1991-049
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CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO: 91-49
GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF
MULTIFAMILY HOUSING REVENUE REFUNDING BONDS FOR THE
AUBURN APARTMENTS PROJECT AND AUTHORIZING PUBLICATION
OF A NOTICE OF PUBLIC HEARING
WHEREAS, pursuant to Minnesota Statutes, Chapter 462C, as
amended (the "Act"), the City of Hopkins (the "City")
issued on October 12, 1983 its $5,600,000
Collateralized Multifamily Housing Development Revenue
Bonds (Auburn Apartments Project), Series 1983 (the
"Original Bonds"); and
WHEREAS, the proceeds of the Original Bonds were loaned to
Richard Neslund (the "Developer") for the purpose of
constructing a multifamily housing development on two
sites, consisting of 102 units located at the southwest
corner of Highway 7 and Van Buren Avenue in the City,
and 34 units located at the southwest corner of Lake
Street and Tyler Avenue in the City (collectively, the
"Project"); and
WHEREAS, the Original Bonds were refunded by the City's
$5,375,000 Collateralized Housing Development Revenue
Refunding Bonds (Auburn Apartments Project) Series 1988
(the "Prior Bonds"), issued on September 1, 1988; and
WHEREAS, The Developer has requested that the City iSfSue its
$5,195,000 Multifamily Housing Revenue Refunding Bonds
(Auburn Apartments Project), Series 1991 (the "Bonds")
in order to refund the outstanding principal amount of
the Prior Bonds and refinance the Project; and
WHEREAS, the issuance of the Bonds requires that the City hold a
public hearing after publication of notice;
NOW, THEREFORE, BE IT RESOLVED by.the City of Hopkins:
1. The issuance of the Bonds is hereby preliminarily approved,
and the City Clerk is hereby' authorized to publish the
notice of public hearing in substantially the form attached
hereto.
2.
The adoption of this resolution does not constitute a
guarantee that the City will issue the Bonds as requested by
the Developer. The City retains the right in its sole
discretion ~to withdraw from participation and accordingly
not issue the Bonds should the city at any time prior to the
issuance thereof determine that it is in the best interest
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 required for the
transaction.
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3. The Developer has agreed to pay directly or through the City
any and all costs incurred by the City in connection with
the Project whether or not the Bonds or operative
instruments are executed.
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4.
All commitments of the City expressed herein are subject to
the condition that by December 31, 1991 the City and the
Developer shall have agreed to mutually acceptable terms and
conditions of the Loan Agreement, the Bonds and of the other
instruments and proceedings relating to the Bonds and their
issuance and sale. If the events set forth herein do not
take place within the time set forth above, or any extension
thereof, and the Bonds are not sold within such time, this
Resolution shall expire and be of no further effect.
Nelson W. Berg,
Adopted this 16th day of April, 1991
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J' es A. Genell
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