96-162�I41ir/i�L,4l� �_
Presented By
Referred To
� Council File # ��a.
Green Sheet # 3 L b S`
RESOLUTION
OF SAINT PAUL, MINNESOTA
Committee: Date
AiIfiHORIZING THE ISSUANCE OF TAXABLE SINGLE FAMII,Y MORTGAGE
REVENITE REFUNDING BONDS (PHASE I REFUNDING), SERIES 1996; AND
RESIDUAL INTEREST MORTGAGE REVENUE BONDS (PHASE I RESIDUAL),
SERIES 1996, JOINTLY BY THE CITY OF MINNEAPOLIS AND THE HOUSING
AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL
WHEREAS, the Minneapolis Community Development Agency (the MCDA) and the Housing
and Redevelopment Authority of the City of Saint Paul, Minnesota (the HRA) have previously
issued their Collateralized Mortgage Bonds, Series 1986 (the Prior Bonds), in the aggregate
principal amount of $94,250,000, to provide for the refunding of their Single Family Housing
Revenue Bonds (Equity Participafion Loan Program), Series 1981 (the Phase I Bonds); and
WHEREAS, Minnesota Statutes, Chapter 462C (the Housing Act) and Section 471.59, and the
Joint Powers Agreement (the JPA) dated as of May 1, 1986, and as amended from time to
time, by and between the MCDA, the HRA, the City of Minneapolis (Minneapolis) and the
City of Saint Paul (Saint Pau�, authorize Minneapolis and the HRA (together, the Issuers) to
jointly issue single family mortgage revenue bonds and refunding bonds; and
WIIEREAS, there are currently outstanding Prior Bonds in the aggregate accreted principal
amount of approximately $9,300,000; and
WHEREAS, the Issuers propose to issue their Taxable Single Family Mortgage Revenue
Refunding Bonds (Phase I Refundang), Series 1996 (the Refunding Bonds) pursuant to the
Housing Act and an Indenture of Trust dated as of February 1, 1996 (the Refunding
Indenture) by and between the Issuers and the Trustee named therein (the Trustee) in the
aggregate principal amount together with the Residual Bonds defined below, not to exceed
$10,100,000, and to use the proceeds thereof to refund the Prior Bonds, to pay costs of
issuance and for other purposes; and
WHEREAS, the Refunding Bonds are to be secured by a pledge of certain moneys, mortgage
loans and other assets in accordance with the terms of the Refunding Indenture, and the
principal, premiuxn, if any, and interest on the Refunding Bonds shall be payable solely from
such pledged revenues and assets; and
WHEREAS, the Issuers also propose to issue their Residual Interest Mortgage Revenue Bonds
(Phase I Residual) Series 1996 (the Residual Bonds, and together with the Refunding Bonds,
the Bonds) pursuant to Minnesota Statutes, Chapter 475 (the Act) and an Indenture of Trust
dated as of February l, 1996 (the Residual Bond Indenture, and together with the Refunding
Indenture,the Indentures),in an aggregate principal amount not exceeding $1,200,000 to
provide funds to be used by the Issuers for essential governmental purposes as authorized by
law; and
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WHEREAS, the Residual Bonds shall be secured by a subardinate interest in the mortgage
loans, moneys and other assets to be pledged first to the Refunding Bonds; and
WI�REAS, the Bonds shall be special limited obligations of the Issuers, and neither the
Issuers, the MCDA, Saint Paul, the State of Miunesota nor any political subdivision of the
State of Mimiesota shall be liable on the Bonds except from the respective trust estates
pledged to the payment thereof by the Indentures, and the Bonds shall not be a debt of the
Issuers, the MCDA, Saint Paul, the State of Minnesota nor any political subdivision thereof
within the meaning of any consritutional or statutory debt limitation, nor shall the Bonds give
rise to a chazge against the general credit or taxing power of the Issuers, the MCDA, Saint
Paul, the State of Minnesota or any political subdivision of the State of Minnesota, nor shall
the Bonds be payable out of any funds or properties of the Issuers, other than those provided
as security by the Indentures; and
Now, Therefare, Be It Resolved by the City Council of the City of Saint Paul, Minnesota that
the issuance of the Bonds by the Issuers in the form and on the terms deternuned by the
Issuers is hereby approved far all purposes.
Requested by Department of:
_ � . .�j �- - r •• -
,��I�� /
� i
Adoption Certified by Council Secretary
BY � � .
Approved Mayo • D
By: f '
�
b Form
By:
By:
d by City
T
Mayor for
ion to
' 9�—tc.�-- V
DEPARTMENT/OFFICE/CAUNCIL DATE INITIATEO N� 317 9 6
PED 2/6/96 GREEN SHE T _. _
INITI �' INITIAVDATE
COMACT PERSON 8%10NE EPAFiTMENT DIRECfOR � CITY COUNpL
Rat Lindblad 6-6614 "�'�" 01 NATTORN�' � T. Me er %�
NUYBFA FON
MUST BE ON COUNCIL AGENDA BY �DA'if) ppMN� � BUDGEf D1RECiOR � FM. fi MGT. SERHiCES DIR.
2 14/96 oa°ER �] �,voa/o�assisru�m � Pa1 ti Pr
TOTAL # OF SIGNATURE PAGES 1 (CLIP ALL LOCATIONS FOR SIGNATURE)
ACT10N RE�UESTED:
Authorization to refund Phase I Mortgage Revenue Bonds from joint Saint Paul/Minneapolis
housing program.
RECOMMENDAtIONS: Apprwe (A) w Reject (R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING �UESTIONS:
_ PLqNNING CAMMISSION __ CIVIL SERVICE COMMISSION �� Has Nis persoNfirm ever worked u�tler a contrac[ for Mis department? -
_ CIBCAMMRTEE YES NO
_ STn� _ 2. Has thi5 p¢t5onffirm ever been a C�ty employee?
YES NO
_ DISTRICTCAUR7 � 3. Does this person/firm possess a skill not normail
y possessed by any current ciry employee?
SUPPOFiTSWHICHCOUNqLO&IECTIVE7 YES NO
Explain all yes answers on separete sheet antl atteeh to green sheet
INITIATING PROBLEM, ISSUE, OPPORTUNIN (Who. What, When, Where, Why):
Market conditions offer the potential to save approximately 3� in annual interest
expense by refunding these 1986 bonds. _..,a��._
:=� � 121996
_���€��_�; �^��°&�
ADVANTACaES IFAPPqOVED: ��������
Annual interest savings.
� 09 i�96
��� �����
DISADVANTA6ES IF APPROVED: �
DISADVANTAGES IF NOT APPROVED:
- .. 4 4JU�U. .
No annual interest savings.
�=i.a31� i��5
TOTAL AMOUNT OFTRANSACTION $ NA COS7/REVENUE BUDGETED (CIHCLE ONE) YES NO
FUNDINGSOURCE ReVenue BORdS IIOi dR obliQation ACTIVITYNUMBER
FINANCIALINFORMATION:(EXPLAIN) Of C1Cy OT HRA t�_
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