1985-3220
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CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO.
85-3219
RESOLUTION RELATING TO THE HOUSING PLAN AND A PROGRAM,
AND GIVING PRELIMINARY APPROVAL TO A DEVELOPMENT AND ITS
FINANCING, UNDER MINNESOTA STATUTES, CHAPTER 462C, AND
AUTHORIZING SUBMISSION OF THE PROGRAM TO THE MINNESOTA
HOUSING FINANCE AGENCY FOR REVIEW
BE IT RESOLVED by the City Council of the City of Hopkins,
Minnesota (the "City"), as follows:
Section I. Recitals.
1.01. By the provisions of Minnesota Statutes,
Chapter 462C, as amended (the "ActU), the City is authorized to
develop and administer, and to issue and sell" revenue bonds or
obligations to make or purchase loans to finance, a "program" as
defined by the Act, including a "multifamily developoment~" as
defined by the Act.
1.02. The Act provides that, before issuing revenue bonds
or obligations to finance a multifamily housing development, the
City must develop a housing plan and, after holding a ptiblic hearing
thereon, adopt the plan by resolution of its governing body, and
submit the housing plan to the Metropolitan Council for review and
comment.
1.03. The City has heretofore adopted, after public
hearing and review by the Metropolitan Council, a housing plan (the
"Housing Plan") which sets forth, among other things, the housing
needs of the City and methods for meeting such needs.
1.04. The City has received a proposal that the City
finance, as a program under the Act, a portion or all of the cost
of a proposed multifamily housing development consisting of the
construction and equip?ing of a rental housing facility containing
approximately 240 housing units together with parking and other
functionally related and subordinate facilities (the "Development")
to be occupied primarily by elderly persons. The deve.loper and
owner of the Development will be St. ThereseCareCenter,Inc.,
Hopkins, Minnesota, a Minnesota nonprofit corporation (the
"Corporation"). The Development will be located at Smetana Road
& Feltl Court in the City.
1.05. The City has caused to be prepared a program with
respect to the Development and its financing (the "Program"), a
copy of which has been presented to this Council.
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l.06. At a public hearing, duly noticed and held on
October 15, , 1985, in acco~dancewith the Act, on the Housing
Plan and the proposal to undertake ~he Program and f~nance the
Development, all parties who appeared at the hearing were given
an opportunity to express their views with respect to such matters,
and interested persons were given the opportunity to submit written
comments to the City Clerk before the time of the hearing. On or
before the date of publication of the notice of hearing, a copy
of the Program was submitted to the Metropolitan Council for review
and comment. The City has given consideration to all such views
expressed and comments received, including any comment received
from the Metropolitan Council.
1.07. The Corporation has requested that the,Cityissue
its revenue bonds or other obligations in one or more series pursuant
to the Act (the "Bonds") in a maximum aggregate principal amount
of S 15,000,000, to finance all or a portion of the costs of the
Development, and to make the proceeds of the Bonds available to
the Corporation for the construction and equipping of the
Development, subject to agreement by the Corporation to pay promptly
the principal of and interest on the Bonds.
1.08. The City has been advised by the Corporation that
conventional commercial financing is available to pay the capital
costs of the Development only on a limited basis and at such high
costs of borrowing that the scope of the Development and the economic
feasibility of operating the Development would be significantly
affected, but with the aid of municipal financing the Development
can be constructed as designed and its operation can be made more
economically feasible.
1.09. This Council has been advised by representatives
of the Corporation and First Capital Resources Corporation, that,
on the basis of information available to them and ~heir discussions
with potential purchasers of tax-exempt bonds, the Bonds could be
sold at favorable rates and terms to finance the Development.
1.10. The full faith and credit of the City will not
be pledged to or responsible for the payment of the principal of,
or premium or interest on, the Bonds.
Section 2. Approvals and Authorizations.
2.01. On the basis of the information given the City
to date, it appears that it would be desirable for the City to issue
the Bonds under the provisions of the Act to finance the Development
in the maximum aggregate principal amount of S15,000,000
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2.02. It is determined to proceed with the Development
and its financing and this Council hereby declares its present intent
that the City issue the Bonds under the Act to finance the
Development. Notwithstanding the foregoing, however, the adoption
of this resolution shall 'not be deemed to establish a legal
obligation on the part of the City or this, Council to issue or to
cause the issuance of such Bonds. 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 adoption
of a resolution giving final approval to the issuance of the Bonds
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 structuring of the financing or as to
the terms and conditions of any of the documents required in
connection therewith. All details of such Bond issue and the
provisions for payment thereof shall be subject to review of the
Program by the Minnesota Housing Finance Agency (the "Agency") and
may be subject to such further conditions as the City may specify.
The Bonds, if issued, shall not constitute a charge, lien or
encumbrance, legal or equitable, upon any property of the City,
except the revenues of the Development specifically pledged to the
payment thereof; and each Bond, when, as and if issued, shall recite
in substance that the Bond, including interest thereon, is payable
solely from the revenues of the Development and property specifically
pledged under the revenue agreement to the payment thereof, and
shall not constitute a debt of the City within the meaning of any
constitutional or statutory limitation.
2.03. The Program is hereby adopted and approved in
accord~nce with Section 462C.OS, Subdivision 5 of the Act, and,
in accordance with Section 462C.04, Subdivision 2 of the Act, the
City Clerk is hereby authorized and directed to cause the Program
to be submitted to the Agency for review. The City Clerk, City
Attorney, and other officers, employees and agents of the City are
hereby authorized and directed to provide the Agency with any
prel iminary information needed for cthis purpose.
2.04. Pursuant to Subdivision 1 of Section 462C.07 of
the Act, in the making of the loan to finance construction and
equipping of the Development and in the issuance of the Bonds, the
City may exercise, within its corporate limits, any of the powers
the Agency may exercise under Minnesota Statutes, Chapter 462/\
without limitation under the provisions of Minnesota Statutes,
Chapter 475.
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2.0S. The Corporation has agreed and it is hereby
determined that any and all direct and indirect costs incurred by
the City in connection with the Program and the Development, whether
or not the Development is carried to completion, whether or not
the Program is approved by the Agency, and whether or not the City
by resolution authorizes the issuance of the Bonds, will be paid
by the Corporation upon request.
2.06. The approval and authorization of the Program and
Bonds contained in this Resolution shall terminate one year from
the date of adoption of this Resolution unless renewed or extended
by the City Council upon request of the Corporation.
Passed and adopted by the City Council of the City of
Hopkins, Minnesota, this ~ day of October , 1985.
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Attest: -'T. ~~ l6:uv,~
City Clerk
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