Loading...
HomeMy WebLinkAboutResolution No. 538-12 • CITY OF ROCHESTER,MINNESOTA RESOLUTION NO. 63 RESOLUTION ADOPTING A FINANCING PROGRAM AND GIVING APPROVAL TO A PROJECT ON BEHALF OF ROCHESTER SENIOR HOUSING, AND ITS FINANCING UNDER THE MINNESOTA HOUSING ACT WHEREAS, the City of Rochester, Minnesota, a home rule charter city and a political subdivision of the State of Minnesota(the "Issuer") is duly organized and existing under the Constitution and laws of the State of Minnesota(the"State"); and WHEREAS, the Issuer is authorized, pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Minnesota Housing Act") to develop and administer programs to finance one or more multifamily housing developments within its boundaries and to issue and sell revenue bonds or obligations to finance programs for the multifamily housing developments;and WHEREAS, the Minnesota Housing Act requires the adoption of a bond financing program after a public hearing held thereon after publication of notice in a newspaper of general circulation in the City of Rochester as least 15 days in advance of the hearing; and WHEREAS, the Issuer, on December 17, 2012, has conducted a public hearing on a multifamily • housing bond financing program, a copy of which program is attached hereto as Exhibit A (the "Housing Program"),after publication of a notice as required by Minnesota Statutes, Section 462C.05; and WHEREAS, the Housing Program provides for the issuance by the Issuer of up to $5,000,000 of its tax-exempt multifamily housing revenue bonds, in one or more series (the 'Bonds") for the purpose of loaning the proceeds thereof to Rochester Senior Housing, a Minnesota nonprofit corporation (the "Borrower") to finance the acquisition and construction by the Borrower of a 40-unit rental housing development to be located at the corner of Highway 14 SE and Towne Club Parkway in the City of Rochester(the "Project"); and 1 4810-9245-2370.1 • NOW,THEREFORE,BE IT RESOLVED THAT: 1. The Housing Program for the issuance of the Bonds is hereby adopted in the form attached hereto as Exhibit A. ADOPTED AND APPROVED BY THE COMMON COUNCIL OF THE CITY OF ROCHESTER, MINNESOTA THIS 17`h DAY OF DECEMB ,2012. ACTING PRE ENT OF 'SAID COMMON COUNCIL ATTEST Lam ' CITY CLEKK APPROVED THIS DAY OF DECEMBER,2012 • MAYOR OF SAID CITY (SEAL OF THE CITY OF ROCHESTER,MINNESOTA) 2 4810-9245-2370.1 i EXHIBIT A HOUSING PROGRAM PURSUANT TO MINNESOTA STATUES, CHAPTER 462C ROCHESTER SENIOR HOUSING Pursuant to Minnesota Statutes, Chapter 462C(the "Act"),the City of Rochester,Minnesota(the "City") is authorized to develop and administer programs to finance the acquisition and construction of multifamily housing developments under the circumstances and within the limits set forth in the Act. Minnesota Statutes, Section 462C.07 provides that such programs for multifamily housing developments may be financed by revenue bonds or notes issued by the City. The City has determined that it is in the best interests of the residents of the City to create a program of financing to encourage and facilitate the development of multifamily rental housing developments for families in the City(the "Program").The City has received a proposal that it approve a program providing for the construction of a 40-unit rental housing facility for the elderly to be located at the corner of Highway 14 SE and Towne Club Parkway in the City of Rochester, Minnesota(the "Project"), by Rochester Senior Housing, a Minnesota nonprofit corporation, or its affiliates or assigns(the"Owner").The acquisition and construction'of the Project is to be funded in part through the issuance of up to$5,000,000 in revenue bonds in one or more series to be issued by the City(the "Bonds").The Owner will own and operate the Project as a residential rental project for seniors. Initial rents for the housing units are anticipated to be approximately $345 per month. Certain utility charges will be included. The Project will be acquired and constructed in accordance with the requirements of Subdivision 1 of Section 462C.05 of the Act. The City,in establishing this Program,has considered the following: (i)the availability and affordability of other government housing programs; (ii) the availability and affordability of private market financing for the construction of multifamily housing units; (iii) an analysis of population, unemployment trends and projections of • future population trends and future employment needs;(iv)the recent housing trends and future housing needs of the City; and (v) an analysis of how the Program will meet the needs of persons and families residing and expected to reside in the City. 0 The City, in adopting the Program,has further considered(i)the amount,timing and issuance of the Bonds to finance the estimated costs of the housing units, to fund the appropriate reserves and to pay the cost of issuance; (ii)the method of monitoring and implementation of the Program to insure compliance with the City's housing plan and its objectives; (iii) the method of administering, servicing and supervising the Program; (iv) the costs of the City, including future administrative expenses; (v) the restrictions on the multifamily development to be financed under the Program;and(vi)certain other limitations. The City, in adopting the Program, considered the potential financing impact of a bond issuance on affected public agencies. In addition, the City reviewed the method of marketing the Program. Such review examined the equal opportunity for participation by(i) minorities; (ii) households displaced by public or private actions; and (iii) accessibility to the handicapped. Section A. Definitions. The following terms used in this Program shall have the following meanings,respectively: "Act" shall mean the Minnesota Statutes, Section 462C.01, et seq., as currently in effect and as the same may be from time to time amended. "Bonds"shall mean the revenue bond or bonds to be issued by the City to finance the Program. "City"shall mean the City of Rochester,Minnesota. • "Code"shall mean the Internal Revenue Code of 1986,as amended. Housing Unit shall mean any one of the apartment units located in the Project, occupied by one or more persons or a family, and containing complete living facilities. A-1 4810-9245-2370.1 "Land"shall mean the real property upon which the Project is situated. • "Owner"shall mean Rochester Senior Housing. "Program" shall mean this program for the financing of the Project pursuant to the Act. "Project" shall mean the residential rental housing development consisting of 40 total Housing Units, to be acquired and constructed by the Owner,together with functionally related facilities. Section B. Program for Financingthe he Project. It is proposed that the City establish this Program to provide financing for the acquisition and construction of the Project at such cost and upon such other terms and conditions as set forth herein and as may be agreed upon in writing between the City, the initial purchaser of the Bonds and the Owner. The City expects to issue the Bonds as soon as the terms of the Bonds have been agreed upon by the City, the Owner and the initial purchaser of the Bonds. The proceeds of the loan evidenced by the Bonds will be loaned by the City to the Owner to finance the acquisition and construction of the Project, to fund required reserves and to pay the costs of issuing the Bonds. It is anticipated that any Bonds issued under this Program will have a final maturity of approximately eighteen(18)months and will be priced to the market at the time of issuance. The City will hire no additional staff for the administration of the Program. Insofar as the City will be contracting with underwriters, legal counsel, bond counsel, the trustee, if any, and others, all of whom will be reimbursed from bond proceeds and revenues generated by the Program,no administrative costs will be paid from the City's budget with respect to this Program.The Bonds will not be general obligation bonds of the City,but are to be paid only from properties pledged to the payment thereof. Section C. Local Contributions to the Program. In addition to the revenue Bonds to be issued under the • Program,the Project is expected to be funded from additional sources including low income housing tax credits and various grants and loans. Section D. Standards and Requirements Relating to the Financing of the Project Pursuant to the Program. The following standards and requirements shall apply with respect to the operation of the Project by the Owner pursuant to this program: (1) Substantially all of the proceeds of the loan evidenced by the Bonds will be applied to the acquisition and construction of the Project and to the funding of appropriate reserves. The proceeds of the loan evidenced by the Bonds will be made available to the Owner pursuant to the terms of the Bond documents, which will include certain covenants to be made by the Owner to the City regarding the use of proceeds and the character and use of the Project. (2) The Owner, and any subsequent owner of the Project, will not arbitrarily reject an application from a proposed tenant because of race, color, creed, religion, national origin, sex, affectional preference,marital status, or status with regard to public assistance or disability. (3) The affordability standards and set-aside requirements of Section 462C.05, Subdivision 2 of the Act,and Section 142(d)of the Internal Revenue Code of 1986,as amended,will be met. Section E. Evidence of Compliance. The City may require from the Owner at or before the issuance of the Bonds, evidence satisfactory to the City of the ability and intention of the Owner to complete the Project, and evidence satisfactory to the City of compliance with the standards and requirements for the financing established by the City, as set forth herein; and in connection therewith, the City or its representative may inspect the relevant books and records of the Owner in order to confirm such ability, intention and compliance. In addition,the City may periodically require certification from either the Owner or such other person deemed necessary concerning compliance with various aspects of this Program. • Section F. Issuance of Bonds. To finance the Project pursuant to this Program,the City may by resolution A-2 4810-9245-2370.1 authorize and issue its revenue bonds in one or more series in an aggregate principal amount of up to $5,000,000. The Bonds shall be issued pursuant to Section 462C.07, Subdivision 1 of the Act, and shall be payable primarily from the revenues of the Project.The cost of the Project is presently expected not to exceed$8,500,000. The cost of the Project may change between the date of preparation of this Program and the date of issuance of Bonds. The Bonds are expected to be issued by November,2013. Section G. Severability. . The provisions of this Program are severable and if any of its provisions, sentences, clauses or paragraphs shall be held unconstitutional, contrary to statute, exceeding the authority of the City or otherwise illegal or inoperative by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions. Section H. Amendment. The City shall not amend this Program,while Bonds authorized hereby are outstanding,to the detriment of the holders of such Bonds. Section I. State Ceiling. Up to $5,000,000 of the state ceiling for private activity bonds, pursuant to Section 146 of the Internal Revenue Code of 1986, as amended, and Chapter 474A of Minnesota' Statutes, will be used with respect to the Bonds. A-3 4810-9245-2370.1