09-1331Council File # �`' � � �
Green Sheet #
RESOLUTION
Presented By
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PAUL, MINNESOTA
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RESOLUTION RECITING A PROPOSAL FOR A
FINANCING PROGRAM FOR A COMBINATTON MULTIFAMILY RENTAL
HOUSING AND HEALTH CARE DEVELOPMENT, GIVING PRELIMINARY
APPROVAL TO THE PR03ECT 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 DISTRICT 15
(CARONDELET VILLAGE 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 conferred by the Act, the power to issue revenue bonds to finance a program for
4 the purposes of planning, administering, making or purchasing loans with respect to one or more
5 combination multifamily housing and health 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;
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(c) The Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
(the "HRA") has received a proposal from Carondelet V illage, Inc., a Minnesota nonprofit
cotporafion (the "Bonower"), that the HRA undertake a program (the "Housing Program") to
finance the Project hereinafter described, through the issuance of housing revenue bonds in the
estimated principal amount of $SO,OO�,OQO pursuant to Minnesota Statutes, Chapter 462C (the
"Bonds");
16 (d) The Project to be financed by the Bonds is the acquisition, consriuction and
17 equipping of a combination housing and health care facility, consisting of approximately 149
18 units of independent housing, 45 units of assisted living, 19 units of inemory care and 45 units of
19 skilled nursing care in the City of Saint Paul, Minnesota (the "Project");
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20 (e) The proposal calis 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 Bonower 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 (� The City desires to facilitate the acquisition, construction and equipping of a
25 multifamily rental housing and health caze facility within the City; and the Project will assist the
26 City in 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 official of the City has either a direct or indirect financial interest in the
30 Project nor wili any public o�cial 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,
37 construction and equipping of a combination multifamily rental housing and health care facility
38 within the City pursuant to the Borrower's specifications.
39 2. On the basis of information available to the City it appears, and the City
40 hereby finds, that the Project constitutes a combination health care and multifamily housing
41 development within the meaning of subdivision 7 of Section 462C.02 of the Act; that the
42 availability of the financing under the Act and the willingness of the City to furnish such
43 financing will be a substantial inducement to the Borrower to undertake the Project, and that the
44 effect of the Project, if undertaken, will be to encourage the provision of combination health care
45 and multifamily rental housing opportunities to residents of the City, and to promote more
46 intensive development and use of land within the City.
47 3. The Project, and the program to finance the Project by the issuance of the
48 Bonds, is hereby given preliminary approval by the City subject to final approval by the HRA,
49 the Bonower and the purchasers of the Bonds as to ultimate details of the financing of the
50 Project, all subject to the availability of an allocation of tax exempt bonding authority for the
51 Bonds.
52 4. Putsuant to Chapter 72, Saint Paul, Minnesota Administrative Code, the
53 City hereby authorizes and directs the Housing and Redevelopment Authoriry of the City of
54 Saint Paul, Minnesota (the "HRA") to issue the Bonds to finance the Project and to take all
55 actions necessary ar desirable in connection therewith, and no fixrther approval or authorization
56 of the City shall be required; provided that the HRA may, in its discretion, authorize the Board to
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57 issue the Bonds and to implement the program approved hereby, and the Cit� hereby consents
58 thereto.
59 5. The Bonower has agreed and it is hereby determined that any and all costs
60 incurred by the City or the HRA in connection with the financing of the Project whether or not
61 the Project is carried to completion and whether or not approved by HRA will be paid by the
62 Borrower.
63 6. Briggs and Morgan, Professional Association, acting as bond counsel, and
64 such investment bankers as may be selected by Borrower, with the consent of the HRA, are
65 authorized to assist in the preparation and review of necessary documents relating to the Project
66 and the financing program therefor, to consult with the City Attorney, Borrower and the
67 purchaser of the Bonds as to the maturities, interest rates and other terms and provisions of the
68 Bonds and as to the covenants and other provisions of the necessary documents and submit such
69 documents to the HRA for final approval.
70 7. Nothing in this Resolution or the documents prepared pursuant hereto
71 shall authorize the expenditure of any municipal funds on the Project other than the revenues
72 derived from the Project or otherwise granted to the City or the HRA. The Bonds shall not
73 constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the
74 City or the HRA except the revenue and proceeds pledged to the payment thereof, nor shall the
75 City or the HRA be subject to any liability thereon. The holders of the Bonds shali never have
76 the right to compel any exercise of the tasing power of the City or HRA to pay the outstanding
77 principal on the Bonds or the interest thereon, or to enforce payment thereon against any
78 property of the City or the HRA. The Bonds shall recite in substance that the Bonds, including
79 the interest thereon, are payable solely from the revenue and proceeds pledged to the payment
80 hereo£ The Bonds shall not constitute a debt of the City or HRA within the meaning of any
81 constitutional or statutory limitation.
82 8. In anticipation of the issuance of the Bonds to finance a11 or a portion of
83 the Project, and in order that completion of the Project will not be unduly delayed when
84 approved, the Borrower is hereby authorized to make such expenditures and advances toward
85 payment of that portion of the costs of the Project to be financed from the proceeds of the Bonds,
86 as the Borrower considers necessary, including the use of interim, short-term financing, subject
87 to reimbursement from the proceeds of the Bonds if any when delivered but otherwise without
88 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.
Bostrom
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Adopted by Council: Date j r Approved by Mayor for Submiss'on to Council
AdoptionCertifiedbyCoi �' Secretary B (a'M�,, � � ; �o %j, ��-CS
BY� L / //O/!G'// //�i��rli9 —�—� 1
pp oved b a ar. Date
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� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet
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)epartmenUOfficelCOUncil: Datelnkiated: GCeeI1 SheeL NO 3088417
Pla�ning 8 Economic
PE — �,,,,_,_____, 16 Nov 2009 .
Contact Person & Phone:
Joan Truisen
66694
Must Be on Council Agenda by (�ate):
02
Doc. Type: RESOLUTION
E-DOCUment Required: Y
Document Contact: Laura Eckert
ConWCt Phone: 66633
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Assign
Number
For
Routing
Order
0 Isonin &EconomicDevelo me
1 laovin & Econoroic Develo me De ardment Director
2 i Attome C' Attorne
3 a or's OtSce Ma or Assistant
4 ouocil
5 Clerk City Clerk
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Totai # of Signature Pages _(Clip All Locations for Signature)
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Signatures on resolufion for preliminary approval of bonds for the Carondolet Village Project. A Public Hearing is published for
December 2, 2009 at City Council.
t2e�mmendations: Approve (A} or Reject (R):
Planning Commission
CIB Committee
Civil Service Commission
Personal Service CoMracls Must Answer the Foliowing Questions:
1. Has this person/firm ever worked under a contract for this department?
Yes No
2. Has this personifirm ever been a city employee?
Yes No
3. Does this person/firtn possess a skill not normally possessed by any
current city employee?
Yes No
Expiain all yes answers on separate sheet and attach to green sheet.
Initiating Probiem, Issues, Opportunity (Who, What, When, Where, Why):
The St. Joseph Sisters of Carondolet and Presbyterian Homes in partnership have requested the issuance of $SQ000,000 of SOlc3
bonds for the Cazondelet Village Project. The Project is new construction of a senior campus including 259 units and an Integrated
Servcie Center will be semi public.
AdvantageslfApproved:
Funds will be available for the development of the project.
Disadvantages If Approved:
None
Disadvantages If Not Approved:
Funds will not be available.
Total Amount of
Transaction:
Funding Source:
Financial Information:
(Explain)
, �
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Cost/Revenue Budgeted:
� Activity Number:
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