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HomeMy WebLinkAbout01-014 . . . Extract of Minutes of a Meeting of the City Council of the City of Arden Hills, Minuesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Arden Hills, Mimlesota, was duly held at the City Hall in said City on Monday, the 10th day of September, 2001, at 7:30 p.m. The following members were present: and the following were absent: Member Grant introduced the following resolution and moved its adoption: RESOLUTION NO. 01-14 RESOLUTION RECITING A PROPOSAL FOR A HOUSING FINANCE PROGRAM TO FINANCE AN ELDERLY HOUSING DEVELOPMENT PROJECT, GIVING PRELIMINARY APPROVAL TO THE PROJECT AND THE ISSUANCE OF REVENUE BONDS PURSUANT TO MINNESOTA LAW, AND RATIFYING THE PREPARATION OF A HOUSING FINANCE PROGRAM (PRESBYTERIAN HOMES BLOOMINGTON CARE CENTER, INC. PROJECT) The motion for the adoption of the foregoing resolution was duly seconded by member Larson, and after full discussion thereof and upon vote being taken thereon, the following voted in favor thereof: Probst, Aplikowski, Grant, Larson, and Rem and the following voted against the same: None whereupon said resolution was declared duly passed and adopted. 1323953vl . RESOLUTION NO. 01-14 RESOLUTION RECITING A PROPOSAL FOR A HOUSING FINANCE PROGRAM TO FINANCE AN ELDERLY HOUSING DEVELOPMENT PROJECT, GIVING PRELIMINARY APPROVAL TO THE PROJECT AND THE ISSUANCE OF REVENUE BONDS PURSUANT TO MINNESOTA LAW, AND RATIFYING THE PREPARATION OF A HOUSING FINANCE PROGRAM (PRESBYTERIAN HOMES OBLIGATED GROUP PROJECT) (a) WHEREAS, in connection with the issuance of the Notes it is proposed that a Joint Powers Agreement (the "Joint Powers Agreement") be entered into among the City of Arden Hills, Minnesota (the "City") and the City of Bloomington, Minnesota pursuant to Minnesota Statutes, Section 471.59; and (b) WHEREAS, Minnesota Statutes, Chapter 462C (the "Housing Program Act) confers upon cities, the power to issue revenue bonds to finance a program for the purposes of planning, administering, making or purchasing loans with respect to one or more multifamily housing developments within the boundaries of the parties to the Joint Powers Agreement; and (c) WHEREAS, the City has received from Presbyterian Homes Bloomington Care Center, Inc. (the "Developer") a proposal that the City undertake a program to finance a Project hereinafter described, through the issuance of revenue bonds or obligations in one or more series (the "Notes") pursuant to the Housing Program Act; and . (d) WHEREAS, the City desires to facilitate the development of rental housing within the community; encourage the development of affordable housing opportunities for residents of the City; encourage the development of housing facilities designed for occupancy by elderly persons; and encourage the development of blighted or underutilized land and structures within the boundaries of the City; and the Project will assist the City in achieving these objectives; and (e) WHEREAS, Minnesota Statutes, Sections 469.152 through 469.1651, relating to municipal industrial development (the "Industrial Development Act"), gives municipalities the power to issue revenue bonds for the purpose of the encouragement and development of economically sound industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and arcas of chronic unemployment; and (f) WHEREAS, the Project to be financed by the Notes consists of the acquisition of approximately 49 cooperative senior housing units in the Gideon Pond Cooperative located at 9901 Penn A venue South, Bloomington, Minnesota and the refinancing of acquisition and capital costs incurred by the Developer and affiliated entities in connection with its health care facilities known as the Bloomington Care Center, an SO-bed skilled nursing facility located at 401 W. 95th S1., Bloomington, Minnesota and the McKnight Care Center, a 20S-bed nursing home facility located at 3220 Lake Johanna Boulevard, Arden Hills, Minnesota. The Developer is the owner and operator of the Bloomington Care Center and the Gideon Pond Cooperative units acquired as part of the Project and the . McKnight Care Center will be initially owned and operated by Presbyterian Homes of Arden Hills, Inc. 1323953vl . . . The Developer will be the obligor under the Notes. All facilities will be initially managed by Presbyterian Homes Management and Services, Inc. The Project will result in the provision of additional rental housing opportunities to elderly persons within the community; and (g) WHEREAS, in accordance with Minnesota Statutes, Section 462C.04, Subdivision 2, the City and the City of Bloomington, Minnesota have heretofore submitted to the Metropolitan Council (the "COlillcil") a program to finance the Project; and (h) WHEREAS, a public hearing on the Project was held on the date hereof, after notice was published and materials were made available for public inspection at the City Hall, all as required by the Housing Program Act, the Industrial Development Act and Section 147(1) of the Internal Revenue Code of 1986, as amended (the "Code"), at which public hearing all those appearing who desired to speak were heard and written comments were accepted; and (i) WHEREAS, no public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arden Hills, Minnesota, as follows: 1. The City hereby gives preliminary approval to the proposal of the Developer that the City undertake the Project, described above, and the program of financing therefor, pursuant to the Housing Program Act and the Industrial Development Act, consisting of the refinancing, acquisition or renovation of housing and/or health care facilities within the City pursuant to the Developer's spccifications and to a loan agreement between the City and the Developer on such terms and conditions with provisions for revision from time to time as necessary, so as to produce income and revenucs sufficient to pay, when due, the principal and interest on the Notes in the total principal amount of not to exceed $5,500,000 to be issued pursuant to the Housing Program Act and the Industrial Development Act to finance the refinancing, acquisition and renovation of the Project; and said agreement may also provide for thc entire interest of the Developer therein to be mortgaged to the purchasers of the Notes, or a trustee for the holder(s) of the Notes; and the City, acting by and through the City, hereby undertakes preliminarily to issue its Notes in accordance with such terms and conditions. 2. At the option of the City, the financing may be structured so as to take advantage of whatever means are available and are permitted by law to ehbance the security for, or marketability of, the Notes; provided that any such financing structure must be consented to by the Developer. 3. On the basis of information available to the City it appears, and the City hereby finds, that the Project constitutes a multifamily housing development within the meaning of subdivision 5 of Section 462C.02 of the Housing Program Act; that the availability of the financing under the Housing Program Act and the willingness of the City to furnish such financing will be a substantial inducement to the Developer to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the provision of additional multifamily rental housing opportunities to residents of the community, and to promote more intensive development and use ofland within the community. 4. In addition, on the basis of information available to the City it appears, and the City hereby finds, that the Project constitutes properties, real and personal, used or useful in connection 1323953,,] . . . with a revenue producing enterprise within the meaning of Subdivision 2(b) of Section 469.153 of the Industrial Development Act; that the availability of the financing under the Industrial Development Act and the willingness of the City to furnish such financing will be a substantial inducement to the Company to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the development of economically sound industry and commerce, to assist in the prevention of the emergence of blighted and marginal land, to help prevent chronic unemployment, to help the City retain and improve the tax base, to provide the range of services and employment opportunities required by the population, to help prevent the movement of talented and educated persons out of the state and to areas within the State where their services may not be as effectively used, and to promote more intensive development and use of land within the City. 5. The Project and the program to finance the Project by the issuance of revenue bonds, is hereby given preliminary approval by the City subject to final approval by the City, the Developer and the purchasers of the Notes as to ultimate details of the financing of the Project. 6. All prior actions taken by the City Staff in directing Briggs and Morgan, Professional Association, acting as bond counsel to prepare a housing program for financing the Project prepared in accordance with the provisions of Minnesota Statutes, Section 462C.03 are hereby ratified, affirmed and approved. 7. The Developer has agreed and it is hereby determined that any and all costs incurred by the City in connection with the financing of the Project whether or not the Project is carried to completion will be paid by the Developer. 8. Briggs and Morgan, Professional Association, acting as bond counsel, is authorized to assist in the preparation and review of necessary documents relating to the Project, to consult with the City Attorney, Developer and the purchaser of the Notes as to the maturities, interest rates and other terms and provisions of the Notes and as to the covenants and other provisions of the necessary documents and submit such documents to the City for final approval. 9. Nothing in this Resolution or the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived from the Project or otherwise granted to the City for this purpose. The Notes shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds ofthe City except the revenue and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holder of the Notes shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Notes or the interest thereon, or to enforce payment thereon against any property of the City, except such property as may be expressly pledged for the security of the Notes. The Notes shall recite in substance that the Notes, including the interest thereon, are payable solely from the revenue and proceeds pledged to the payment thereof. The Notes shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 10. Subject to final approval of the Project by the City and in anticipation of the approval by all necessary entities of the housing program and the issuance of the Notes to finance all or a portion of the Project, and in order that completion of the Project will not be unduly delayed when approved, the Developer is hereby authorized to make such expenditures and advances toward payment of that pOliion of the costs of the Project to be financed from the proceeds of the Notes, as the Developer lJ239S3vl . . . considers necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the Notes, if any, when delivered but otherwise without liability on the part of the City. Adopted by the City Council of the City of Arden Hills, Minnesota this 10th day of September, 2001. If l K 1.'''./1 /.'i lY .~I /l /:> Il' / /1/ // D~i;.t:LI1~ ATTEST: 1323953vl