278712 WNITE - CITY CLERK �y,��y,��A
PINK - FINANCE n ' / ` J s)
CANARY - DEPARTMENT G I TY OF SA I NT 1 �U L COUflC1I � � �
BLUE « • MAYOR
_ File N .
� Coun ' ,Resolution
� a
Presented By
Referred To Committee: Date
Out of Committee By Date
RESOLUTION RECITING A PROPOSAL FOR A
FINANCING=' P�OGRAM FOR A MULTI-FAMILY RENTAL
HOUSING 'bEVELOPMENT, 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
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;
COU(VCILMEN Requestgd by Department of:
Yeas Nays
Hunt �
Levine In Favor
Maddox
McMahon
snowaite� - __ Against BY
Tedesco
Wilson
Form Approve y City ttorn y
Adopted by Council: Date —
Certified Passed by Council Secretary gy J
By --
Approved by ;Vlavor: Date Appr ve y ay for S s n to uncil
BY _ _ _ By
, Page 2. ������;r
(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 4t�2C.01 to 4Ei2C.08;
(c) The City has received frorn the HRA
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 low
income 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 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
rehabilitation of buildings thereon, that
will result in the provision of additional
rental housing opportunities to persons
within the community;
(f) The City has been advised by the
HRA 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 HRA has also
advised the City that with the aid of
municipal financing, and resulting low
borrowing costs, the Project is economically
more feasible;
.� Page 3. ���y/��'�
(g) A public hearing on the Project and
the financing program therefor was held on
May 20, 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 HRA or the Public Housing
Authority of the City of Saint Paul presently
hold title to the Project real property;
(j) The HRA has not, on the date of
this resolution, selected a developer to own,
lease or manage the Project, but the HRA
expects to select a person or entity to own,
lease or manage the Project prior to the
issuance of Bonds.
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 HRA that the City undertake a Project, and the
program of financing therefor, pursuant to Minnesota Statutes,
Chapter 462C, consisting of the acquisition, and rehabilitation
of multi-family rental housing facilities within the City
pursuant to the specifications of the Project owner or lessee
and to a revenue agreement between the City and the Project
owner or lessee 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 $2,000,000 to be issued pursuant to the Act to
finance the acquisition and rehabilitation of the Project; and
said agreement may also provide for the entire interest of the
Project owner or lessee 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 4. � !.V��rsd
2. Prior to the issuance of the Bonds, the HRA shall
select a person or entity to own or lease, and manage, the
project. The selection of a Project owner or lessee shall be
in the sole discretion of the HRA, and the approval of the City
of such selection shall not be required.
3. 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 primarily occupied by persons of low or 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 Project owner or lessee 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.
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 City, the Project
owner or lessee and the purchasers of the Bonds as to ultimate
details of the financing of the Project.
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 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 Mayor of the City is hereby
authorized and directed to submit the program for financing the
project to I�iFA, 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.
'� • Page 5. 2"�8��.�
7. 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 Project owner or lessee.
8. 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, Project owner or lessee 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 docurnents and submit such documents to the City 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
fro�n 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
�ity 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 Project owner or lessee 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 Project owner
or lessee 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.
WHITE - CITY CLERK �^��^
PINK - FINANCE �j R E
CANARY - DEPARTMENT G I T Y O F S A I N T ��u L COUIICII V P�
BLUE �= MAYOR
• File N 0.
' � Council Resolution
Presented By
Referred To Committee: Date
Out of Committee By Date
Page 5.
Adopted by the City Council of the City of Saint
Paul, Minnesota this day of , lgg2.
Mayor
Attest:
Clerk
COU[�1CILMEN Requestgd by Department of:
Yeas Nays
Hunt
Levine In Favor
c��4
McMahon B
Showalter --�-- Against Y
Tedesco
Wilson
Adopted by Council: Date MAY 2 01982 Form Approved by City ttorne
Certified Y s• Council re BY �
��
Ap by 17ayor: t MAY 2 5 1982 APP�o�e b May r f Submis i _ncil
By - – BY
— �
PUBUSHED MAY 2 9 198Z . ,
,Y. ,.,,� �
1G�r�/V w .�. �
� ` DEPARTMEiiT: PED
^ ROUTING ayD EXPU�NATIQN SHEEf �A�T' P arn s
(C�REEN SHEETI P�E' �
For Administrative Orders� Resolutions, Ordinancea and AQreesents
ROUTIN6 ORDER — ROUTE SY ASSIGNEn NUMBER;
4 B111 W11S011 DIREC R OF A6EMENT
3 Tom Meyer _5 �YOR�
2 DEPARTMENT DIRECTOR 6 DIREC R,. NCE � MIGT. SERVICES
� CITY ATTORNEY _,Z CITY CLERK
�
BUDGET DIRECTOR
ACTI�N RFA t cT 1I �GLIP A O ,ATi�NS FOR hi0Y0R,�1L SIC+t�LeTLIRE):
Approval of an inducement Resolution for a potential rental
housing revenue and project.
MIFL�T WILI BE �HIEVED BY TAKING ACTION ON TNE ATTACNED NLATERIALS �PL1RP0� AND AT20N LA E)�;
To initiate specific actions leading to a rental housing
program and collect a developers fee.
IN�NCIA . B �1u: TARY AND P RcONN IMPA -TS AaTtCiPATED;
Developer submits a $2,000 city fee to pay for PED
� adm. expenses.
ATTACHMENTS �LIST ALL ATTACHMENTS):
1�
2.
3. '
eaae hev.ce�+r nteeds oa. o e o euppo cwn
� � � C�1 A�to�ney=
i. Coun�i.L Reeo.[u,ti.on R¢qwi�ced? X yES NO 1. Reao.P�iti.`cKY YES NO
2. Inewianct Req;w�.,edt YES X NO 2. Ineunance Su`b.ici.¢�.tY YES NO
3. Ineunance A,ttashedY YES �N0
l�svisicn �i:b/29/82
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CITY OF SAINT P/1UL
INTERDEPARTMENTAL MEMORANDUM
DATE: MAY 12, 1982
T0: AL OLSON, CITY CLERK
FROM: SHERI PEMBERTON, PROJECT SERVICES, PED �
SUBJECT: SCHEDULING PUBLIC HEARINGS BEFORE CITY COUNCIL FOR REVENUE BONDS
Pursuant to our telephone conversation, enclosed you will find two (2) publi-
ca ' ns for Public Hearings before City Council and are as follows:
l. NOTICE OF PLTBLIC HEARIN G ON A PROPOSAL
FOR A PROGRAM TO FINANCE A MULTI-FAMILY
RENTAL HOUSING DEVELOPMENT, dated May 4, 1982
(21 residential structures - PHA)
Public Hearing Date May 20, 1982
2. NOTICE OF PUBLIC HEARING ON A PROPOSAL
FOR PROGRAM TO FINANCE A MULTI-FAMILY
HOUSING DEVELOPMENT, dated May 12, 1982
(Developer - Douglas P. Pardo)
Public Hearing Date May 27, 1982
The City Council Resolutions for these hearings are being prepared through the
City Attorney's Office, Becky Hartman.
It is anticipated that there will be a number of Housing Revenue Bond issues to go
before City Council. If it is acceptable to you, I would like to continue to check
out Council dates for public hearings by phone, foxwarding you copies of the publi-
cations.
Please feel free to contact me at 292-6421 if you have any questions or would like
to discuss this procedure.
Thank you.
SAP:rmf
cc: Becky Hartman
Terry McNellis
Gary Peltier
i�'
, � 2��'71�
�' `"' °' . CITY OF SA1NT PAUL
,�6 �
�. � Y
o °,_ a DEPARTMENT OF PLANNING AND ECONOMIC DEVELOPMFNT
�`' "t�i'����� b DIVISIOy OF DEVELOP�ti1ENT
{,d, ��illl:11111 c
vr � ^ 25 West Fourth Street,Saint Paul,Mfnncsow.5510Z
a�a• 612-292-G2i 1
GEORGE IATIMER
MAYOR
St. Paul Dispatch and Pioneer Press May 3, 1982
55 East Fourth Street
Saint Pau7 , MN. 55107
l�tte��tion: Rosemary Frank
' RE: LEGAL NOTICE
Gent1emen:
Enclosed is a Notice o.f Public Hearing On A Proposal For A Program to Finance
A Multi-Family Rental Housing Development. Please publish this Notice in the
St. Paul Pion�er Press and Dispatch on Tuesday, May 4,, 1981 .
Sincerel,y, - - - • _
. � c-�'.^r:�f
��� �
Sheryl A. Pemberton
Real Estate Specialist II
SAP:rmf
�nclosures
J
- bcc: Chron, Parcel File
-. °,T' �, . ,�'TY OF SA[NT f'�[1�.
. � ���� � �
o �.�' ;� DEPARTMENT OF PLANNING AND ECC���OMtC DEVELOF��1EhIT
�!a ;���`" i+�� .�
;,,< ,,,j ��, ,,, ,:: DIVI�lOv OF DEVFIOf��tE�IT
_1_L
~i +�` :S�':n:Faur.h`tr��t.�a�nl P�ul.Rt�nrst-t<r:i, SS1�?:
s-'
� .... -� GtT .'`?:f..','i
GEORGE tNTIMER ��Q���
MHYOR , ,� S+�
; `
� �
St. Paul Legal Ledger May 3S 19�2
Publication .Office .
640 Minnesota Bldg.
St. Paul , MN. 55101
RE: LEGF�L NOTI CE
Gent1 emen:
Attachcd is a Notice of A Public Hearing On A Proposa1 For A Pr-oy�°am io
Finance A Multi-Family Rental Housing Development.� Please puli7ish �:his
Notice in the St. Paul Legal Ledger on Tuesday, P�ay 4Y 1982.
Sincerely,
� � . �(- ����.��LJ . . _
����
Sheryl A. Pemberton '
Real Estate Specialist II
292-6421
SAP:rmf �
Enclosure
/
bcc: Chron, Parcel File
. . w ' � .. � � ,
� 2����.`�
� - --- NOTICE OF � PiJBLIC HEARING ON A
PROPOSAL FOR A PROGRAM TO FINANCE A
MULTI-FAMILY RENTAL HOUSING DEVELOPMENT
To whom it may concern: �
Notice is hereby given that the .City Council of the
City of Saint Paul, P�innasota will meet in the City Hal].=Annex, 15th
• Fl oor, 25--West Fourth -Street==i�n the Ci ty of Sairt Paul , Mi nnesota �'��
. at t0:00 0' clock Ya.�m. on May 20 - . , 1982, to consider the .
proposal that the City undertake a prograni to finance the
_ development hereinafter described, pursuant to the City' s _
. housing plan under Minnesota Statutes, Chapter 462C, by the
issuance of revenue bonds.
The Development
. The DeveZopment consists of 21 residential
- structures of v�arying sizes located at •tha
following addresses:
705 Aurora 1082 �iague
948 Dayton 952 Dayton
818 Laurel 1067 Marshall
� _ � 820 Laurel 1185 Hague
� � ].039 Ash3and 904 Hague
1137 Hague 759 Hague
1186 Hague 110 North Cleveland
1720 Selby 1245 Selby
782 Fuller 782 Dayton (duplex)
790 Marsha�.1 245 North Oxford (four-plex)
- 251 tlorth Oxfnrd (fQUx-plsx)
All in the City of Saint Paul. Al1 the
structures,. except as noted above, are single
� family dwelliiigs which will .be owned and
operated as rental housing. None of the
properties will be owner-occupied. All the
dwelling units contain three . to five bedrooms
and will be suitable for occupancy by
faznilies. o . . - ' r- -�-
� It is presently anticipated that rental
payments f4r al,l dwelling units in the
Development wi.11 be assisted by the Section 8
M4derate Rehabila.tation program of the United
�� .
'r _ • . � 0 2������
. ��
� States Department vf Housing and Urban
Developr:lent. All the dwelling u.nits will be
. occuPied by low income persons eligible for
Section 8 assistance for 15 years or until
the Section 8 assistance related thereto is
terr.iinated, whichever is sooner. It will be
. a condition of the revenue bond financing for
, the Development that not less than 20$ of the
dwelling units will be occupied by low income
persons for 20 years on the period required
by federal regulations, whichever is less.
No c4mmercial or other non-housing facilities
will be included in the Developnent. �
The estimated principal amount of bonds or other obli-
� gations to be issueci to finance the Development is $2,000,000.
The City intends to authorize the Housing and Redevelopment
Authority of the City of Saint Paul, Minnesota to issue the
Bonds.
Said bonds or other obligations, as and when issued,
� will not constitute a charge, lien or encurabrance upon any .
property of the City of Saint Paul, or its housing and
redevelopment authority, 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 �o be
�aid by the owners of the Developr:ient, pursuant to a revenue
` . agreement or agreements.
Further information concerning the Developnent, and
t�he financiMg Program therefor, may be obtained from the
Housing Division, T�epartment of Pl.anning and Economic
.Development, City Hall Annex - 12th floor, 25 West 4th Street,
S�t. Pa�l, Minnesota 551�� (telephcne 298-4105) . �.
At the time and place fixed for said Public Hearing, the City
Council of the City of Saint Paul, Minnesota, will give all persons who
appear at the heazing an opportunity to �express their views with respect
to the proposal.
DATED THIS 4th DAY OF MAY, 1982. •
, ; . . ...
. . r' �
_ By A1 Olson
City Cler3c '
, , - �, 2'�����
, �
HQUSiNG AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL, MINNESOTA
REPORT TO TNE COMMISSIONERS DATE apri130, 1982
REGARDING HRA ASSISTANCE IN DISPOSITION OF PUBLIC HOUSING
Several months ago the Public Housing Agency contacted the City of St. Paul and indicated that
it was having problems operating and maintaining certain of its scattered site Public Housing
units and inquired as to whether or not the City had any resources to assist them in the rehabilitation
of these units. They also indicated that they were fearful that if they were unable to find a source
of revenue to make the needed repairs they might be forced to sell some of these units.
The City responded that there was no source of funds to provide the assistance for rehabilitation,
but indicated the willingness to commit staff from the Department of Planning and Economic
Development to work the Public Housing Agency in an effort to both locate a source of capital
to make the necessary repairs and to maintain the units as a resource for low income housing.
Staff from the Housing Division of the Department of Planning and Economic Development have
been working with the Public Housing Agency and its Board, since that time, and have agreed
upon a course of action that we intend to pursue.
On Wednesday, April 28, the Public Housing Agency Board authorized its staff to proceed with
the sale of 28 scattered site Public Housing units with the understanding that the units would
be sold to a private developer who would be willing to purchase the units, rehabilitate them and
accept Section 8 Moderate Rehabilitation Rental Assistance. It was further understood, that
as part of this effort, none of the present tenants would be permanently relocated. In order to
accomplish this sale it will be necessary for the Housing and F:edevelopment Authority to issue
tax-exem t revenue bonds. Toward that end, we have published notice for a Public Hearing for
Thursday, May 20.
The purpose of this board report is for information only and no action is required.
Terry McNellis