05-490Council File # ��� y `V
Green Sheet # .�D � (o � f �3
RESOLUTION
CITY
Presented By
Keferred To
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PAUL, MINNESOTA
RECITING A PROPOSAL FOR ADDITIONAL FINANCING FOR
A MiILTI-FAMILY RENTAL HOUSING DEVELOPMENT PROJECT,
APPROVING AN AMENDED HOUSING PROGRAM THEREFOR AND AUTHORIZING
THE HOUSING AND REDEVELOPMENT AUTHORITY TO
EXERCISE THE POWERS GRANTED IN
MINNESOTA STATUTES, SECTIONS 462C.01 TO 462C.08
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7 (a) WHEREAS, Minnesota Statutes, Chapter 462C (the "Act"), confers upon cities,
8 or housing and redevelopment authorities authorized by ordinance to exercise on behalf of a city
9 the powers conferred by the Act, the power to issue revenue bonds to finance a program for the
10 purposes of planning, administering, making or purchasing loans with respect to one or more
11 multifamily housing developments within the boundaries of the city; and
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(b) WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul,
Minnesota (the "HRA"), has received from St. Paul Leased Housing Associates I, Limited
Partnership, a Minnesota limited partnership (the "Company"), a proposal that the HRA
undertake an amendment to its 2002 program (as described and set forth in a writing before this
meeting, the "Amended Housing Program") to provide addi6onal financing for a Project
hereinafter described, through the issuance of additional revenue bonds or obligations in one or
more series (collectively, the "additional Bonds") pursuant to the Act; and
19 (c) WHEREAS, up to another $5,545,000 of the additional Bonds or other
20 obligations may be issued, $5,145,000 t�-exempt ($2,050,000 t�-exempt as a refunding of tas-
21 exempt bonds issued in 2002, and another $3,095,000 ta�c-exempt from entitlement bonding
22 authority of the City of Saint Paul, Minnesota (the "City")), and $400,000 taxable; and
23 (d) WHEREAS, the HRA wili finance the Amended Housing Program and issue the
24 additional Bonds alone, not as in 2002 and 2003 jointly with The Ramsey County Housing &
25 Redevelopment Authority, Minnesota (the "Ramsey County HIZA"); and
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(e) WHEREAS, the Project which will receive additional financing from the
additionai Bonds is the acquisirion and construction of a 267 unit low-income housing facility
located on property bounded by Franklin Avenue, Curfew Street, Ellis Avenue and Berry Street
in the University/280 area of the City, now lrnown as the 808 Berry building, and results in the
provision of additional rental housing facilities for persons of low or moderate income within the
community and for a few others in fmtherance of the policy of economic integration; and
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1 ( fl WHEREAS, the Company's proposal calls for the I II2A to loan the proceeds
2 realized upon the sale of the additional Bonds to the Company pursuant to a revenue agreement
3 or agreements wherein the Company will be obligated to make payments at the tirnes and in the
4 amounts sufficient to provide for the prompt payment of principal of, premium, if any, and
5 interest on the additional Bonds and all costs and expenses of the HI2A, Ramsey County IIRA,
6 City and Ramsey County, Minnesota, incident to the issuance and sale of the additional Bonds;
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8 (g) WI�REAS, the City desires to encourage the development of housing facilities
9 designed for occupancy primarily by persons of low and moderate income, and the Project will
10 assist the City in achieving these objectives; and
11 (h) WIIEREAS, a public hearing on the Housing Program and Project was held on
12 June 1, 2005, following duly published notice, at which time a11 persons that desired to speak
13 were heard:
14 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Saint Paul,
15 Minnesota, as follows:
16 0. Amended Housine Pro�ram; Authorization of HRA. The City hereby approves
17 the Amended Housing Program for the financing of the Project by the issuance of the additional
18 Bonds and, pursuant to Section 72 of the Saint Paul Administrative Code, authorizes the HRA to
19 exercise the powers granted in Minnesota Statutes, Sections 462C.01 to 462C.08.
20 0. Bondine Authoritv. The City hereby allocates $3,095,000 of its 2004 carried
21 forward entitlement allocation under Minnesota Statutes, Chapter 474A, of volume limit for the
22 issuance of tax-exempt private activity bonds to the additional Bonds to be issued by the HRA.
23 This allocation of the City's entitlement and entitlement-transfer bonding authority is an aspect of
24 the City's delegation of powers to the III2A under the Act and under this resolution.
25 0. Scope of A np roval. Nothing in this resolution shall be construed to require the
26 City or HRA to approve any element of the Project or the issuance of the additional Bonds, nor
27 shall this resolution be construed as vesting in the Company any cause of action against the City
28 or HRA azising from any failure or refusal by the City or IIRA to approve any element of the
29 Project or to issue the additional Bonds.
30 0. Special Limited Oblieations. Nothing in this resolution or the documents
31 prepared pursuant hereto sha11 authorize the expenditure of any municipal funds on the Amended
32 Housing Program or additional Bonds other than the revenues derived from the Project or
33 otherwise granted to the City or IIRA for this purpose. The additional Bonds shall not constitute
34 a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City or HRA
35 except the revenue and proceeds pledged to the payment thereof, nor shall the City or HRA be
36 subject to any direct liability thereon. The holders of the additional Bonds shall never have the
37 right to compel any exercise of the taxing power of the City or HRA to pay the outstanding
38 principal on the additional Bonds or the interest thereon, or to enforce payments thereon against
39 any property of the City or HRA. The additional Bonds sha11 recite in substance that the
40 additional Bonds, including the interest thereon, are payable solely from the revenues and
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1 proceeds pledged to the payment thereof. The additional Bonds shall not constitute a general
2 obligation of the City or HRA within the meaning of any constiturional or statutory provision.
Yeas Na s Absent
Benanav ✓
Bostrom ✓
Hazris ✓
Helgen f
Lan ✓
Montgomery ✓
Thune ✓
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Ada
Ada
By:
App
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Requested by Department of:
Plamiin¢ & Economic Development
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� Green Sheet Green Sheet
Green Sheet Green Sheet Green Sheet Green Sheet
OS-�1q0
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. DepartrnetM/office/couneil: Date Initiated:
pE — Planniug&EconomicDevelopmem 17-MAY-0S Green Sheet NO: 3026483
Contact Person 8 Phone: Deoar6nefH Se� To Person InifiallDate
DianeNoMquist � 0 nnin & onomicDeveio A. arls n �/
�� ASSign 1 lanuin &EconomicDevdo De arlmentDirector ���(
Must Be on Council AgeMla by (Date): Number 2 • Atroru 8 a"
01-JUN-0S For
Rouiing 3 a or's ce Ma or �eLcciatnnt
Order 4 ancil
5 i G7erk G� C1erk
Tohl # of Signature Pages J_ (Ciip All Lowfions for Signature)
Action Requested:
Public Hearing and Adopuon of a Resolution Authorizing the IIRA to Issue up to $5,545,000 in Tax-Exempt Housing Revenue Bonds
($3,095,000 from Entiflement Bonding Authoriry and $2,045,000 as a refunding and $400,000 tasable) for St. Paul I,eased Housing
Associates I, LLC (aka Dominium Development & Acquisition) for the development of 270 rental housing units located in the
Franklin/Emerald dishrict.
Recommendations: Approve (A) or Reject (R): Personal Service Contracts Must Answer the Pollowing Questions:
Planning Commission 1. Has this personffirm ever worked under a contract tor this department?
CIB Committee Yes No
Civil Service Commission 2. Has this persoNfirtn ever been a city employee?
Yes No
3. Does this personffirm possess a skill not normally possessed by any
current city employee?
Yes No
Explain all yes answers on separete sheet and attach to green sheet
Initiating Problem, luues, Opportunity (Who, What, When, Where, Why):
On Mazch 13, 2002, the HRA approved a development agreement with St. Paul Leased Housing Associates I, LLC (aka Dominium
Development & Acquisition, LLC). Tlus is a request for addi6oaal bond authority and refunding.
AdvantaSles if Approved:
The project will have more secure taY exempt bond financing.
Disadvantapes If Approved:
None. ��i� � � 2QQ�
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Disadvantapes If Not Approved: '
The project would not receive more secure tax exempt bond financing.
Total Amount of CosURevenue Budgeted:
Trensaction: �� � �.�
Fundina source: Conduit Bond Financing A���iV Number:
Financial infortnation: µ p q p�, n }�e
(Explain) E"FfiY G "3 �tSifJ