07-806CouncilFile# 11�'�j(/ly
Green Sheet # , j (� �{ 3 �`�
RESOLUTION
OF
Presented by
T,PAUL, MINNESOTA
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3 RESOLi3TION RECITING A PROPOSAL FOR A FINANCING PROGRAM FOR A MULTI-
4 FAMILY RENTAL HOUSING DEVELOPMENT, GIVING PRELIMINARY APPROVAL TO
5 THE PROJECT AND THE PROGRAM PURSUANT TO MINNESOTA STATUTES, CHAPTER
6 462C, AUTHORIZING THE HOUSING AND REDEVELOPMENT AUTHORITY TO ISSUE
7 HOUSING REVENUE BONDS AND AUTHORIZING THE PREPARATION OF NECESSARY
8 DOCUMENTS AND MATERIALS IN COIVNECTION WITH SAID PROJECT AND
9 PROGRAM
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PUBLIC HEARING
(a) Minnesota Statutes, Chapter 462C (the "Act) confers upon cities, or housing and
redevelopment authorities ar port authorities authorized by ordinance to exercise on behalf of a city
the powers conferred by the Act, the power to issue revenue bonds to finance a program for the
purposes of planning, administering, making or purchasing loans with respect to one or more multi-
family housing project developments within the boundaries of the city;
(b) The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the
"HRA") has been designated, by ordinance, to exercise, on behalf of the City of Saint Paul,
Minnesota (the "City") the powers conferred by Minnesota Statutes, Section 462C.01 to 462C.081;
(c) The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the
"HRA") has received a proposal from Highland Pointe Lofts, LLC, a Minnesota limited liability
company (the "Borrower"), that the HRA undertake a program (the "Housing Program") to finance
the Projects hereinafter described, through the issuance of housing revenue bonds in the estimated
principal amount of $18,000,000 pursuant to Minnesota Statutes, Section 469.178, subd. 4(the
"Bonds");
(d) The Project to be financed by the Bonds is the acquisition, construction and equipping of an
approximately 121 unit rental housing facility and related parking facilities to be located on West
Seventh Street between Davern and Muenster Avenues in the City of Saint Paul, Minnesota (the
"Project");
(e) The proposal calls for the HRA to loan the proceeds realized upon the sale of the Bonds to
the Borrower pursuant to a loan agreement wherein the Borrower will be obligated to pay all costs
and expenses of the HRA and the City incident to the issuance and sale of the Bonds;
(� The City desires to facilitate the acquisition, construction and equipping of the multifamily
housing facility within the City; and the Project will assist the City in achieving these objectives;
(HIGHLAND POINTE LOFTS PROJECTS) District 15
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(g) A public hearing on the Housing Program and the Project was held on this date following
duly published notice, at which tune all persons that desired to speak were heazd; and
(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.
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 $orrower that the
City undertake the Project, described above, and the program of financing therefore, pursuant to
Minnesota Statutes, Chapter 462C, consisting of the acquisition, construction and equipping of a
multifamily rental housing facility within the City pursuant to the Borrower's specifications.
2. On the basis of information available to the City it appears, and the City hereby
finds, that the Project constitutes a multifamily housing development within the meaning of
subdivision 5 of Section 462CA2 of the Act that the availability of the financing under the Act and
the willingness of the City to furnish such financing will be a substantial inducement to the
Borrower to undertake the Project, and that the effect of the Project, if undertaken, will be to
encourage the provision of multifamily rental housing opporhznities 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 preliminary approval by the City subject to final approval by the HRA, the Borrower
and the purchasers of the Bonds as to ultimate details of the financing of the Project, all subject to
the availability of an allocation of tax exempt bonding authority for the Bonds.
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 Saint Paul,
Minnesota (the "HRA") to issue the Bonds to finance the Project and to take all actions necessary
or desirable in connection therewith, and no further approval or authorization of the City shall be
required; provided that the HRA 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 Borrower has agreed and it is hereby determined that any and all costs incurred
by the City or the HRA in connection with the financing of the Project whether or not the Project is
carried to completion and whether or not approved by HRA will be paid by the Borrower.
6. The Executive Director, or her designee, and other City officers and staff are
authorized to coordinate with the Borrower upon request to apply to the Minnesota Department of
Finance far an allocation of bonding authoriTy pursuant to Minnesota Statutes, Chapter 474A, in an
amount that is sufficient to finance the Project, currently estimated to be $18,000,000, for a
qualified residential rental project. The fees and deposits for the application shall be supplied by
the Borrower. The application for bonding authority shall not be submitted until the Borrower has
paid the fee required by the Department of Finance in connection with an application for an
allocation of bonding authority.
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7. Briggs and Morgan, Professional Association, acting as bond counsel, and such
investment bankers as may be selected by Borrower, with the consent of the HRA, are authorized to
assist in the preparation and review of necessary documents relating to the Project and the financing
program therefore, to consult with the City Attomey, Borrower and the purchaser of the Bonds as
to the maturities, interest rates and other terms and provisions of the Bonds and as to the covenants
and other provisions of the necessary documents and submit such documents to the HRA for final
approval.
8. 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 chazge, lien
ar 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 taxing 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 ar the HRA. The Bonds
shall recite in substance that the Bonds, including the interest thereon, are payable solely from the
revenue and proceeds pledged to the payment hereo£ The Bonds shall not constitute a debt of the
City or HRA within the meaning of any constitutional or statutory limitation.
9. In anticipation of the issuance of the Bonds to finance all or a portion of the Project,
and in arder that completion of the Project will not be unduly delayed when approved, the
Borrower 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 Borrower
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.
Adopted by the City Council of the City of Saint Paul, Minnesota this Sth day of September,
2007.
Benanav
Bostrom
✓
Requested by Department oE
Plannin a d no ic Develo ment
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Form Approve b, mey ^ �
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Form Ap ov b�ayor o bmi s'on to Council
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Approved of i cial ervices
By:
Adopted by Council: Date
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✓
Adoption Certified by Co cil Secretary
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AppriqCel �4�y r• Date 9� a
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Green Sheet Green Sfieet Green Sheet Green Sheet Green Sheet Green Sheet
PE — Planning & Economic Develapment � 23AUG-07
Conpct Person 8 Phone:
.ban T�ulsen
6-G694
musi ne on councn ngenaa uy (oate
O5-SEP-07 . �
Doa Type: RESOLUTION
E-DocumeM Required: Y �
DocumenfConWct: JoanTrulsen
Contact phone: 6-6694
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Assign
Number
For
Routing
Order
Green Sheet NO: 3043250
0 nm &Ernnu�cDevelo m
1 lannin & Economic Develo m De arwent Director =-��
2 i Attoro
3 vor's O�ce Ma or/Assistant
a ouocil
5 " C7erk C5N Clerk -
Total # of Signature Pages _(Ciip All Locations for Signature)
Signatures on a resolution giving preliminary approval for the issuance of Housing Revenue Bonds for the Highland Pointe Lofts
Project
Planning Commission 1. Has this persoNfirm ever worked under a contract for this departrnent?
CIB Committee Yes No
Civil Service Commission 2. Has fhis person/firm ever been a city employee?
Yes No
3. Dces lfiis person/firtn possess a skill not normally possessed by any
cunent city employee?
Yes No
Explain all yes answers on 5eparate sheet and attach to green sheet
Initiati�g Problem, Issues, Opportunity (Who, What, When, Where, Why): �
Higtiland Pointe Lofts, LLC has requested the ARA to issue Aousing Revenue Bonds in the estimated pri¢cipal amount of
$18,000,000 for the consWction of a 121 unit apartment building.
AdvanUges If Approved:
The project can proceed
DisadvanWges H Approved:
None
Disadvantages If Not Approved:
The project can not proceed
Transaction: $18,000,000
Funding source: Conduit Bonds
Financiai Information:
(Exptain)
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CosfiRevenue Budgetetl:
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August 23, 2007 92� AM Page 1