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279436 \NH17E - CITV CLERK PINK - FINANCE COUnCII S ��� CANAR� - DEPARTMENT GITY OF� SAINT PAIIL 6 `BI.UE - MAVOR File NO. ��� ��` � Cou�cil Resolution Presented By ���--��� Referred To Committee: Date Out of Committee By Date RESOLUTION RECITING A PROPOSAL FOR A FINANCING PROGRAM FOR MULTI-FAMILY HOUSING DEVELOPMENTS, 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 PROJECI'S 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; (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, Sections 462C.01 to 462C.09; (c) The City has received from Earl Cohen and Robert Levine (which individuals, together with a partnership to be formed by them are collectively referred to herein as the "Developer") a proposal that the City undertake a program to finance a number of multi-family projects through the issuance of revenue bonds (the "Bonds") pursuant to the Act; COUNCILMEN Yeas Nays Requested by Depactment of: Fletcher ��� �evine [n Favor Masanz '� Nicosia scneibe� _ __ Against By � Tedesco Wilson Form Approved by City Attorney Adopted by Council: Date ;'�i����J�t�d.�--� Certified Passed by Council Secretary BY gy, E�pproved by iNavor: Date _ Approved by Mayor for Submission to Counci By. _ _ BY � C� � . � ' -2- � ��m���� (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 an existing rental housing facility and the rehabilitation thereof 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) A program for financing the Project has been drafted and, a public hearing on the Project and the financing program therefor was held on November 9, 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 and rehabilitation 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 $700,000 to be issued pursuant to the Act to finance the acquisition, renovation and rehabilitation 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; 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 within a redevelopment project area established 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 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_ �,.:+`���4� 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. 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 Statues, 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, 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 financial advisors or others as may be selected by the HRA with the prior agreement of the Developer 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 municipa! 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 theron. 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 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 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. WHITE - CI7V CIERK COURCII ��y��� PINK - FINANCE GITY OF SAINT PAITL L1 �CANARV - DEPARTMENT BLUE - MAVOR File NO. Council Resolution Presented By Referred To Committee: Date Out of Committee By Date -4- 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, 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 day of , 1982. By �, Director, Department of Finance and r""�Management Services COUNCILMEN Yeas Nays Requested�ep�nt of: �FieAsher� � �evine � [n Favor Masanz Nicosia Scheibel _ __ Against BY — Tedesco Wilson �QV 9 �9�2 Form Appro d by City Attorney Adopted by Council: Date Certified P s_e C�u cil et BY ��.V/�����i�+.o�� B� t�pproved : a or: Date NOV 1 2 1982 Appr May r for S Cou By _ BY ���St�d��.�? NOV z 0 1982 . f�i 0 s7'Z�� PED DEPAf�T��tENT Gary Peltier �ONTACT Ext. 259 PHONE � �� 10/27/82 DATE �v� (Routing and Explanation Sheet) Assign Nurt�er for Routing Order (Clip All Locations for .P9a,yoral Signature): 1`�partment Director 3 Ci ty Attorney — RE�EN;Ep �� Director of Management/Mayor ���� -- � Finance and Management Services Director OFFIC� OF � 1�� b �` Ci ty C 1 erk �p PAR7t1�ENr���RECr�R 6udget Director ���EMENT SER C� 2 Tom Me�er !� � ^ What Will be Achieved by Taking Action on the Attached Materials? (Purpose/Rationale): City Council , following a public hearing, will consider on November 9th, granting preliminary approval to a proposed tax exempt rental housing rehabilitation program for the 42 apartment building at 383-389 Dayton. Financial , Budgetary and Personnel Impacts Anticipated: Developer has submitted $2,000 application fee to PED; existing CDBG and Family Housing Funds will assist in rehabilitation. No adverse budget or personnel imports. Funding Source and Fund Ac�ivity Number Charged or Credited: Tax exempt private placement at Commercial State Bank; PED time sheet #33440. Attachments (List and Number all Attachrr�ents� : � 1 . City Council Resolution. UEPARTMENT REYIEW CITY ATTORNEY REVIEVJ X Yes No Council Resolution Required? Resolution Required? Yes No Yes X No Insurance Required? Insurance Sufficient? Yes _ No Yes X No Insurance Attached? Revision of October, 1982 (�ee Reverse Side for instructior�s) • � . ,.....,` �,r 0 J`I�� ;Or CITY OF SAINT PAUL INTERDEPARTMENTAL MEMORANDUM DATE: October 22, 1982 TO: :�'.�'�7:trlc FROM: Sheri Pemberton, PED � SUBJECT: CITY COUNCIL PU�LIC HEARING - NOVFMBER 9, 19f32 Attached is a copy of the aublic hearing publication for ^!ovember 9,198?_. This notice has been published in the St. Paul Pioneer Press and St. Paul Legal Ledger (or will be) for October 23, 1982. This public hearinc� notice meets the fifteen (15) day requirement. Please place this Public Hearing on the City Council Agenda for November 9, 1982. A City Council Resolution will be forwarded to you by the City Attorney's Office prior to the City Council meeting. Thank you. SAP:sp cc: Gary Peltier � q Beck Hartman �,=7 —+ ._,,.� n, _,,,— =�rn �'.�' --- ':�t ^--.. � 's-t�i .� � �c rJ '� C ��''1 3�s '„`'T � c} w. fTy v,S /♦ � , � � '�"'n� (� "b � � NOTICE OL' PU3LIC IiEARII�G ON A '����� � PRO�'C)S�1I., FOR PROGRA.M TO I�INANCE A I'•1ULT]:-FAMILY HOUSING DEVELOPt�lENT . � To whom it may conce.rn: . Notiee is hereby given that t�e City Council of the City of Saint Paul, Minnesota will rneet �.n the City Cour_cil " Chambers at the City Hall in the City of Saint Paul, Minnesota . at 10 0'clock p.m. on November 9 , 19A2, to consider the . proposal of Earl Cohen and Robert Levine that the City undertake a program to finance the development hereinafter described, pursuant to the City's housing plan un�er i�tinnesota . Statutes, Chapter 462C, by the issuance of revenue bonds. • Z`he Project ' The Project consists of the acquisition and� . rehabzlitation of an existing renta� housing � facility for use as a multi-family rental . housing development of apnroximately 42 . rental units located at 383-389 Dayton ' Avenue, Sa1nt Pau1, Minnesota. The Proj ect will be owned and operated by Earl Cohen and � Robert Levine, or by a partnershi� ta be _ formed by them (the "Developer") . The - Project will be occupied primarily by persons of low or moderate income. Not less than 20$ (9 units) �of the units in the Project wi.l.l be � occupied for the period required by Federal law (in this case, 15 years) by persons whose incone is 80 percent or less of inedian income for the Minneapolis-St. Paul Standard MetropoTitan Stai�istic:ai hrea as i:�etermined by the United States Department of Housing � and Urban Development. The Developer intends to apply for assistance under the Section 8 - Moderate P.ehabilitation Program for 18 units in the Project. Total approxi.mate develonrnent cost will be $1,13U,000. A ' portion of the costs of the Project wil�. be financed bya Loan �rom Community Deelopinent Block Grant funds and by a loan by the Minneapolis�Saint Paul Family Housi.ng Fund. .- Commercial, retail and office cornponents will not be included w�thin the Project. � The estimated principaT �rount of bonds or other obligations to be issued to finance the Project is .$700,000 . The City intends to dir.ect and authorize The Houszng and Redevelopment Authority of the City of Saint Paul, i�innesota (the "HRA") to issue such bonds oz athe� obligations and to implement the financing program. � Said bonds or other obligations, as and when issued, will not constitut.e a charge, lien or encumbrance uaon any property of the City of Saint P�ul, or the HRA except the Project and the revenues to be derived therefrom. Such bonds � or obligations';wil1. not be a charge against the City' s general credit or taxing powers but are payable from sums to be paid by the Dzveloper pursuant to a revenue agreement. At the time and place fixed for the public hearing, the City Council of the City of Saint Paul, Minnesota will given all persor.s who appear at the hea�ing an opportunity to � express their views with respect to the proposal. . Dated t2zis 2i st . day of Octaber , 198?. (BY ORDER OF THE CITY COUNC�L OF THE CITY �F SAINT PAUL, MINNESOTA) . • _._,.. _ a.,'..BY : -�, ..--�-. ,.. _.-�---- � - , , � ATbert �. UTsorr: � . ' ' City Clerk - •N%�.�CIT7;;;,: CITY OF S1�INT PAUL � � . .. ,_,. R �`� 7':: E�o "' *r � DEPARTMENT OF PIANNING AND ECONOMIC DEVELOPMFNT a� �t.c �11111� `�; . - . �f� i�i�Lilu� A ti; � 't., j';- 25 West fourth Street,Saint Paul,Minnesota,55702 '�• t.�. �:. . . . � ��'�.:.w�..i:::%'' . . GEORGE LATIMER M/1YOR St. Paul Dispatch and ��ioneer Press October 21 , 1982 55 East Fourth Street Saint Paul , MN. 55101 Attention: Rosemary Frank RE: LEGAL NOTICE Gentlemen: Enclosed is a Notice of Public Hearing on a Proposal For Program 7o Finance A Multi-Family Housing Development. Please publish this Notice in the St. Paul Pioneer Press and Dispatch on Saturday; October 23, 1982. Sincerely, ' � 1 � �„ � � �/���',C�� �i' _ '���%'�L G'=��i/G`��,; Sheryl A. Pemberton Re�l Esi:ate S;:pervis�'�� Enclosure SAP:sp bcc: Gary Peltier , Becky Hartman A1 Olson Chron Parcel , . . �.:�:�� ' "��`Tr °=:`,., • CITY OF SAfNT PAUL :'�.R•` a� '•.:.' �o � *^ � DCPAR't���tl:uT OF PLf4�lNING AND FCONONIC DEVE P�1 .�" .��: �a �tltli� •:i ' ' . �• � �� . �y �Il.t��j�it� �� . � �. Vs \�� i� 25 West Fourth Street,Saint Paul,Minnesota,55102 :>`' ....._,:i;. - GEORGE U71MER M/�YOR lr � St. Paul Legal Ledger � October ?_1 , 1982 Publication Office 640 t•Sinnesota Bldg. St. Paul , My, 55101 RE: LEGAt NQTICE Gentlemen: Attached is a �lotice of Publ ic Hearing on a Proposal For Proqram i�o Finar�ce A Multi-Family Housing Development. Please publish this Notice in the St. Paul Lec�al Ledger on Saturday, October 23, I982. �i ncer.�ly, � / /' { � �,��'�C 7f (J` . ,l i:`LC~t'�' c,r� ' ; . �1�. "J Sheryl A. 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