02-782AC
oR�GINa�
Council File # ��.��/���
Presented By
Resolution #
creen sheet # l�\�"�O O
RESOLUTION
CITY OF SAINT P/�UL, MINNESOTA y a
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Referred To � Committee: Date
RESOLUTION RECITING A PROPOSAL FOR FINANCING
2 A MIJI.TI-FANIILY RENTAL HOUSING DEVELOPMENT PROJECT,
3 APPROVING A HOUSING PROGRAM THEREFOR AND AUTHORIZING
4 THE HOUSING AND REDEVELOPMENT AUTHORITY TO
5 EXERCISE THE POWERS GRANTED IN
6 MINNESOTA STATUTES, SECTIONS 462C.01 TO 462C.08
7 (a) WHEREAS, Minnesota Statutes, Chapter 462C (the "Act"), confers upon cities, ar housing
8 and redevelopment authorities authorized by ordinance to exercise on behaif of a city the powers confezred by
9 the Act, the power to issue revenue bonds to finance a program for the purposes of planning, administering,
10 making or ptuchasing loans with respect to one or more multifamily housing developments within the
11 boundaries of the city; and
12 (b) WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
13 (the "HRA"), has received from St. Paul Leased Housing Associates I, Limited Partnership, a Minnesota
14 limited parinership (the "Company"), a proposal that the HRA undertake a program (as described and set
15 forth in a writing before this meeting, the "Housing Program") to finance a Project hereinafter described,
16 through the issuance of revenue bonds or obligations in one or more series (collectively, the "Bonds")
17 pursuant to the Act; and
18 (c) WHEREAS, up to $38,000,000 of the Bonds or other obligations may be issued, $17,000,000
19 tax-exempt from entitlement bonding authority of the City of Saint Paul, Minnesota (the "City"), and
20 $7,000,000 tax-exempt from bonding authority described below; and
21 (d) WHEREAS, the HRA will fmance the Housing Program and issue the Bonds in part alone and
22 in part jointly with The Ramsey County Housing & Redevelopment Authority, Minnesota (the "Ramsey
23 County HRA"), which has received $7,000,000 of bonding authority for tax-exempt private activiry bonds in
24 order to provide more tax-exempt fmancing than the City and IIRA are willing to provide, and the City has
25 on November 28, 2001, approved the undertaking of the Project by the Ramsey County FIRA; and
26 (e) WHEREAS, the Project to be financed by the Bonds is the acquisition and construction of a
27 267 unit low-income housing facility located on property bounded by Franklin Avenue, Curfew Street, Ellis
28 Avenue and Berry Street in the University/280 area of the City, and will result in the provision of additional
29 rental housing facilities for persons of low or moderate income within the community and for a few others in
30 furtherance of the policy of economic integration; and
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31 (� ���AS, the Company's proposal calls for the HRA and Ramsey County HRA to loan the
32 proceeds realized upon the sale of the Bonds to the Company pursuant to a revenue agreement or agreements
33 wherein the Company will be obligated to make payments at the times and in the amounts sufficient to
34 provide for the prompt payment of principal of, premium, if any, and interest on the Bonds and all costs and
35 expenses of the IIRA, Ramsey County HRA, City and Ramsey County, Mimiesota, incident to the issuance
36 and sale of the Bonds; and
37 (g) WHEREAS, the City desires to encourage the development of housing facilities designed for
38 occupancy primarily by persons of low and moderate income, and the Project will assist the Ciry in achieving
39 these objectives; and
40 (h) WHEREAS, a public hearing on the Housing Program and Project was held on August 28,
41 2002, following duly published notice, at which time all persons that desired to speak were heard:
42 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul, Minnesota,
43 as follows:
44 1. Housin Pro ram: Authorization of HRA. The City hereby approves the Housing Program for
45 the financing of the Project by the issuance of the Bonds and, pursuant to Section 72 of the Saint Paul
46 Administrative Code, authorizes the IIRA to exercise the powers granted in Minnesota Statutes, Sections
4'7 462C.01 to 462C.08, both directly and jointiy with the Ramsey County HRA.
48 2. Bonding Authoritv. The City hereby allocates $17,000,000 of its 2001 carried forward
49 entitiement allocation under Minnesota Statutes, Chapter 474A, of volume limit for the issuance of tas-
50 exempt private activity bonds to the Bonds to be issued by the IIRA in part alone and in part jointly with the
51 Ramsey County HRA. This allocation of the City's entitlement and entiUement-transfer bonding authority is
52 an aspect of the City's delegation of powers to the HRA under the Act and under this resolution.
53 3. Scope of Approval. Nothing in this resolution shall be construed to require the City or HRA to
54 approve any element of the Project ar the issuance of the Bonds, nor shatl this resolution be construed as
55 vesting in the Company any cause of action against the City or IIRA arising from any failure or refusal by the
56 City or I3RA to approve the Project or issue the Bonds.
57 4. Special Limited Oblieations. Nothing in this resolution or the documents prepared pursuant
58 hereto shall authorize the expenditure of any municipal funds on the Housing Program or Bonds other than
59 the revenues derived from the Project or otherwise granted to the City or IIRA for this purpose. The Bonds
60 shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City
61 or IIRA except the revenue and proceeds pledged to the payment thereof, nor shall the City or IIRA be
62 subject to any direct liability thereon. The holders of the Bonds sha11 never have the right to compel any
63 exercise of the taxing power of the City or HRA to pay the outstanding principal on the Bonds or the interest
64 thereon, or to enforce payments thereon against any properiy of the City or HRA. The Bonds shali recite in
65 substance that the Bonds, including the interest thereon, aze payable solely from the revenues and proceeds
66 pledged to the payment thereof. The Sonds shall not constitute a general obligation of the City or I3IL4
67 within the meaning of any constiturional or statutory provision.
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ORIGINAL
Requested by Department of:
Planninq & Economic Develornnent
Adopted by Council: Date �� a�
Adoption Certified by Council Secretary
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Approved by
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By: �_"'—� \
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Approved by Financial Sesvices
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Form Approved by City
By:
DEPARTMENT/OFFICE/COUNCIL: DATE INITTATED GREEN SHEET No.: 111400 Oa �� �
PED - Downtown Team 8/15/02
CONTACI' PERSON & PHONE: �NITTALlDATE INITfAL/pATE
Diane Nordquist (6-6640) � 2 DEPARTMENT DI[2. V' 6 CITY WUNCII.
M[7ST BE ON COUNCII, AGENDA BY (DATE) �IGN 3 CITY ATTORNEY 7 CITY CLERK
AU 28 2��2 �` 4 FINANCIAL SERV DIR. _ FINANC[AI. SERV/ACCTG
NUMBER
� � �, �, FOR 5 MAYOR (OR ASST.) CIVIL SERVICE COMMISSION
ROUTING HUMHN RIGHTS DEP'I. 1 AOBERT SCIIREIER
ORDER
TOTAL # OF SIGNATORE PAGES _I_(CLIP ALL LOCATiONS FOR SIGNA7'ORE)
aCr[ox ttEQ[1es�n: Public Hearing and Adoption Of A Preliminary Resolufion Authorizing the I3RA to Issue up to
$38,000,000 in Bonds, $17,000,000 in Tax-Exempt Housing Revenue Bonds From Entitilement Bonding Authority, for St.
Paul Leased Housing Associates I, LLC (aka Dominium Development & Acquisitions) for the development of 270 rental
housing units located in the Franklin/Emerald redevelopment district.
RECOMMENDATIONS: Approve (A) or Reject (12) PERSONAL SERVICE CONIBACI'S MUST AIVSWER THE FOLLOWING
QUESTiONS:
PLANNING COMIvIISSION 1. Has this person/firm ever worked under a wntract for this department?
CIB COMMI'ITEE Yes No
CIVIL SERVICE COMMISSION 2. Has this persoNfirm ever been a city employee?
Yes No
3. Does this person/fimi possess a skill not nortnalty possessed by any cursent city employee?
Yes No
Ezplain all yes answers on separate sheet and attach ro green sheet
�VITIATING PROBLEM, ffiSUE, OPPORTIINTCY (Whq What, When, Where, Why): Ori M2,LCI7 13� 2��2, �lE H� 3]JptOVed 3
development agreement with Saint Paul Leased Housing Associates I, LLC (aka Dominium Development &
Acquisition, LLC) for tax increment financing.
ADVANTAGESIFAPPROVED:
The developer will be able to move forward with the housing proposal inclnding seeking final approval to issue tas exempt
housing revenue bonds.
DISADVANTAGES IF APPROVED:
None.
nisa�va�vTncES u NoT arrxovEn: Approximately 270 new rental housing unit will not get conshucted. May lose
$17 million in ta�c exempt housing revenue bond authority.
TOTAL AMOUNT OF TRANSACTION: $ O COST/REVENUE BUDGETED:
FONDING SOURCE: COnduit BOrid FinanCing ACTMTY NUMBER ����� �
�� �� FINANCIAL INFORMATiON: (EXPLAII�
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