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CR 93-191 Amend Ordinances 1306 & 1307 ,,;:~ - "{ y \ 0 V ,c. -m .y "" . November 8, 1993 o P K I ~ Counc~l Report 93-191 Amend Ordinances 1306 and 1307 Residential Disabled Transfer & parking Zones Proposed Action. Staff recommends the following motion: Move that Council adopt for first readinq Ordinance 93-734amendinq Sections 1306 and 1307 of the city Code. Overview. In 1991 council undertook two readings of the current ordinances concerning residential disabled transfer and parking zones and they became effective that same year. To date only one Hopkins resident has made use of the new city Code by obtaining a permit. Quite recently staff of the Church of st. John the Evangelist submitted a request and the $25 permit fee for a disabled transfer zone at 6 Interlachen Road. Staff returned the fee and explained that under current code provisions the church was not eligible for a transfer zone. st. Johns Church thereupon submitted a request to amend the City Code. Primary Issues to Consider. .~ + Equity of site restrictions + Details of ordinance amendments + Recommendation Supportinq Information. + Letter of request from st. Johns Church + city Code - Current Sections 1306 and 1307 + Ordinance 93-734 ~~. J s Gessele Engineering superintendent . - (-...... Analvsis of Issues. . + Equity of site restrictions At the time of first and second readings of the current ordinances concerning residential disabled transfer and parking zones, there was considerable discussion of site restrictions within the code. The location of zones, from the original proposals to the subsequent enactment of the code, has been restricted to residential areas. Businesses, churches, non-profit organizations and parking lots are ineligible for transfer or parking zones. The rationale for the restrictions was based on several factors: 1) control the number of potential applicants that already have similar zone facilities; 2) reduce the possibility of abusive zone use by limiting the number of applicants; 3) emphasize use of disabled parking areas in parking lots instead of using the street; 4) public safety concerns - restrictive parking in business areas would make transfer zones a safety and regulation problem. Staff anticipated some issues that would be raised by site restrictions and mentioned them in the report to council dated April 9, 1991- In particular, limiting transfer and parking zones to residential areas could be construed as discriminatory to businesses or churches without similar facilities and thus discriminate against disabled individuals who need unrestricted access for conducting business or . {,~~?H~\~f worship. situations could also arise where ordinance intentions became contradictory. A disabled individual could need the facilities of a transfer zone to gain access to a doctor's office, yet the office location would preclude getting a city permit for a transfer zone. ;j ~ Staff considered the alternative of unlimited access to !! transfer and parking zones and cited the negative impact of i~. such a policy. There would be a marked increase in manpower ""- and expenditures, all for installation and maintenance of lr,l signs. There would be a proliferation of parking and ~ ~! transfer zones that would reduce the' number of parking ~i' spaces, create traffic hazards on narrow streets and increase .t, the potential for abusive use of the zone service. Taking " all of this into consideration, staff recommended the ordinances that stand today. '!j ii, Staff still stands much by its original assessment and recommendations but feels a second look should be taken regarding ineligibility of churches for zone permits. This is prompted in part by the request from st. Johns Church to amend the City Code. It is also prompted by other factors: 1) Most churches in Hopkins are located in residential areas and granting of zones would have less an impact on . street parking than in commercial areas. The limited number of churches also makes it unlikely that -~,-_._---- '" - """ . relaxation of the restrictions to include churches would contribute to a proliferation of zones. 2) st. Josephs Church was granted two handicap parking signs at some unknown time in the past. 3) One other church in Hopkins reportedly places their own temporary parking signs at curbside on worship days, thus completely circumventing City regulations of traffic s.igns. · Details of ordinance amendments Section 1306 - Residential Disabled Transfer Zone Staff recommends deleting 1306.13 of the current code and substituting new language that more effectively regulates signs and zone boundaries of a transfer zone. Staff recommends new language concerning ramp accessibility at the transfer zone. It is not altogether clear from new A.D.A. standards whether ramps are necessary. The additional code language covers the permittees obligation to keep the transfer zone in compliance with federal and state statutes. Section 1306.14 concerning eligibility would be amended to drop its restriction on churches. ~. Section 1307 - Residential Disabled parkino Zone Staff recommends deleting 1307.13 of the current code and substituting new language for reasons as listed above under 1306.13. section 1307.14 with language identical to 1306.14 should be added. This paragraph concerning eligibility was inadvertently omitted in the original passage of the ordinance. The new paragraph does retain a restriction on churches in that they will not be eligible for a disabled parking zone if adequate off-street space is available for disabled parking. · Recommendation Staff recommends adoption of the ordinance amending current City Code sections 1306 and 1307. This includes lifting restrictions on churches in obtaining residential disabled transfer and parking zone permits and places responsibility of zone access and compliance with state and federal statutes with the permittee. .. ... -- ",,,. THE CHURCH OF ST JOHN THE EVAl'\lGELlST . . . -- October 20, 1993 - - Mr. Jim Gessele - City of Hopkins - 1010 First Street South - Hopkins, Minnesota 55343 - Dear Mr. Gessele: The Church of St. John the Evangelist is requesting the City of Hopkins to review and amend - the Hopkins City Code Section 1306.14- Residential Disabled Transfer Zones, Ineligibility. We ask that Churches, as non-profit organizations, be exempted under the ineligibility clause. . St. John's is interested in this change to allow our handicapped persons access to our building tt;~sB;~~ at our only unrestricted entrance. We feel that an amendment to that clause will benefital. churches within the City limits. , _ - Please request the Hopkins City Council consider this request at their earliest convenience. Sincerely, ~~~ Carole Keehn Business Administrator . 6 INTERLe\CHEN ROAD HOPKINS. :vtN 5.5343 (61:2) 935.5.536 ..... ~_._. ,...___n_, -, .,..- - Hopkins City Code 1306.01 . Section 1306 - Residential Disabled Transfer Zones 1306.01. Residential Disabled Transfer Zones Established. The City may. establish, administer, and regulate residential disabled transfer zones. 1306.03. General Rule. A disabled transfer zone is for the specific purpose of providing a location for disabled individuals to. board a vehicle in a residential area. 1306.05. Prohibited Parking. Subdivision 1. Unattended Vehicle. No person may park an unattended vehicle in a disabled transfer zone. If a ,vehicle is parked unattended in this zone the city may ticket the vehicle and/or tow it. '. Subd. 2. Standing Vehicle. No vehicle may stand in a disabled transfer zone unless the specific purpose is to allow vehicle boarding by disabled persons. 1306.07. Eligibilitv. Any person requesting a disabled transfer, adj acent to their residence, must be disabled as specified in M.S. 169.345, Subd. 2. 1306.09. Aouroval. Subdivision 1. Council Approval. Any request by a citizen for a disabled transfer zone must be approved by the City Council. Such approval shall be in the form of a resolution. .', Subd. 2. Procedure. When an application for placement of a disabled transfer zone is received the city must notify residents wi thin a 350 foot radius of the proposed transfer zone location at least 10 days prior to the application being considered by the council. The notice shall indicate the location requested, and the time and date the application will be considered. 1306.11 Fees. Subdivision 1. Pavrnent. Any person with a disabled transfer zone adj acent to their residence must pay an annual permit fee. The permit fee amount shall be set by the City Council and may be amended from time to time. The applicant must submit an application annually, and pay the annual fee by the anniversary date of approval. Subd. 2. Failure to Pay. If the annual application and renewal fee is not paid in full by the anniversary date, the disabled transfer zone will be removed by the city. The resolution to create the transfer zone then becomes void. 1306.13. Designation of Disabled Parking Zone. Subdivision 1. Signage. A Disabled transfer zone will designate boundaries by us ing two signs, each with the blue and white wheelchair symbol, and with the following statements: 1. Arrow indicating that between signs, Disabled Transfer Zone; 2. Violators find up to $200; and 3. No Parking. Each sign will be placed 20 feet a part and face toward the street. The space between the signs is the transfer zone. 1306.14. Ineligibilitv. No disabled transfer zones will be allowed for private businesses, churches, non-profit organizations, or parking lots. . (Added Ord. No. 91-677) ';"- ,-,-...--. Hopkins City Code 1307.01 _' - ~ii Section 1307 - Residential Disabled Parking Zones . 1307.01. Residential Disabled Parkin~ Zones Established. The City may- establish, administer, and regulate residential disabled parking zones. 1307.03. General Rule. Subdi vis ion 1. A residential disabled parking zone is for the specific purpose of providing a location for disabled persons to park a vehicle in a residential area. This zone is not intended for the specific use by one individual, nor can any of the privileges of this service be denied to any person, or vehicle, meeting the guidelines as stated in Section 1307.05. ,--- Subd. 2. Street Maintenance. All city ordinances and resolutions for street cleaning, maintenance, and snow plowing must be abided by any person parking in this zone. 1307.05. Certificate Reouired. No person may park a vehicle in a disabled parking zone unless the vehicle bears ,a certificate, or license plates, which specify the vehicle as transporting disabled persons. Reference: M.S. 169.345. If any vehicle is parked in this zone that does not meet these specifications the city may ticket and/or tow the vehicle. 1307.07. Elidbilitv. Any person requesting a disabled parking zone, adj acent to their residence, must be disabled as specified in M.S. 169.345, Subd. 2. - 1307.09. Ao"Oroval. Subdivision 1. Any request by a citizen for a disablede ,,{~.i;~if{, '. parking zone adjacent to their residence must be approved by the City Council. Such approval shall be in the form of a resolution. Subd. 2. Procedure. When an application for placement of a disabled parking zone is received the city must notify residents within a 350 foot radius of the proposed parking zone location at least 10 days prior to the application being considered by the council. The notice shall indicate the location requested, and the time and date the application will be considered. 1307.11. Fees. Subdivision 1. Payment. Any person with a disabled parking zone adj acent to their residence must pay an annual permit fee. The permit fee amount shall be set by the City Council and may be amended from time to time. The applicant must submi t an application annually pay the annual fee by the anniversary date of approval. Subd. 2. Failure to Pay. If the annual application and renewal fee is not paid in full by the anniversary date, the disabled parking zone will be removed by the city. The resolution to create the transfer zone then becomes void. 1307 .13 . Designation of Disabled Parking Zones. A disabled parking zone, in a residential area, will designate boundaries by using two signs, each with the blue and white wheelchair symbol, and with the following statements; 1. Disabled Parking Zone, 2. Violators fined up to $200, and 3. No Parking. Each sign will be placed 20 feet a part and face toward the street. The space between the signs is the parking zone. . (Added Ord. No. 91-678) -"'-'.''''"''''""""",=,-~...._,,,,<>, ,.~. < '- k'-. ~-;> , . HENNEPIN. COUNTY, MINNESOTA ORDINANCE NO. 93-734 AN ORDINANCE AMENDING SECTIONS 1306 AND 1307 HOPKINS CITY CODE RELATING TO RESIDENTIAL DISABLED TRANSFER AND PARKING ZONES THE CITY COUNCIL OF THE CITY OF HOPKINS, MINNESOTA, DOES ORDAIN: section 1. The Hopkins city Code, Sections 1306.13 and 1306.14 are hereby amended by substituting the following paragraphs to read as follows: 1306.13 Desiqnation of Disabled Transfer Zone. Subdivision 1. Siqns. A disabled transfer zone will designate boundaries by using two signs, each as specified by Minnesota State Statutes and the Manual for Uniform Traffic Control Devices. Each transfer zone will be 20 feet in length and signs will be placed facing the street. The space between the signs is the transfer zone. Subdivision 2. J.I._ccess. The disabled transfer zone shall comply with current federal and state . statutes, insofar as they apply, concerning ramp accessibility. It shall be the responsibility solely of the permittee to bring the disabled transfer zone into compliance with such regulations, including, but not limited to, the installation of ramps. 1306.14 Ineliqibilitv. No disabled transfer zones will be allowed for private businesses, non-profit organizations (excluding churches), or parking lots. section 2. The Hopkins city Code, section 1307.13 is hereby amended by substituting the following paragraphs to read as follows: 1307.13 Desiqnation of Disabled Parkinq Zone. Subdivision 1. Siqns. A disabled parking zone will designate boundaries by using two signs, each as specified by Minnesota State Statutes and the Manual for Uniform Traffic Control Devices. Each parking zone will be 20 feet in length and signs will be placed facing the street. The space between the signs is the parking zone. . Subdivision 2. Access. The disabled parking zone shall comply with current federal and state statutes, insofar as they apply, concerning ramp ..... -~, accessibility. It shall be the responsibility . - solely of the permittee to bring the disabled parking zone into compliance with such regulations, including, but not limited to, the installation of '" ramps. Section 3. The Hopkins City Code, section 1307, is hereby - amended by adding the fOllowing paragraph to read as follows: 1307.14 Ineligibility. No disabled parking zones will be allowed for private businesses, non-profit ~- organizations (excluding churches), or parking lots. Churches shall be ineligible if it can be - demonstrated that adequate off-street space meeting -- building and inspection code requirements is available for disabled parking. section 4. This Ordinance is effective subject to the following: - First Reading November 16, 1993 - Second Reading December 7, 1993 Date of PUblication December 15, 1993 Effective Date of Ordinance January 4, 1994 ~f;:" . r 1'~""~ Charles D. Redepenning, Mayor . ATTEST: - James A. Genellie, City Clerk - -. -...-..-..,.... ,.....-... .",r<''''D'...:H~,'.",; ,'.'c ..-,..;~" ..,.", ... ',. . Bonds and provisions for their payment. In all events, it is understood, however, 'that the Bonds of the City shall not constitute achl3.rge, lien or encumbrance legal or equitable upon any property of the City except 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 Project and property pledged to the payment thereof, and shall not constitute a debt of the City. 2. The law firm of Holmes & Graven, Chartered, is authorized to act as Bond Counsel and to assist in the preparation and review of necessary documents relating to the Project and Bonds issued in connection therewith. The Mayor, City Manager, and other officers, employees and agents of the City are hereby authorized to assist Bond Counsel in the preparation of such documents. 3. The Borrower has agreed to pay directly or through the City any and all cost incurred by the City in connection with the Project or the Bonds whether or not the Bonds or operative instruments are executed. 4. The adoption of this Resolution does not constitute a guarantee 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 that 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 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. . Adopted by the City Council of the City of Hopkins, Minnesota on the 7th day of December, 1993. Mayor Attest: City Clerk . SNG62183 HPllO-47 . 2 ^... .. .. . 1 CITY OF. HOPKINS 1010 FIRST STREET SOUTH HOPKINS, MN 55343 OFFICE USE ONLY: . Date Received: Received by: Type of Request: Taxable Bond Issue Tax-Exempt Bond Issue X Refunding of Previous Bond Issue X APPLICATION FOR TAXABLE/TAX EXEMPT BOND FINANCING OR BOND REFUNDING (Complete as appropriate) APPLICANT INFORMATION St. Therese Southwest, Inc. 1- Applicant/business name: Contact person: Mike Pagh Address: c/o Great Lakes Management Company; 5001 West 80th Street; Suit~ 400 city: Bloomington state: MN Zip: 55437 . Telephone: (work) 835-3412 (home) Fax: 835-7381 Interest in property: Fee Simple 2. Applicant's legal counsel: John Erhart Firm: Fredrickson & Byron Address: 1100 International Centre; 900 Second Avenue South City: Minneapolis State: MN Zip: 55402 Telephone: (work) 347-7000 (home) Fax: 347-7077 3 . Applicant's architect: N.A. (Refunding) Address: City: State: Zip: . Telephone: (work) ( home) Fax: /' . .. ... ~ 2 4. Applicant's contractor: (If selected): N.A. (Refunding) Firm: . Address: city: state: Zip: Telephone: (work) (home) Fax: 5. Property owner(s) of record: Above Applicant . Addresses: City: state: Zip: Telephone: (work) (home) Fax: 6. Applicant's business form (corporation, partnership, sole . proprietorship, etc. ) and state of incorporation or organization: Minnesota nonprofit corporation 7. If the applicant is a corporation, list the officers, directors and stockholders holding more than 5% of the stock of the corporation. state their name, address, telephone and relationship to the applicant. (If a corporation is not formed, list the potential officers, directors and stockholders) : Applicant has no shareholders as a nonprofit corporation. Members of its board of directors are its only corporate members. The directors are David Cress (also president); Charles E. Rice (also secretary); Jack Hodnett; Marilyn Moore (also treasurer); James Mullin; Sister Eleanor Wartman; and Richard Klein . . ... .... - 3 8. If the applicant is a partnership, list the general partners and any limited partners with more than 5% interest. (If the partnership is not formed, give as much data as possible concerning the potential partners): . N.A. . 9. List any cities to which you have previously applied for taxable/tax exempt bond financing within the last five years: None 10. Has the applicant ever been in bankruptcy? If yes, please . explain: See Exhibit A 11. Has the applicant ever defaulted on any bond or mortgage commitment? If yes, please explain: See Exhibit A . __m __--u_m _lIIDlliIl1ImII!lIlIlllmlll1l~!l -~ - . ...' 4 PROJECT INFORMATION . ~. Project name: St. Therese Care Center of Hopkins 2. Legal description of the site: Lot 1, Block 2, Opus 2 Ninth Addition 3. Brief description of the nature of the business, such as principal services or products, etc. : . senior rental housing 4. Amount of bond issue requested: $ 10,500,000 . 5. Who is lending interim financing, and in what amount: N.A. BUSINESS INFORMATION ~. Number of employees in Hopkins? 'Full Time Part Time A. Before this project: N.A. (Refunding) B. After this project: 2. Projected annual sales: $ 2,350,000 3. Projected annual payroll: $448,620 (Excluding Management Fees) 4. Is the project associated with an existing Hopkins business? A. Yes N.A. (Refunding) . B. No ----~ ~- ~ - .... - 5 5. If this project is associated with an existing Hopkins business, which of the following apply: A. Relocation . B. Expansion C. Rehabilitation - . 6. Will you occupy this project after completion? A. Yes X B. No 7. If no, state name of future lessees and status of commitments or lease agreements: ~ ! :1 - 8. Estimated date of construction: Completion: '- N.A. 9. Will any public official of the City, directly or indirectly, . to the best of your knowledge, benefit by the issuance of the - City'S tax-exempt financing for this project according to Minnesota statutes, Section 412.87? No - If so, please explain: - FILING REQUIREMENTS ~ You must provide all of the following items with your application, unless the Director of Planning & Economic Development waives a requirement: - - 1. If the project requires approval by the Zoning and Planning Commission, you must apply for these approvals prior to or with . . this application. If Zoning or Planning commission approval is not' required, you must submit a list of property owners and their addresses, for your property an4 for all.properties within 350 feet. An abstract company must certify this list. Abstract companies are listed in the yellow pages. ................~... ~ . ..- *"' - 6 2. A written opinion, with supporting justification, from an . expert acceptable to the Director of Planning & Economic Development, to document that the development will not adversely effect similar, existing developments. This requirement may be waived if there are no similar developments in the area of your project. 3. A public hearing notice and resolution of preliminary approval. You must have these items prepared by the city's bond counsel. 4. An application fee of $5,000. Make your check out to'the city of Hopkins. This fee is not refundable and is separate from the Bond Counsels', City Attorneys', or closing fees. PROCEDURE 1. Return this application to the Community Development Department. 2. The City Council will hold a public hearing and decide whetper to approve your application. city staff will notify you of the . meeting. REQUIREMENTS FOR TAX-EXEMPT I TAXABLE 'BOND FINANCING Your application must meet the following requirements for approval of taxable/tax-exempt bond financing: 1. The project shall not require a significant amount of pUblic money for city improvements if the city Council determines that the site is premature for development. 2. The notes or bonds shall be for an issue not less than $250,000. 3. Construction must begin within one year of preliminary approval. The city Council may grant a time extension if just cause is shown. 4. Contractors doing work on projects funded in whole' or in part . by tax-exempt financing: a. Shall not discriminate in the hiring and firing of employees on the basis of race, color, creed, religion, national origin, sex, marital status, age, disability or the need for public assistance. '--""",, . '.,. ... . 7 b. Shall pay employees as provided under the united States Code, section 276A, as amended through June 23, 1986, and under Minnesota Statutes 1985, sections 177.41 - 177.44. . Shall employ Minnesota residents in at least 80% of the c. jobs created by the project. In addition, at least 60% of these employees shall be residents of the seven-county metropolitan area. Residential status shall be determined as of the date of the project's approval by the city Council. However, if the contractor can show that these quotas are not possible because of a shortage of qualified personnel in specific skills, the contractor may request a release from the City Council of the two residency requirements. These requirements shall continue for the - length of the construction project. d. Shall be active participants in a State of Minnesota apprentice program, approved by the Department of Labor and Industry. e. The above requirements shall apply to all subcontractors working on the project. 5. You must use the City's Bond Counsel. - 6. The project must involve an existing business that the City wishes to expand or a new business which the City wishes to . attract. A business is the manufacturing, distribution, sale, - storage or making of any merchandise, real estate, produce food, housing or services which will produce income for one or more individuals. An existing business is a commercial project that has operated for at least one year in the city. A new - business is a commercial project which does not qualify as an . existing business. a. Existing business criteria: The City will consider any expansion, relocation or rehabilitation of an existing business for approval. b. New business criteria: The city will only consider a new business for approval if it: (1) Offers at least 400 hours per week of new, year-around employment, or (2) Involves the rehabilitation of a vacant or scheduled to be vacated structure, or - (3) Is within a designated development or redevelopment target area, and "'jj (4) Has a low potential for creating pollution. . 7. The project must exceed minimum code requirements by including at least five of the following features into the project: - - ~~ - . .',- .~. 8 a~ Brick b. Building design should be a distinctive, non-generic . style. c. A noticeable increase in the size and quantity of landscape plantings over what the city normally requires. d. underground irrigation of all landscaping. e. Open space, other than required setbacks. f. At least 10% more parking than code requires. g. Walkway along street frontages. . h. All parking stall widths at least ten feet. i. All signs shall be at least 20% smaller or fewer than allowed by code. 8. city staff shall review compliance with the appropriate request for refunding of previous bond issues. 9. You must pay an administrative fee to the city of one quarter percent of the bond issue with a maximum of $10,000 at Closing. The city will credit the application fee against the . administrative fee. AGR.EEMENT I, by signing this application, agree to the following: 1. I have read and will abide by all the requirements 'of the city for taxable/tax-exempt financing. I will also commit all contractors, subcontractors and any other major contributors to the project to all segments applicable to them. I am aware that failure to comply by myself or any of the above can result in cancellation of the resolution. 2. The above information is true and correct. 3. I agree to pay all costs involved in the legal and fiscal review of this project. These costs include the Bond Counsel and city Attorney, and all costs involved in the issuance of the bonds to finance the project. 4. I understand that the City reserves the right to deny final approval, regardless of preliminary approval o~ the degre~ of&co~truction completed. . ST. II- ~ - (i~ By Date , ' financap 7':"" ......_ EXHIBIT A TO BOND APPLICATION . BACKGROUND OF ST. THERESE SOUTHWEST, INC., HOPKINS, MINNESOTA, PROJECT November 5, 1993 In September, 1986 the City of Hopkins issued its Elderly Housing Care Revenue Bonds (St. Therese Care Center I Hopkins, Minnesota, Project) Series 1986 in the aggregate principal amount of $15,000,000 (the "Bonds") pursuant to an Indenture of Trust between the City and Norwest Bank Minneapolis, N.A. as trustee. Proceeds of the Bonds were loaned to' St. Therese Care Center, Hopkins, Minnesota, renamed in 1992 as St. Therese Southwest, Inc., a Minnesota nonprofit corporation (the "Corporation") pursuant to a Loan Agreement between the City and the Corporation. The Bonds constituted special, limited obligations of the City, payable solely from payments of the Corporation under the Loan Agreement, amounts in a debt service reserve fund established under the Indenture of Trust or proceeds from the mortgage lien securing the loan. The Bonds were issued for the purpose of financing the construction of a 227-unit senior rental housing project located at .' 1011 Feltl Court in the City {the "project"}. The proj ect opened in January, 1988 and was managed through March, 1990 under the supervision of the Corporation's board of directors, with supervisory staff service provided by St. Therese of New Hope, another non-profit corporation that sponsored the Corporation but had no formal relationship to the Corporation. The Corporation's operations in the first three years were hampered by low occupancy rates and resulting low revenues. Additionally, the Corporation charged entrance fees which impeded lease-up. As a result of insufficient revenue~, the Corporation defaulted on its loan in early 1989. In December, 1990 after failing to restructure the debt; the Corporation filed for bankruptcy under Chapter 11 of the Federal Bankruptcy Code. In 1992 the Bankruptcy Court confirmed a plan of reorganization for the Corporation to settle the debt with respect to the Bonds {the "plan"} . Pursuant to the Plan, the Corporation is required to seek tax-exempt refinancing of the Bond and has until December 31, 1993 to close. . _....~RI_ ..............""-".,"'_......"""""""',j,U~UI: ~--~ .. "'-t=-<-. -0, It is presently estimated that in the aggregate 4IP bondholders will receive from proceeds of the proposed refunding, , and other funds, approximately 68~ on each dollar of principal of the Bonds. The Corporation is requesting the City of Hopkins to issue its refunding revenue bonds in an aggregate principal amount not to exceed $10,500,000. Although audited financial statements have not yet been completed for the prior two fiscal years of the Corporation, based on unaudited financial statements, historic cash flow from the proj ect is expected to equal at least 1..2 times the annual debt service requirements for the proposed bonds. The Project is presently fully occupied. Furthermore, it is now under professional management by Great Lakes Management Company, which has substantial management experience with facilities such as the Project. The Bonds are proposed to be underwritten by Miller & Schroeder Financial, Inc., with the present expectation that one of two alternative financing structures would be utilized. Under one structure, bonds would be issued in two series. The first series would be publicly sold and secured by a first mortgage and lien on proj ect revenues. This series would be issued in the largest principal amount for which an "A" rating could be obtained from a national rating agency. The second series of bonds in this . structure would have a subordinate claim against revenues and would ... be unrated. In the alternative to the foregoing structure, an insurance policy for the entire bond issue may be sought which would result in a rating for the entire bond issue. MFFOC299.WPS ~. ~ -2- ~-;; -~- - -> ~.. NOTICE OF PUBLIC HEARING ON PROPOSED ISSUANCE OF REVENUE BONDS . CITY OF HOPKINS NOTICE IS HEREBY GIVEN that the City Council (the "Council") of the City of Hopkins (the "City") will hold a public hearing on Tuesday, December 7, 1993 at 7:30 p.m. at City Hall, 1010 First Street, Hopkins, Minnesota, to consider the issuance of revenue bonds under Minnesota Statutes, Chapter 462C, as amended, to refund bonds previously issued under such authority. The aggregate face amount of revenue bonds proposed'to be issued is presently estimated not to exceed $10,500,000. The bonds to be refunded were issued in 1986 to finance the acquisition and construction of a 227-unit senior rental housing project located at 1011 Feltl Court in the City (the "Project"). The owner of the Project is St. Therese Southwest, Inc., a Minnesota nonprofit corporation. The revenue bonds will be issued by the City of Hopkins. 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 City of Hopkins. Anyone desiring to be heard during this public hearing will be afforded an opportunity to do so. Dated: November 16, 1993 . Isl Steve Mielke City Manager BNG61223 BP1l0-47 _~_~~~IWtm~, _~~ ~~~-~="",.-