09-1330Council File # (Y�— ��j�jd
Green Sheet # 3088536
Presented By
PA L, MINNESOTA � �
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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 AND 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)
1 (a) Minnesota Statutes, Chapter 462C (the "Act) confers upon cities, or housing and
2 redevelopment authorities or port authorities authorized by ordinance to exercise on behalf of a
3 city the powers confened by the Act, the power to issue revenue bonds to finance a program for
4 the purposes of planning, administering, making ar purchasing loans with respect to one or more
5 multi-family housing project developments within the boundaries of the city;
6 (b) The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
7 (the "HRA") has been designated, by ordinance, to exercise, on behalf of the City of Saint Paul,
8 Minnesota (the "City") the powers conferred by Minnesota Statutes, Section 462C.01 to
9 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 Parinership, a Minnesota
12 limited partnership (the "Bonower"), 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 $7,200,000 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 renovafion 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 "Project");
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20 (e) The proposal 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 renovation of an existing historic
25 building into a multifamily housing facility within 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 time all 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 indirectly 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 1. 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 Bonower's specifications.
39 2. On the basis of information available to the City iY appears, and the Ciry
40 hereby finds, that the Project constitutes a multifamily housing development within the meaning
41 of subdivision 5 of Section 462C.02 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 Borrower 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 final 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 a11
54 actions necessazy or desirable in connection therewith, and no further appmval 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 Bonower has agreed and it is hereby determined that any and all costs
59 incurred by the City or the IIRA in connection with the financing of the Project whether or not
60 the Project is carried to completion and whether or not approved by I IRA 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 preparation and review of necessary documents relating to the Project
65 and the financing program therefor, to consult with the City Attomey, Bonower 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 approval.
69 7. Nothing in this Resolution or the documents prepared 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 encumbrance, 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 haue
75 the right to compel any exercise of the taxing 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 payment
79 hereof. The Bonds shall not constitute a debt of the City ar HRA within the meaning of any
80 consritutional ox 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 completion 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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1 Adopted by the City Council of the City of Saint Paul, Minnesota this 2" day of
2 December, 2009.
Requested by Department of:
Adoprion Certified by Counci cretary
gy: '
Approved or: Date � p
B
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Adopted by Council: Date ��/6a/O�
Plann' an nomic Develo ment
By:
� Green Sheet Green
Sheet Green Sheet G�een Sheet Green Sheet Green Sheet �
i1'i�t�ail�
DepartmenUOffice/Council: Date Initiated•
PE _Planning&Economic �7NOV2009 Green Sheet NO: 3088536
Development
ConWCt Person & Phone: Deoartment Sent To Person In' fal/Date �/ i
Dlafle Nofdquist � 0 lannin¢ & Economic Develoome ��—� �!�(/ �r
66640 1 ]annin & Econoroic Develo me � Deoartmeut Director i I
� � 2 i Attome R Attome �
Must Be on Council genda by (Date): Nu ber 3 inancial Services I Mar aret Kell
02-DEC-09 a/.� Por
Routing 4 a or's Office Ma or
Doc. Type: RESOLUTION Order 5 ouncil Couocil
E-Document Required: Y
Document Contact: Laura Eckert
Contact PNone: 66633
Total # of Signature Pages _(Ciip All Locations for Signature)
Action Requested:
Public Hearing and adoprion of a Resolution giving Preliminary Au[horization for the I IRA to issue up to $7,200,000 in Tvc-Exempt
Housing Revenue Bonds for the acquisition and renovation of the Minnesota Building into 60 units of affordable rental housing. The
project will be owned and managed by a partnership consisting of the Sand Companies.
Recommendations: Approve (A) or Reject (R): personal Service Contracts Must Answer the Following Questions:
Planning Commission 1. Has this person/firm ever worked under a contract for this department?
CIB Committee Yes No
Civil Service Commission 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
carrent city employee?
Yes No
Explain all yes answers on separate sheet and attach to green sheet.
I�itiating Probiem, Issues, Opportunity (Who, What, When, Where, Why):
In October 2009, the HRA received a revised complete bond application, a signed Memo of Understanding and a low income housing
Yax credit application from Sand Company. The applications are iequesting financing for the acquisition and rehabilitation of the Yop
six floors of the Minnesota Building into 60 units of affordable rental housing. This is the preliminary approval to isse up to
$7,200,000 in ta;c exexmpt bond authority.
Advantages If Approved:
The developers will be able [o proceed with the acquisition and creation of 60 units of affordable rental housing.
Disadvantages if Approved: , , 4 ����
None
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Disadvantages If Not Approved:
The project would not move forwazd. '_'q �'�id � tc B
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7otal Amount of
Transaction: CosURevenue Budgeted:
Funding Source: Activity Number:
Financial Information:
(Explain)
November 17, 2009 8:51 AM Page 1