 Mears Park Development Company (the "Developer") a proposal that the City undertake a program or programs to finance the Projects hereinafter described, through the issuance of revenue bonds or other obligations (which may be issued 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 low or moderate income; and prevent the emergence 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 Developer is currently engaged in the business of real estate development. The Projects to be financed by the Bonds consist of the acquisition, construction and equipping of multi-family rental housing as more fully described in the notice of the public hearing referred to in paragraph (g) , below. (f) The City has been advised by representatives of the Developer 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 or operating the Projects 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 Projects are economically more feasible; (g) A public hearing on the Projects and the financing programs therefor was held on July 28 , 1983, after notice was published, 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 Projects nor will any public official either directly or indirectly benefit financially from the Projects; (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 Projects, and the financing programs 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 Projects, and the programs 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 Developer' s specifications and to revenue agreements between the City 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 all series of Bonds issued to provide net proceeds in a total principal amount of approximately $33,500,000 to be issued in one or more series pursuant to the Act to finance the acquisition, construction and equipping of the Projects; and said agreement may also provide for the � �� . : �°;'!��. a entire interest of the Developer therein to be mortgaged to the purchasers of the Bonds, or a trustee or trustees for the purchasers of the Bonds; and the City hereby undertakes preliminarily to issue its bonds in one or more series in accordance with such terms and conditions; 2. On the basis of information available to the City it appears, and the City hereby finds, that the Projects constitute multi-family housing developments within the meaning of subdivision 5 of Section 462C.02 of the Act; that the Sibley Project will be occupied, in part, by persons of low income; the availability of 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 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 prevention of the emergence of blighted and marginal land and to promote more intensive development and use of land within the City; 3. The Projects, and the programs to finance the Projects by the issuance of revenue bonds, is hereby given preliminary approval by the City subject to the approval of the financing programs 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 financings for the Project; 4. 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; 5. 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 programs for financing the Projects to MHFA, requesting its approval, and other officers, and employees and agents of the City and HRA are hereby authorized to provide MHFA with such preliminary information as it may require; : � - b��.,�� ' � �� 6. The Developer has agreed and it is hereby determined that any and all costs incurred by the City or HRA in connection with the financings for the Projects whether or not the Projects are carried to completion and whether or not approved by MHFA will be paid by the Developer; 7. Briggs and Morgan, Professional Association, is hereby retained as bond counsel for the Bonds, and such firm, acting as bond counsel, is authorized to assist in the preparation and review of necessary documents relating to the Project and the financing programs 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; 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 revenues and proceeds pledged to the payment thereof, nor shall the City or HRA be subject to any liability thereon. The holders and owners 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 revenues 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 approval by MHFA and the issuance of the Bonds to finance all or a portion of the Projects, and in order that completion of the Projects 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 Projects 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. WMITE - C�TV CLERK '�y PIITtK �-�INANCE COUIICIl �/�� , � BLWER,� -rAVORTMENT GITY OF SAINT PAUL File NO. ��+��' `�� , . � � � Council Resolution Presented By Referred To Committee: Date Out of Committee By Date 10. Pursuant to the terms of the Memorandum of Understanding and paragraph 4 hereof, all the rights, duties and privileges of the City under this Resolution and related instruments and proceedings are hereby transferred and assigned to the HRA. � Director, Finance and Management Services COUNCILMEN Requested by Department of: Yeas Fletcher Nays —� �� °r In Favor M8S8�IZ r Nicosia � scnetne� � __ Against BY ' 7edesco Wilson Adopted by Council: Date �UL 2 g �983 Form Approved by City Attorney Certified Y ss d y ouncil Se ar BY "' gy. C�► �l � l.lpproved by avor: Date �UL 2 9 1983 Appr ved y Mayor for Subm s to Coun�cil By _ BY PUBLISNED AU G 6 �9H3 � , �,�.�,��'�7 . ..��; CITY OF SAINT PAUL INTERDEPARTMENTAL MEMORANDUM DATE: July 7, 1983 TO: A1 Olson, City Clerk FROM: Sheri Pembertan, PED,(�p,�0 SUBJECT: City Council Public Hearing For July 28, 1983 Attached is a Copy of the Public Hearing Natice, which will be published in the St. Paul Legal Ledger and the St. Paul Pioneer Press and Dispatch on Saturday, July 9, 1983. This Public Hearing Notice meets the fifteen (15) day require- ment for issuance of Revenue Bonds. Please place this Public Hearing on the City Council Agenda for Thursday, July 2�, 1983. A City Council Resolution will be forwarded to you by the City Attorney's Office prior to the City Council meeting. Thank you. Attachment cc: Gary Peltier Becky Hartman Chron Parcel �, , `� " _ � '' ._, -� � ��`�` �' 0 ,. �,� ' -u' � r c? y;. ,, -�; '" �.•.. � (:� C,_� �rl ��,�� ' ' CITY OF SAINT PAUL $p1TT o,, DEPARTMENT OF PLANNING AND ECONOMIC DEVELOPMENT R� 1� ' o ' a DIVISION OF DEVELOPMENT ��II1IUt ti 25 West fourth$ireei,Saint Paul,Minnesota 55102 � mt 1111t � 612-292-1577 .+� �e i�e• GEORGE LATIMER MAYOR St. Paul Dispatch and Pioneer Press July 7, 1983 SS East Fourth Street St. Paul, N�T. 55101 Attention: Rosemary F`x�ank RE: LEGAL NOTICES Gentlemen: Attached is a Notice of Public Hearing on 3'wo. Proposals For Programs to Finance Multi-Family Rental Housing Developments. Please publish this Natice in.the St. Paul Pioneer Press and Dispatch for Saturday, July 9, 1983. If you have any questions concerning this publicatiou, please contact me at 292-1577, extension 231. Sincerely, i� ,0 C�. f�ju�� Shery��Pemberton Real Estate Supervisor Enclosure SAP:sp , . . ?�� - ClTY OF SAINT PAUL �R,��``T=.°"';� � DEPARTMENT OF PLANNING AND ECONOMIC DEVELOPMENT ' � DIVISION OF DEVELO�PMENT 4 � O a uu11111t1 � 25 West Fourth Street,Saint Paul,Minnesota 55102 � wt IIII II � �m n 612 292-1577 tes• GfORGE LATIMER MAYOR i St. Paul Legal Ledger July 7, 1983 Publication Office 640 Minnesota Bldg. St. Paul, MN. 55101 RE: LEGAL NOTICE Gentlemen: Attached is a Notice of Public Hearing on Two Proposals For Programs to Finance Multi-Family Rental Housing Developments. Please publish this Notice in the St. Paul Legal Ledger for 5aturday, July 9, 1983. If you have any questians concerning this publication, please contact me at 292-1577, extension 231. Sincerely, ;� � 1 J/ A 7� jC..// / � / �C/I�y�,�C��%�„�"v ��%� Sheryl A. Pemberton Real Estate Supervisor Enclosure SAP:sp , � ; � M . .. �'' . �� l , .Z + NOTICE OF PUBLIC HEARII�IG ON TWO PROPOSALS FOR PROGRAMS TO FINANCE MULTI-FAMILY RENTAL HOUSING DEVELOPMENTS To who�n 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 o'clock a.m. on July 28 , 1983, to consider the proposal of Mears Park Development Company (the "Developer" ) that the City undertake a progratn or programs to finance the developments hereinafter described, pursuant td the City' s housing plan under Minnesota Statutes, Chapter �62C, by the issuance of one or more series of revenue bonds. THE PROJECTS Jackson Pro�ect The Jackson Project consists of the constructian and equipping of a multi-family rental housing development of approximately 170 rental units located at the intersection of 6th and Jackson Streets in the "Lowertown" section of downtown St. Paul, iviinnesota.. The Jackson Project will be approximately 4� stories high and will include co►n�nercial and retail development on the lower levels, and condominium units on the upper levels of this project. All of the rental units will be rented to individuals or families without regard to their income. The total approximate development cost of the Jackson Project is estimated to be $�6. 500.000. It is anticipated that the Developer will form a "redevelopment company" pursuant to Minnesota Statutes, Chapter 462, and that the "redevelopment company" will be the owner and operator of the Jackson Project. It is also anticipated that the redevelopment company of the Jackson Project will be granted a tax abatement by the City of St. Paul pursuant to which all or a portion of the real estate taxes otherwise payable with respect to the Jackson Project will be abated or deferred. � �� L �. ��J�� . . �, r� � Sibley Project The Sibley Project consists of the construction and equipping of a multi-family rent,r�l housing development of approximatley 180 rental units located at the intersection of Sibley and 5th Streets in the "Lowertown" section of downtown St. Paul, Minnesota. Not less than 15 percent (approximately 27 units) of the units in the Sibley Project will be occupied by persons of low and moderate income, a category presently defined under Federal law to mean persons eligible £or assistance under Section 8 of the United States Housing Act of 1937. It is anticipated that rental payment assistance for those units will be provided by the United States Department of Housing and Urban Development under the Section 8 program. The remainder of the units in tihe Sibley Project will be rented to individuals and families without regard to their income. The Sibley Project will be approximately .32 stories high and will in�lude some commercial and zetail facilities in the lower levels of the structure. - The tatal approximate deveZopment cost for the Sibley Project is estimated to be $17. 000,000. It is anticipated that the Developer will form a "redevelopment company" pursuant to Minnesota Statutes, Chapter 462, and that the "redevelopment com�any" will be owner ar.d operator of the Sibley Project. It is anticipated that the City of St. Paul will grant to the redevelopment company a tax abatement pursuant to which all or a portion of the real estate taxes otherwise payable with respect to the Sibley Project will be abated or deferred. The estimated principal amount of the proceeds of bonds or other obligations to be applied to finance the Jackson Project will not exceed $�6 , 500.000, and the estimated �rincipal amount of the proceeds of bonds or other abligations to be applied to finance the Sibley Project will not exceed $17 . 000.000. Said bonds or other obligations may be issued in one or more series. ► ; �� y ��l�'�� . 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 housing and redevelopment authority except the Projects and the revenues to be derived from the Projects. Such bonds or obligations will not be a charge against the City' s general credit or taxi.ng powers but are payable from sums to be paid by the Developer, or its successors, pursuant to revenue agreements. It is anticipated that a separate series of bor�ds ar other obligatons will be issued to finance each of the Projects, but both Projects may be financed by a sinqle series of bonds if the Developer so elects. Further information concerning the developments, and the financing programs therefor, may be obtained from the Housing Division, Department of Planning a�d 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 al�. persons who appear at the l�earing an opnortunity to� express their views with respect to the proposal. Dated this �th day of July , 1983. (BY ORDER OF T�IE CITY COUL�TCIL OF THE CITY OF SAI�JT PAUL, MINNESOTA) By Albert B. O�son City Clerk 3 �� PED - Housing DEPARTFtENT Gary Peltier �ONTACT 7494 Ext. 259 PHONE v 7/14/83 DATE i �� r � (Routing and Explanation Sheet) Assign Number for Routing Order (Clip Al1 Locations for Ma�yoral Signature): � ment Di rector . City Attorney �. RECEI — VED Ma�yor � -- . �� Finance and Management Services Dir�ctor �d��L 1 ��g�3 6 Clty C�@I"k OFFICE OF THE DIRECTOR DEPARTfvIENT O.F FPNqNCE Budget Director AND MANAGEN;ENT SERVICES �L�� Ihat Will be Achieved by Taking Action on the Attached Materials? (Purpose/Rationale): Adoption of Resolution will provide preliminary approval to rental housing in Galtier Plaza (Block 40) , financed with housing revnue bonds. HRA has authorized public hearing and consideration of resolution. � � Financial , Budgetary and Personnel Impacts Anticipated: No direct financial impa�ts to the City; HRA/City expenses paid by developer as part of bond program. Funding Source and Fund ACtivity Nun�er Charged or Credited: All City expenses will be paid by application and service fees paid by the developer. H R�t 'T'a�c- �c.vc1 F�c.�..� 3��'� -r� Attachments (List and Nw�er all Attachments) : City Council Resolution. DEPARTMENT REVIEW CITY ATTORNEY REVIEI�I � Yes No Council Resolution Required? Resolution Required? Yes No Yes No Insurance Required? Insurance Sufficient? Yes No Yes No Insurance Attached? Revision of October, 1982 (SPe RpversP Sidp for �Instructions) ' ��'�a�' (, � "�C:�ON�'UO , � . . �� —...- �� ZQ �>� � 8a,� ;Nlltll��ti1��! `�'"`tl!!!'!'AL ��• � � �i y ,� -�; ( aoea�d iW.di� `ai� tYt'_Ntlu�t�d; �. @Nx a��ll!��l6e .� Y, , . ,, e �, wi�s k s14� ' r Sibk7 Plfoj�et:�lt�ai�.i�see��I�iT,tO�• � � liekb'1t�/!�! „',��CaNOCtI �14 baaA;o�at1�Wr�ee�+L�iswd ' ettLepEra[l�ntl� . 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MASANZ � �I C /� 7 NICOSIA SCHEIBEL WILSON -��ru--pRF�3��ESCO .�