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CR 97-189 Public Hearing Final Approval Refunding Rev Bund - St ThereseOctober 9, 1997 Proposed Action Overview T Y 0 This is the final action required by the Council on this item. Council Report 97 -189 PUBLIC HEARING FINAL APPROVAL, REFUNDING REVENUE BOND - -ST. THERESE Staff recommends approval of the following motion: Move to adopt Resolution 97 -102, authorizing the issuance, sale, and delivery of up to $10,500,000 elderly housing revenue refunding bonds, (GNMA Collateralized Mortgage Loan - St. Therese Southwest Project), Series 1997A and approving the execution and delivery of the bonds and the related documents. In 1986 the City of Hopkins approved the sale of a $15 million tax exempt revenue bond to assist in the development of the St. Therese elderly housing project in south Hopkins. There was eventually a default on payments to these bond holders as a result of a bankruptcy reorganization plan. In 1994 a new bond was sold to refund the existing bond. St. Therese Southwest is now requesting the Council to approve action for the sale of a new bond in an amount of up to $10,500,000 to refund the existing debt of this previous bond. The purpose of undertaking this action would be to obtain a lower interest rate in today's market. The Council previously has given preliminary approval for issuance of these bonds. A public hearing is required prior to final approval. Primary Issues to Consider • What is the purpose of this type of financing? • Does this project meet the requirements of the City policy regarding taxable /tax exempt financing? • What are the implications to the City as relate to this action? • Has legal counsel reviewed this matter? Supporting Documents • Application by St. Therese Southwest • Resolution 97 -102 • Letter from Holmes & Galey James D. =r gan Planning & Economic evelopment Director Council Report 97 -168, September 17, 1997 - Page 2 Primary Issues to Consider • What is the purpose of this type of financing? Local units of government are authorized to issue tax exempt revenue bonds to facilitate projects that are felt to be beneficial to the community. To utilize this type of financing tool, the applicant needs to meet very specific federal requirements. This bond financing is, for the most part, available only for certain types of industrial or housing projects. Does this project meet the requirements of the City policy regarding taxable /tax exempt financing? The City of Hopkins adopted a policy relating to revenue bond financing in 1991. The approval criteria within this policy, for the most part, relates to new construction projects. At the time the original bond was sold for the St. Therese project, the City did not have an application process or policy regarding revenue bond financing. It is assumed that the Council and City staff felt sufficiently comfortable that the proposed project was beneficial to the community and, therefore, approved the bond sale. The action on this matter presently under consideration has no impact on this project, which was constructed as a result of the 1986 action by the City Council. What are the implications to the City as relate to this action? These bonds and all such revenue bonds are secured by a pledge of repayment strictly from the proposed projects. The City is not liable to make any payment should there be a default. The City is acting only as a facilitator in this project. The City has not been informed that the owner of the subject property is presently in default on any bond payments to bond holders. • Has legal counsel reviewed this matter? The City Attorney has reviewed the documents related to this transaction; furthermore, Stefanie Galey of Holmes & Galey represents the City as bond counsel. Alternatives The City Council has the following alternatives regarding this matter: 1. Approve the action as recommended by staff. 2. Deny the approval for the sale of bonds. With this action, St. Therese Southwest would be required to continue to make payments on the 1994 bond issue. 3. Continue for additional information. CITY OF HOPKINS RESOLUTION NO. 97-102 A RESOLUTION OF THE CITY OF HOPKINS AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF UP TO $10,500,000 ELDERLY HOUSING REVENUE REFUNDING BONDS (GNMA COLLATERALIZED MORTGAGE LOAN - ST. THERESE SOUTHWEST PROJECT), SERIES 1997A, AND APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE BONDS AND THE RELATED DOCUMENTS. WHEREAS, pursuant to Minnesota Statutes, Chapter 462C (the "Act "), the City of Hopkins (the "City ") is authorized to issue its revenue bonds, in anticipation of the collection of revenues of a multifamily housing project, to finance, in whole or in part, the cost of acquisition, construction, reconstruction, improvement, betterment, or extension of such project, and to refund its bonds previously issued for such purpose; and WHEREAS, the City has previously issued its $8,500,000 Elderly Housing Revenue Refunding Bonds (St. Therese Southwest, Inc. Project), Series 1994A, its $1,810,000 Subordinated Elderly Housing Revenue Refunding Bonds (St. Therese Southwest, Inc. Project), Series 1994B and its $880,000 Subordinated Elderly Housing Revenue Refunding Bonds (St. Therese Southwest, Inc. Project), Series 1994C (collectively, the "Series 1994 Bonds ") for the purpose of refunding bonds previously issued to finance a project consisting of 224 apartment units for independent seniors, located in the City and owned and operated by St. Therese Southwest, Inc., a Minnesota nonprofit corporation (the "Borrower"); and WHEREAS, the Borrower has requested the Issuer to issue its Elderly Housing Revenue Refunding Bonds (GNMA Collateralized Mortgage Loan - St. Therese Southwest Project), Series 1997A (the "Bonds ") in the aggregate principal amount of not to exceed $1 0,500,000, for the purpose of defeasing and redeeming in advance of their maturity the Series 1994 Bonds, resulting in increased cash flow and debt service savings to the Borrower; and WHEREAS, neither the State of Minnesota nor any political subdivision thereof (other than the Issuer and then only to the extent of the trust estate pledged in the Indenture (as hereinafter defined)) shall be liable on the Bonds, and the Bonds shall not be a debt of the State of Minnesota or any political subdivision thereof (other than the Issuer and then only to the extent of the trust estate pledged in the Indenture), and in any event shall not give rise to a charge against the general credit or taxing power of the Issuer, the City, the State of Minnesota, or any political subdivision thereof; and WHEREAS, Section 147(0 of the Internal Revenue Code of 1986, as amended, requires that a public hearing be held on the proposed bond issue after publication of notice in a newspaper of general circulation within the City of Hopkins at least fourteen (14) days in advance of the hearing as a condition to the tax exemption of interest on the bonds; and D: \HPK100\008 \RES'SALE.DOC 1 SALE RESOLUTION WHEREAS, the Issuer on this date conducted a public hearing on the proposed issuance of bonds. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF HOPKINS, MINNESOTA AS FOLLOWS: 1. The Issuer finds, determines, and declares that it is in the best interest of the Issuer that the Issuer (1) issue the Bonds in the aggregate principal amount not to exceed $10,500,000 pursuant to the terms of an Indenture of Trust dated as of October 1, 1997 (the "Indenture ") by and between the Issuer and First Trust National Association, as trustee (the "Trustee "), (2) provide for the use of the proceeds of the Bonds by the Issuer to make a loan (the "Loan ") to the Borrower in accordance with the provisions of a Financing Agreement dated as of October 1, 1997 (the "Financing Agreement ") by and between the Borrower, the Issuer, the Trustee and GMAC Commercial Mortgage Corporation (the "Lender "), (3) provide for the defeasance and redemption of the Series 1994 Bonds in accordance with an Escrow Agreement dated as of October 1, 1997 (the "Escrow Agreement ") between the Issuer, the Borrower and the Trustee, and (4) provide for compliance with the arbitrage regulations applicable to the Bonds pursuant to the terms of an Arbitrage Compliance Agreement dated as of October 1, 1997 (the "Arbitrage Compliance Agreement ") by and between the Issuer, the Borrower and the Trustee. 2. For the purpose of refunding and defeasing the Series 1994 Bonds there is hereby authorized the issuance of the Bonds in the amount not to exceed $10,500,000. The Bonds shall be numbered, shall be dated, shall mature, shall bear interest at a rate not to exceed 7.0% per annum, shall be subject to redemption prior to maturity, shall be in such form, and shall have such other details and provisions as are prescribed in the Indenture, in the form now on file with the Issuer. 3. The Bonds shall be special obligations of the Issuer payable solely . from the revenues of the Project. The Bonds shall not constitute an indebtedness, liability, general or moral obligation (except to the extent of the payments received under the Financing Agreement and pledged to the payment of the Bonds) or a pledge of the faith and credit or any taxing power of the Issuer, the State of Minnesota, or any political subdivision thereof. The Issuer hereby authorizes and directs the Mayor of the Issuer (the "Mayor ") and the City Manager of the Issuer (the "City Manager ") to execute the Indenture, on behalf of and under the corporate seal of the Issuer, and to deliver the Indenture to the Trustee, and hereby authorizes and directs the execution of the Bonds in accordance with the terms of the Indenture, and hereby provides that the Indenture shall provide the terms and conditions, covenants, rights, obligations, duties and agreements of the owners of the Bonds, the Issuer and the Trustee as set forth therein. D:\HPK 100•003 .RES''SALE. DOC All of the provisions of the Indenture, when executed as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of SALE RESOLUTION execution and delivery thereof. The Indenture shall be substantially in the form on file with the Issuer, which is hereby approved, with such necessary and appropriate variations, omissions and insertions as do not materially change the substance thereof, as the Mayor and the City Manager, in their discretion, shall determine, and the execution thereof by the Mayor and the City Manager shall be conclusive - evidence of such determination. 4. The Mayor and the City Mar ager are hereby authorized and directed to execute and deliver the Financing Agreement, the Escrow Agreement, the Arbitrage Compliance Agreement and the Bond Purchase Agreement to be dated on or prior to closing (the "Bond Purchase Agreement ") between the Issuer, the Borrower and Miller & Schroeder Financial, Inc. (the "Underwriter "). When executed and delivered as authorized herein, the Financing Agreement, the Escrow Agreement, the Arbitrage Compliance Agreement and the Bond Purchase Agreement shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. The Financing Agreement, the Escrow Agreement, the Arbitrage Compliance Agreement and the Bond Purchase Agreement shall be substantially in the forms on file with the Issuer on the date hereof, and are hereby approved, with such necessary variations, omissions and insertions as do not materially affect the substance of the transaction and as the Mayor and City Manager, in their discretion, shall determine; provided that the execution thereof by the Mayor and City Manager shall be conclusive evidence of such determination. 5. The Bonds shall be revenue obligations of the Issuer, the proceeds of which shall be disbursed pursuant to the Indenture and the Financing Agreement, and the principal, premium and interest on the Bonds shall be payable solely from the proceeds of the Bonds, revenues received pursuant to the terms of the Financing Agreement and the other sources set forth in the Indenture. 6. The Trustee is hereby appointed as Paying Agent and Bond Registrar for the Bonds. 7. The Mayor and City Manager of the Issuer are hereby authorized to execute and deliver, on behalf of the Issuer, such other documents as are necessary or appropriate in connection with the issuance, sale and delivery of the Bonds, including the Arbitrage Certificate, and all other documents and certificates as shall be necessary and appropriate in connection with the issuance, sale and delivery of the Bonds. 8. The Issuer has not participated in the preparation of the Preliminary Official Statement relating to the Bonds (the "Preliminary Official Statement "), which Preliminary Official Statement is expected to be amended and completed to add certain pricing and other information (as so amended, the "Official Statement ") and has made no independent investigation with respect to the information contained therein, including the Appendices thereto, and the Issuer assumes no responsibility for the sufficiency, accuracy or completeness of such information. D:`.HPK100,008'•RES'SALE DOC 3 SALE RESOLUTION Subject to the foregoing, the Issuer hereby consents to the distribution and the use by the Underwriter, in connection with the sale of the Bonds of the Preliminary Official Statement and the Official Statement in the form on file with the Issuer. The Preliminary Official Statement and the Official Statement are the sole materials consented to by the Issuer for use in connection with the offer and sale of the Bonds. 9. All covenants, stipulations, obligations, representations and agreements of the Issuer contained in this resolution or contained in the aforementioned documents shall be deemed to be the covenants, stipulations, obligations, representations, and agreements of the Issuer to the full extent authorized or permitted by law, and all such covenants, stipulations, obligations, representations and agreements shall be binding upon the Issuer. Except as otherwise provided in this resolution, all rights, powers and privileges conferred, and duties and liabilities imposed upon the Issuer or the City Council by the provisions of this resolution or of the aforementioned documents shall be exercised or performed by the Issuer, or by such members, officers, board, body or agency as may be required or authorized by law to exercise such powers and to perform such duties. No covenant, stipulation, obligation, representation or agreement herein contained or contained in the aforementioned documents shall be deemed to be a covenant, stipulation, obligation, representation or agreement of any officer, agent or employee of the Issuer in that person's individual capacity, and neither the members of the City Council of the Issuer nor any officer or employee executing the Bonds shall be liable personally on the Bonds or be subject to any personal liability or accountability by reason of the issuance thereof. No provision, covenant or agreement contained in the Bonds, the aforementioned documents or in any other document related to the Bonds, and no obligation therein or herein imposed upon the Issuer or the breach thereof, shall constitute or give rise to a general obligation of the Issuer or any charge upon its general credit or taxing powers. In making the agreements, provisions, covenants and representations set forth in such documents and the Bonds, the Issuer has not obligated itself to pay or remit any funds or revenues, other than the funds and revenues derived from the Financing Agreement which are to be applied to the payment of the Bonds, as provided therein and in the Indenture. 10. Except as herein otherwise expressly provided, nothing in this resolution, the aforementioned documents or in the Bonds, expressed or implied, is intended or shall be construed to confer upon any person, firm or corporation other than the Issuer or any owner of the Bonds issued under the provisions of this resolution, any right, remedy or claim, legal or equitable, under and by reason of this resolution or any provision hereof, this resolution, the aforementioned documents, the Bonds and any provision thereof, being intended to be and being for the sole and exclusive benefit of the Issuer and any owner from time to time of the Bonds issued under the provisions of this resolution and the Indenture. D: \HPK100`. 008\RES'SALE.DOC 4 SALE RESOLUTION 11. In case any one or more of the provisions of this resolution, other than the provisions contained in the first two sentences of Section 3 hereof, or of the aforementioned documents or the Bonds issued hereunder shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provision of this resolution, the aforementioned documents or the Bonds, but this resolution, such documents and the Bonds shall be construed as if such illegal or invalid provision had not been contained therein. 12. The Bonds, when executed and delivered, shall contain a recital that they are issued pursuant to the Act, and such recital shall be conclusive evidence of the validity of the Bonds and the regularity of the issuance thereof, and that all acts, conditions and things required by the laws of the State of Minnesota relating to the adoption of this resolution, to the issuance of the Bonds and to the execution of the aforementioned documents to happen, exist and be performed precedent to and in the enactment of this resolution, and precedent to issuance of the Bonds and precedent to the execution of the aforementioned documents have happened, exist and have been performed as so required by law. 13. The City Council of the Issuer, officers of the Issuer and attorneys and other agents or employees of the Issuer are hereby authorized to do all acts and things required of them by or in connection with this resolution and the Bonds and the other documents referred to above for the full, punctual and complete performance of all the terms, covenants and agreements contained in the Bonds and the other documents referred to above, and this resolution. 14. If for any reason the Mayor is unable to execute and deliver those documents referred to in this resolution, any member of the City Council of the Issuer may execute and deliver such documents with the same force and effect as if such documents were executed by the Mayor. If for any reason the City Manager of the Issuer is unable to execute and deliver the documents referred to in this Resolution, such documents may be executed and delivered by any other officer of the issuer or member of the City Ccuncil with the same force and effect if such documents were executed and delivered by the City Manager of the Issuer. 15. All costs incurred by the Issuer in connection with the issuance, sale and delivery of the Bonds and the execution and delivery of the aforementioned documents or any other agreement or instrument relative to the Bonds, whether or not actually issued or delivered, shall be paid by the Borrower or reimbursed by the Borrower to the Issuer. 16. This resolution shall be in full force and effect from and after its passage. D:\HPK100 008`R "ES \SALE.DOC 5 SALE RESOLUTION Adopted by the City Council on , 1997. By ATTEST: Charles D. Redepenning, Mayor Terry Obermaier, City Clerk D: \HPKI00 \008\RES \SALE.DOC d SALE RESOLUTION STATE. OF MINNESOTA ) SS. COUNTY OF HENNEPIN ) I, the undersigned, being the duly qualified and acting City Clerk of the City of Hopkins, Minnesota (the "City "), do hereby certify that attached hereto is a compared, true and correct copy of a resolution giving approval to the issuance of revenue refunding bonds by the City in connection with St. Therese Southwest Project, duly adopted by the City Council of the City on October 21, 1997 at a regular meeting thereof duly called and held, as on file and of record in my office, which resolution has not been amended, modified or rescinded since the date thereof, and is in full force and effect as of the date hereof, and that the attached Extract of Minutes as to the adoption of such resolution is a true and accurate account of the proceedings taken in passage thereof. (Seal) WITNESS My hand and the official seal of the City this day of 1997. City Clerk D:WPK10010081RES \SALE.DOC SALE RESOLUTION • HOLMES & GALEY, LTD. October 13, 1997 City of Hopkins Attn: Jim Kerrigan 1010 South First Street Hopkins, MN 55343 At the Council meeting of October 7, 1997, the City Council of the City of Hopkins gave preliminary approval to the issuance of approximately $10,500,000 Elderly Housing Revenue Refunding Bonds (GNMA Collateralized Mortgage Loan — St. Therese Southwest Project), Series 1997A (the "Bonds ") for the purpose of refunding the City's $8,500,000 Elderly Housing Revenue Refunding Bonds (St. Therese Southwest, Inc. Project), Series 1994A, its $1,810,000 Subordinated Elderly Housing Revenue Refunding Bonds (St. Therese Southwest, Inc. Project), Series 1994B and its $880,000 Subordinated Elderly Housing Revenue Refunding Bonds (St. Therese Southwest, Inc. Project), Series 1994C issued by the City in March 1994 for the purpose of refunding certain bonds previously issued by the City to finance the acquisition and construction of a 224 -unit multifamily rental housing project for independent seniors. The Council is being requested to give its final approval to the issuance and sale of the Bonds at the Council meeting of October 21S I have reviewed the documentation to be entered into by the City in connection with the issuance of the Bonds, and such documents clearly establish that the Bonds will be secured solely by payments made by St. Therese Southwest, Inc. (the "Borrower ") under its Financing Agreement with the City, and further that no City funds, revenues or taxes will be pledged or made available to pay the Bonds. Furthermore, under the Financing Agreement and the Bond Purchase Agreement to be entered into with the Borrower and Miller & Schroeder Financial, Inc. as purchaser of the Bonds, the City is fully indemnified and held harmless for any claims or liabilities of any nature whatsoever to which it may be subject as a result of the issuance of the Bonds. By issuing the Bonds, the City will assist the Borrower by reducing its debt service costs. If you or any member of the Council have any questions regarding the Bonds, please feel free to call me. Sy+ cerely, Stefa - ie N. Galey SNG /bjm Enclosure cc: Jerre Miller D:\HPK100 \008 \CORR \CTY RSK2.DOC ONE FINANCIAL PLAZA, S1)ITI: 1200, 120 SOUTH SIXTH STREET, MINNEAPOLIS, MINNESOTA 55402 TELEPHONE: (612) 288 -9300 ♦ FACSIMILE: (612) 288 -9400 $ 10,500,000 City of Hopkins, Minnesota Elderly Housing Revenue Refunding Bonds (GNMA Collateralized Mortgage Loan - St. Therese Southwest Project) Series 1997A STEFANIE N. GALEY DIRECT DIAL: (612) 305 -4260 Fax w jL �V� l i .4 C i V.� ?her 3 * 2 Contact person: r.- ✓ ` c i t y : Mi nn is w t ?'icna # -I t • r 1 Type of Request: Taxable Bond Issue Tax - Exempt Bond IIsue Refunding of Previous Bond Issue X APPLICATION FOR TABLE/ TAX EXEM2T BOND FINANCING OR BOND REFUNDING (complete as appropriate) AP?LICANT INFORHATION � ;� R 1 ■ j d H' � r w ,„ T .i.. `1 • •`fir rl \tirj : 1 o� ti:NS, MN 55343 0FFIC` USE ;•*y- Date Received: Raceiv=d by: rta7?: St. Therr Southwest Inc. Fax: (612) 933-8776 Michael Pagh 1 011 held Court City: Hopkins State: MN Z i r:: 55343 Telephone: (work) 933 3 333 (home :r ter es t :. -. property: Owner /Owner Representative ht's legal , c ✓, ^ s e , John E n.�.ar . J r Fir Fredrikson & Byron Address: 1100 International CTR 900 2nd Ave. South 1 elepho e _ (work 347 -7035 v' l o r' " Fax: (512) 347 -7077 -. ✓✓ 1 i c a n ✓ N/A Stte. MN (home) N/A 1 ` 1 , 1•r7w!7 55402 :olicant s citrctor fit F irrt : Great Lakes Management Company ( Management Agent) Address: 5000 Glenwood Drive, Suite 150. City: Golden Valley State: MN Zip: 55422 Telephone: (work) 377 - 1800 (home) 377 -1800 Fax: -_1612) 377 -7387 5. Property owner (s) of record: St. Therese Southwest Inc. Addresses: 1011 Feltl Court City :, Hopkins Fax: (612) 933 -8776 *ctO, State: MN Zip: 55343 Telephone: (work) 933 -3333 (horre) N/A 6. Applicant's, business for .(corporation, partnership. proprietorship, - etc. and state of incorporation or organization: MN Corporate non - profit, (50103) sole . If the applicant is a corporation, list the officers, directcr= and stockholders holding more than 5% of the stock of the corporation. State their name, address, to l ephon.e and relationship to the applicant. (If a corporation is not formed, list the potential officers, directors and stockholders) Charles Rice Pres., Marilyn Moore Vice Pres., Jack Hodnett Treasurer, James Mullin Secretary, Dick Klein Director, David Cress Director, Al Hofstede Director, Sister Mary Heinen Director, Nick Simons Director. 8, If th acplican: is a P!1 N/A None and .anv lidted martnrs partnership is nct formed, as concerning tha potential partners): 1 1. Has th applicant ever defauLzed cn anv bond commitment? If yes, please sxlai: 10. Has the applicant ever been in bankruptcy? explain: 1. 1 1 1 1 k..11 than - 5 3 ; - interest. (If much data as Possible 9. List any cities to which you have previously applied -for taxable/tax exempt bond financing within the last five years: If ys, please Yes, this is a refundin therefore, this information was previously supplied. ..•■• T :73 gge Yes, this is a refuncinq, therefore, this information was previously supolied. 1. Project name: St. Therese Southwest 2. Legal description of the site: 1 Brief description of the nature of the business, such as principal services or products, etc.: Independent Giving Senior Rental Apartment Community 4 mount of bond issue requested: S. Who is lending interim financin g, and in what amount: Not applicable t of employees in Hopkins? Full Time A. Before this project: 25 B. After this project: 25 5 2. Projected annual sale_: $ 3,000,000 3. Projected annual payroll: $ 395,.000 4. Is the projec.: associated with an existing Hoo: ins business? Yes B . X PROJECT INFORMATION SPP atj'ArhPrl BUSINESS INFORMATION 11,000,000 Part Time 5 R y J . If tal1� rC]Ct�. t 1s associate' •an Axis _ing .:co<ins business, which of the following apply: 1 A. Relocation N/A B. Expansion N/A • C. Rehabilitation N/A 6. Will you occupy this project after completion? A. Yes N/A B. No N/A 7. If no, state nave of suture lessees and status of commitments or lease agreements: Status of the operation of the property will not change. a. Estimated date of construction: N/A completion: 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 412.37? If so, please explain: No FILING REQUIREMENTS Xou must provide all of the following items with your application, unless the Director of Planting & Economic Development Waives a requir`ment: If the project requires approval by the Zoning afld Tannin.; Commission, you „gust apply for these approvals prior to or with this application. If Zoning or Planning approval is not required, you must submit a list of property owners and their addresses, for your property and for all properties within 350 feet. An abstract company :must certify this list. Abstract companies are listed in the Yello:t pages. 2. A written opinion, with supporting ustification, from an expert acceptable to the Director of Planning & Economic Development, to document tat the development will not adversely effect similar, existing developments. This requirement may be waived is there are no similar deg.• = 1opren is 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 .•.ili hold a public hearing and decide whether to approve your application. City - start •will notify You of -.._... Meeting. • REQZIREMENTS FOR TAX-EXEMPT/TAXABLE BOND FINANCING Your application gust meet the following requirements for approval of taxable/tax-exempt bond financing The project shall not require a significant amount of public money for City improvezer.ts if the C t'/ Council determines t::a the site is premature for development. 2_ The notes or bonds shall be for an issue not less th.ar. $250,000. 3, Construction must begin -pith; year + ' mi r �.�n .,..�. yea o f pre � x �. na y approval, The City Coun : i l may grant a time extension cause -is shorn � J Dy tax - exempt :r.nancing a. Shall not discri:nina-e in the hiring and firing of employees cr. the basis of race, color, creed, religion, national origin, sex, ;marital status, age, disability or the. need for public assistance. Snll n Code, Section 276A, as amended through J' u ne 23, 1986, and under Minnesota Sta =utes 1955, Sections 17 .41 - 177.44. c. Shall employ Minnesota residents in at least SC =. of the jobs created by the project. In addition, at least 6C-% c these employees shall be _esidents of the se ..fen-county metropolitan area. Residential status stall be determined as or the date of t:7e project's approval by the City Council However, if the contractor can show that these quotas are not possible because of a shortage cf 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. . You .gust Use the City s Bond Counsel. 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 •mani.:facturirg, distribution, sale, storage or ta'ing of any merchandise, real estate, produce •food housing or services which w ill :Traduce inCo.:.e for one or i existing business c r r c t ore individuals... fir, ex�s��ng is a commercial p,.oje..�. 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 cri ia: 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: Offers at least 4C0 hours per week of new, - year - around employment, cr Involves. the rehabilitation cf a vacar_ cr scheduled to be vacated structure, or Is w ithin a designated development target area, and Has a tow potential for creating rat.. redevelopment •The jec_. must exceed r_, b including ng P'-'c, minimum :code e_�i .e-:ts ti ir.cls.�_. at least five of the fol _c ling e atures • into tr e _ rc ect. • 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 2.0% 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. 3. 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 half percent of the bond issue. The City will credit the application fee against the administrative fee. AGREEMENT signing this application, agree to the following: i . I have read and will abide by all the requirements of the City for taxable /tax- exempt financing. I will a.Lsc comrzi all contractors, subcontractors and any other major contributors to the project to all segments applicable _c them. I an aware that failure to comply by myself or any of the above can result in cancellation cf the resolution. 2. The above information is true and correct. 3 I agree to pay all costs involved in the legal and fisca_ 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 richt to dpnv degree of corst uction corpleted. { financap App scant (. �1c Date Lot 1, Block 2, Opus 2 Worth Addition, according to the plat thereof on file or of record in Hennepin County, Minnesota EXHIBIT 7R' LEGAL DESCRIPTION