2002-078
CITY OF HOPKINS
RESOLUTION NO. 2002-78
RESOLUTION GIVING PRELIMINARY APPROVAL TO THE
ISSUANCE OF MUL TIF AMIL Y HOUSING REVENUE BONDS TO
FINANCE A PROJECT
WHEREAS, The Terraces Assisted Living, LLC. (the "Company") has
submitted an application to the City of Hopkins (the "Issuer") requesting revenue
bond financing for a project (the "Project") generally described as the acquisition and
construction of an 86 unit assisted living multifamily housing facility for elderly
persons, to be constructed adjacent to the St. Therese Southwest independent living
facility at lOll Feltl Court in the City of Hopkins; and
WHEREAS, pursuant to Minnesota Statutes, C;hapter 462C, as amended (the
"Act"), the Issuer is authorized to issue its revenue bonds to finance all or part of the
cost of the Project;
. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Hopkins that:
1. The Project and the issuance of revenue bonds therefor in an amount up
to approximately $11,500,000 are hereby given preliminary approval by the Issuer,
subject to the mutual agreement of the Issuer, the Company and the initial purchaser
of the bonds as to the details of the bonds and provisions for their payment. In all
events, it is understood, however, that the bonds shall not constitute a charge, lien or
encumbrance, legal or equitable, upon any property of the Issuer except the Issuer's
interest in the loan agreement with the Company and the Project, and the bonds,
when, as, and if issued, shall recite in substance that the bonds, including interest
thereon, are payable solely from the revenues received from the Proj ect and property
pledged to the payment thereof, and shall not constitute a debt of the Issuer.
The bonds will be payable solely from the revenues of the Project and other
moneys, if any, provided by the Company, and the bonds will not constitute or give
rise to a pecuniary liability of the Issuer or a charge against its general credit or taxing
powers.
No holder of any such bonds shall ever have the right to compel any exercise
of the taxing power of the Issuer to pay the bonds, or the interest thereon, nor to
enforce payment against any property of the Issuer, except revenues of the Project
pledged to the payment thereof.
2. The Company may incur expenditures on the Project prior to the
issuance of the bonds therefor, and such expenditures may be reimbursed from
proceeds of the bonds, when issued. This resolution shall constitute an "official
intent" to reimburse such expenditures for purposes of Treasury Regulations, Sections
1.103-8T(a)(5) and 1.150-2.
3. The officers, employees and agents of the Issuer are hereby authorized
to participate in the preparation and review of necessary documents relating to the
Project and bonds issued in connection therewith.
4. The Company will be responsible for paying directly or through the
Issuer any and all cost incurred by the Issuer in connection with the Project,
including, without limitation, any additional interest cost incurred by the Issuer with
respect to its bonds as a result of unavailability of designation as bank qualified
obligations, whether or not the Project is carried to completion, and whether or not the
bonds or operative instruments are executed.
5. The adoption of the Resolution does not constitute a guaranty or firm
commitment that the Issuer will issue the bonds as requested by the Company. The
Issuer retains the right in its sole discretion to withdraw from participation and
accordingly not to issue the bonds, or issue the bonds in an amount less than the
amount referred to herein should the Issuer at any time prior to issuance thereof
detennine that it is in the best interest of the Issuer not to issue the bonds, or to issue
the bonds in an amount less than the amount .referred to in paragraph 1 hereof, or
should the parties to the transaction be unable to reach agreement as to the terms and
conditions of any of the documents required for the transaction.
6. The Issuer shall hold a public hearing on a program for the issuance of
the bonds on October l5, 2002. Notice of the hearing in the form attached as Exhibit
A to this resolution shall be published in the official newspaper not less than 15 days
prior to the date set for the hearing, and a copy of the housing program shall be
submitted to the Metropolitan Council for review and comment on or before the date
of publication of the notice.
Adopted thi;:3 ~ day of September, 2002.
~/~
Mayor c:
Exhibit A
NOTICE OF PUBLIC HEARING ON A PROGRAM FOR THE
ISSUANCE OF REVENUE BONDS UNDER MINNESOTA
STATUTES, CHAPTER 462C TO FINANCE A PROPOSED
MUL TIP AMIL Y HOUSING DEVELOPMENT
CITY OF HOPKINS, MINNESOTA
NOTICE IS HEREBY GIVEN that the City of Hopkins (the "Issuer") will hold a
public hearing on October 15, 2002, at 7:30 p.m. in the City Council chambers at City
Hall, 1 010 1st Street, in Hopkins, Minnesota, to consider a program for the issuance of
revenue bonds under Mimlesota Statutes, Chapter 462C, as amended, to finance a
multifmnily housing development (the "Program"). At the public hearing the Issuer will
consider adoption of a resolution giving approval to the issuance of revenue bonds in
one or more series under the Program for the purpose of financing a portion of the cost
of acquisition and construction by The Terraces Assisted Living, LLC, a Minnesota
limited liability compmy (the "Owner") of which St. Therese Southwest, Inc., a
Minnesota nonprofit corporation is the sole member, of a project consisting of an 86
unit assisted living multifamily housing facility desigrred for occupancy by elderly
persons (the "Project"), to be located at 1011 Feltl Court in the City of Hopkins. The
aggregate face amount of revenue bonds proposed to be issued by the City to finance the
Program is presently estimated not to exceed $ll,500,000.
When issued, the revenue bonds will be limited obligations of the Issuer payable
solely from the revenues pledged to the payment thereof, and will not be a general
obligation of, or be secured by the taxing power of, the Issuer.
At said time and place the Issuer shall give all parties who appear or submit
written comments an opportunity to express their views with respect to the proposal
to finance the Program.
BY ORDER OF THE CITY COUNCIL OF THE CITY OF HOPKINS
Dated: September 3,2002