278452 WHITE - CITY CLERK f7 • �452
PINK - FINANCE COUIICII
CANARY�- DEPARTMENT � G I T Y O F SA I N T PA IT L
BLUE - MAYOR . F1IC N O.
` uncil Resolution
_ .
Presented By
Referred To Committee: Date �
Out of Committee By Date
RESOLUTION RECITING A PROPOSAL FOR A
FINANCING PROGRAM FOR A MULT'I-FAMILY RENTAL
HOUSING DEVELOPMENT, GIVING PRELIMINARY
APPROVAL TO THE PROJECT AND THE PROGRAM
PURSUANT TO MINNESO"TA 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
(HILL PLAZA ASSOCIATES)
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;
(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;
COUNCILMEN
Yeas Nays Requestgd by Department of:
Hunt
Levine In Favor
Maddox
McMahon B
Showalter _ Against Y
Tedesco
�Ison
Form Approved by City Attorney
Adopted by Council: Date
Certified Passed by Council Secretary BY °"4�'v��'� �'"L��C�"`"�`' _
B�
Approved by :Nayor. Date _ A r v d by Mayor for sio to Council
By - — B
.
Page 2. 2`78452
(c) The City has received from Hill Plaza Associates, a Minnesota general
partnership consisting of Howard Bergerud and Hays Enterprises, (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
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 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 and consists of the acquisition of land and the construction of
buildings thereon and the installation of equipment therein, that 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 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) Pursuant to a resolution of the City adopted on March 4, 1982, a program for
financing the Project has been drafted, and a public hearing on the Project and the financing
program therefor was held on March 23, 1982, 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 City a form of Memorandum of Understanding
executed by the Developer, expressing certain understandings by and between the City 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, 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 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
the Bonds in the 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 purchasers of the Bonds; and the City
hereby undertakes preliminarily to issue its bonds in accordance with such terms and conditions;
. Page 3. f� ` v���
2. On the basis of information available to the City, it appears, and the City
hereby finds, that the Project constitutes a multi-family housing development within the
meaning of subdivision 5 of Section 462C.02 of the Act; that the Project is located in
a redevelopment project area created by the Housing and Redevelopment Authority of
the City of Saint Paul, Minnesota pursuant to Minnesota Statutes, Chapter 462; 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 under.taken, 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 ("MHFA") and subject to final approval by
the City, 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, Administrative 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 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
Mayor of the City is hereby authorized and directed to submit the program for financing
the project to MHFA, requesting its approval, and other officers, 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, 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 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 from the Project or otherwise granted to the City or HRA for this purpose. The
Bonds shall not constitute 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.
WHITE - CITY CLERK �$�52
PINK - FINANCE
CANARtl�- DEPARTMENT G I T Y O F S A I N T ��U L COl1I1C1I
- BLUE- - MAYOR
File N .
Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
Page 4.
9. 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.
10. Subject to the approval of the City Attorney, the form of the Memorandum of
Understanding and Exhibit thereto are hereby approved. The Memorandum of Understanding
is authorized and directed to be executed in the name and on the behalf of the City by the
Director, Department of Planning and Economic Development, upon execution thereof by
the Developer. Pursuant to the terms of the Memorandum of Understanding and paragraph 4
hereof, all the rights, duties and privileges of the City under the Memorandum of Understanding
are hereby transferred and assigned to the HRA.
Adopted by the City Council of the City of Saint Paul, Minnesota, this 23rd day
of March, 1982.
COUNCILMEN Requestgd by Department of:
Yeas Nays �
Hunt
Levine In Favor
Maddox
McMahon
showaiter - __ Against BY
Tedesco
Wilson
MA� 2 3 1982 Form Approved by City Attorney
Adopted by Council: Date —
Certified assed by oun Sec etary BY-
� i
By
Approved b : vor: �pate � � �� Appr y Mayor for Su i o to uncil
BY — By
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