06-1050Council File # D( —/D.�O
Green Sheet # 3034081
RESOLUTION
OF SAINT PAUL, MINNESOTA
Presented By
Referred To
3}
Committee: Date
J
C�
RESOLUTION RECTTING A PROPOSAL FOR A
FINANCING PROGRAM FOR A MULTI-FAMILY RENTAL
HOUSING DEVELOPMEN'I', GNING 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
10
11
DOCUMENTS AND MATERIALS IN CONNECTION
WITH THE SAID PROJECT AND PROGRAM
(WESTMINSTER PLACE, TORRE HOUSING AND VISTA VILLAGE PROJECTS)
12 (a) Minnesota Statutes, Chapter 462C (the "Act") confers upon cities, or housing and
13 redevelopment authoriries 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 mulri-family housing project developments within the boundaries 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 exereise, 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;
21
22
23
24
25
26
27
(c) The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
(the "HRA") and the City of Minneapolis ("Minneapolis"), have received a proposal from
Westminster Place Limited Partnership, Torre Housing Limited Parmership and Vista Village
Housing Limited Partnership, ali limited partnerships organized under the laws of Minnesota
(collectively, the 'Partnership"), that the HRA and Minneapolis joindy 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 acquisition, rehabilitation and
29 equipping of three rental housing facilities including approximately 142 units located at 58
30 Wood Street, approximately 100 units located at 1342 Westminster Street and approximately 48
31 units located at 422 Concord Street all iocated in the City of Saint Paui, Minnesota (the
32 "Project");
33 (e) The proposal cails far the HRA and Minneapolis to joantly loan the proceeds
34 realized upon the sale of the Bonds to the Partnership pursuant to a revenue agreement or
35 agreements wherein the Partnership will be obligated to make payxnents at the times and in
1958826v1
Ob /0�y (�
amounts sufficient to provide for the prompt payment of principal of, premiuxn, if any, and
interest on the Bonds and all costs and expenses of the HRA and the City incident to the issuance
and sale of the Bonds;
( fl The City and Miimeapolis desire to facilitate the acquisition and construction of a
multifamily housing faeility within the City, and the Project will assist the City and Minneapolis
in achieving these objecfives;
(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 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; and
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
Partnership that the City and Minneapolis undertake the Project, described above, and the
prograzn of financing therefor, pursuant to Minnesota Statutes, Chapter 462C, consisting of the
acquisition, rehabilitation and equipping of three multi-family rental housing facilities within the
City pursuant to the Partnership's specifications and one or more revenue agreements between
the HRA and Minneapolis 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 approximately
$9,000,000 to be issued pursuant to the Act to finance the acquisition and construction of the
Project; and said agreement may aiso provide for the entire interest of the Partnership therein to
be mortgaged to the purchasers of the Bonds, or a trustee far the holder(s) of the Bonds; and the
City, acting by and through the HRA hereby undertakes preliminarily to issue 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 multi-family housing development within the meaning
of subdivision 5 of Secfion 462CA2 of the Act; that the availability of the fmancing under the
Act and the willingness of the City and Minneapolis to fumish such financing will be a
substantial inducement to the Partnership to undertake the Project, and that the effect of the
Project, if undertaken, wili be to encourage the provision of multi-family rental housing
opportunities to residents of the City, and to promote more intensive development and use of
land within the City;
3. The Project, and the program to finance the Project by the issuance of the
Bonds, is hereby given approval by the City subject to final approval by the HRA, Minneapolis,
the Partnership and the purchasers of the Bonds as to ultnnate details of the financing of the
Project,
4. Pursuant to Chapter 72, Saint Paul, Minnesota Administrative Code, the
City hereby authorizes and directs the Housing and Redevelopment Authority of the City of
i9ssaz6�i _ 2 _
OG -��3'0
Saint Paul, Minnesota (the °HRA") to jointly issue with Minneapolis the Bonds to finance the
Project and to take all actions necessary or desirable in connection therewith, and no fiuther
approval or authorizarion of the City shall be required; provided that the HR A may, in its
discretion, authorize the Board 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 HRA in connecrion with the financing of the Project whether or
not the Project is carried to completion and whether ar not approved by HRA will be paid by the
Partnership:
6. Briggs and Morgan, Professional Association, acting as bond counsel, and
such investment bankers as may be selected by Partnership, with the consent of the HRA, aze
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, Partnership and the
purchaser of the Bonds as to the maturifies, interest rates and other terms and provisions of the
Bonds and as to the covenants and other provisions of the necessary docuxnents and submit such
documents to the HRA for final approval;
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 otherwise 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 taaung 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 I3RA. 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 constitutionai or statutory limitation.
8. In anticipation of the issuance of the Bonds to finance all or a portion of
the Project, and in order that complefion of the Project wili 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 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.
1958826v1 _ 3 _
Q6 - /DS D
Adopted by the City Council of the City of Saint Paul, Minnesota this i5th day of
November, 2006.
Yeas Nays Absent
Benanav i /
Bostrom ✓
Hazris ,i
Helgen �
Lantry ,/
Montgomery
Thune �/
Adopted by Council: Date �� / �d�o
Adoprion Cerfified by Council Secretary
By: / ! /�rsJ .�ir, r�i�
Approve�ay r: / (� � —�o
By: ���,�
Requested by Department of:
Plamiin and Economic Develo ment
a
Form Approved by C' ttorney
By:
Approve y ay for Su mission to Council
By:
1958826v1 _ q, _
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
Q� %O��
PE — Planniug & Economic Development
' Confact Person & Phone:
� Diane Nordquist
266 6G40
i Must Be on C uncil /aqenda by (Daffi):
' 1SNOV-06 � �...
i, Doa Type: RESOLUTION W/$ iRANSACi
� E-DOwment Required: Y
1 DocumentContact:
. ContactPhone:
3UDCT-06
�
Assign
Number
For
Routing
Order
7oq1 # of SignaNre Pages _(Clip A➢ Locations fior Signature)
Green Sheet NO: 3034081
1 laouinff&EcoaomicDeveloo : eoar[mentDirector ��
3 Citv Attornev � (.1tv Atto e� CS�.
4 '�1a 's Offi Ma o/ASS" ta t
5 Euncil ` CitvCoonc� '
6 CiN CI k Ltiri CI k
Action Requested:
Public Hearing and Adoption Of A Resolution Authorizing the I3RA to Issue up to $9,000,000 in Tax-Exempt Aousing Revenue Bonds
for the acquisirion and renovation of three affordable rental housing developments including Torre de San Miguel, Vista Village, and
Weshninster Place, all are managed by CommonBond Communities.
�tlations: a.pprove (a) or N
Planning Commission
q8 Committee
CiHI Service Cqmmission
Qersona� �e�vice �onmaas
1. Has this person/firm e�er worked under a contract for this department?
Yes No
2, Has this persoNfirtn e�er been a city employee?
Yes No
3. Does Ihis persoNfirtn possess a skill not nortnally possessed by any
cuRent city employee?
Yes No
F�cplain all yes answers on separate sheet and aitach to green sheet
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): '
On July 17, 2006, the HRA received a complete bond application and signed Memorandum of Understanding and low income housing
tax credit applications from CommonBond Communities. The applications aze requesting fmancing for the acquisiqon and rehabilitation
of three affordable housing developments, two are located on the West side of Saint Paul and one �Vestminister Place) is located on
the East side of Saint Paul. This is the preliminary approval to issue up to $9,000,000 in tax exempt bond authority.
Advantages If Approved:
The Developecs will be able to proceed with the acquisirion and renovation of 289 units of affordable rental housing. The majority of
the units aze restricted to households earning 30% or less of area median income.
Disadvanta9es If Approved:
None.
DisadvantageslftdotApproved:
The project would not move forward.
iotai Amount of g000000 Cost/Revenue Budgeted:
Transaction:
wnainqsource: ConduitBondFinancing ncuv�tvNumbec
Financial Information:
(Explain)
October 30, 2006 4:02 PM Page 1