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1985-3220 ... "".. -4 o ~ o , o o 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. o q o . o o 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 -2- o Q o . o o 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. -3- o v o . o o 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. .......-; Attest: -'T. ~~ l6:uv,~ City Clerk -4-