07-315Council File # Q ] �/�
Green Sheet # 3037852
Presented by
RESOLIlT{ON
SAINT PAUL, MINNESOTA 3 �
1 RESOLUTION RECITING A PROPOSAL FOR A FII�3ANCING
2 PROGRAM FOR A MULTI-FAMILY RENTAL HOUSING
3 DEVELOPMENT, GIVING PRELIMINARY APPROVAL TO THE
4 PROGRAM PURSUANT TO MINNESOTA STATUTES, CHAPTEK
5 462C, AUTHORIZING THE HOUSING AND REDEVELOPMENT
6 AUTHORITY TO ISSUE HOUSING REVENUE REFUNDING BONDS
7 AND AUTHORIZING THE PREPARATION OF NECESSARY
8 DOCUMENTS AND MATERIALS IN CONNECTION WITH SAID
9 PROJECT AND PROGRAM
10
ll (a) Minnesota Statutes, Chapter 462C (the "AcY'), confers upon cities, or housing and
12 redevelopment authorities authorized by ordinance to exercise on behalf of a city the powers conferred by
13 the Act, the power to issue revenue bonds and refunding bonds to finance a program for the purposes of
14 planning, administering, making or purchasing loans with respect to one or more multifamily housing
15 developments within the boundaries of the city;
16 (b) The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the "IIRA")
17 has been designated, by ordinance, to exercise on behalf of the City of Saint Paul, Minnesota (the "City") the
18 powers confened by Minnesota Statutes, Secrions 462C.01 to 462C.08;
19 (c) The HRA has received a proposal from Marian Center — GEAC, LLC, a Minnesota limited
20 liability company (the "Company"), that the HRA undertake a program (the "Housing Program") to refund
21 certain multifamily housing revenue bonds (the "Prior Bonds") previously issued by the HRA and thereby
22 to refinance a project hereinafter described, through the issuance of housing revenue refunding bonds in
23 the approximate principal amount of $18,000,000 (the "Refunding Bonds") pursuant to the Act;
24 (d) Proceeds of the Prior Bonds were loaned to the Company in order to finance the acquisifion
25 and conshuction of a 127-unit assisted living facility for the elderly, located at 200 Earl Street and 225
26 Frank Street in the City (the "ProjecY');
27 (e) The proposal calls for the HRA to loan the proceeds of the Refunding Bonds to the
28 Company pursuant to a loan agreement wherein the Company will be obligated to repay the Refunding
29 Bonds and pay all costs and expenses of the IIRA and the City incident to the issuance and sale of the
30 Refixnding Bonds;
31 (fl A public hearing regarding the Housing Program and the issuance of the Refunding Bonds
32 was held on the date hereof following duly published notice, at which heazing all persons that desired to
33 speak were heard; and
34 (g) No public official of the City has either a direct or indirect financial interest in the Project
35 nor will any public official either directly or indirectly benefit financially from the Project.
36 NOW THEREFORE BE IT RESOLVED by the City Council of the City of Saint Paul, as follows:
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37 1. The City hereby gives preliminary approval to the proposal of the Company that the City
38 and HRA undertake the refinancing of the Project, described above, pursuant to Minnesota Statutes,
39 Chapter 462C.
40 2. On the basis of information available to the City Council, it appears, and the City Council
41 hereby finds, that the Project constitutes a multifamily rental housing development and furthers the
42 purposes of the Act; that the Project is designed for rental by elderly persons; that the availability of
43 financing under the Act and the willingness of the HRA to furnish such financing will be a substantiai
44 benefit to the Project; and that the effect of the Project is to encourage the provision of multifamily rental
45 housing opportunities to residents of the City and to promote more intensive development and use of land
46 within the City.
47 3. The Housing Program to refinance the Project by the issuance of the Refunding Bonds, is
48 hereby given approval by the City subject to final approval by the HRA, the Company and the purchasers
49 of the Refunding Bonds as to ultimate details of the refinancing of the Project.
50 4. Pursuant to Chapter 72, Saint Paul, Minnesota Administrative Code, the City hereby
51 authorizes and directs the HRA to issue the Refunding Bonds to refinance the Project and to take all
52 actions necessary or desirable in connection therewith, and no further approval or authorization of the City
53 shall be required.
54 5. The Company has agreed and it is hereby determined that any and all costs incurred by the
55 City or the HRA in connection with the financing of the Project whether or not the refinancing of the
56 Project is carried to completion and whether or not approved by the HRA will be paid by the Company.
57 6. Leonard, Sueet and Deinard Professional Association, acting as bond counsel, and such
58 investment bankers as may be selected by the Company, with the consent of the HRA, are authorized to
59 assist in the preparation and review of necessary documents relating to refinancing of the Project, to
60 consult with the City Attorney, Company and the purchaser of the Refunding Bonds as to the maturities,
61 interest rates and other terms and provisions of the Refixnding Bonds and as to the covenants and other
62 provisions of the necessary documents and submit such documents to the HRA for finai approval.
63 7. Nothing in this resolution shall be construed to require the HRA to approve the issuance of
64 the Refunding Bonds, nor shall this resolution be construed as vesting in the Company any cause of action
65 against the City or the HRA arising from any failure or refusal by the HRA to approve the issuance of the
66 Refunding Bonds.
67 8. Nothing in this resolution or the documents prepared pursuant hereto shall authorize the
68 expenditure of any municipal funds on the refinancing of the Project ar the payment of the Refunding
69 Bonds other than the revenues derived from the Project or otherwise granted to the City or the HRA for
70 this purpose. The Refunding Bonds shall not constitute a charge, lien or encumbrance, legal or equitable,
71 upon any property or funds of the City or the HRA except the revenues and proceeds pledged to the
72 payxnent thereof, nor shall the City ar the HRA be subject to any direct liabiliry thereon. The holder of the
73 Refunding Bonds shall never have the right to compel any exercise of the taxing power of the City ar the
74 HRA to pay the outstanding principal on the Refunding Bonds or the interest thereon, or to enforce
75 payment thereon against any property of the City or the HRA. The Refunding Bonds shall recite in
76 substance that the Refunding Bonds, including the interest thereon, are payable solely from the revenues
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77 and proceeds pledged to the payment thereof. The Refunding Bonds shall not constitute an indebtedness of
78 the City or the HRA within the meaning of any constitutionai or statutory provision.
79 Adopted by the City Council of the City of Saint Paul, Minnesota this 4 t " day of Apri7, 2007.
Absent Requested ky Department of:
Plam in �nd Ec no ic I� evelopment
By: _�
✓ Form Appr� ed Ci [oe�ey
By: i
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Adopted by Council: Date � ����d Form ve by , yor Sub i sion to Counci]
Adoption Certified by Council Se retary gy:
By: - � O
Approved by M ate u � U Approve t i� e f' ial Services
By: ' By:
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� Green Sheet Green.Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
� 7 J/,j
pE, — Planning & Economic Development
ConWct Person & Phone:
Sheri Pemberton
6-66'15
Doc. Type: RESOLUTION
E-OocumentRequired: N
Document Contad:
Contact Phone:
16-MAR-07
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Assign I
Number 2
For
Routing 3
Order 4
5
Total # of Signature Pages _(Clip All Locations for Signature)
Green Sheet NO: 3037852
laonin & Ec000mic Develo me
' Attome (S At[aome
inancialServices FinanciaisexvDirecto
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G7erk C5 Cierk
Signatures on Resolution for " City Council Public Hearing Agenda Public Heazing for Refunding Revenue Housing
Bonds for the Mazian Center in Dishic[ 4.
iaanons: Npprove �r+) or rte�ect (rc�: rersonai 5ervfce contrects mus[ nnswer me ronowmg uuesnons:
Planning Commission 1, Has this person�rm ever worked under a conhact for ihis department?
CIB Committee Yes No
Civil Service Commission 2. Has this persoNfirm ever been a ciry employee?
Yes No
3. Does this person/firm possess a skill not normally possessed by any
c �u ( rrent city employee?
��� Yes No
Explain all yes answers on separate sheet and attach to green sheet
Initiating Problem, Issues, Opportunity (Who, at, When, Where, Why):
Request for Resolution to be added to the :'� �ity Council Public Heari�g Agenda: City Council's Preliminary approval
for a proposal for refunding housing revenue �bi,nds Par the Marian Center Projut at 200 Earl and 225 frank street a 121 unit
independent and assisted living facility, and authorizing [he T�RA to issue Housing Reve�ue Refunding Bond.
Advantages !f Approved:
Increases soundness of financia] staNS.
DisadvaMages If Approved:
None
MAR 2.7 2007
MAYOR'S OFFICE
Disadvantages If Not Approved:
Higher interest costs continua
Trensaction: - `�`""�---
Funa;ny source: Housing Sonds
Activity Number:
Financia� information: Conduit Revenue Bonds does not affect Allocation of Aousing Revenue Bond provided directly to City I-IRA
(Explain) p � z � p
4�e�,i�'l�1��e� F"'« �Ai;l
CosURevenue Budgeted: Y
March 16, 2007 8:47 AM Page 1
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CITY COUNCIL OF THE CITY OF SAINT PAUL, M�NNESOTA
REP�RT TO THE CITY COUNCiL DATE: April 4, 2007
REGARDING: PUBLIC HEARING - Resolution Reciting a Proposal for a
Financing Program for a Multi-Family Rental Housing Development,
Giving Preliminary Approval to the Program Pursuant to Minnesota
Statutes, 462C, Authorizing the Housing and Redevelopment Authority
of the City of Saint Paul to Issue Housing Revenue Refunding Bonds
and Authorizing the Preparation of iVecessary Documents and Materials
in Connection with said Project and Program
REQUESTED ACTION
A Resolution reciting a proposal for a conduit refunding financing program for a multi-family rental
housing development, giving Preliminary Approval to the Program pursuant to Minnesota Statutes,
Chapter 462C, Authorizing the Housing and Redevelopment Authority to issue Housing Revenue
Refunding Bonds and authorizing the preparation of necessary documents and materials in connection
with the said project and program (Marian Center of St. Paul) in Dayton's Bluff District 4 Area.
Public Hearing
With respect to multifamily housing bonds, Section 72.04 of Chapter 72 of the City's Administrative
Code provides that the HRA be designated to exercise on behalf of the CiTy the powers conferred by
Minnesota Statutes 462C (housing programs and revenue bonds) but only unless directed and
authorized to do so by resolution adopted by the City Council.
Purpose
The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (HRA) has received a
conduit refunding bond appiication from Marian Center-GEAC, LLC, a Minnesota limited liability
company that the HRA undertake a program (the "Housing Program") to refund certain multi-family
conduit housing revenue bonds previously issued by the HRA in 2001 for the development Mazian
Center through the issues of conduit housing revenue refunding bonds in the approximate principal
amount of $18,000,000.
Bonds shall not constitute a charpe, lien or encumbrance, leaal or equitable, upon anv
propertv or funds of the Citv or the HRA, nor shall the Citv or the HRA be subiect to
anv liabiliiv.
The proceeds from the ariginal bonds were used for the development of a three-story, 127 unit
independent living and assisted living facility located at 200 Ear] and 225 Frank Street in St. Paul.
There are 71 independent living units consisting of 45 one bedroom units and 26 two bedroom units.
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There aze 56 assisted living units with 51 one bedroom units, 2 two bedroom units, w studios and a
guest suite. The independent living units inciude kitchens and monthly fees include one meal per day,
wellness programs and daily scheduled activities. Assisted living units include a kitchenette and
monthly rent includes two meals per day, light housekeeping, wellness programs, daily schedule
activities, social services and 24 hour staff availability. The building contains sepazate dining facilities
for independent and assisted living, lounges on each floor, a children's play azea, a private dining room,
laundry rooms on each floor, a library, fitness room and a bazber/beauty shop and 22 underground
pazking spaces. Other amenities are sidewalk cafe and chapel azea. The project was constructed in
2002.
The proposal calls for the HRA to grant the proceeds realized upon the sale of the Bonds to the
Borrower wherein the Borrower will pay off the original bonds. The Borrower will also be obligated to
pay all costs and expenses of the HRA and City incident to the issuance and sale of the Bonds.
Public Purpose
The following public purposes will be met:
Refunding will reduce the interest costs on the project and provides continued housing
opportunities to persons with a variety of incomes.
2. Project meets objectives of the Housing Plan, adopted as part of the City's Comprehensive
Plan, Section 6.0 Suategy 3: Ensure Availability of Affordable Housing, which includes
providing a variety of styles and opportunities in housing.
Affordability
The housing project continues to meet the affordability goals of the City Council. The affordability of
units is met with the agreement between Mazian Center and Ramsey County Human Services that
commits 25 units are available under the Minnesota Department of Human Services Elderly Waiver
and Alternative Care Program. Marian Center continues to accept clientele for these affordable units
that qualify under these two programs.
Financing Plan
The total amount of refunding is estimated at $16,930,000 and will be used to pay-off the 2001 Series
bonds, which will lower the interest rate on the overall project.
Bond Authority: Allocation Process
The proposed conduit bond refunding will not count as part of the City's entitlement bond allocation.
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Staff will present to the HRA a report detailing the conduit bond refunding of the Project and request
the HRA to consider adoption of a resolution to authorize the issuance and sale multifamily housing
revenue refunding conduit bonds for Marion Center-GEAC, LLC.
FEES
The Developer has submitted a non-refundable application fee of $5,0�0 for the Refunding Housing
Bond applicarion. Should the conduit bonds be issued, the HRA will receive an administrative fee at
closing equal to .5 percent of the principal balance of the Bonds. Every year thereafter that the Bonds
remain outstanding the HRA will receive an annual administrative fee equal to one-tenth of one percent
of the outstanding principal balance of the Bonds.
Attachments:
City Council Resolution
Public Hearing Notice
Prepared by: Sheri Pemberton-Hoiby
PED Project Manager
266-6615
3
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REVISED PUBLIC HEARING NOTICE FOR
PUBLICATION PLACED �N MARCH I5, 2007
NOTE CHANGE IN PUBLIC HEARING DATE FROM
MARCH 28, 2007 TO APRIL 4, 2007
NOTICE OF PCTBLTC HEARING REGARDING THE ISSUANCE OF
MULTIFAMILY HOUSING REVENUB AEFUNDII3G BONDS
NOTICE IS HEREBY GIVEN that the City Council of the City of Saint Paul (the "City")
will meet on Wednesday, Apri] 4, 2007, at or after 530 p.m. in the City Council Chambers at the
Saint Paul City Hall located at I S West Kellogg Boulevard, Saint Paul, Minnesota, for the
pwpose of conducting a public hearing regazding the issuance by the Housing and
Redevelopment Authority of the City of Saint Paul (the "Authority") of multifamily housing
revenue refunding bonds in an amount not to exceed $16,500,000 (tax-exempt} and $1,500,000
(taxable) (together, the "Bonds") to refund the Authority's Multifamily Housing Revenue Bonds
(GNMA Coliateralized Mortgage Loan — Marian Center — GEAC Project) Series 2001A and
Taxable Multifamily Housing Revenue Bonds (GNMA Collateralized Mortgage Loan — Marian
Center — GEAC Project) Series 2001A-T (together, the "Prior Bonds"). The Prior Bonds were
issued to finance the acquisition and construction of a 127-unit assisted living facility located at
200 Earl Street and 225 Frank Street in Saint Paul, Minnesota (the "ProjecY'). The owner of the
Project is Marian Center — GEAC, LLC, a Minnesota limited liability company (the
"Company"), the sole member of which is Govemmental and Educational Assistance
Corporation, an Arkansas organization described under Section 501(c)(3) of the Internal
Revenue Code. 'I'he Project is located on land owned by Cerenity Senior Caze (formerly known
as HealthEast Residences and Care Centers) and leased to the Company. The Project is managed
by Cerenity Senior Care. The Bonds will be limited obligations of the Authority and the Bonds
and interest thereon shall be payable solely from the revenues pledged to the payment thereof,
except that such Bonds may be secured by a mortgage and other encumbrance on the Project.
No hoider of any such Bonds shall ever have the right to compel the exercise of any taxing
power of the City or the Authority to pay the Bonds, or the interest thereon, nor to enforce
payment against any properry of the City or the Authority except the Project.
All persons interested may appear and be heazd at the time and place set forth above.
Dated: March 20, 2007
By is/ Shari Moare
City Clerk
3720265.1