10-516CITY
Presented By
Council File # 10-516
Green Sheet # 3109776
RESOLUTION
�N��PAjUI,, MINNESOTA ��
/
RESOLUTION RECITING A PROPOSAL FOR A
HOUSING FINANCE PROGRAM FOR A COMBINATION MULTIFAMILY 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 HOUSING REVENUE BONDS
AND AUTHORIZING THE PREPARATION OF NECESSARY
DOCUMENTS AND MATERIALS IN CONNECTION
WITH SAID PROJECT AND PROGRAM
(CARONDELET VILLAGE PROJECT)
10
il
12
13
14
15
16
(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 conferred by the Act, the power to issue revenue bonds to finance a program for
the purposes of planning, admnustering, making or purchasing loans with respect to one or more
combination multifamily housing and health developments within the boundaries of the city;
(U) 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 confemed by Minnesota Statutes, Section 462CA1 to
462C.081;
(c) The Housing and Redevelopment Authority of the Ciry of Saint Paul, Minnesota
(the "HRA") has received a proposal from Carondelet Viliage, Inc., a Minnesota nonprofit
corporation and CV Senior Housing, LLC (the "Borrower") and CV Consortium, LLC, both
Minnesota nonprofit limited liability companies the sole member of which is Carondelet Village,
Inc., that the HRA undertake a program (the "Housing Program") to finance the Project
hereinafter described, through the issuance of housing revenue bonds in the esrimated principal
amount of $55,000,000 pursuant to Minnesota Statutes, Chapter 462C (the "Bonds");
17 (d) The Project to be financed by the Bonds is the acquisition, construction and
18 equipping of a combination housing and health care facility, consisting of approximately 149
19 independent living units, 46 assisted living units, 19 memory care units and 45 skilled nursing
2Q care beds in the City of Saint Paul, Minnesota (the "Project");
367720v1 MMD SA130-106
10-516
21 (e) The proposal calIs for the HRA to loan the proceeds realized upon the sale of the
22 Bonds to the Bonower pursuant to a loan agreement wherein the Bonower will be obligated to
23 pay all costs and expenses of the HRA and the City incident to the issuance and sale of the
24 Bonds;
25 ( fl The City desires to facilitate the acquisition, construction and equipping of a
26 multifamily rental housing and health care facility within the City; and the Project will assist the
27 City in achieving these objectives;
28 (g) A public hearing on the Housing Program and the Project was held on this date
29 following duly published notice, at which time all persons that desired to speak were heard; and
30 (h) No pubiic official of the City has either a direct or indirect financial interest in the
31 Project nar will any public official either directly or indirectiy benefit financially from the
32 Project.
33 NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Saint
34 Paul, Minnesota, as follows:
35 i. The City hereby approves the proposal of the Borrower that the City
36 undertake the program of financing the Project, described above, pursuant to Minnesota Statutes,
37 Chapter 462C, consisting of the acquisition, construction and equipping of a combination
38 multifamily rental housing and health care facility within the City pursuant to the Bonower's
39 specifications.
40 2. On the basis of information available to the City it appears, and the City
41 hereby finds, that the Project constitutes a combination health care and multifamily housing
42 development within the meaning of subdivision 7 of Section 462C.02 of the Act; that the
43 availability of the financing under the Act and the willingness of the City to fixrnish such
44 financing will be a substantial inducement to the Bonower to undertake the Project, and that the
45 effect of the Project, if undertaken, will be to encourage the provision of combination health care
46 and multifamily rental housing opportunities to residents of the City, and to promote more
47 intensive development and use of land within the City.
48 3. The Project, and the program to finance the Project by the issuance of the
49 Bonds, is hereby approved by the City subject to final approval by the HRA, the Borrower and
50 the purchasers of the Bonds as to ultimate details of the financing of the Project.
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 implement
54 the program and to take all actions necessary or desirable in connection therewith, and no further
55 approval or authorization of the City shall be required.
56 5. The Borrower has agreed and it is hereby determined that any and all costs
57 incurred by the City or the HRA in connection with the financing of the Project whether or not
58 the Project is carried to completion and whether or not approved by HRA will be paid by the
59 Borrower.
367720v1 MMD SA13a-106
10-516
60
61
62
63
64
65
6b
67
68
69
?0
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
6. Kennedy & Graven, Chartered, acting as bond counsel, and such
investment bankers as may be selected by Borrower, with the consent of the HRA, aze authorized
to assist in the preparation and review of necessary documents relating to the Project and the
financing program therefor, 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
I�RA for final approval.
7. Nothing in this Resolution ar the documents prepared pursuant hereto
sha11 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 charge, lien or encumbrance, legal or equitable, upon any properry 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 or the IIRA. The Bonds sha11 recite in substance that the Bonds, including
the interest thereon, are payabie solely from the revenue and proceeds pledged to the payment
hereoE The Bonds shall not constitute a debt of the City or HRA within the meaning of any
constitutional or statutory limitation.
8. In anticipation of the issuance of the Bonds to finance all or a portion of
the Project, and in order 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.
367720v1 MMD SA130d06
10-516
86 Adopted by the City Council of the City of Saint Paul, Minnesota this 19�' day of
87 May, 2010.
Yeas Na s Absent Reques�eed by Deparhnent of.
Bostrom �
Carter ,/
Hazris , B �
Stazk
Thune
�
J U Approved
N I� / I l/ I oS N Sy:
Adopted by Council: Date SJ /�j ��7/� //) Approved
Adoption Certified by Council Secretary gy;
B � � ������ —
Appro d el: Dat�� L7 7A �
BY� � �
367720v] MNID SA130-106
10-516
� Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet �
DeparfmenUOfficelCouncil: Date Initiated:
PE —P�anning&Economic 05MAY2010 Green Sheet NO: 3'109776
Development �
Corrtact Person & Phone:
Oenartment SeM To Person 4nitia1lDate
JoanTrtllSen 0 ]annma&EconomicDevetoome �
6&694 1 &Eco¢omicDevel m AIIenCarlson 11`
'��9° 2 ' &EconomicDevelo me De artmentDirector �_
Must Be on Ccunril Agenda by (Date): Number
13MAY-10 Fo� 3 ancialServices I)irector
Routing 4 or's Office Ma or/Assistant
Doc. T PUBLIC HEARING Order S onncil �
�� (RESOLUTION) .
E-flocument Required: !f �
Document CoMact:
CoMactPhone:
Total # of Signature Pages _(Clip All Locations for SignaWre)
Action Requested:
Signatures on Resotution for preliminary approval of SOlc3 Revenue Bonds (conduit bonds) for the Carondelet Village Project.
Recommendations: Approve (A) or Reject (R): Personal Service Contracts Must Answer the Following Questions:
Planning Commission 1, Has this persoNfirm everworked under a contract forthis department?
CIB CommiHee Yes No
Civil Se�ce Commission 2. Has this persoNfirm ever been a ciiy employee?
Yes No
3. Does this person/firm possess a skill not normally possessed by any �
curzent city employee?
Yes No
� Explain ali yes answers on separate sheet and attach to green sheet.
Initiating Problem, Issues, Opportu�iry (Who, What, When, Where, Why):
The St Joseph Sisters of Cazondelet and Presbyterian Homes in partnership have requested the issuance of $25,000,000 of SOlc3
bonds for the Cazondelet Village Project. The Project is new construction of a senior campus including 259 units and an Integrated
Service Center that will be semi public. A Public Hearing noticed was published in the Pioneer Press.
Advantages If Approved:
Funds will be available for the development of the project.
DisadvanW ges If Approvetl:
None
OisadvanYages If Not Approved:
Funds will not be a�ailable. �
Total Amount of
Transaction: CosURevenue Budgeted:
Fundtng Source: Activity Number.
Fin�ncial Information:
(Explain)
tJv
May 5, 2010 3:35 PM Page 1