08-287Council File # �g "�7
Green Sheet # 3050732
RESOLUTION
CIT`Y OF,SAIN'�,PAUL, MINNESOTA �g
Presented By
RESOLUTION RECITING A PROPOSAL FOR A
FINANCING PROGRAM FOR A MULTI-FAMILY RENTAL
HOUSING DEVELOPMENT, GIVING PRELIMINARY
APPROVAL TO THE PROJECT AND THE PROGRAM
PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C,
AUTHORIZING THE HOUSING AI�D REDEVELOPMENT
AUTHORITY TO ISSUE HOUSING REVENUE BONDS
AND AUTHORIZING THE PREPARATION OF NECESSARY
DOCUMENTS AND MATERIALS IN CONNECTION
WITH SAID PROJECT AND PROGRAM
(MINNESOTA BUILDING PROJECT)
(a) Minnesota Statutes, Chapter 462C (the "Act) confers upon cities, or housing and
redevelopment authorities or port authorities authorized by ordinance to exercise on behalf of a
city the powers confened 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 Yhe 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;
10 (c) The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
11 (the "HRA") has received a proposal from Minnesota Vista Limited Partnership, a Minnesota
12 limited partnership (the "Borrower"), that the HRA undertake a program (the "Housing
13 Program") to finance the Project hereinafter described, through the issuance of housing revenue
14 bonds in the estimated principal amount of $5,700,000 pursuant to Minnesota Statutes, Chapter
15 462C (the "Bonds");
16 (d) The Project to be financed by the Bonds is the acquisition of 6 floors of an
17 existing building and the renovation thereof into an approximately 60 unit rental housing facility
18 located at 4` Street between Minnesota and Cedar Streets in the City of Saint Paul, Minnesota
19 (the "ProjecY');
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20 (e) The proposai calls for the HRA to loan the proceeds realized upon the sale of the
21 Bonds to the Bonower pursuant to a loan agreement wherein the Borrower will be obligated to
22 pay all costs and expenses of the HRA and the City incident to the issuance and sale of the
23 Bonds;
24 ( fl The City desires to facilitate the acquisition and renovarion of an existing historic
25 building into a multifamily housing facility wiUun the City�, and the Project will assist the City in
26 achieving these objectives;
27 (g) A public hearing on the Housing Program and the Project was held on this date
28 following duly published notice, at which rime ail persons that desired to speak were heard; and
29 (h) No public officiai of the City has either a direct or indirect financial interest in the
30 Project nor will any public official either directly or indirecfly benefit financially from the
31 Project.
32 NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Saint
33 Paul, Minnesota, as follows:
34 i. The City hereby gives preliminary approval to the proposal of the
35 Borrower that the City undertake the Project, described above, and the program of financing
36 therefor, pursuant to Minnesota Statutes, Chapter 462C, consisting of the acquisition and
37 renovation of an existing historic building into a multifamily rental housing facility within the
38 City pursuant to the Borrower's specifications.
39 2. On the basis of information available to the City it appeazs, and the City
40 hereby finds, that the Project constitutes a multifamily housing development within the meaning
41 of subdivision 5 of Secfion 462CA2 of the Act; that the availability of the financing under the
42 Act and the willingness of the City to furnish such financing will be a substantial inducement to
43 the Bonower to undertake the Project, and that the effect of the Project, if undertaken, will be to
44 encourage the provision of multifamily rental housing opportunities to residents of the City, and
45 to promote more intensive development and use of land within the City.
46 3. The Project, and the program to finance the Project by the issuance of the
47 Bonds, is hereby given preliminary approval by the City subject to finai approval by the HRA,
48 the Borrower and the purchasers of the Bonds as to ultimate details of the financing of the
49 Project, all subject to the availability of an allocation of tas exempt bonding authority for the
50 Bonds.
51 4. Pursuant to Chapter 72, Saint Paul, Minnesota Administrative Code, the
52 City hereby authorizes and directs the Housing and Redevelopment Authority of the City of
53 Saint Paul, Minnesota (the "HRA") to issue the Bonds to finance the Project and to take all
54 actions necessary or desirable in connection therewith, and no further approval or authorization
55 of the City shall be required; provided that the HRA may, in its discretion, authorize the Board to
56 issue the Bonds and to implement the program approved hereby, and the City hereby consents
57 thereto.
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58 5. The Borrower has agreed and it is hereby determined that any and all costs
59 incurred by the City or the HRA in connection with the financing of the Project whether or not
60 the Project is carried to completion and whether or not approved by HRA will be paid by the
61 Borrower.
62 6. Briggs and Morgan, Professional Association, acting as bond counsel, and
63 such investment bankers as may be selected by Borrower, with the consent of the HRA, are
64 authorized to assist in the prepazation and review of necessary documents relating to the Project
65 and the financing program therefor, to consult with the City Attorney, Borrower and the
66 purchaser of the Bonds as to the maturities, interest rates and other terms and provisions of the
67 Bonds and as to the covenants and other provisions of the necessary documents and submit such
68 documents to the HRA for final approbal.
69 7. Nothing in this Resolurion or the documents prepazed pursuant hereto
70 shall authorize the expenditure of any municipal funds on the Project other than the revenues
71 derived from the Project or otherwise granted to the City or the HRA. The Bonds shall not
72 constitute a charge, lien or encuxnbrance, legal or equitable, upon any property or funds of the
73 City or the HRA except the revenue and proceeds pledged to the payment thereof, nor shall the
74 City or the HRA be subject to any liability thereon. The holders of the Bonds shall never have
75 the right to compel any exercise of the taYing power of the City or HRA to pay the outstanding
76 principal on the Bonds or the interest thereon, or to enforce payment thereon against any
77 property of the City or the HRA. The Bonds shall recite in substance that the Bonds, including
78 the interest thereon, are payable solely from the revenue and proceeds pledged to the payrnent
�9 hereof. The Bonds shall not constitute a debt of the City or HRA within the meaning of any
80 constitutional or statutory limitation.
81 8. In anticipation of the issuance of the Bonds to finance all or a portion of
82 the Project, and in order that comple6on of the Project will not be unduly delayed when
83 approved, the Borrower is hereby authorized to make such expenditures and advances toward
84 payment of that portion of the costs of the Project to be financed from the proceeds of the Bonds,
85 as the Borrower considers necessary, including the use of interim, short-term financing, subject
86 to reimbursement from the proceeds of the Bonds if any when delivered but otherwise without
87 liability on the part of the City or the HRA.
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March, 2008.
Adopted by the City Council of the City of Saint Paul, Minnesota this 19`�' day of
Absent
✓
✓
Approved
Adopted by Council: Date
$ o
Approved by
By:
Adoprion Ce�rtified by Co cil Secretary "'''
BY� / / ///�/is�l ir,i.Cis/ii� By �
Approvet �y a Date L�
BY� ._����
of Planning and Economic
2133271v1
� Green Sheet Green Sheet
���, � � �„ �
Green Sheet Green Sheet Green heet Green Sheet �
I: •
�DepartmenUoffice/council: Date Initiated:
PE - Plzn�ing Z+. Economic Development 04-MAR-OS
ConWct Person & Phone: �
Diane Nordquist
266-6640
Assign
Must Be on Council Agenda by (DateJ: Number
19-MAR-08 For
� ------ Routing
Doc. Type: RESOLUTION ' ��\ ��
UtA\
E-Document Required: Y
Document ConWCt: Diane Nordquist
Green Sheet NO: 3050732
2 CitY Attarnev Pete Y[cCalt
� X MaVOr's Office Maror/Assis[ant
� �4' Council C1tvCouncil-Thune __
� �J CiN Clerk CiN Clerk
3 I���`�+✓�CcGI� 5grufcef � A��Y�C�-DY ,--
Contact Phone: 266-6640 '
ToWI # of Signature Pages _(Clip All Locations for Signature)
Publ�c Hearing and Adoption of a Resolution gtving Preliminary Authorization for the HRA to ]ssue up to �5,615,000 in Tax-
Exempt Hovsmg Revenue Bonds for Che acqmsition and renovation of The Minnesota Building into 60 units of affordable rental
houstng. The project will be owned and managed by a paRnership consisting of the Sand Companies.
Recommendations: Approve (A) or Reject (R): i Personal Service Contracts Must Mswer the Poltowing Questions:
Planning Commission �
CIB Committee
Civil Service Commission
Has this person/firm ever worked under a contract tor this department?
Yes No
2. Has this person/firm ever been a city employee�
Yes No
3 Does this person/firm possess a skill not normally possessed by any
current city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet
� Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
�' In Deeember 2007, the HRA received a complete bond applieation, a signed Memoiandum of Understanding, and a low income
housing tax credit application from Sand Company. The applications are requesring finanemg for the acquisit�on and rehab�litation of
' the top six floors of the Minnesota Buildmg into 60 units of affordable rental housing. This is the preliminary approval to issue up to
$5,615,000 in tax exempC bond authority. ,
, AdvantageslfApproved:
� The Developers will be able to proceed with the acquisition and creatron of 60 umts of affordable rental housing
Disadvantages If Approved:
None.
Disadvantages If Not Approved:
The project would not move forwazd.
Transaction:
Fundin9 source: Conduit Bond Financing
CostlRevenue Budgeted:
RECEIVE�
MAR 0 6 2008
�d16 ! �'!1 l��IVG�
F i na n c i a l I nfo rm ati o n:
(Explain)
Activity Number.
March 4, 2008 2:14 PM Page 1