280832 WHITE - CiTV CLERK
� PINK ' - FINANCE CITy OF SAINT PAITL Council
CANARV - DEPARTMENT
BLUE - MAVOR File NO. -
' �, '
. � Co nci 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
DOCUMENTS AND MATERIALS IN CONNECTION
WITH THE SAID PROJECT AND PROGRAM j
(MIDWAY PROJECT)
WHEREAS,
(a) Minnesota Statutes, C'hapter 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;
COUI�iC[LMEN Requested b rt ent of:
Yeas Nays ��
Fletcher
GaO� In Favor
Masanz
Nicosia
scheibei _ Against BY
Tedesco
Wilson
Form Approve y City Attorney
Adopted by Council: Date � , / ��
Certified Passed by Council Secretary BY 15�
B}� ..
Approved by Mavor: Date _ Ap ov d by Mayor for ub ' si n t Council
By _ BY
� � ?��(�832
(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.09;
(c) The City has received from Walter Madden,
(the "Developer"), a proposal that the City undertake
a program to finance a Project hereinafter described,
through the issuance of revenue bonds (which may
be in the form of a single debt instrument) (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 elderly persons; and prevent
the emergence 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 multi-family rental
housing development located at 1964 University
Avenue, and consists of the acquisition of an existing
structure and the renovation and conversion thereof
for housing purposes and the installation of equipment
therein, that will result in the provision of additional
rental housing opportunities to elderly persons
within the community;
(f) The City has been advised by representatives
of the Developer that conventional, 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
September 6, 1983, 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.
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 a Project,
and the program of financing therefor, pursuant to Minnesota
Statutes, Chapter 462C, consisting of the acquisition,
conversion 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 the total principal amount of
approximately $2, 600, 000 to be issued pursuant to the Act to
finance the acquisition, conversion 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 purchasers 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. 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 of the Act; that the Project
will be designed for rental primarily to elderly persons within
the meaning of subdivision 4 of Section 462C.05 of the Act; 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
prevention of the emergence of blighted and marginal land and
to promote more intensive development and use of land within
the City;
3. 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
("MFiF'A") 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;
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 to issue the housing revenue bonds 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;
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 prograrn 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;
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 financing of the Project whether or not
the project is carried to completion and whether or not
approved by MHFA will be paid by the Developer;
7. Briggs and Morgan, Professional Association,
acting as bond counsel, and such investment bankers or others
as may be selected by the Developer or by the HRA with the
approval of the Developer, is authorized to assist in the
preparation and review of necessary documents relating to
theProject 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 City for final
approval;
8. 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
�NH17E - CITV CLERK ���
_ PINK � - FINANCE GITY OF SAINT PAUL Council
CANARY - DEPARTMENT
BLUE - MAVOR File NO.
�
. � � • Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
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.
9. In anticipation of the approval by N�iFA 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 coste 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.
COUNCILMEN Requested b Department of:
Yeas Nays —�
Fletcher
s'�°'' [n Favor
Masanz
Nicosia
scnetbe� __ Against BY
Tedesco
Wilson
Adopted by Council: Date
SEP 6 1983 Form Approved by City Attorney
Certifie assed y Co ncil , retary BY �� �'lY�•��/'�'^`
r ��
B"
hlpp by Mavor: �EP H 19� Appr ve Mayor for Su � ncil
By — BY
PUBUSHE� SEP 1'7 1983
i
PED Ho,�sing _ DEPART�,tENT ���
.Ga:� ap�tier �ONTACT
7494 Ext. 259 PHONE � �
8 29 83 DATE ��� v
(Routing and Explanation Sheet)
Assi Number for Routin Order Cli All Lxations for oral Si ature :
' Department Director
MaIYQr
� City Clerk
Budget Di rector
i�hat Will be Achieved by Taking Action on the Attached Materials? (Purpose/Rationale):
Adoption of City Council resolution will provide preliminary approval to rental housing
development at 1964 University Ave. ; the project developer proposes to convert the
Midway Motor Motel to a retirement facility. HRA authorized public hearing and consid-
eration of resolution for preliminary approval for revenue bond financing.
Financial , Budgetary and Personnel In�pacts Anticipated:
No direct financial impacts anticipated. All City expenses will be paid by application
fee from the developer.
Funding Source and Fund Activity Nurt�er Charged or Credited:
NRA Tax Levy Fund 36614.�-�
Attachments (List and Nwnber a11 Attachments :
DEPARTMENT REVIEW CITY ATTORNEY REVIEI�1
X Yes No Council Resolution Required? Resolution Required? Yes No
Yes X No Insurance Required? Insurance Sufficient? Yes No
Yes � No Insurance Attached?
Revision of October, 1982
{SPP RPVprsP SidP for 'Instructions)
� � . r•y 1 �.
��� � �
�• � Q �
%�t
CITY OF SAINT PAUL
INTERDEPARTMENTAL MEMORANDUM
DATE: AUGUST 19, 1983
TO: AL OLSON, CITY CLERK
FROM: SHERI PEMBERTON, PED �
SUBJECT: CITY COUNCIL PUBLIC HEARING FOR SEPTEMBER 6, 1983
Attached is a copy of the Public Hearing Notice, which will be published in
the St. Pau1 Lega1 Ledger and the St. Paul Pioneer Press and Dispatch on
Saturday, August 20, 1983.
Please place this Public Hearing on the City Council Agenda for Tuesday,
September 6, 1983. 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 Hartman .
Gary Peltier
_--,—. '
--- A _ . ��[)�
.
. NOTICE OF PUE3LIC �HEARII�G ON
PROPOSAL FOR A PROGRAM TO F1i1ANGE 11
MULTI-FRNIILY REIVTAL EIOUSTL�G DEVFLOPP1E.dT
� To whom it may concern: - - .
Notice is hereby gi.ven that the City Council of the
� City o£ Saint Paul., Minnesota will meet in the City Council ,
Chambers at the City Hal.�. in the City o£ S�ini: Paul., Minnesota '
at �� o'clock. a.r�. on _ � ���y�r> 1� , 1983, to cor�si.der th� �
proposal of r4idc,ray Retzrement Center Incor,00rated that the CS.-4y
undertake a �rogram to finance the deveYopi:�ent hereinaf-ter
described, pursu�nt to the City's housing plan under Minnesota
Statutes, Chapter 462C, by the issuance of �cevenue 'bonds.
The Development
The cle�telo,bment consists of the acquisition
. and conVersi.on of the t�iidway �9otor_ ]Cnn to a
multiw:Eamily rental housi.n.� develo,nment of
appxoxzmately 94 rental units located at 1964
� University Avenue, at, the intersection o£
University and Prior Avenues, Saint Paul,
Minnesvta. The devslopment will be oc.cunied
pr�.ni_�ri.ly by persons w'no are 55 year.s of age
or olc�er. Not less than 20s (approxinnately
19 units) of the units in the developrnen�
will. be occu�ied by persons of loL,� income, a
categoiy nresently definea unaeL ��deral 2aw
to mean persons or families ��hose income is
80°s or less of the median income for the St. .
Paul area as determined by the IInzted States
Department of Housing and Urhan D�velo�ment.
Total approximate development costs will be _
$3,100,Q00. The development will be owned
and operated by Midway Retirement Center _
Incorporated, a i�2innesota corpora-tion. -
Non-housing components will. be included
within the development but substantially alI .
' (90�) of the development wil.�. consist of
rental housing and functionally �celated
faczlities.
. - ,
y '
-- „ .• r . , �
' � � ' ���������
The estimated przncipal amount of bonds or other. ot�li.--
gations to be issued to finance the Development is $2,600,000.
- _ Said bonds or other obligations, as an3 when issued,
will not consti�tute a charge, lien or encumbrance unon any
nroberty of the City of Saint PauJ., or a.ts l�o�xs�.ng and �
redevelopment authority except the Development and t2�e revenues.
to be derived from the Development. Such bone3s or obligations
will not. be a charge against the City`s general• credit or
taxing powers but are paya'nle €rom sums to be �aid by the owner�
of th� Development pursuant to revenue agreet;lents. "
Further information concerning the Development, and _
the financing program therefor, may be ol�tained from the
Housi.ng Divisi.on, Departr:tent of Planning and �conomic �
Deve7.oprnent, Ci.ty Hall Annex - 12th floor, 25 Y�est 4i�h Street,
St. Paul, Minnesota 55102 (telephone 29?,--1577) .
.'1t the time and place fixed for the »ublic hear.ing,
t�P City �:oun�i_i, o� the Czty of Saint Pau�., Minnesota w�.11
ga.ve• all. nersons who appear at the hearing an opnortunity to
express their views �•�ith resnect to th� pro�osal.
Date3 this �� day of �t ��t � , �-983.: .
(BY ORDER Q� TEi�: CITY C4UNCIL OF
TfiE CITY Ok' SA3NT PAUL, _
MI�TIJESOTA)
$Y �QQ"��t C� 4�c�,�
City Cler}c
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