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1985-3223 \ CITY OF HOPKINS Hennepin County, Minnesota -0 RESOLUTION NO. 85- 1?21 RESOLUTION RELATING TO THE ISSUANCE OF REVENUE BONDS PURSUANT TO CHAPTER 462C, MINNESOTA STATUTES, FOR THE PURPOSE OF FINANCING A MULTIFAMILY HOUSING DEVELOPMENT; GIVING PRELIMINARY APPROVAL TO THE DEVELOPMENT AND CALLING FOR A PUBLIC HEARING ON A PROGP~ 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 1. Recitals. o 1.01. By the provisions of Minnesota Statutes, Chapte~. 452C, as amended {the "Act"), the City is authorized to plan, administer and make or purchase loans to finance one or more multifamily housing development3 within its boundaries, including a development consisting of a multifamily housing development designed and intended to be used foe rental occupancy primarily by elderly persons. -0 1.02. Hopkins Block Partners, a Minnesota pactnership (the "Company"), has indicated to the City its desire to acquire, construct and equip on certain land located between 5th and 6th Street immediately west of 7th Avenue in the City of Hopkins a development consisting generally of five three-story, wood frame, brick faced buildings containing ~n a9proximate total of 225 apartment units, 225 basement garage parking spaces and 206 grade level parking spaces, and related facilities (the "Project"). The Corn;any estimates the capital costs of the Project tc be approximately $13,500,000. The C~n?any has proposed that the City issue its revenue bonds in one or moce series (the "Bonds") p~rsuant to the authority of the Act, in such amount as may be nesessary to finance all or a portion of the costs of the Project and make the proceeds of the Bonds available to the Company foe t~e acquisition, construction and e~uiprnent of the Project, s~bject to an agreement by the Comp~~! to pay promptly the p~incipal of and interest on the Bo~d3. 1.03. The City, on April 19, 1983, adopted a housing plan entitled t1462C Housing Plan, Hopkins, Minnesota" and such plan has been amended by the City most rec9ntly on , 198 , (the "Housing Planll), which Housing Plan. s~?-cif:cally evaluates the housing problems, pOlicies, programs and strategies of the City. 1.04. The Act provides that, pcior 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 ace proposed. \ o 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 the Company 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. 1.11. The applicant has agreed to pay directly or through the City any and all costs incurred by the City in connection with the project ~hether or not the project is approved by the Minnesota Housing Finance Agency; whether or not the Project is carried to completion; and whethe~ or not the Bonds or operative instruments are executed. Section 2. Aporovals; Authorization and Hearing. 2.01. This City Council hereby sets a public hearing on the Program for 7:30 p.m. on November 19, 1985. The City Clerk is hereby authorized and directed to publish the notice of public hearing attached hereto as Exhibit B in a newspaper or general circulation in the City and this Cou~cil hereby declares that it intends to take action with respect to the Program immediately following such hearing. The Mayor, City Clerk and City Attorney are authorized to submit the Program, if adopted by this council after the public hearing, to the Minnesota Housing Finance Agency for review and approval in accQrdance with Subdivision 5 of Section 462C.OS and Subdivision 2 of Section 462c.04 of the Act and such officials are further authorized to prepare and execute such further required certifica~ions as may be necessary or appropriate in connection therewith. The Mayor, City Clerk, City Attorney and bond counsel are hereby directed and authorized to submit the Program to the Metropolitan Counsel on or before the day of publication of the notice of public hearing. 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 $13,500,000. o 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 the Progr&~ has been reviewed and approved as provided by the Act and until the City, the Company and the Undeewriter 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 3 o o o issued shall be payable solely from the revenues of the Project and/or 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 pa~ment of the principal, premium, if any, and interest thereon in compliance with state and federal statutes and regulations and the City's Charter. 2.04. The adoption of this Resolution does not constitute a gua~antee or a fi~m commitment that the City will issue the Bonds as requested by the applicant. Th8 City retains the right in its sole discretion to withdraw from pa~:icipation and accordingly not issue the Bonds should the City at any time prior to the issuance thereof deteuuine that it is in the best interest of the City not to issue the Bonds or should the parties to the t~ansaction be unable to reach agree~ent as to the terms and conditions of any of the documents req~ired for the trans~ction. 2.05. Pursuant to Subdivision 1 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 of , 1985. Signed Ha yo r At:.est City Clerk 4 ..~