07-273Council File # 07 a.? 3
Crreen Sheet # s J3� � � �
RESOLUTION
SAINT PAUL, D�IINNESOTA
Presented By
Referred To
Committee: Date
3.Z
RESOLUTION RECITING A PROPOSAL FOR A
2 FINANCING PROGRAM FOR A MULTI-FAMILY RENTAL
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
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AUTHORITY TO ISSUE HOUSING REVENUE BONDS
AND AUTHORIZING THE PREPARATION OF NECE5SARY
DOCUMENTS AND MATERIALS IN CONNECTION
WITH SAID PROJECT AND PROGRAM, DISTRICT 17, WARD 2
(COMMERCE APARTMENTS PROJECT)
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 confened 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 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 exercise, on behalf of the City of Saint Paul,
19 Minnesota (the "City") the powers confened by Minnesota Statutes, Section 462C.01 to
20 462C.0$1;
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(c) The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
(the "HRA") has received a proposal from Commerce Apartments Limited Partnership, a
Minnesota limited partnership (the "Borrower"), that the HRA undertake a prob am (the
"Housing Program") to finance the Project hereinafter described, through the issuance of housing
revenue bonds in the approximate principal amount of $5,700,000 pursuant to the Act (the
"Bonds");
27 (d) The Project to be financed by the Bonds is the acquisition of approxnnately the
28 top 6 floors of the exisfing building located at 10 East Fourth Street in the City and the
29 construction of mulfifamily rental housing facilifies consisting of approximately 55 rental units
30 (the "Project");
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31 (e} The proposal calls for the HRA to loan the proceeds realized upon the sale of the
32 Bonds to the Bonower pursuant to a revenue agreement wherein the Sonower will be obligated
33 to pay all costs and expenses of the HRA and the City incident to the issuance and sale of the
34 Bonds;
35 (� The City desires to facilitate the acquisition and rehabilitation of a multifamily
36 housing facility within the City; and the Project will assist the City in achieving these objectives;
37 (g) A public hearing on the Housing Program and the Project was held on this date
38 following duly published nofice, at which time all persons that desired to speak were heard; and
39 (h) No public official of the City or HRA has either a direct or indirect financial
40 interest in the Project nor will any public official either directly or indirectly benefit financially
41 from the Project.
42 NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Saint
43 Paul, Minnesota, as follows:
44 1. The City hereby gives preliminary approvai to the proposal of the
45 Borrower that the City undertake the Project, described above, and the program of financing
46 therefor, pursuant to Minnesota Statutes, Chapter 462C, consisting of the acquisirion and
47 constructio� of a multifamily rental housing facility within the City pursuant to the Borrower's
48 specifications.
49 2. On the basis of information available to the City it appears, and the City
50 hereby finds, that the Project consritutes a multifamily housing development within the meaning
51 of subdivision 5 of Secrion 4b2C.02 of the Act; that the availability of the fmancing under the
52 Act and the willingness of the City to fiunish such financing will be a substantial inducement to
53 the Borrower to undertake the Project, and that the effect of the Project, if undertaken, will be to
54 encourage the provision of multifamily rental housing opportunities to residents of the City, and
55 to promote more intensive development and use of land within the City.
56 3. The Project, and the program to finance the Project by the issuance of the
57 Bonds, is hereby given preliminary approval by the City sub}ect to final approval by the HRA,
58 the Borrower and the purchasers of the Bonds as to ultimate detaiis of the financing of the
59 Project, ali subject to the availability of an allocation of taa� exempt bonding authority for the
60 Bonds.
61 4. Pursuant to Chapter 72, Saint Paul, Minnesota Administrative Code, the
62 City hereby authorizes and directs the Housing and Redevelopment Authority of the City of
63 Saint Paul, Minnesota (the "HRA") to issue the Bonds to finance the Project and to take a11
64 actions necessary or desirable in connection therewith, and no further approval or authorization
65 of the City shall be required; provided that the HRA may, in its discretion, authorize the Boazd to
66 issue the Bonds and to impiement the program approved hereby, and the City hereby consents
67 thereto.
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68 5. The Bonower has agreed and it is hereby detennined that any and all costs
69 incurred by the City or the HRA in connection with the financing of the Project whether or not
70 the Project is carried to completion and whether or not approved by the I1RA will be paid by the
71 Borrower.
72 6. Briggs and Morgan, Professional Association, acting as bond counsel, and
73 such investment bankers as may be selected by Bonower, with the consent of the HRA, are
74 authorized to assist in the preparation and review of necessary documents relaring to the Project
75 and the financing program therefor, to consult with the City Attorney, Borrower and the
76 purchaser of the Bonds as to the maturities, interest rates and other terms and provisions of the
77 Bonds and as to the covenants and other provisions of the necessary documents and submit such
78 documents to the HRA for finai approval.
79 7. Nothing in this Resolution or the documents prepared pursuant hereto
80 shall authorize the expenditure of any municipal funds on the Project other than the revenues
81 derived from the Project or otherwise granted to the City or the HRA. The Bonds shall not
82 constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the
83 City or the HRA except the revenue and proceeds pledged to the payment thereof, nor shall the
84 City or the HRA be subject to any liability thereon. The holders of the Bonds shali never have
85 the right to compel any exercise of the taxing power of the City or HRA to pay the outstanding
86 pzincipal on the Bonds or the interest thereon, ar to enforce payment thereon against any
87 property of the City or the HRA. The Bonds shall recite in substance that the Bonds, including
88 the interest thereon, are payable solely from the revenue and proceeds pledged to the payment
89 hereof. The Bonds shall not constitute a debt of the City or HRA within the meaning of any
90 constitutional or statutory limitation.
91 8, In anticipa6on of the issuance of the Bonds to fmance all or a portion of
92 the Project, and in order that completion of the Project will not be unduly delayed when
93 approved, the Borrower is hereby authorized to make such expenditures and advances toward
94 payment of that portion of the wsts of the Project to be financed from the proceeds of the Bonds,
95 as the Borrower considers necessary, including the use of interim, short-term financing, subject
96 to reimbursement from the proceeds of the Bonds if any when delivered but otherwise without
97 liability on the part of the City or the HRA.
2000607v1
07-d ]3
98
99 Mazch, 2007.
Adopted by the City Council of the City of Saint Paul, Minnesota this 21 st day of
Yeas Nays Absent
Benanav ,/
Bosirom ,/
Hazris ,/
Helgen ,/
Lantry ,i
Montgomery ✓
Thune `
Adopted by Council: Date
Requested by Department of:
Plamiing and Economic Development
�
By._� t
d�
Form Approved b �t3�A��x ey
��a/f/1� By. f
Approved b ay for Submission to Council
By: ��C.�C�k'i�G'` "L:�
2000607v1
Adoption Certified by Council Secretary
0 7-��3
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
� Departmentlofficelwuncil: � Date InRiatetl: ' {� y
� PE — P��ning&EconomicDcvclopment � 07-MAR-07 , GCP.PrI1,S11P.P.` NO 3037491
Confact Person 8 Phone: �
Diane Nordquis[
266-6640
i
Must Be on Council Agenda by (Date): i
21-MAR-07 ,
Doc.Type: RESOLUTION
� E-Document Required: Y
, Document Contact: Diane NordqUist
Contact Phone:
�
Assign
Number
For
Routing
Order
';' Tofal # of Signature Pages _(Clip Aii Locations for Signature)
0 �lannin¢ & Ec000mic Devetoomei � CarLsou
1 PlanninE & Ecanamic Develoomee Deoa��ment Dii'ector
2 'Citv Attomev City Attorney
3 �Mayor's Office I MayodASSistant
4 Couucil GStvCooncii '
5 Citv Clerk ' CiN Clerk
�', Public Aeacing, and Adoption of a Resolution giving Prelitninary Authorization for the HRA to Issue up to $5,700,000 in Tax-
' Exempt Housing Revenue Bonds for the acquisition and renovation of The Commerce Building into 55 units of affordable renta(
� housing. The project will be owned and managed by a partnership consisting of CommonBond Communities and Sherman Rutzick
�'�, and Associates.
�� Recommendatians; Approve (A) or Reject (R): Personal Service Contracts Must Answer the Following Questions:
Planning Commission
CIB Committee
� Civii Service Commission
i
1. Has this person/firm everworked under a contract for this department?
Yes No
2. Has this person/firm ever been a city employee?
Yes No
3 Does this personlfirm possess a skill not normally possessed by any
current city employee?
Yes No
Explain ail yes answers on separete sheet antl attach to green sheet
' initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
I in 7anuary 2007, the HRA received a complete bond application, a signed Memorandum of Understanding, and a low income housing
: tax ceedit application from CommonBond Communities. The applications are requesting financing for the acquisition and
I rehabilitation of the top six floars of the Commerce Building imo 55 units of affordable rental housing. This is the preliminary
����, approval to issue up to $5,700,000 in tax exempt bond authority.
', Advanta9es If Approved ��,
I The Developers will be able Yo proceed with the acquisition and creation of 55 �nits of affoLdable rental housing. Eig6ty percent 'I
�, (80%) of tha units aze restricted to households earning 60% or less of azea median income, and 10% are restricted to households '�,
: earning 50% area median income, and 10% are reshicted to 30% or less of area median income. ��
Disativantages If Approved:
� None.
---------- _—_flEV1..111.C`{J --,
' Disadvantages If Not Approved:
The project would not move forwud. MAR Z`L ZOOl y
....,,,_•- ------',
� V Transaction:
Funain9 source: Conduit Bond Financing
'� Pinanciallnformation:
�' (Explain)
CosVRevenue Budgeted:
Activity Number:
March 7, 2007 11:52 AM Page 1
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