2020-061 Resolution Calling Public Hearing Regarding the Issuance of Housing Revenue Bonds and Providing Preliminar Approval for the Issuance of Housing Revenue BondsCITY OF HOPKINS, MINNESOTA
RESOLUTION NO. 2020--061
RESOLUTION CALLING PUBLIC HEARING REGARDING THE 1SSUANCE
OF HOUSING REVENUE BONDS AND PROVIDING PRELIMINARY
APPROVAL FOR THE ISSUANCE OF HOUSING REVENUE BONDS
BE IT RESOLVED by the City Council (the "City Council") of the City of Hopkins, Minnesota
(the "City"), as follows:
Section 1. Recitals.
1.01. Pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Housing Act"), the City
is authorized to carry out the public purposes described in the Housing Act by providing for the issuance
of revenue bonds to provide funds to finance multifamily housing developments.
1.02. Raspberry Ridge Limited Partnership, a Minnesota liinited partnership, or any affliate of
Trellis Co., a Minnesota nonprofit corporation (collectively, the "Borrower"), has proposed to acquire,
rehabilitate, construct, and equip an approximately 101-unit existing multifainily rental housing facility
and an approximately 45-unit new multifamily rental housing facility and facilities functionally related
and subordinate thereto located at 27 Fourteenth Avenue North and 9 Seventh Avenue South in the City
(the "Project") far occupancy by individuals and families of low and moderate income.
1.03. The Borrower is requesting that the City issue one or more series of tax-exempt or
taxable revenue obligations (the "Bonds") in the approximate principal amount not to exceed $21,000,000
and loan the proceeds thereof to the Borrower in order to finance all or a portion of (i) the costs of the
acquisition, rehabilitation, construction, and equipping of the Project; (ii) required reserve fimds, if any;
(iii) capitalized interest during the rehabilitation and construction of the Project; and (iv) the costs of
issuing the Bonds.
1.04. As a condition to the issuance of such rcvenue bonds, the City must prepare and adopt a
housing program providing the information required by Section 462C.03, subdivision la of the Housing
Act (tlie "Housing Program"). The City Council must also grant preliminary approval of the issuance of
revenue bonds to financc the multifainily rental housing devclopment refcrred to in the Housing Program.
1.05. Under Section 147( fl of the Internal Revenue Code of 1986, as amended (the "Code"),
prior to tlle issuance of the Bonds, the City Council must conduct a public hearing after providing notice
in a newspaper of general circulation in the City or on the City's website at least seven (7) days before the
hearing. Under Section 462C.04, subdivision 2 of the Housing 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.
1.06. Pursuant to 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 pursuant to the
requirements of Minnesota Statutes, Chapter 474A, as amended (the "Allocation Acf'). The City Council
must grant preliminary approval to the issuance of the Bonds to finance the Project and authorize the
submission of an application to the office of Minnesota Management and Budget for an allocation of
bonding authority with respect to the Bonds to fnance the Project.
Section 2. Preliminarv Findin�s. Based on representations made by the Borrower to the
City to date, the City Council hereby makes the following preliminary findings, detenninations, and
declarations:
(a) The Bonds will finance a multifamily 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
thereof, along with other available funds, will be used to finance all or a portion of the costs of
the acquisition, rehabilitation, construction, and equipping of the Project, capitalized interest
during the rehabilitation of the Project, required reserve funds (if any), and costs of issuance of
the Bonds. The City will enter into one or more loan agreements (or other revenue agreement)
with the Borrower requiring loan repayments from the Borrower in amounts sufficient to repay
the loan of the proceeds of the Bonds 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, the City's purpose is and
the effect thereof will be to promote the public welfare of the City and its residents by retaining
and improving multifamily housing dcvelopments and otherwise furthering the purposes and
policies of the Housing Act.
(d) The Bonds will be special, limited obligations of the City payable solely from the
revenues pledged to the payment thereof, 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. Submission of an Application for an Allocation of Bonding, AuthoritX. The City
Council hereby authorizes the submission of an application for allocation of bonding authority with
respect to the Bonds in the approximate principal amount of up to $21,000,000 pursuant to Section 146 of
the Code and the Allocation Act in accordance with the requirements of the Allocation Act. City staff
and Kennedy & Graven, Chartered, acting as bond counsel to the City ("Bond Counsel"), shall take all
actions, in cooperation with the Borrower, as are necessary to submit an application for an allocation of
bonding authority to the office of Minnesota Management and Budget.
Section 4. Public Hearin�. The City Council shall tneet at a future date to be determined by
City staff to conduct a public hearing on the Housing Program, the Project, and the issuance of the Bonds
by the City, Notice of such hearing (the "Public Notice") will be published and/or posted as required by
Section 462C.04, subdivision 2 of the Housing Act and Section 147(� of the Code. Bond Counsel is
hereby authorized and drrectcd to publish the Public Notice, in substantially the fonn attached hereto as
EXHIBIT A, in the Sun Sarlor, a newspaper of general circulation in the City. At the public hearing
reasonable opportunity will be provided for interested individuals to express their views, both orally and
in writing, on the Project, the Housing Program, and the proposed issuance of the Bonds.
Section 5. Housing Program. Bond Counsel shall prepare and submit to the City a draft
Housing Program to authorize the issuance by the City of the Bonds in a principal amount of up to
$21,000,000 to finance all or portion of the acquisition, rehabilitation, construction, and equipping of the
Project by the Borrower. Bond Counsel is authorized and directed to submit, on behalf of the City, the
Housing Program to Metropolitan Council for review and comment pursuant to Section 462C.04,
subdivision 2 of the Housing Act.
Section 6. Preliminary Approval. The City Council hereby provides preliminary approval
to the issuance of the Bonds in the estimated principal amount not to exceed $21,000,000, subject to: (i) a
public hearing as required by the Housing Act and Section 147( fl of the Code; (ii) final approval
following the preparation of bond documents; (iii) receipt of an allocation of bonding authority from the
office of Minnesota Management & Budget; and (iv) 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 7. Reimbursement of Costs under the Code.
7.01. The United States Department of the Treasury has promulgated regulations governing the
use of the proceeds of tax-exempt bonds, all or a portion of which are to be used to reimburse the City or
the Borrower for project expenditures paid prior to the date of issuance of such bonds. Those regulations
(Treasury Regulations, Section 1.150-2) (the "Regulations") require that the City adopt a statement of
official intent to reimburse an original expenditure not later than sixty (60) days after payrnent of the
original expenditure. The Regulations also generally require that the bonds be issued and the
reimbursement allocation made from the proceeds of the bonds occur within eighteen (18) months after
the later of: (i) the date the expenditure is paid; or (ii) the date the project is placed in service or
abandoned, but in no event more than three (3) years after the date the expenditure is paid. The
Regulations generally permit reimbursement of capital expenditures and costs of issuance of the Bonds.
7.02. To the extent any portion of the proceeds of the Bonds will be applied to expenditures
with respect to the Project, the City reasonably expects to reimburse the Borrower for the expenditures
made for costs of the Project from the proceeds of the Bonds after the date of payment of all or a portion
of such expenditures. All reimbursed expenditures shall be capital expenditures, costs of issuance of the
Bonds, or other expenditures eligible for reimbursement under Section 1.150-2(d)(3) of the Regulations
and also qualifying expenditures under the Housing Act.
Based on representations by the Borrower, other than (i) expenditures to be paid or reimbursed
from sources other than the Bonds, (ii) expenditures permitted to be reimbursed under prior regulations
pursuant to the transitional provision contained in Section 1.150-2(j)(2)(i)(B) of the Regulations,
(iii) expenditares constituting preliminary expenditures within the ineaning of Section 1.150-2(�(2) of the
Regulations, or (iv) expenditures in a"de minimis" amount (as defined in Section 1.150-2(�(1) of the
Regulations), no expenditures with respect to the Project to be reimbursed with the proceeds of the Bonds
have been made by the Borrower morc than sixty (60) days bcforc the date of adoption of this resolution
of the City.
7.03. Based on representations by the Borrower, as of the date hereof, therc arc no funds of thc
Borrower reserved, allocated on a long tenn-basis or otherwise set aside (or reasonably expected to be
reserved, allocated on a long-term basis or otherwise set aside) to provide permanent financing for the
expenditures related to the Project to be financed from proceeds of the Bonds, other than pursuant to the
issuancc of the Bonds. This resolution, thereforc, is determined to be consistent with the budgetary and
financial circumstances of the Borrower as they exist or are reasonably foreseeable on the date hereof.
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. Coimnitment Conditional. The adoption of this resolution does not constitute a
guaranty or firm commitment that the City will issue the Bonds as requested by the Borrower. The City
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 City at any
time prior to issuance thereof determine that it is in the best interest of the City not to issue the Bonds, or
to issue the Bonds in an amount less than thc amount referred to in Section 6 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.
Section 10. Effective Date. This resolution shall be in full force and effect from and after its
passage.
Approved by the City Council of the City of Hopkins, Minnesota this 17`" day of November, 2020.
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Mayor, Jason Gadd
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City Clerk, Amy Dome�er
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EXHIBIT A
NOTICE OF PUBLIC HEARING
CITY OF HOPKINS, MINNESOTA
NOTICE OF PUBLIC HEARING ON THE APPROVAL OF A HOUSING
PROGRAM FOR A MULTIFAMILY HOUSING DEVELOPMENT AND THE
ISSUANCE OF MULTIFAMILY HOUSING REVENUE BONDS UNDER
MINNESOTA STATUTES, CHAPTERS 462C AND 474A, AS AMENDED
NOTICE 1S HEREBY GNEN that the City Council of the City of Hopkins, Minnesota (the
"City") will hold a public hearing on Tuesday, , 2021, at or after 7:00 p.m. [at City
Hall, located at 1010 First Street South in the City,] to consider a proposal that the City approve and
authorize the issuance of one or more series of taxable or tax-exempt revenue obligations (the "Bonds"),
pursuant to Minnesota Statutes, Chapters 462C and 474A, as amended (the "Act"), for the purposes of
providing fnancing for all or a portion of (i) the costs of the acquisition, rehabilitation, construction, and
equipping of an approximately 101-unit existing multifamily rental housing facility and an approximately
45-unit new multifamily rental housing facility and facilities functionally related and subordinate thereto
located at 27 Fourteenth Avenue North and 9 Seventh Avenue South in the City (the "Project") for
occupancy by individuals and families of low and moderate income; (ii) any required reserve funds;
(iii) capitalized interest during the rehabilitation and construction of the Project; and (iv) costs of issuing
the Bonds. Raspberry Ridge Limited Partnership, a Minnesota limited partnership, or any affiliate of
Trellis Co., a Miimesota nonprofit corporation (collectively, the "Borrower"), will own the Project. The
aggregate principal amount of the proposed Bonds is estimated not to exceed $21,000,000.
Following the public hearing, the City Council will consider a resolution approving a housing
program prepared in accordance with the requirements of the Act and granting approval to the issuance of
the Bonds.
The Bonds if and when issued will be special, limited obligations of the City, and the Bonds and
interest thereon will be payable solely from the revenues and assets pledged to the payment thereof. No
holder of any Bond will havc the right to compel any exercise of the taxing power of the City to pay the
Bonds or the interest thereon, nor to enforce payment against any property of the City except money
payable by the Borrower to the City and pledged to the payment of the Bonds. Before issuing the Bonds,
thc City will entcr into an agrcement with the Borrowcr, whereby the Borrower will be obligated to make
payments at least sufficient at all times to pay the principal of and interest on the Bonds when due.
At the time and place fixed for the public hearing, the City Council will give all persons who
appear at the hearing an opportunity to express their views with respect to the proposal. In addition,
interested persons may direct any questions or file written comments respecting the proposal with the City
Manager, at or prior to said public hearing.
[Due to the ongoing COVID-19 pandemic, members of the City Council and City staff will either
participate in the meeting by telephone or other electronic means pursuant to Minnesota Statutes,
Section 13D.021, or in-person at the City Council's regular meeting place at Hopkins City Hall, 1010 lst
St. S., Hopkins, Minnesota. The City will provide an update on the meeting method/type for the hearing
on the City's website at w�vw.ho�kinsmn.com as the meeting gets closer and those details can be finaliz_ed
with certainty. Additionally, questions or comments related to the public hearing may be emailed to
',�lir�dahl u�ho kinsmn.coi��, made by phone at 952-548-6342, or mailed to 1010 First Street South,
A-1
Hopkins, MN 55343. Comments submitted through these methods must be received by Tuesday,
, 2021 at 12:00 p.m. in order to be considered during the hearing.]
Dated: [Date of Publication]
HPl 10-]03 (JAE)
685750v1
A-2
BY ORDER OF THE CITY COUNCIL OF
THE CITY OF HOPKINS, MINNESOTA
/s/ Am� Domeier
City Clerk
City of Hopkins, Minnesota