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HomeMy WebLinkAbout91-067 . Extract of Minutes of Meeting of the City Council of the City of Arden Hills, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Arden Hills, Minnesota was duly held at City Hall in said City on Monday, November 3~ 1991, at 7:30 o'clock P.M. The following Council Members were present: Mayor Thomas R. Sather, Councilmember JoAnn Growe, Councilmember Paul Malone, Councilmember Dale Hicks, and Councilmember Thomas Mahowald and the following were absent: *** *** *** Council Member Paul Malone then introduced and, the reading in full thereof having been waived, moved the . adoption of the following written resolution: RESOLUTION NO. 91 67 RESOLUTION GIVING PRELIMINARY APPROVAL TO A MUNICIPAL HOUSING PROGRAM AND AMENDMENT TO HOUSING PLAN TO PROVIDE FINANCING AND REFINANCING FOR A SENIOR HOUSING DEVELOPMENT AND THE ISSUANCE BY THE CITY OF REVENUE BONDS THEREFOR ON BEHALF OF THE PRESBYTERIAN HOMES OF MINNESOTA, INC. The motion for the adoption of the foregoing resolution was duly seconded by Council member Thomas Mahowald and upon vote being taken thereon the fOllowing voted in favor thereof: and the following voted against the same: . whereupon said resolution was declared duly passed and adopted. . RESOLUTION GIVING PRELIMINARY APPROVAL TO A MUNICIPAL HOUSING PROGRAM AND AMENDMENT TO HOUSING PLAN TO PROVIDE FINANCING AND REFINANCING FOR A SENIOR HOUSING DEVELOPMENT AND THE ISSUANCE BY THE CITY OF REVENUE BONDS THEREFOR, ON BEHALF OF THE PRESBYTERIAN HOMES OF MINNESOTA, INC. WHEREAS, by the provisions of Minnesota Statutes, Chapter 462C, as amended (the "Act"), the City of Arden Hills (the "City"), is authorized to plan, administer, and develop housing programs including senior housing developments, and to issue and sell revenue bonds to make loans to finance and refinance such developments, which revenue bonds shall be payable solely from the revenues to be derived in respect of such developments; and . WHEREAS, the City has prepared pursuant to the Act a Housing Plan for the City, which Housing Plan has been approved by the City Council (as amended from time to time, the "Housing Plan"). The Act provides that, prior to issuing revenue bonds or obligations with respect to a development described in Section 462C.05, subd. 4, of the Act, the City shall prepare a Program setting forth the information required by Section 462.03, Subd. la, and Section 462C.05, Subd, 6, of the Act, submit the Program for review to the Metropolitan Council, and, after holding a public hearing thereon, submit the Program to the Minnesota Housing Finance Agency for review, as provided in Section 462C.Ol of the Act, on the basis of the considerations stated in Section 462C.04 of the Act; and WHEREAS, The PreSbyterian Homes of Minnesota, Inc., a Minnesota nonprofit corporation (the "Corporation"), has proposed a program under the Act to provide financing and refinancing for a senior housing development in the City, in accordance with the City's Housing Plan, as amended hereby, a copy of which Program is attached hereto as Exhibit A; and WHEREAS, a description of the facilities to be financed and refinanced under the Program is set forth in the Program and is hereby incorporated herein by reference and made a part hereof (as described in Exhibit A, the "Facilities"); and WHEREAS, under the Program, it is proposed that the City issue its revenue bond or revenue bonds (the "Bonds") pursuant to the Act in such aggregate principal amount as may be necessary to finance costs of renovation and refinancing the Facilities, including amounts, if necessary, to fund necessary reserves and for payment, in part, of the costs of issuing the Bonds, subject to agreement by the Corporation to pay promptly when due all principal of, premium, if any, and interest on the Bonds; . -2- . NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS (the "City"), as follows: 1. The City's Housing Plan is hereby confirmed, approved and ratified, as amended pursuant to the Program and pursuant hereto. The Program is hereby adopted by the City pursuant to Section 462C.05, Subdivision 4 of the Act, and the issuance of the Bonds of the City, in an aggregate principal amount of not to exceed $700,000, is hereby approved for the purpose of providing financing for the Facilities, The Bonds shall not be issued until the Program has been reviewed, as required by the Act and until the City, the Corporation and the purchaser of the Bond or Bonds 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 issued, shall be payable solely from the revenues to be derived from the Facilities, including loan repayments to be made by the Corporation with respect thereto, and the property pledged to the payment thereof, and shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. . 2. Submission of the Program to the Metropolitan Council is hereby ratified, confirmed and approved. The Mayor, Clerk-Administrator and other officers and employees of the City are hereby authorized to submit the Program to, and to complete and submit all related certificates or accompanying documentation, as may be required by the Agency, to the Minnesota Bousing Finance Agency, for review, pursuant to Subdivision 2 of Section 462C,04 of the Act. 3. Pursuant to Subdivision 1, Section 462C.07, of the Act, in the making of a loan to the Corporation with respect to the Program and in the issuance of the Bonds by 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. 4. The Corporation is hereby authorized to enter into such contracts for the renovation and refinancing of the Facilities as it may reasonably determine to be necessary or desirable, without advertisement for bids as may be required for municipal facilities generally, provided, however, that the City shall not be liable on any of such contracts, and, provided further, that the Corporation has agreed to and shall pay any and all costs incurred by the City in connection with the Program and the Facilities whether or not the Program is approved by the Minnesota Housing Finance Agency and whether or not the Bonds are issued. . -3- . 5. The Bonds are hereby designated as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. The Bonds are to be issued on behalf of an organization described in Section 501(c)(3) of the Code and are to be issued as "qualified 501(c)(3) bonds" under Section 145 of the Code. The City, together with all subordinate entities thereof, does not reasonably expect to issue tax-exempt obligations, including the Bonds (other than private activity bonds not constituting "qualified 501(c)(3) bonds"), which, when added together with all such obligations heretofore issued by the City, or such subordinate entities, in calendar year 1991, will be in an aggregate amount exceeding $10,000,000 in calendar year 1991. 6802f . Passed and adopted this 25th day of November , 1991. / /' I f~ ~I ~- / ' { jtn! t Thomas Sathe ATTEST: . -4- . EXHIBIT A HOUSING PROGRAM AND AMENDMENT TO CITY HOUSING PLAN RELATING TO THE ISSUANCE OF CITY OF ARDEN HILLS REVENUE BONDS UNDER MINNESOTA STATUTES, CHAPTER 462C, FOR THE FINANCING AND REFINANCING OF A SENIOR HOUSING DEVELOPMENT, ON BEHALF OF THE PRESBYTERIAN HOMES OF MINNESOTA, INC, . 1. Citv Housino Plan. Pursuant to Chapter 462C, Minnesota Statutes, as amended (the "Act"), the City has adopted a Housing Plan (as amended from time to time, the "Housing Plan"), which serves as a basis for the provision of housing for residents of the community. The Housing Plan, as amended hereby, describes various housing goals in the City, including providing suitable housing for people of all ages, incomes, and racial and ethnic groups in good living environments; maintaining high quality housing throughout the City; and eliminating instances of delapidation, blight, etc. Under the Act, the City, prior to issuing revenue bonds or other obligations with respect to a multi-family housing development, as described in section 462C.05, subd. 4, thereof, is to adopt a program setting forth the information required by the Act, including but not limited to Section 462C.03, Subd. la, and Section 462C.OS, Subd. 6, of the Act. This Program advances the aforementioned housing goals by enhancing the City's supply of affordable rental housing facilities for elderly persons at reasonable rental rates, and through the renovation, upgrading and improvement of the City's existing housing stock, all as authorized, contemplated and prescribed by the Act and the Housing Plan. . 2. Prooram. This Housing Program comprises an effort by the City to advance the aforementioned housing goals by providing financing and refinancing for the senior housing development described in paragraph 4 below (the "Facilities"), The proposed refinancing of the Facilities is anticipated to produce debt service savings that will permit the maintenance of rental rates at the most reasonably affordable levels, The proposed renovation of the Facility is expected to enhance the quality and livability of the Facilities for residents. The method of financing to be advanced for this Program shall consist of the issuance of revenue bonds by the City pursuant to the Act. Such bonds shall comprise permanent financing for the Facilities and repayment of such bonds shall be provided by the Corporation named in paragraph 4 (the "Corporation") entering into a loan agreement with the City with respect to . such Facilities. Additional security may be provided for the bonds as determined by the original purchaser of the bonds, including a mortgage on the Facilities, and such other security as may be determined to be necessary or desirable. The aggregate principal amount of the issue is expected to be not in excess of $700,000. It is anticipated that the timetable for the financing will be carried out on an expedited basis and be concluded by not later than the end of the current calendar year. This Program is contemplated to be undertaken pursuant to Section 462C.05, Subd. 4, of the Act and, therefore, it is contemplated that there shall be no specific limitation on the gross income of the occupants. It is nevertheless the anticipation of the Corporation that residents of the financed facilities will consist primarily of low and moderate income persons. Program requirements as to the Facilities are to be monitored by the City or private parties, as will be provided in the applicable agreements to be entered into in connection with the issuance of the Bonds. . 3. Need for the Proqram. The Act and the City's Housing Plan, as amended hereby, establish the need and necessity for the financing and refinancing of the Facilities included in this Program. The Housing Plan, as amended hereby, recognizes and is consistent with a goal of maintaining and increasing the number of units of affordable housing for elderly as well as low and moderate income persons and families in the City. The Housing Plan, as amended hereby, also emphasizes the promotion of middle income housing developments and multi-family developments. Finally, the Housing Plan, as amended hereby, affirms that achievement of the City's housing goals should occur through private development, supported by government financing programs, By virtue of issuing the Bonds and providing financing and refinancing for the Facilities, the City will be assisting in the reduction of the overall costs of operating the Facilities and the attendant reduction in charges otherwise necessary to be made to the residents thereof. 4. Descriotion of Facilities. The Facilities which are to be the subject of the proposed financing consist of the Corporation's existing senior housing facilities located at 3120 Lake Johanna Boulevard in the City, and which contain 19 rentable units (and one caretaker unit), comprising approximately 21,000 square feet in the aggregate. The Facilities are currently owned by The PreSbyterian Homes of Minnesota, Inc., a Minnesota nonprofit corporation (the "Corporation"). It is anticipated that the proceeds of the Bonds may also be used, in part, to pay for certain costs of issuance of the Bonds, to the extent such costs are reasonable . -2- . and are within an amount equal to 2.00% of the proceeds of the Bonds, and to fund any necessary reserves, including a debt service reserve fund, if required. Issuance costs in excess of available bond proceeds are to be paid for by the Corporation from funds other than proceeds of the Bonds. 6803f . . -3-