09-1092Council File # 09-1092
Green Sheet # 3080976
RESOLUTION �8
OF �SAINT PAUL, MINNESOTA
Presented by
PUBLIC
RESOLUTION RECITING A PROPOSAL FOR A
FINANCING PROGRAM FOR A COMBII�ATION MULTI-FAMILY RENTAL
HOUSING AND HEALTH CARE DEVELOPMENT, GIVING PRELIMINARY
APPROVAL TO THE PROJECT AND THE PROGRAM
PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C,
AUTHORIZING THE HOUSING AND REDEVELOPMENT
AUTHORITY TO ISSUE REVENUE BONDS
AND AUTHORTZING THE PREPARATION OF NECESSARY
DOCUMENTS AND MATERIALS IN CONNECTION
WITH SAID PROJECT AND PROGRAM (LYNGBLOMSTEN CARE CENTER PROJECT)
DISTRICT 10
1 {a) Minnesota Statutes, Chapter 462C (the "Act) confexs upon cities, ox
2 housing and redevelopment authorities or port authorities authorized by ordinance to exercise on
3 behalf of a city the powers conferred by the Act, the power to issue revenue bonds to finance a
4 program for the purposes of planning, administering, making or purchasing loans with respect to
5 one or more combination multi-family housing and health care developments within the
6 boundaries of the city;
7 (b) The Housing and Redevelopment Authority of the City o£ Saint Paul,
8 Minnesota (the "HRA") has been designated, by ordinance, to exercise, on behzlf of the City of
9 Saint Paul, Minnesota (the "City") the powers conferred by the Act;
10 (c) The HRA has received from Heritage Apartments, Inc., a Minnesota
11 nonprofit cotporation ("Heritage") and Lyngblomsten Care Center, Inc., a Minnesota non-profit
12 corporation ("Lyngblomsten Care Center") (collectively, the "Borrowers"), a proposal that the
13 HRA undertake a program (the "Housing Program") to finance a Project hereinafter described,
14 U�rough the issuance of revenue obligations in one or more series (collectively, the
15 "Obligations") pursuant to the Act; and
16 (d) The Project to be financed by the Obligations are (i) certain improvements
17 to an existing nursing home facility located in the City (the "Nursing Home Facility"), (ii) the
18 refunding of the HRA's Health Care Revenue Bonds, Series 1993A (Lyngblomsten Care Center,
19 Inc. Project), the proceeds of which financed or refinanced a skilled care nursing home owned
20 and operated by Lyngblomsten Care Center, and (iii) the refunding of the HRA's Multifamily
21 Rental Housing Revenue Bonds, Series 1993B (Lyngblomsten Project) the proceeds of which
22 financed the acquisition, construction and equipping of a three-story, 60 unit, assisted living
23 facility (the "Assisted Living Facility") owned and operated by Heritage. The Assisted Living
24 Facility is located at 1440 Midway Parkway in the City, and the Nursing Home Facility is
25 located at 1415 Almond Avenue in the City; and
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09-109�-
26 (e) The proposal calls for the HRA to loan the proceeds realized upon the sale
27 of the Obligations to the Borrowers pursuant to one or more revenue agreements wherein the
28 Borrowers will be obiigated to pay all costs and expenses of the HRA and the City incident to the
29 issuance and sale of the Obligations; and
30 (fl The City desires to facilitate the development and improvement of nursing
31 home faciliries within the City; encourage the development of housing facilities desia ed for
32 occupancy primarily by elderly persons; reduce or contain the escalating costs of health caze and
33 housing; and encourage the development of underutilized land within the boundaries of the City;
34 and the Project will assist the City in achieving these objectives; and
35 (g) A public hearing on the Housing Program and the Project was held on this
36 date following duly published notice, at which time all persons that desired to speak were heard;
37 and
38 (h) No public official of the City has either a direct or indirect &nancial
39 interest in the Project nor will any public official either directly or indirectly benefit financially
40 from the Project.
41 NOW THEREFORE, BE TI' RESOLVED by the City Council of the City of Saint
42 Paul, Minnesota, as follows:
43 1. The City hereby gives preliminary approvai to the proposal of the Bonowers that
44 the City undertake the Project, described above, and the program of financing therefor, pursuant
45 to Minnesota Statutes, Chapter 462C, consisflng of improving the existing nursing home facility
46 and the refunding of the bonds previously issued far the Nursing Home Facility and Assisted
47 Living Facility,
48 2. On the basis of information available to the City it appears, and the City hereby
49 finds, that the Project constitutes a combination multifamily housing and health care
50 development within the meaning of subdivision 7 of Section 462C.02 of the Act; that the
51 availability of the financing under the Act and the willingness of the City to furnish such
52 financing wili be a substantial inducement to ihe Borrowers to undertake the Project, an3 that the
53 effect of the Project, if undertaken, will be to encourage the conrinued provision of combination
54 mul6family rental housing and health care opportunities to residents of the City, and to promote
55 mare 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 Obliga6ons, is hereby given preliminazy approval by the City subject to final approval by the
58 HRA, the Bonowers and the purchasers of the ObligaGons as to ulAmate details of the financing
59 of the Project.
60 4. Pursuant to Chapter 72, Saint Paul, Minnesota Adminisirative Code, the Ciry
61 hereby authorizes and directs the HRA to issue the Obligations to finance the Project and to take
62 all acfions necessazy or desirable in connection therewith, and no further approval or
63 authorizarion of the City shall be required.
64 5. The Bonowers have agreed and it is hereby determined that any and all costs
65 incuned by the City or the HRA in connecfion with the financing of the Project whether or not
66 the Project is carried to completion and whether or not approved by HRA will be paid by the '
67 Borrowers.
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68 6. Briggs and Morgan, Professional Associarion, acting as bond counsei, and such
69 investment bankers as may be selected by Borrowers, with the consent of the HR.A, are
70 authorized to assist in the preparation and review of necessazy documents relafing to the Project
71 and the financing program therefor, to consuli with the City Attorney, Borrowers and the
72 purchaser of the Obligarions as to the maturiries, interest rates and other terms and provisions of
73 the Obligations and as to the covenants and other provisions of the necessary documents and
74 submit such documents to the HRA for final approval.
75 7. Nothing in this Resolution or the documents prepazed pursuant hereto shall
76 authorize the expenditure of any municipal funds on the Project other than the revenues derived
77 from the Project or otherwise granted to the City or the fIRA. The Obligations shall not
78 constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the
79 City or the HRA except the revenue and proceeds pledged to the payment thereof, nor shall the
80 City or the HRA be subject to any liability thereon. The holders of the Obligations shall never
81 have the right to compel any exercise of the taxing power of the City or HRA to pay the
82 outstanding principal on the Obligarions or the interest thereon, or to enforce payment thereon
83 against any property of the City or the HRA. The Obligations shall recite in substance that the
84 Obligarions, including the interest thereon, are payable solely from the revenue and proceeds
85 pledged to the payment hereo£ The Obligauons shall not constitute a debt of the City or HRA
86 within the meaning of any constitutional or statutory limitation.
87 8. In anticipatSon of the issuance of the Obligations to finance all or a portion of the
88 Project, and in order that compleuon of the Project will not be unduly delayed when approved,
89 the Bonowers are hereby authorized to make such expenditures and advances towazd payment of
90 that portion of the costs of the Project to be financed from the proceeds of the Obligations, as the
91 Bortowers consider necessary, including the use of interim, short-term financing, subject to
92 reimbursement from the proceeds of the Obligations if any when delivered but otherwise without
93 liability on the part of the City or the HRA.
94 Adopted by the City Council of the City of Saint Paul, Minnesota this 7` day of
95 October, 2004.
Adopted by Council: Date �'�' � �
Adoptio�e,�tified by, Cou� ecretary
By:
Approved �Ia Date l `� �- D-
$Y: ��L�1'�.�'�%Lt-e��--�
Requested by Depanment of: Planning and
Economic Development
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by
By: �
Approved�
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Approved by
By: L%-i
Approve�
By:
to Coun�c�i
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09-1092
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
DepartmentlOffice/Council: Date IniGated:
i PE _Ptanning&Economic f Z�SEP2009 � Green Sheet NO: 3080976
� DeveiopmeM �
I ConWd Person & Phone: , � � ���ent Sent To Person Initial/Date i
Joan Trulsen 0 �taunine & Economic Develapme 4
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' 266-6694 ' � 1 � lamin¢ & Economic Developmei Departlnent D'uector
� �'`�g� � 2 � maocialServices �OfficeFivancia4ServiceslY,
� Must Be on Council Agenda by (Date): � Number � 3 (
� 0�-0CTAS � For 3�7ayor's Office i� MayodASSistant i
� � Routing � 4 Council I Ci Council I
� Doa Type: RESOLIffION W/$ i Order � 5 Ciry Clerk � � City Clerk y
TRANSACTION
1
E-Document Required: N
Document Contact:
Contact Phone:
Total # ot Signature Pages _(Clip Aif Locations for Signature)
Action Requested: �
Signatutes are requested on a City Council resolurion requesting prel'vninary approval for the issuance of revenue bonds for ffie
Lyngblomsten multi-family rental housing and health caze development.
RecommendaGOns: Approve (A) or Reject (R): I Personal Service Contracts Must Aoswer the Following Questions:
Planning Commission 1, Has this person/firm ever worked under a contract for this department?
CIB Gommittee Yes No
Civil Service Canmission 2. Has this perso�rm ever bee� a city employee?
Yes No
3. Does thus person(flrtn possess a skill not normally possessed by any
current cdy employee?
Yes No
F�cplain alI yes answers on separate sheet and attach to green sheet.
Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why):
Lyngblomsten Senior Campus have requested the HItA to finance a rehabilitarion project with the issuance of revenue bonds. A
public hearing is required at City Counci] for preliminary approval of the bonds, ' ', �
Advantages IfApproved:
The proposal can go to the HRA far final approval.
Disadvantages If Approved:
None.
Disativant�qes If Not Approved:
The proposal can not proceed.
Total Amount of " - � '
Transaction: $6,800,000.00 CosUReve�ue Budgeted: Y ' " _
Funding source: Bond Proceeds acciv�ry Numner.
Financial Information: Futancing up to 6.8 million dollazs,
I {Facplain)
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