03-442Council File # 03 — y �}'�,
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RESOLUTION
CITY�F SAINT PAUL, MINNESOTA L,g
Presented By
Refened To
Committee: Date
RESOLUTION RECITING A PROPOSAL FOR A
2 FINANCING PROGRAM FOR A
3 HOUSING DEVELOPMENT, GIVING PRELIMINARY
4 APPROVAL TO THE PROJECT AND THE PROGRAM
5 PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C,
6 AUTHORIZING THE HOUSING AND REDEVELOPMENT
7 AUTHORITY TO ISSUE HOUSING REVENUE BONDS
8 AND AUTHORIZING THE PREPARATION OF NECESSARY
9 DOCUMENTS AND MATERIALS IN CONNECTION
10 WITH THE SAID PROJECT AND PROGRAM
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(EPISCOPAL HOMES PROJECT)
fl 2 (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 more
16 multi-family housing project developments within the boundazies of the city;
17 (b) Tfie 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 Staxutes, Section 462C.01 to
20 462C.081;
21 (c) The Housing and Redevelopment AuthoriTy of the City of Saint Paul, Minnesota
22 (the "HRA"), has received a proposal from Episcopal Homes of Minnesota ('Bpiscopal"), a
23 Minnesota nonprofit corporation, that the HRA undertake a program (the "Housing Program") to
24 fmance a Project hereinafter described, through the issuance of one or more revenue bonds or
25 notes (the "Bonds") pursuant to the Act;
26 (d) The Project to be financed by the Bonds is the acquisition, construction and
27 equipping of a 50 unit independent senior rental housing development located at the Southwest
28 corner of Fairview Avenue and University Avenue in the City of Saint Paul (the "Project");
29 (e) The proposal calls for the HRA to loan the proceeds realized upon the sale of the
30 Bonds to Episcopal Corporarion for the Elderly or another affiliate of Episcopal (collectively, the
31 "Company") pursuant to a revenue agreement or agreements wherein the Company will be
32 obligated to make payments at the times and in amounts sufficient to provide for the prompt
33 payment of principal of, premium, if any, and interest on the Bonds and a11 costs and expenses of
34 the III2A and the City incident to the issuance and sale of the Bonds;
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1 ( fl The City desues to facilitate the acquisition and constniction of a multifamily
2 elderly housing facility within the City; and the Project will assist the City in achieving these
3 objectives;
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4 (g) A public hearing on the Housing Program and the Project was held on this date
5 following duly published notice, at which time all persons that desired to speak were heard;
6 (h) No public official of the City has either a direct or indirect financial interest in the
7 Project nor will any public official either directly or indirectly benefit financially from the
8 Project; and
9 (i) A form of Memorandum of Understanding has been prepared between the HRA
10 and the Company, which sets forth certain understandings by and between the HRA and the
11 Company pertaining to the Project, and the financing therefor.
12 NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Saint
13 Paul, Minnesota, as follows:
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1. The City hereby gives preliminary approval to the proposal of Episcopal
that the City undertake the Project, described above, and the program of financing therefor,
pursuant to Minnesota Statutes, Chapter 462C, consisting of the acquisition, construction and
equipping of a rental housing project within the City pursuant to the Company's specifications
and to a revenue agreement or agreements between the HRA and the Company 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 $5,600,000 to be issued pursuant to the Act to finance
the acquisition and construction of the Project; and said agreement may also provide for the
entire interest of the Company therein to be mortgaged to the purchasers of the Bonds, ar a
tntstee 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 appears, and the City
hereby finds, that the Project constitutes a 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 fiuuish such financing will be a substantial inducement to the
Company to undertake the Project, and that the effect of the Project, if undertaken, will be to
encourage the provision of multifamily elderly rental housing opportunities to residents of the
City, and to promote more intensive development and use of land within the City;
34 3. The Project, and the program to fmance the Project by the issuance of the
35 Bonds, is hereby given preliminary approval by the City subject to fmal approval by the HRA,
36 the Company and the purchasers of the Bonds as to ultimate details of the financing of the
37 Project, all subject to the availability of an allocation of t� exempt bonding authority for the
38 Bonds.
39 4. Pursuant to Chapter 72, Saint Paul, Minnesota Administrative Code, ttie
40 City hereby authorizes and directs the Housing and Redevelopment Authority of the City of
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Saint Paul, Miunesota (the "FIRA") to issue the Bonds to fmance the Project and to take all
acrions necessary or desirable in connection therewith, and no further approval or authorization
of the City shall be required; provided that the IIRA 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 Company has agreed and it is hereby determined that any and all costs
incurred by the City or the HRA in connection with the fmancing of the Project whether or not
the Project is carried to completion and whether or not approved by HRA will be paid by the
Company:
10 6. Briggs and Margan, Professional Association, acting as bond counsel, and
11 such inveshnent bankers as may be selected by Company, with the consent of the HRA, are
12 authorized to assist in the prepazation and review of necessazy documents relating to the Project
13 and the financing program therefor, to consult with the City Attorney, Company and the
14 purchaser of the Bonds as to the maturities, interest rates and other terms and provisions of the
15 Bonds and as to the covenants and other provisions of the necessary documents and submit such
16 documents to the HRA for final approval;
17 7. Nothing in this Resolution or the documents prepared pursuant
18 hereto shall authorize the eapenditure of any municipal funds on the Project other than the
19 revenues derived from the Project or otherwise granted to the City or the HRA. The
20 Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any
21 property or funds of the City or the HRA except the revenue and proceeds pledged to the
22 payment thereof, nor shall the City or the HRA be subject to any liability thereon. The
23 holders of the Bonds shall never have the right to compel any exercise of the taxing power
24 of the City or HRA to pay the outstanding principal on the Bonds or the interest thereon,
25 or to enforce payment thereon against any property of the City or the IIRA. The Bonds
26 shall recite in substance that Bonds, including the interest thereon, are payable solely from
27 the revenue and proceeds pledged to the payment thereof. The Bonds shall not constitute a
28 debt of the City or HRA within the meaning of any constitutional or statutory limitation.
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8. In anticipation of the issuance of the Bonds to finance a11 or a portion of
the Project, and in order that completion of the Project will not be unduly delayed when
approved, the Company is hereby authorized to make such expenditures and advances toward
payment of that portion of the costs of the Project to be fmanced from the proceeds of the Bonds,
as the Company 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 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.
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1 Adopted by the City Council of the City of Saint Paul, Miunesota this 7th day of
2 May, 2002.
Yeas Nays Absent
Benanav ✓
Blakey ,�
Bostrom ,�
Coleman ,/
Harris ,/
Lantry ✓
t.��r ✓
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Requested by Department of:
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Form
by City
Adopted by Council: Date � 1� o By:
Adoption Certified by Council Secretazy
By: _ a- - � � °
Approved by or: � � �"
By: ��
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by Mayor
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DEPAR'1'MENT/OFFiCE/COUNCII.: DATE IIYI'LIATED Q 3�.
PE�" '"' April 23, 2003 GREEN SHEET No.:202027 ��
COIVTACl' PERSON & PHONE: 11�1�7'1AIA�ATE �'11TTAT/111ATE
Patty Lilledahl6-6582 � 2 D� Dm. 3 crrYCOVrrcn.
MUST BE ON COUNCII. AGENDA BY (DATE) �IrTN 1 C11Y AITORNEY� CITY CLtiRK�
Msy 7, 7A03 PDBLIC Hi'sARING �TMMB� ��C�' SERV DIIL 4 FINANCIAL SERV/ACCTG
FOR 5 MAYOR(ORASST.) _CIVII,ERVICECOhIMISSION
ROU1'ING
ORDER
TOTAL # OF SIGNAI'ORE PAGES _(CLIP ALI. LOCAITONS FOR SIGNATTIRE)
ncnoN �QVes�n: Adoption of a Ciry Council Resolution authorizing the HRA to issue a Housing Revenue Bond
for the Episcopal Corporation for the Elderly Project for phase II. The Council must also hold a Public Hearing on
May 7 for the Project.
RECOMME.NDATIONS: Approve (A) or Reject �) PERSONAL SERVICE CONTRACfS MUST ANSR'ER THE FOLLOWING
QUESTTONS:
PLANNING COMMISSION 1_ Has this person/fum ever worked under a contract for Utis department?
CIB COMIvIlTTEE Yes No
CIVII. SERVICE COMIvIISSION 2. Has this person/finn ever been a city employee?
A CITYCOIINCII, _Yes No
A_ HRA 3. Does this person/firm possess a skill not noxmally possessed by any cutrent ciry employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
INITIATING PROBLEM, ISSUE, OPPORT[JNITY (N'ho, What, When, Where, Why):
The new construction of 50 units of independent elderly rental housing on the Episcopal Church Home Campus at
Fairview and University.
' ADVANCAGES IF APPROVED: The production of 50 rental uniu and the completion of the Episcopal campus to mixed-income se�iors with a range of service needs.
DISADVANTAGES IF APPROVED: NOI1C
DISADVANTAGES IF NOT APPROVED: Los[ opportunity of tae-acempt financing for the project
TOTAL AMOIJNT OF TRANSACTION: $5,600,000 COST/REVENUE BUDGETED:
FUNDING SOURCE: Tax-exempt Bond ACTIVITY NIJNiBER:
FINANCIAL INFORMATION: (EXPLAIN):
The HI2A would issue up 40 $5,600,000 in 501�)(3) tar�acempt elderly housing revenue bonds which are repaid from the peqec[ only. No IiabiliTy or obligazion to the
FIltAorCity-wnduit revenue bonds.
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