03-298��lGl���
Council File # � 3— Z,qQ�
Green Sheet # l �\33 O
RESOLUTION
SAINT PAUL, MINNESOTA
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2 FINANCING PROGRAM FOR A M[JLTIFAMILY RENTAL
3 HOUSING DEVELOPMENT, GIVING PRELIMINARY
4 APPROVAL TO THE PROJECT AND THE PROGItAM
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PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C,
AUTHORIZING THE HOUSING AND REDEVELOPMENT
AUTHORITY TO ISSUE HOUSING REVENUE BONDS
AND AUTHORIZING THE PREPARATION OF NECESSARY
DOCUMENTS AND MATERIALS IN CONNECTION
WITH THE SAID PROJECT AND PROGRAM
(SELBY GROTTO HOUSING PROJECT)
3R
12 (a) Minnesota Statutes, Chapter 462C (the "Act) confers upon cities, or housing and
13 redevelopment authorities or port authorities authorized by ordinance to exercise on behalf of a
14 city the powers conferred by the Act, the power to issue revenue bonds to finance a program for
15 the purposes of planning, administering, making or purchasing loans with respect to one or mare
16 multifamily housing project developments within the boundazies of the city;
17 (b) The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
18 (the "HRA") has been designated, by ordinance, to exercise, on behalf of the City of Saint Paul,
19 Minnesota (the "City") the powers conferred by Minnesota Statutes, Section 462C.01 to
20 462C.081;
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(c) The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
(the "HRA"), has received a proposal from Selby Grotto Limited Partnership, a limited
partnership organized under the laws of Minnesota (the "Partnership"), consisting of Selby Area
Community Development Corporation, which is on the HRA's adverse lending list and Legacy
Management and Development Corporation, that the HRA undertake a program (the "Housing
Program") to finance a Project hereinafter described, through the issuance of revenue bonds (the
"Bonds") pursuant to the Act;
28 (d) The Project to be financed by the Bonds is the construcfion and furnishing of a
29 multifamily rental housing project consisting of appro�mately 40 units located at 755 Selby
30 Avenue in the CiTy of Saint Paul (the 'Project");
31 (e) The proposal calls for the HRA to loan the proceeds realized upon the sale of the
32 Bonds to the Partnership pursuant to a revenue agreement or agreements wherein the Partnership
33 will be obligated to make payments at the times and in amounts sufficient to provide for the
34 prompt payment of principal of, premium, if any, and interest on the Bonds and all costs and
35 expenses of the HRA and the City incident to the issuance and sale of the Bonds;
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( fl The City desires to facilitate the construction of a multifamily housing facility
within the City; and the Project will assist the City in achieving these objectives;
(g) A public hearing on the Housing Program and the Project was held on this date
following duly published notice, at which time all persons that desired to speak were heazd;
pg .�`i8'
5 (h) No public official of the City has either a direct or indirect financial interest in the
6 Project nor will any public official either directly or indirectly benefit financially from the
7 Project; and
8 (i) A form of Memorandum of Understanding has been prepazed between the HRA
9 and the Partnership, which sets forth certain understandings by and between the HRA and the
1Q Partnership pertaining to the Project, and the financing therefor.
11 NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Saint
12 Paul, Minnesota, as follows:
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1. The City hereby gives preliminary approval to the proposal of the
Partnership that the City undertake the Project, described above, and the program of fmancing
therefor, pursuant to Minnesota Statutes, Chapter 462C, consisting of the construction and
equipping of a multifamily rental housing project within the City pursuant to the Partnership's
specifications and to a revenue agreement between the HRA and the Partnership 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 approxunately $3,000,000 to be issued pursuant to the Act to finance
the construction of the Project; and said agreement may also provide for the entire interest of the
Partnership therein to be mortgaged to the purchasers of the Bonds, or a trustee for the holder(s)
of the Bonds; and the City, acting by and through the HRA hereby undertakes preliminarily to
issue its revenue bonds in accordance with such terms and conditions;
2. On the basis of information available to the City it appeazs, and the City
hereby finds, that the Project constitutes a multifamily housing development within the meaning
of subdivision 5 of Section 462C.02 of the Act; that the availability of the financing under the
Act and the willingness of the City to fiirnish such financing will be a substantial inducement to
the Partnership to undertake the Project, and that the effect of the Project, if undertaken, will be
to encourage the provision of multifamily rental housing opportunities to residents of the City,
and to promote more intensive development and use of land within the City;
32 3. The Project, and the program to finance the Project by the issuance of the
33 Bonds, is hereby given preluninary approval by the City subject to final approval by the HRA,
34 the Partnership and the purchasers of the Bonds as to ultimate details of the financing of the
35 Project, all subject to the availability of an allocation of tax exempt bonding authority for the
36 Bonds.
37 4. Pursuant to Chapter 72, Saint Paul, Minnesota Administrative Code, the
38 City hereby authorizes and directs the Housing and Redevelopment Authority of the City of
39 Saint Paul, Minnesota (the "HRA") to issue the Bonds to finance the Project and to take all
40 actions necessary or desirable in connection therewith, and no further approval or authorization
1460231v1
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of the City shall be required; provided that the HItA may, in its discretion, authorize the Boazd to
issue the Bonds and to implement the program approved hereby, and the City hereby consents
thereto;
5. The Partnership has agreed and it is hereby determined that any and all
costs incurred by the City or the IIRA in connection with the financing of the Project whether or
not the Project is carried to completion and whether or not approved by HRA will be paid by the
Partnership;
8 6. Briggs and Morgan, Professional Association, acting as bond counsel, and
9 such investment bankers as may be selected by Partnership, with the consent of the HRA, aze
10 authorized to assist in the preparation and review of necessary documents relating to the Project
11 and the financing program therefor, to consult with the City Attorney, Partnership and the
12 purchaser of the Bonds as to the maturities, interest rates and other terms and provisions of the
13 Bonds and as to the covenants and other provisions of the necessary documents and submit such
14 documents to the HRA for fmal approval;
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7. 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 othernise granted to the City or the HRA. The
Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any
property or funds of the City or the HRA except the revenue and proceeds pledged to the
payment thereof, nor shall the City or the HRA be subject to any liabiliTy thereon. The
holders 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 the 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 limitafion.
8. In anticipation of 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 Partnership 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 Partnership considers necessary, including the use of interim, short-term fmancing, subject
to reimbursement from the proceeds of the Bonds if any when delivered but otherwise without
liability on the part of the City or the HRA.
9. The form of the Memorandum of Understanding is hereby approved and
the Executive Director of the IIRA is hereby authorized to execute the same.
1460231v1
Q�l�ts���� o�-��r
1 Adopted by the City Council of the City of Saint Paul, Minnesota this _ day of
2 , 2003.
Yeas Nays Absent
Benanav �
Blakey ,�
Bostrom
Coleman �
Hams �
Lanhy
Reiter ✓
Adopted by Council: Date � 1,. �.�. ,� c� d Z
Adoption Certified by Council Secretary
By: a .�—.---
Approved by yo : Date: L / '�" �,
Requested by Department o£
Plannine and Economic ➢evelopment
B 0��
Form
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by
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by Mayor
by
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1460231v1
DEPARTMENT/OFFICE/COUNCII,: DATE INITIATED GREEN SHEET No.: 111330
PED - Downtown Team 3/11/03 O 7-39�
CONTACT PERSON & YHONE: 1N1"CIAI✓DATE 7NI'CIAL/DATE
Diane Nordquist (6-6640) � 2 DEPARTMENT DIIt�� 6 cm cour�cu.
MUST BE ON COUNCII, AGENDA BY (DATE) �IGN 3 C11'Y AITORNEY t 1�1 \ 7 CCl'Y CI.ERK
5 FAIANCL9L SERV DIIL�� FINANCIAI, SERV/ACCTG
Mazch 26 � 20�3 — p�� pOg� 4 MAYOR (ORASST.) CIVI[. SERVICE CO SIO
RO[71'ING �M� ��TS DEPT. 1 ROBERT SCH2EIER
OBDER
TOTAL # OF SIGNATURE PAGES _1_(CLIP ALL LOCATIONS FOR SIGNATURE)
acnox �QUESrEn: Public Hearing and Adoption Of A Preliminary Resolufion Authorizing the HRA to Issue up to
$3,000,000 in TaY-Exempt Housing Revenue Bonds From Entitlement Bonding Authority, for Selby Grotto Limited
Partnership (a.k.a. Selby Area CDC and I,egacy Management) for the development of 40 rental housing units located on
Selby Avenue beriveen the streets of Grotto and Avon.
RECOMIv1H.NDAITONS: Approve (A) or Rejec[ �) PERSONAL SERVICE CONTRACI'S MUST ANSWER 1'FIE FOLLOWING
QUESTIONS:
PLANNING COMbIISSION 1. Hu this person/fum ever worked under a conhact for this departrnent?
CID COMI�Il'11'EE Yes No
CNII, SERVICE COMMISSION 2. Haz this person/fum evrr been a city employee?
Yes No
3. Does this person/fiIm possess a skill not no/malty possessed by any current ciry employee?
Yes No
Explain all yes answers m separate sheet aud attach to green sheet
INI"I7ATING PROBLEM, ISSUE, OPPORTUNITY (Who, Whay When, wne�e, wn On December 11 � 2�02 the I3ItA approved
eatending tentative developer status to the Selby Cnotto Lunited Partnership. The developers aze firming up theu
development plans and other financing commitments and will be entering into a development agreement with the
HRA within the ne� few weeks.
ADVANTAGESIFAPPROVED:
The developer will be able to move forwazd with the housing proposal including seeking fmal approval to issue taac exempt
housing revenue bonds. � P � �
� r� ca?.r�`� ��`� �
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DISADVANTAGESIFAPPROVED: MAR 1 c� �(�U3
None. ° ��� �, � ���� �I� l���RNEY
nxsnnvaNrncES � xoT nrrxovEn: Approximately 40 new rental housing units will not get constructed.
TOTAL AMOUNT OF TRANSACTION: $ O COST/REVENUE BUDGETED:
F(7NDING SOURCE: COIIdlllt BOIld FSll3llC1IIg AC'I'IVTPY NUMBER:
FINANCPAL INFORMATION: (EXPLAYN)
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