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278453 WHITE - CITY CLERK �18453 PINK � - FINANCE � 3 CANARY - DEPARTMENT (�I T Y O F S A I N T ��u L COUflC1I BLUE - MAYOR � File N . n il eso ution 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 'f0 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 (DURAPS, INC.) 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 Requestgd by Department of: Yeas Nays � Hunt Levine In Favor Maddox McMahon B snowaiter - __ Against Y Tedesco Wilson Form Approved by City Attorney Adopted by Council: Date _ !r�`/� �/�°��2�_ � Certified Yassed by Council Secretary BY � BY -- Approved by 17avor: Date _ App ov d by Mayor for Subm' on `o uncil By _ _ — BY ' • Page 2. ������ (c) The City has received from Duraps, Inc., (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) 7he 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 $15,000,000 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. �i, 84�� 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,will be primarily occupied by persons of low and 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 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� - CITYCLERK PINK - FINANCE � COUI1C11 �g45- CAAARY - DEPARTMENT � G I T Y O F S A I N T PA U L L'LU6 - MAYOR File N O. � 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 Yeas Nays Requestgd by Department of: Hunt Levine [n Favor Maddox - McMahon B Showatter __ Against Y Tedesco '"''s°" MAR 2 31982 Form Approved by City Attorney Adopted by Council: Date — CertifiE:d •ssed by ounc' Sec tary By n r By App v by :Vlayor: e MAR 1 � �aQ2 Appr y Mayor for u i n to Council By d B , UBLISMED APR 3 1982 �_ _----- ` ��845� � � N017CH OF rUBLlC HLAiiNG ON 7W0 P�OlOSALE FOIt r�0(iBAMB T0 fINANCE A MULTI-PAYII.Y =RM'i'AL BOOSQIG DEVELOl1[SNTB To w�hom it m�y mnaern: Ndiec u haeby�ivm t6�t the City Cou�il 01 the City of Salnt Paul.Minneso4 will meet !n 16e Qt�Counell C�amben at tAe City Hall in the qty ot Saint P�ul,Minnoota at]0:00 �s awarded the Cltq an Urbsn Ikvdop o'clock�.m.on Ma�29.1982.to consider the mmt Action Gra�t for the Se1Dy Avmue proposals aQ Dunpa, Inc. and Hlll Plaaa Revitaliiation Projert.A po�tion of suc6 Associates that the City mdertake progfm� Brent will be used to asvst thia develop� to finann the devdopments hetelndter ment. d�acribed,pu�suant W t6e Clty'a housin�pLn The estimated prindpal aawunt of bonda w under ldinnao4 Stdutes,Chaptv 462C,by �ye�ayluatims to be iaued W finance the the jasuance o!aevmue boods. Duraps developmmt fs 315.000.000. The Tbe Duraps Developmmt ; estimated principal amaunt of bads or other The devdopment mnsists o!the canstiva �li8atlons to be 3ssued to$nance the HIL tlon�nd equippins o!a multt•family tar ' P�Anoc��ta developmmt is il,000,000, tal housing devdopment o!appmzimatr Said bonds or otAer obllgatioas, as and ly Y40 rental uni4 located am Ruth Street ' when issaed,r11►aot eo�tltute a t�a�e,lien between North Park Drive and Buma or arcumbrance upon any pmperty o�Ne Citq Avmue, Saint Paul, Mimesota. The of Saint Paul,w its hou:ing snd tederelup developmmt will be oaupied prfmarily mmt�ut6orlty�cept tlu Developmmt and by persms of low or modente income Not tLe mrmues to be derived tmm the Devebp . kss than ZO'1F(approximately�8 units)of inent.Such bonds or oWtgatians wUl nM be a the units in t6e developmmt will be oc � charte sgainat the City's�meral credtt or tax• ' eupied Dy persom .of low ic�oome, • ' �n`powers but are payable 1rom wms to be catesory presa�Uy ddined under tederal paid by Duraps or Hill Plara Associates,as Ne Lw to mean penons di�Dle for assistance ease may De,pursuant to revmue rgrcements under Sectloo 8 of t6e Natimal Housing Furiher intormatioa eoncerniag the Act.Tota1 approximate developmari costs developmmh, and the financing pro`roms will be i15,000,000.��development will t��or,tpay be obtained itom the Housina be ovvncd and operated by Duraps Non- Diviaion, Department ot P►anning and housta`canponmts will not be included g,���� �,eyopmmt, City Hatl 1►nne: - wtthln t6e devdopmmt. 12th floor,25 West 4th Street,St.Paul,Nin- The Hlll Plan Aasociates Development nesota 55102(telep6one 298-4105). The devdopmmt coasists of t6e construc At the time and place fized for Q�e public tlan and equipplas of a mulli•family rm- dearin�,the Qt�Counc3l of the City of Salnt tal houdn�devdopmmt of nppro:imatc Paul,Ninneso4 wlll sive all peraons�vho ap. )y DD rmtal units located�SdDy Avmuc pear at the hearing an opportun➢ty to e:pids s�aiatdy wae of Dale St�eet. Salnt their vlews vfth reapect to t6e propoy� PfUl.�A�O�.Tb!dNlIOpQ1Ql�NIII E! D�ted this�tA day of l/aic�,199't, adfa�ent to tbe project knoarn as"Bleit �HY ORDER OF THE C1TY COUNCIL OF House".Na less than Y09�(aypmacimatdq .�E�.Y OF SAINT PAUL,WINNESOT� 21 units)of t6e units in t6e drvdopmmt will be occupied by persons of low income, BY ALSERT B.O1SON a cate;wy preuntly defined undez tedenl Cky Clerk lasvtomeanpersonsdi�iblcforassistancc (Ka�ch6,lgl� ,�. under Seclia�8 of the National HousinQ Aet.T6e iemelninQ unitc�vill be rented �vithaut re�ard to the income o!t6e or cupanta.ToUI approximate developmmt costs will be t9,000,000.The developmmt will De owned and operated by Hlp Plaa Associates.Noo-housing componmts wlll be lncluded within the developma�t bul Will aot be financed by lhe housin� revmue bmds to be im�ed for this devdopmmt The United States Depert- ment of Housiag�nd U�an Devdopment