RES. 84-3125 (HOUSING REV. BOND-CHAPEL VIEW RES.)
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LEONARD E. LINDOUIST
NORMAN L. NEWHALL
LAURESS V. ACKMAN
GERALD E. MAGNUSON
EDWARD M. GLENNON
MELVIN I. ORENSTEIN
ROBERT -J. SHERAN
ISRAEL E. KRAWETZ
EUGENE KEATING
-JAMES P. MARTINEAU
'RICHARD ..J. FITZGERALD
PHILIP ..J. ORTHUN
.JOHN A. FORREST
WILLIAM E. FOX
.JERROLD F. BERGFALK
WI LLIAM T. DOLAN
DAVID M. LEBEDOFF
-JOHN H. STROTHMAN
DAVID G. NEWHALL
KURTIS A. GREENLEY
ROBERT V. ATMORE
HOWARD -J. KAUFFMAN
-JOHN B. WINSTON
LAURANCE R. WALDOCH
THOMAS H. GARRETT =
DARYLE L. UPHOFF
DAVID -J. DAVENPORT
MARK R.-JOHNSON
RICHARD A. PRIMUTH
R. WALTER BACHMAN
-JEFFREY R. SCHMIDT
Ti MOTHY H. BUTLER
VENN
UM
ROBERT G. MITCHELL,-JR.
-J. MICHAEL DADY
-J. KEVIN COSTLEY
ROBERT -J. HARTMAN
-JOSEPH G. KOHLER
PAUL H.TIETZ
MARY E. CURTIN
RICHARD D. MCNEIL
DONALD C. SWENSON
ALAN C. PAGE
-JAM ES P. MCCARTHY
STEVEN -J...JOHNSON
RICHARD IHRIG
LYNN M.ANDERSON
DAVID A. ORENSTEIN
THOMAS E. GLENNON
-JOHN R. HOUSTON
DENNIS M. O'MALLEY
DANIEL -J. SHERAN
KEVIN H. ROCHE'
DAVID A. ALLGEYER
N. ROLF ENGH
RICHARD T. OSTLUND
'DEBORAH M. REGAN
MARTIN R. ROSENBAUM
ELINOR C. ROSENSTEIN
DEBRA K. PAGE
LI
NDQUIST
&
4200 IDS CENTER
MINNEAPOLIS, MINNESOTA 55402
TELEPHONE 1612) 371-3211
TELEX 29 0044
TELECOPIER (612) 371-3207
CABLE ADDRESS: LlNLAW
WAYZATA OFFICE
740 EAST LAKE STREET
WAYZATA, MINNESOTA S5391
March 30, 1984
OF COUNSEL
THOMAS VENNUM
Mr. William Craig
City Manager
City of Hopkins
1010 First Street South
Hopkins, MN 55343
../
Jerre Miller, Esq.
Acting City Attorney
~ity of Hopkins
'c'Suite 203
Norwest Bank Building
Hopkins, MN 55343
Mr. Jim Kerrigan
Director, Community Development
City of Hopkins
1010 First Street South
Hopkins, MN 55343
Re:
Chapel View Residences, Inc. Project
Gentlemen :..
Enclosed for your review and comment please find a draft of
the Program for the Project to be attached to the Resolution of the
City to be considered at Tuesday night's Council meeting. Please
call me as soon as possible with any comments you may have regard-
ing it.
Very truly yours,
MRJ /rnr 1
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Enclosure
cc:
Mr.
Mr.
Mr.
Roger M. Jewett
Ralph L. McGinley
Thomas Peterson
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CERTIFICATE OF MINUTES RELATING TO
HOUSING REVENUE BONDS
(CHAPEL VIEW RESIDENCES, INC. PROJECT)
Issuer: City of Hopkins, Minnesota
Governing body: City Council
Kind, date, time and place of meeting: A regular meeting held on
April 3, 1984, at 7:30 o'clock P.M., at the Hopkins City Hall,
1010 First Street South, Hopkins, Minnesota.
Members present:
Milbert, Miller, Lavin, Shirley, Anderson
Members absent:
None
Documents attached:
Minutes of said meeting (pages): I through
, including
RESOLUTION NO. 84-3125
RESOLUTION RELATING TO THE ISSUANCE OF REVENUE
BONDS PURSUANT TO CHAPTER 462C, MINNESOTA
STATUTES, FOR THE PURPOSE OF FINANCING A MULTI-
FAMILY HOUSING DEVELOPMENT; GIVING PRELIMINARY
APPROVAL TO THE DEVELOPMENT AND CALLING FOR A
PUBLIC HEARING ON AN AMENDMENT TO THE CITY'S
HOUSING PLAN TO INCLUDE A PROGRAM FOR THE
ISSUANCE OF SUCH REVENUE BONDS
I, the undersigned, being the duly qualified and acting
recording officer of the public corporation issuing the
obligations referred to in the title of this certificate, certify
that the documents attached hereto, as described above, have been
carefully compared with the original records of said corporation
in my legal custody, from which they have been transcribed; that
said documents are a correct and complete transcript of the
minutes of a meeting of the governing body of said corporation,
and correct and complete copies of all resolutions and other
actions taken and of all documents approved by the governing body
at said meeting, so far as they relate to said obligations; and
that said meeting was duly held by the governing body at the time
and place and was attended throughout by the members indicated
above, pursuant to call and notice of such meeting given as
required by law and that said resolution was adopted by the
requisite vote required under the charter of said City, signed by
the Mayor and is in full force and effect.
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WITNESS my hand officially as such recording officer of
the City this ~ day of April, 1984.
Signature
(SEAL)
J. Scott Renne, City Clerk
Name and Title
.
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After some discussion, Councilmember Milbert
introduced the following resolution and moved its adoption:
RESOLUTION NO. 84- 3125
RESOLUTION RELATING TO THE ISSUANCE OF REVENUE
BONDS PURSUANT TO CHAPTER 462C, MINNESOTA
STATUTES, FOR THE PURPOSE OF FINANCING A MULTI-
FAMILY HOUSING DEVELOPMENT; GIVING PRELIMINARY
APPROVAL TO THE DEVELOPMENT AND CALLING FOR A
PUBLIC HEARING ON AN AMENDMENT TO THE CITY'S
HOUSING PLAN TO INCLUDE A PROGRAM FOR THE
ISSUANCE OF SUCH REVENUE BONDS
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 Act), the City is authorized to plan,
administer and make or purchase loans to finance one or more
multifamily housing developments within its boundaries, including
a development consisting of a multifamily housing development
designed and intended to be used for rental occupancy primarily by
elderly persons.
1.02. Chapel View Residences, Inc., a Minnesota nonprofit
corporation (the Corporation), has indicated to the City its
desire to acquire, construct and equip on certain land located at
615 Minnetonka Mills Road in the City a four-story development
consisting generally of 56 independent living units (the Project).
The Corporation estimates the capital costs of the Project to be
approximately $3,370,000. The Corporation has proposed that the
City issue its revenue bonds in one or more series (the Bonds)
pursuant to the authority of the Act, in such amount as may be
necessary to finance all or a portion of the costs of the Project
and make the proceeds of the Bonds available to the Corporation
for the acquisition, construction and equipment of the Project,
subject to an agreement by the Corporation to pay promptly the
principal of and interest -on the Bonds.
1.03. 'The City on April 19, 1983 adopted a housing plan
entitled "462C Housing Plan, Hopkins, Minnesota" (the Housing
Plan), which Housing Plan specifically evaluates the housing
problems, policies, programs and strategies of the City.
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1.04. The Act provides that, prior to issuing revenue
bonds or obligations to finance a development consisting of a
multifamily housing development, the City's Housing Plan must
describe the program for which the revenue bonds are proposed.
1.05. The Act further provides that the City may plan,
administer and make or purchase a loan or loans to finance one or
more developments of the kind described in Subdivision 4 of
Section 462C.05 of the Act (a development designed for rental
primarily to elderly or handicapped persons) upon adoption of a
program setting forth the information required by Subdivision 6 of
Section 462C.05 of the Act.
1.06. A program amending the Housing Plan to describe the
Project has been prepared in accordance with the provisions of
Subdivision 6 of Section 462C.05 (the Program). The Program has
been submitted to this Council and is attached to this Resolution
as Exhibit A.
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1.07. Prior to the adoption by the City of the amendment
of the Housing Plan to include the Program, the City must hold a
public hearing thereon after notice published at least thirty days
prior thereto. Upon adoption of the amendment to the Housing Plan
the City must submit the amendment to the Metropolitan Council for
review and comment pursuant to Section 462C.04, Subd. I, of the
Act. The City must also submit the Progr~n to the Minnesota
Housing Finance Agency for review as provided in Section 462C.Ol
of the Act and for approval on the basis of the considerations
stated in Section 462C.04, Subd. 2, of the Act.
1.OB. The City has been advised by representatives of the
Corporation that conventional commercial financing is available to
pay the capital costs of the Project only on a limited basis and
at such high costs of borrowing that the scope of the Project, the
economic feasibility of operating the Project and the costs to be
borne by the residents thereof or third-party payor systems would
be significantly affected, but with the aid of municipal financing
the Project can be constructed as designed and its operation can
be made more economically fea'sible.
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1.09. This Council has been advised by representatives of
Dougherty, Dawkins, Strand & Yost Incorporated, of Minneapolis,
Minnesota (the'Underwriter), that on the basis of information
available to them and their discussions with representatives of
the Corporation and potential purchasers of tax-exempt bonds, the
Bonds could be sold at favorable rates and terms to finance the
Project.
1.10. The full faith and credit of the City will not be
pledged to or responsible for the payment of the principal of and
interest on the Bonds.
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l.ll. The applicant 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 Project is approved by the
Minnesota Housing Finance Agency; whether or not the Project is
carried to completion; and whether or not the Bonds or operative
instruments are executed.
Section 2. Approvals; Authorization and Hearing.
2.01. The City Clerk is hereby authorized to cause notice
of a public hearing to be published in a newspaper circulating
generally in the City at least thirty days before May IS, 1984, on
which date this Council will hold a public hearing on the
Amendment to the Housing Plan and the Program; immediately
thereafter this Council will take action with respect to the
Amendment to the Housing Plan and the Program. The Mayor, City
Clerk and City Attorney are authorized to submit the Amendment to
the Housing Plan, if adopted by this Council after the public
hearing, to the Metropolitan Council for review and comment
pursuant to Subdivision I of Section 462C.04 of the Act. The
Program, if adopted by this Council after the public hearing, will
thereafter form a part of the Housing Plan. The Mayor, City Clerk
and City Attorney are authorized to prepare and execute the
required certifications and submit the Program to the Minnesota
Housing Finance Agency for review and approval in accordance with
Subdivision 5 of Section 462C.OS and Subdivision 2 of Section
462C.04 of the Act.
2.02. It is hereby found and determined that it would be
in the best interests of the City to issue the Bonds under the
provisions of the Act to finance the costs of the Project in an
amount currently estimated to be $3,370,000.
2.03. The Project is hereby given preliminary approval by
the City and the issuance of the Bonds for such purpose approved,
subject to conditions on such approval as may be required as a
result of the public hearing called pursuant to Section 2.01
hereof. The Bonds shall not be issued until the Housing Plan and
the Program have been reviewed and approved as provided by the Act
and until the City, the Corporation and the Underwriter have
agreed upon the details of the Bonds and the provisions for their
payment. The principal of, premium, if any, and interest on the
Bonds, when, as and if issued shall be payable solely from the
revenues of the Project and the property pledged to the payment
thereof and shall not constitute a debt of the City. The City
Attorney and other officers of the City are authorized in
cooperation with Lindquist & Vennum, as bond counsel, to initiate
preparation of such documents as may be appropriate to the
financing of the Project setting forth the detailed terms of the
Bonds, the security therefor and provisions for payment of the
principal, premium, if any, and interest thereon in compliance
with state and federal statutes and regulations and the City's
Charter.
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2.04. The adoption of this Resolution does not constitute
a guarantee or a firm commitment that the City will issue the
Bonds as requested by the applicant. 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.
2.05. Pursuant to Subdivision I of Section 462C.07 of the
Act, in the making of the loan to finance acquisition,
construction and equipment of the Project and in the issuance of
the Bonds or other obligations of the City, the City may exercise,
within its corporate limits, any of the powers the Minnesota
Housing Finance Agency may exercise under Chapter 462A, Minnesota
Statutes, without limitation under the provisions of Chapter 475,
Minnesota Statutes.
Passed and adopted by the City Council of the City of
Hopkins this 3rd day of April, 1984.
Signed
Mayor
Attest:
City Clerk
The motion for the adoption of tQe foregoing resolution
was duly seconded by Councilmember Shlrley
and upon vote being taken ther~on, the fo+lowi~g voted in favor
thereof: Anderson, Shirley, Mllbert, Lavln, Mlller
and the following voted against the same:
None
whereupon the resolution was declared duly passed and adopted.
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EXHIBIT A
TO
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RESOLUTION RELATING TO THE ISSUANCE OF REVENUE
BONDS PURSUANT TO CHAPTER 462C, MINNESOTA.
STATUTES, FOR THE PURPOSE OF FINANCING A MULTI-
FAMILY HOUSING DEVELOPMENT; GIVING PRELIMINARY
APPROVAL TO THE DEVELOPMENT AND CALLING FOR A
PUBLIC HEARING ON AN AMENDMENT TO THE CITY'S
HOUSING PLAN TO INCLUDE A PROGRAM FOR THE
ISSUANCE OF SUCH REVENUE BONDS
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CITY OF HOPKINS
AMENDMENT TO 462C HOUSING PLAN
AND
PROGRAM FOR THE CONSTRUCTION OF A
MULTI-FAMILY HOUSING DEVELOPMENT
(CHAPEL VIEW RESIDENCES, INC. PROJECT)
Pursuant to Minnesota Statutes, Chapter 462C (the "Actll),
the City of Hopkins, Minnesota (the "City") has been authorized to
develop and administer programs of multi-family housing
developments under the circumstances and within the limitations
set forth in the Act. Minnesota Statutes, Section 462C.07
provides that such programs for multi-family housing developments
may be financed by revenue bonds issued by the City.
The City has received a proposal from Chapel View
Residences, Inc. (the "Corporation"), that, pursuant to the
authority found in the Act, the City approve a program (the
"Program") for the financing of the construction by the
Corporation of an approximately 80,000 square feet, four-story
hous~ng facili ty for the elderly (the "Project"). The Project
will be an addition to the existing Chapel View Care Center,
located at 615" Minnetonka Mills Road in the City (the."Care
Center"). The Project will contain 56 housing units -- 10
efficiency, 43 one-bedroom and 3 two-bedroom apartments ("Housing
Units"), to be rented to the elderly. It is estimated that rents
for the Housing Units will be between $400 and $ 930 per month.
Rent will include all utilities other than telephone. The Project
may share some of the systems of the Care Center, such as the
heating system. Tenants in the Project may, on a case-by-case and
per diem basis be supplied with nursing or housekeeping services
from the Care Center. The Project will be constructed with
fire-resistant prestressed concrete with a brick exterior facing
similar to that of the Care Center. Wherever possible,
accessibility to the handicapped will be considered in the
construction of the Project. The construction of the project is
to be funded through the issuance of one or more series of up to
$3,370,000 in revenue bonds issued by the City (the "Bonds"). It
is proposed that the Bonds be sold publicly through an underwriter
and that the Bonds will include some form of credit enhancement,
such as addi'tional colla teral, insurance or a letter of credit, in.
order to provide favorable interest rates. Following construction,
of the J?roject, the Corporation will own and operate the. Project
as a mUlti-family 'residential rental project for the elderly. The-
proposed apartments are planned as an alternative to residence in
a nursing home for elderly in the area who still have some
capability for independent living but need certain supportive
services.
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The Project will allow the residents to be as active and
involved as possible for a longer period of time, as compared to a
nursing home, by giving the individuals the opportunity to use the
capabilities they have in an independent setting with the
supportive services they need available. This is in contrast to
the institutionalized setting of a nursing home where certain
capabilities of the elderly are lost because they cannot be used.
However, the Care Center will be available on a priority basis
when deterioration of a resident in the Project is such that
nursing home care is needed. There is no'other facility in the
area that has this concept of service.
The use of tax-exempt bonds for the Project will allow
more affordable non-subsidized rental units for the elderly in the
City. Elderly housing, due to the physical care requirements of
the elderly, their social needs and the proximity of supportive
services desired, should be new construction, such as the Project,
designed and built to accommodate their special needs. The
Project will also increase the variety of housing types and costs
in the City. The Project, by providing alternative housing for
the elderly, should result in additional single-family housing
becoming available to younger and larger families. The Project
will meet the needs and objectives of the City and the public by
caring for the needs of the aging in the best lifestyle available
at the least expense possible.
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The Ci ty, in establishing this Program has considered the
information contained in the Housing Plan, including particularly
(i) . the availability and affordability of private market finan'cing
for the construction of mUlti-family housing units; (ii) the
availability and affordability of other government housing
programs; (iii) an analysis of population and employment trends
and projections of future population trends and future employment
needs; (iv) the recent housing trends and future housing needs of
the Ci tYi and (v) an analysis of how the Program will meet the
needs of persons and families residing and expected to reside in
the City.
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The City, in adopting the Program, has further considered
(i) the amount, timing and sale of Bonds to finance the
construction of the Housing Units, to fund the appropriate
reserves and to pay the cost of issuance; (ii) the method of
monitoring and implementation of the Program to insure compl iance
with the City's Housing Plan and its objectivesi (iii) the method
of administering, servicing and supervising the Program; (iv) the
cost to the City, including fut~re administrative expenses; (v)
the restrictions on the mUlti-family development to be financed
under the Program; and (vi) certain other limitations.
The City, in adopting the Program, considered the
potential financial impact of a bond issuance on affected public
agencies. In addition, the City reviewed the method of marketing
the Program. Such review included the examination of the equal
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opportunity for participation by: (i) minoritiesj (ii) households
with incomes at the lower end of the range that can be served by
the Programj (iii) households displaced by public or private
actionj (iv) families with childrenj and (v) accessibility to the
handicapped.
The Project will be construed and financed pursuant to
Subdivisions land 4 of Section 462C.05 of the Act.
Subsection A. Definitions
The following terms used in this Program shall have the
following meanings, respectively:
(1) "Act" shall mean Minnesota Statutes, Section 462C.Ol,
et seq., as currently in effect and as the same may be from time
to time amended.
(2) "Bonds" shall mean the revenue Bonds to be issued by
the City to finance the Program.
(3) "City" shall mean the City of Hopkins, County of
Hennepin, State of Minnesota.
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(4) "Corporation" shall mean Chapel View Residences,
Inc., a Minnesota nonprofit corporation.
(5) "Housirig Plan" shall mean the City of Hopkins 462C
Housing Plan, adopted on April 19, 1983, setting for~h certain
information required by the Act.
(6) "Housing Unit" shall mean anyone of the apartment
units located in the Project, occupied by one person or family,
and containing complete living facilities.
(7) "Land" shall mean the real property upon which the
Project will be situated.
( 8 ) "p r og ram" s hall me ant he pr og ram fo r the f i na n c i ng of
the Project pursuant to the Act.
(9) "Project" ".shall mean the mUlti-family housing
development for the elderly consisting of approximately fifty-six
(56) Housing. Units to be constructed by the Corporation on the
Land.
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Subsection B.. Program for Financing the Project
It is proposed that the City establish this Project to
construct fifty-six (56) Housing Units to be owned by the
Corporation, at the price and upon such other terms and conditions
as may be agreed upon in wri ting between the Ci ty and the
Corporation. To do this, the City expects to issue one or more
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series of Bonds, the proceeds of which will be loaned to the
Corporation for construction and initial financing of the Project.
It is expected that a Trustee will be appointed by the City to
monitor the construction of the Project and any payments of
principal and interest on the Bonds. The cost of a credit
enhancement item will be borne by the Corporation and payable in
addition to the principal and interest on the Bonds.
It is contemplated that the Bonds shall contain a maturity
of thirty (30) years and will be priced to the market at the time
of issuance. It is anticipated that the Bonds will be issued in
June, 1984.
The City will hire no additional staff for the
administration of the Program. The City intends to select and
contract with a trustee experienced in trust matters to
administrate the Bonds.
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Insofar as the City will be contracting with underwriters,
the trustee, and others, all of whom will be reimbursed from bond
proceeds and revenues generated by the Program, no administrative
costs will be paid from the City's budget with respect to this
Program. The Bonds will not be ge neral obligation bonds of the
City, but are expected to be paid from properties pledged to the
payment thereof, which may include a credit enhancement item such
as insurance or a letter of credit.
Subsection C. Local Contributions to the Program
It is not contemplated that any additional financing or
contributions will be needed for the completion of the Project, or
for the operation of the Program.
Subsection D. Standards and Requirements Relating to the
Financing of the Project Pursuant to the Program
The following standards and requirements shall apply with
respect to the operation of the Project by the Corporation
pursuant to this Program:
el) Substantially all of the proceeds of the sale of the
Bonds will be used to provide funds for the construction of the
Project, which will provide approximately fifty-six (56)
residential.units. The funds will be made available to the
Corporation pursuant to the terms of the Bond offering, which may
include certain covenants to be entered into between the City and
the Corporation. '
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(2) The Corporation will not arbi trarily reject an
application from a proposed tenant because of race, color, creed,
religion, national origin, sex, marital status, age or status with
regard to public assistance or disability.
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· (3) No Housing Unit may be in violation of applicable
zoning ordinances or other applicable land use regulations,
-including any urban renewal plan or development district plan, and
including the state building code as set forth under Minnesota
Statutes, Section 16.83, et seq.
Subsection E. Evidence of Compliance
The City may require from the Corporation or such other
persons deemed necessary, at or before the issuance of the Bonds,
evidence satisfactory to the City of the ability and intention of
the Corporation to complete the Project, and evidence satisfactory
to the City of compliance with the standards and requirements for
the making of the financing established by the Ci ty, as set forth
herein; and in connection therewith, the City or its
representatives may inspect the relevant books and records of the
Corporation in order to confirm such ability, intention and
c'ompliance. In addition, the City may periodically require
certification from either the Corporation or such other persons
deemed necessary, concerning compliance with various aspects of
this Program.
Subsection F. Issuance of Bonds
To firiance the Program authorized by this Section, the
City may by resolution authorize, issue and sell one or more
series of its Revenue Bonds in an aggregate principal amount
estimated to be up to $3,370,000. The Bonds shall be issued
pursuant to Section 462C.07, Subdivision 1 of the Act, and shall
be payable primarily from the revenues of the Program authorized
by this Section.
Subsection G. Severability
The provisions of this Program are severable and if any of
its provisions, sentences, clauses or paragraphs shall be held
unconsti~utional, contrary to statute, exceeding the authority of
the City or o~herwise illegal or inoperative by any court of
competent juriSdiction, the decision of such court shall not
affect or impair any of the remaining provisions.
Subsection H. Amendment
The .City shall not amend this Program while Bonds
authorized hereby are outstanding to the detriment of the holders
of such Bonds.
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