1986-27aCITY OF HOPKINS,
Hennepin County, Minnesota
RESOLUTION NO. _$S -27
RESOLUTION RELATING TO THE HOUSING PLAN AND A
MULTIFAMILY HOUSING DEVELOPMENT PROGRAM UNDER
MINNESOTA STATUTES, CHAPTER 462C; AUTHORIZING
THE SUBMISSION OF AN APPLICATION FOR ALLOCATION
OF ISSUANCE AUTHORITY UNDER LAWS OF 1986, CHAP"''R
465, ARTICLE 1, SECTION 20.
BE IT RESOLVED by the City Council of the City of
Hopkins, Minnesota (the City), as follows:
Section 1. Recitals.
1.01. The City has heretofore adopted a housing
plan under Minnesota Statutes, Chapter 462C, as amended (the
Act), which sets forth, among other things, the housing needs
of the City and methods for meeting such needs, including
multifamily housing developments.
1.02. By Resolution No. 85-3219, adopted October 15,
1985, after a public hearing duly noticed and held on October 15,
1985, the City gave preliminary approval to the issuance of
revenue bonds in a principal amount not to exceed $15,000,000
(the Bonds) under and pursuant to Minnesota Statutes, Chapter
462C, as amended (the Act) for the purpose of financing 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 and to be owned and operated
by St. Therese Care Center, Inc., Hopkins, Minnesota, a Minnesota
nonprofit corporation (the Corporation).
1.03. A program with respect to the Development
and its financing (the Program) has been submitted to the
Metropolitan Council and to the Minnesota Housing Finance
Agency (MHFA) for review as required by Section 462C.04,
Subdivision 2 of the Act. The MHFA has notified the City
that the submission relating to the Program was complete as
of October 21, 1985 and the 30 -day period for rejection of
the Program provided in Section 462C.04, Subdivision 2 of
the Act expired on November 20, 1985 without the Program having
been rejected.
1.04. The United States House of Representatives
has heretofore passed H.R. 3838, which bill, if adopted, would
impose certain restrictions on the ability of municipalities,
such as the City, to issue obligations the interest on which
is exempt from federal income taxation (Tax -Exempt Obligations),
to finance projects such as the Development. One such restriction
is a limit on the aggregate principal amount of Tax -Exempt
Obligations which may be issued in any state in any year to
finance projects on behalf of nonprofit corporations such
as the Corporation. H.R. 3838 is presently under consideration
by the United States Senate and has not yet become law. However,
the City has been advised that prospective purchasers of the
Bonds will require, as a condition of their purchase, that
the City comply with H.R. 3838 in order that such purchasers ,
can be assured, to the extent possible, that the interest
on the Bonds will be and remain exempt from federal income
taxation.
1.05. The Minnesota Legislature, in Laws of 1986,
Chapter 465, has established certain procedures intending
to enable the State and its political subdivisions to comply
with the restrictions of H.R. 3838. One of those procedures,
contained in Laws of 1986, Chapter 465, Article 1, Section
20, establishes a method through which municipalities such
as the City may apply for an allocation of that portion of
the limited authority which would be provided to the State
under H.R. 3838 to issue Tax-Exempt.Obligations on behalf
of nonprofit corporations such as the Corporation. Submission
of such an application and the award of such issuance authority
by the State would enable the City to comply with that restriction
of H.R. 3838.
Section 2. Approvals and Authorizations.
For the purpose of enabling the City to comply with
the restrictions of H.R. 3838 and thereby making the Bonds
marketable to prospective purchasers, the City hereby authorizes
and directs the Mayor and the City Attorney to submit an
application to the Department of Energy and Economic Development
for the allocation of $15,000,000 in issuance authority pursuant
to Laws of 1986, Chapter 465, Article Z, Section 20. The
application shall be.submitted on the form provided by the
Department of Energy and Economic Development, shall include
a copy of Resolution No. 85-3219, described in Section 1.02
hereof, and shall be accompanied by a check of the City in
the amount of 1% of the requested allocation. The City Treasurer
is authorized to prepare and deliver such check as a part
of the application upon receipt of a check from the Corporation,
payable to the City, in the same amount
Passed and adopted by the City Council of the City
of Hopkins, Minnesota, thi2rd day of _ =JVtnG ' 19a-6.
Attest:
City Clerk
-2-
Mayor