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HomeMy WebLinkAbout15-06-29 i RESOLUTION 15—0 6—2 9 RESOLUTION RELATING TO A MULTIFAMILY HOUSING DEVELOPMENT, AND THE ISSUANCE OF REVENUE BONDS TO FINANCE THE COSTS THEREOF UNDER MINNESOTA STATUTES,CHAPTER 462C,AS AMENDED; GRANTING PRELIMINARY APPROVAL THERETO; APPROVING A HOUSING PROGRAM;AND TAKING CERTAIN OTHER ACTIONS WITH RESPECT THERETO (GREEN TWIG VILLAS PROJECT) BE IT RESOLVED by the City Council of the City of Oak Park Heights, Minnesota(the"City"), as follows: Section 1. Recitals. 1.01. Pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), the City is authorized to carry out the public purposes described in the Act by providing for the issuance of revenue bonds to provide funds to finance or refinance multifamily housing developments located within the City. 1.02. As a condition to the issuance of such revenue bonds, the City must adopt a housing program providing the information required by Section 4620.03, subdivision 1 a, of the Act(the"Housing Program"). 1.03. Green Twig Villas LLLP, a Minnesota limited liability limited partnership (the "Borrower"), has proposed that the City, pursuant to the Act, issue its revenue bonds in an aggregate principal amount not to exceed $7,200,000, in one or more series at one time or from time to time (the `Bonds"),the proceeds of which will be loaned by the City to the Borrower to be applied by the Borrower to the(i) acquisition, construction, and equipping of an approximately 62-unit,two-story senior apartment building with an underground parking garage to be located at the southeast intersection of Nova Scotia Avenue North and Upper 58th Street North in the City (the "Project"); (ii) payment of interest on the Bonds during the construction of the Project; (iii) funding of one or more reserve funds to secure the timely payment of the Bonds; and(iv)payment of all or a portion of the costs of issuing the Bonds. 1.04. Under Section 147(f) of the Internal Revenue Code of 1986, as amended (the"Code"), prior to the issuance of the Bonds a public hearing duly noticed must be held by the City Council. Under Section 462C.04, subdivision 2, of the Act, a public hearing must be held on the housing program after one publication of notice in a newspaper circulating generally in the City, at least fifteen(15) days before the hearing. 1.05. Under Section 146 of the Code, the Bonds must receive an allocation of the bonding authority of the State of Minnesota. An application for such an allocation may be made pursuant to the requirements of Minnesota Statutes, Chapter 474A, as amended(the "Allocation Act") after the City has granted preliminary approval to the issuance of the Bonds and has authorized the submission of an application to Minnesota Management&Budget for an allocation of bonding authority with respect to the Bonds to finance the Project. Section 2. PreliminarFindings. Based on representations made by the Borrower to the City to date, the City Council of the City hereby makes the following preliminary findings, determinations, and declarations: 462434vl JSB AKA45-6 (a) The Project consists of a housing development designed and intended to be used for rental occupancy. (b) The proceeds of the Bonds will be loaned to the Borrower and the proceeds of the loan will be applied to: (i)the acquisition, construction, and equipping of the Project; (ii) payment of interest on the Bonds during the construction of the Project; (iii) funding of one or more reserve funds to secure the timely payment of the Bonds; and (iv) the payment of all or a portion of the costs of issuing the Bonds. The City will enter into a loan agreement (or other revenue agreement) with the Borrower requiring loan repayments from the Borrower in amounts sufficient to repay the loan when due and requiring the Borrower to pay all costs of maintaining and insuring the Project, including taxes thereon. (c) In preliminarily authorizing the issuance of the Bonds and the financing of the acquisition, construction, and equipping of the Project and related costs, the City's purpose is to further the policies of the Act. (d) The Bonds will be limited obligations of the City payable solely from the revenues pledged to the payment thereof, and will not be a general or moral obligation of the City and will not be secured by or payable from revenues derived from any exercise of the taxing powers of the City. Section 3. Public Hearing. On the date hereof, the City conducted a public hearing on the Housing Program, the Project, and the issuance of revenue obligations by the City, notice of which hearing (the "Public Notice") was published as required by Minnesota Statutes, Section 462C.04, subdivision 2, of the Act, and Section 147(f) of the Internal Revenue Code of 1986,. as amended. The Public Notice provided a general, functional description of the Project, as well as the maximum aggregate face amount of the obligations to be issued for the purposes referenced above, the identity of the initial owner, operator, or manager of the Project, and the location of the Project. The Public Notice was published in a newspaper circulating generally in the City on a date at least 15 days before the meeting of the City Council at which the public hearing will take place. At the public hearing a reasonable opportunity was provided for interested individuals to express their views, both orally and in writing, on the Project and the proposed issuance of revenue obligations. Section 4. Housing Progam. The Housing Program was submitted the Housing Program to the Metropolitan Council for its rL- iew on or before the date of publication of the Public Notice. The Housing Program is hereby approved. Section 5. Preliminar+Approval. The City Council hereby provides preliminary approval to the issuance of the Bonds in the approximate aggregate principal amount of$7,200,000 to finance all or a portion of the costs of the Project pursuant to the Housing Program of the City, subject to: (i)receipt of an allocation of the bonding authority from the State of Minnesota; (ii)final approval following the preparation of bond documents; and (iii)final determination by the City Council that the financing of the Project and the issuance of the Bonds are in the best interests of the City. Section 6. Submission of an. Application for an Allocation of Bonding Authority, Under Section 146 of the Code, the Bonds must receive an allocation of the bonding authority of the State of Minnesota. An application for such an allocation must be made to Minnesota Management & Budget pursuant to the requirements of the Allocation Act. The City Council hereby authorizes the submission of an application for allocation of bonding authority pursuant to Section 146 of the Code and the Allocation Act in accordance with the requirements of the Allocation Act. The Mayor of the City, the City Administrator, and Kennedy& Graven, Chartered, acting as bond counsel with respect to the Project and the Bonds, are hereby authorized and directed to take all actions, in cooperation with the Borrower, as are necessary to submit an application for an allocation of bonding authority. 462434v1 JSB AK145-6 2 Section 7. Casts. The Borrower has deposited funds in escrow to pay any and all costs incurred by the City in connection with the Project and the issuance of the Bonds, including legal fees, as further required by the Cit}'s policy on the issuance of tax-exempt bonds, which has been communicated to the Borrower and is on file with the City Administrator. In addition, the Borrower must also pay the administrative fee of the City on the date of issuance of the Bonds. Section 8. Commitment Conditional. The adoption of this resolution does not constitute a guarantee or a firm commitment that the City will issue the Bonds as requested by the Borrower. If, as a result of information made available to or obtained by the City during its review of the Project, it appears that the Project or the issuance of Bonds to finance or refinance the costs thereof is not in the public interest or is inconsistent with the purposes of the Act, the City reserves the right to decline to give final approval to the issuance of the Bonds. The City also retains the right, in its sole discretion, to withdraw from participation and accordingly not issue the Bonds should the City Council, at any time prior to the issuance thereof, determine that it is in the best interests of the City not to issue the Bonds or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents for the transaction. The motion for adoption of the foregoing resolution was made by Member Runk , duly seconded by MemberLiljegi;end upon vote being taken thereon, the following voted in favor thereof: Councilmemers Li.ljegren, Runk, and Swenson, and Mayor McComber and the following voted against the same: None Adopted by the City Council of the City of Oak Park Heights, Minnesota, this 9�' day of June, 2015. CITY-PF OA ARK HEIGHTS, MINNESOTA By its Mayor Ae V* i Administrator 462434v1 JSB AX145-6 3