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HomeMy WebLinkAboutResolution No. 178-10 • Extract of Minutes of a Meeting of the Common Council of the City of Rochester, Minnesota Pursuant to due call and notice thereof, a regular meeting of the Common Council of the City of Rochester, Minnesota, was duly held at the Council/Board Chambers in the Government Center on May 3, 2010, commencing at 7:00 p.m. The following members were present: president Dennis Hanson, Councilmembers Mark Bilderback, Ed Hruska, Sandra Means, Bob Nowicki, Bruce Snyder, Michael Wojcik. and the following were absent: None Member Nowicki introduced the following resolution and moved its adoption: CITY OF ROCHESTER COUNTY OF OLMSTED • STATE OF MINNESOTA RESOLUTION NO. 11b -10 RESOLUTION GIVING PRELIMINARY APPROVAL TO A MULTIFAMILY HOUSING DEVELOPMENT AND THE ISSUANCE OF REVENUE BONDS UNDER MINNESOTA STATUTES, CHAPTER 462C BE IT RESOLVED by the Common Council of the City of Rochester, Minnesota(the "City"), as follows: Section 1. Recitals. 1.01. The City is a home rule charter city duly organized and existing under its Charter and the Constitution and laws of the State of Minnesota. 1.02. 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. 1.03. As a condition to the issuance of such revenue bonds, the City must adopt a housing program providing the information required by Section 462C.03, subdivision la, of the Act (the "Housing Program"). A public hearing on the Housing Program and the Project (as • hereafter defined) must be held in accordance with the requirements of the Act and Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"). The Common Council 366903vI MMD RC230-4 • of the City must also grant preliminary approval to the issuance of revenue bonds to finance the Project and authorize the submission of an application to Minnesota Management & Budget for an allocation of bonding authority for the Bonds. 1.04. Rochester Leased Housing Associates IX, Limited Partnership, a Minnesota limited partnership (the "Borrower"), has proposed that the City issue its revenue bonds in an aggregate principal amount not to exceed $15,000,000 (the "Bonds"), the proceeds of which will be loaned by the City to the Borrower to be applied by the Borrower to the acquisition and rehabilitation of an approximately 144-unit multifamily housing facility consisting of 8 buildings located on 41St Street NW between 13th Avenue NW and West River Road NW in the City (the "Project"). The Borrower will apply the proceeds of the loan to: (i)the acquisition and rehabilitation of the Project; (ii) the funding of one or more reserve funds to secure the timely payment of the Bonds; and (iii)the payment of the costs of issuing the Bonds. Section 2. Preliminary Findings. Based on representations made by the Borrower to the City to date, the Common Council of the City hereby makes the following preliminary findings, determinations, and declarations: (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 and rehabilitation of the Project; (ii) the funding of one or more reserve funds to secure the timely payment of the Bonds; and (iii) the payment 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 and rehabilitation 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 4. Public Hearing. On this date ,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 366903v1 MMD RC230-4 2 • the City on a date at least fifteen (15) days before this meeting. At the public hearing reasonable opportunity was provided for interested individuals to express their views, both orally and in writing, on the Project and the proposed issuance of such revenue obligations. Section 5. Housing Program. A draft of the Housing Program, has heretofore been prepared and submitted to the City which authorizes the issuance by the City of up to $15,000,000 in revenue bonds to finance the acquisition and rehabilitation of the Project by the Borrower. Section 6. Preliminary Approval. The Common Council hereby provides preliminary approval to the issuance of the Bonds in the approximate aggregate principal amount of $15,000,000 to finance all or a portion of the costs of the Project pursuant to the Housing Program, 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 by the Common Council. Section 7. Submission of an Application for an Allocation of Bonding Authority. The Common Council hereby authorizes City staff to the submit an application for allocation of bonding authority to Minnesota Management and Budget. The Mayor of the City, the City Finance Director, and Kennedy & Graven, Chartered, as bond counsel, 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 to Minnesota Management &Budget. • Section 8. Costs. The Borrower will pay the administrative fees of the City and pay, or, upon demand, reimburse the City for payment of, any and all costs incurred by the City in connection with the Project and the issuance of the Bonds, whether or not the Bonds are issued. Section 9. 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 Common 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. Section 11. Effective Date. This Resolution shall be in full force and effect from and after its passage. The motion for the adoption of the foregoing resolution was duly seconded by member Means and, after full discussion thereof and upon a vote being taken thereon,the following voted in favor thereof: President Hanson, Councilmembers Bilderback, Hruska, Means, Nowicki, Snyder, Wojcik 366903v1 MMD RC2304 3 • and the following voted against the same: None Whereupon said resolution was declared duly passed and adopted. PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF ROCHESTER, MINNESOTA, THIS 3rd DAY OF M 2010. P SIDENT OF SAID COMMON COUNCIL ATTEST: CITY CLEkk Approved this 3rd day of May, 2010. (Seal of the City of Rochester, Minnesota) MAYOR OF SAID CITY • 366903v1 MMD RC230-4 4 • CERTIFICATION I, the undersigned City Clerk of the City of Rochester, Minnesota, do hereby certify the following: The foregoing is true and correct copy of a Resolution on file and of record in the offices of the City, which Resolution relates to giving preliminary approval to the issuance of housing revenue bonds for the Essex Place Apartments Project. Said Resolution was duly adopted by the Rochester Common Council at a regular or special meeting of the Council held on the date therein indicated. Said meeting was duly called and regularly held and was open to the public and was held at the place at which meetings of the Council are regularly held, a quorum of the Council being present and acting throughout. Councilmember Bob Nowicki moved the adoption of the Resolution, which motion was seconded by Councilmember Sandra Means A vote being taken on the motion, the following members of the Council voted in favor of the Resolution: President Dennis Hanson, Councilmembers Mark Bilderback, Ed Hruska, Sandra Means, Bob Nowicki, Bruce Snyder, Michael Wojcik. and the following voted against the same: None Whereupon said Resolution was declared duly passed and adopted. The Resolution is in full force and effect and no action has been taken by the Council which would in any way alter or amend the Resolution. WITNESS MY HAND officially as the City Clerk of the City of Rochester, Minnesota,this 10th day of May, 2010. City Clerk City of Rochester, Minnesota 3669030 MMD RC230-4 5