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HomeMy WebLinkAbout2015-032 It -ARkEN HILLS CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO.2015-032 RESOLUTION CALLING FOR A PUBLIC HEARING AND AUTHORIZING PUBLICATION OF A NOTICE OF PUBLIC HEARING WITH RESPECT TO THE PROPOSED ISSUANCE OF REVENUE BONDS UNDER MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED, FOR THE BENEFIT OF PRESBYTERIAN HOMES OF ARDEN HILLS,INC. WHEREAS, the City of Arden Hills, Minnesota (the "City") is a statutory city duly organized and existing under the Constitution and laws of the State of Minnesota;and WHEREAS, under the Minnesota Housing Act, Minnesota Statutes, Chapter 462C, as amended (the "Housing Act"), any statutory or home rule charter city may issue revenue bonds or obligations to make a loan to finance a multifamily housing development,including the preparation and construction of a new development and the improvement of an existing building and site by a nonprofit corporation which will operate the building as a multifamily housing development for rental primarily to elderly or disabled persons;and WHEREAS, in the making of a multifamily housing development loan and the issuance of revenue bonds or other obligations under the Housing Act, a city may exercise within its corporate limits any of the powers the Minnesota Housing Finance Agency may exercise under the terms of the Housing Finance Agency Act,Minnesota Statutes,Chapter 462A,as amended;and WHEREAS, Presbyterian Homes of Arden Hills, Inc., a Minnesota nonprofit corporation (the "Company"), and the City entered into a Contract for Private Development, dated December 20, 2010 (the "Development Contract"), pursuant to which the City agreed to issue revenue bonds to finance senior housing facilities (the "Minimum Improvements") the first phase of which was comprised of independent living units, assisted living units,and memory-care units (a combined total of approximately 200 dwelling units)located at 3120 and 3220 Lake Johanna Boulevard in the City("Phase F);and WHEREAS, the Company is prepared to commence the construction of the second phase of the Project ("Phase II") to be comprised of forty(40) independent-living, rental apartments to be located in two buildings (twenty (20) apartments per building), together with necessary common areas and community space,to be located as 3200 Lake Johanna Boulevard in the City;and WHEREAS,the Company has requested that the City authorize the issuance of revenue bonds or other revenue obligations (the "Bonds"), in a principal amount of approximately $12,000,000,under the terms of the Housing Act to finance a portion of the following: (i)the construction and the equipping of Phase II of the Minimum Improvements; (ii)the payment of a portion of the interest on the Bonds; and (iii)the payment of a portion of the costs of issuing the Bonds;and WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder,require that prior to the issuance of the Bonds,the City Council (the "Council") 1 of the City must authorize the publication of a notice of public hearing at least once, not less than fourteen(14) days prior to the date fixed for the public hearing, in a newspaper of general circulation within the City and following such public hearing the Council must approve the financing of Phase II of the Minimum Improvements and the issuance of the Bonds;and WHEREAS, Section 462C.05 of the Housing Act requires that,prior to issuance of the Bonds by the City, a housing program with respect to Phase II of the Minimum Improvements (the "Program") must be prepared and must be adopted by the City Council of the City after a public hearing on the Program following one publication of a notice in a newspaper circulating generally in the City at least fifteen(15)days before the public hearing; and WHEREAS, on or before the day the notice of public hearing is published,the City must submit the Program to the Metropolitan Council for its review and comments as to whether the Program furthers local and regional housing policies; THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF ARDEN HILLS, MINNESOTA: 1. At the request of the Company, the Council shall meet at 7:00 p.m. on Monday, June 8,2015, to conduct a public hearing with regard to the adoption of the Program and with regard to granting preliminary authorization to the issuance of the Bonds as requested by the Company. 2. The City hereby approves publication of a notice of the public hearing in the Shoreview- Arden Hills Bulletin,a newspaper of general circulation in the City at least once not less than fifteen(15) days prior to the date of the public hearing. The form of the notice is attached hereto as EXHIBIT A and is hereby approved, with such necessary and appropriate variations, omissions, and insertions as the Mayor and Administrator of the City in their discretion shall determine. 3. The administrative staff of the City is hereby authorized,with the assistance of Kennedy &Graven, Chartered, as bond counsel to the City, to prepare the Program and submit the Program to the Metropolitan Council on or before the date of publication of the notice of public hearing. 4. The adoption of this Resolution does not constitute a guaranty or firm commitment that the City will issue the Bonds as requested by the Company. The City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the Bonds,or to issue the Bonds in an amount less that the amount referred to herein, should the City at any time prior to issuance thereof determine that it is in the best interest of the City not to issue the Bonds, or to issue the Bonds in an amount less than the amount referred to above, 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. ADOPTED BY THE COUNCIL OF THE CITY OF ARDEN HILLS, MINNESOTA ON THIS MAY 11,2015. David Grant,Mayor (1A • 'w t Amy Dietl,City Olerk 2 EXHIBIT A FORM OF NOTICE OF PUBLIC HEARING CITY OF ARDEN HILLS,MINNESOTA NOTICE OF A PUBLIC HEARING WITH RESPECT TO A PROGRAM FOR A MULTIFAMILY HOUSING DEVELOPMENT AND THE ISSUANCE OF REVENUE BONDS TO FINANCE THE MULTIFAMILY HOUSING DEVELOPMENT IN ACCORDANCE WITH THE PROVISIONS OF MINNESOTA STATUTES, CHAPTER 462C,AS AMENDED NOTICE IS HEREBY GIVEN that the City Council of the City of Arden Hills, Minnesota (the "City") will hold a public hearing on Monday, June 8, 2015, on or after 7:00 p.m. at City Hall, 1245 Highway 96 West, Arden Hills, Minnesota 55112-5743, to consider the adoption of a housing program for a multifamily housing development (the "Program") and to grant preliminary approval for the issuance of revenue bonds of the City (the "Bonds") under Minnesota Statutes, Chapter 462C, as amended(the "Housing Act"),to finance a loan to Presbyterian Homes of Arden Hills, Inc., a Minnesota nonprofit corporation(the"Company"),with respect to the following: (i) the construction and equipping of a senior housing facility comprised of forty(40) independent-living, rental apartments to be located in two buildings (twenty (20) apartments per building), together with necessary common areas and community space, to be located as 3200 Lake Johanna Boulevard in the City (the "Project"); (ii)the payment of a portion of the interest on the Bonds; and(iii)the payment of a portion of the costs of issuing the Bonds. The Project will be owned and operated by the Company. At the public hearing, the City Council will consider the adoption of a resolution approving the Program with respect to the Project and giving preliminary approval to the issuance of the Bonds to finance the costs of the Program and the Project. The aggregate face amount of the Bonds proposed to be issued to finance the Program and the Project is presently estimated not to exceed $12,000,000. The Bonds will be issued by the City and will constitute limited obligations of the City payable solely from the revenues expressly pledged to the payment thereof, and will not constitute general obligations of the City and will not be secured by any taxing powers of the City nor any assets or property of the City except the interests of the City in the Project that may be granted to the City in conjunction with this financing. The City may authorize certain other political subdivisions of the State of Minnesota to issue bonds to finance a portion of the Project. A copy of the Program has been submitted to the Metropolitan Council as required by the terms of the Housing Act and is on file in the offices of the City Administrator at 1245 Highway 96 West, Arden Hills,Minnesota,on and after the date of publication of this notice. Anyone desiring to be heard during this public hearing will be afforded an opportunity to do so. Written comments will be considered if submitted to the attention of the Administrator on or before the date of the public hearing. Dated: [Date of Publication] BY ORDER OF THE CITY OF AMEN HILLS, MINNESOTA AR200-016(N) 461115v.1