HomeMy WebLinkAbout99-019
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CITY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION NO. 99-19
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)
WHEREAS, in connection with the issuance of the Bonds it is proposed that a Joint
Powers Agreement (the "Joint Powers Agreement") be entered into among the City and
the Cities of Little Canada, Spring Park, and Bloomington, MN; and Ankeny, lA,
pursuant to Minnesota Statutes, Section 471.59 and Iowa Statutes, Chapter 28E; and
.
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 parties to the Joint Powers
Agreement; and
WHEREAS, the City of Arden Hills, Minnesota (the "City") has received from
Presbyterian Homes Housing and Assisted Living, 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 "Bonds") pursuant to
the Housing Program Act; and
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
WHEREAS, Minnesota Statutes, Sections 469.152 through 469. 165, relating to
municipal industrial development (the "Industrial Development Act"), gives
. municipalities the power to issue revenue bonds for the purpose of the encouragement
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Resolution No. 99-19
Page Two
June 28, 1999
and development of economically sound industry and commerce to prevent so far as
possible the emergence of blighted and marginal lands and areas of chronic
unemployment; and
WHEREAS, the Project to be financed by the Bonds consists of the refinancing,
acquisition, construction or renovation by the Developer of housing and/or health care
facilities as more particularly described in Exhibit A. The Developer will be the initial
owner and operator of The Mayfield and the Gardens of Gideon Pond; McKnight Care
Center and Lakeview will be initially owned and operated by Presbyterian Homes of
Arden Hills, Inc.; Presbyterian Homes on Lake Minnetonka, will be initially owned and
operated by Presbyterian Homes Care Centers; Bloomington Care Center will be initially
owned by Presbyterian Homes Bloomington Care Center, Inc.; and Mill Pond Care
Center will be initially owned and operated by Presbyterian Homes Mill Pond Care
Center, Inc. The Developer and/or one or more or all of the foregoing entities will be the
obligors under the Bonds (the "Obligated Group"). Presbyterian Homes Management and
Services, Inc. will initially manage all facilities. The Project will result in the provision
of additional rental housing opportunities to elderly persons within the community; and
WHEREAS, in accordance with Minnesota Statutes, Section 462C.04, Subdivision 2, the
City has heretofore submitted to the Metropolitan Council (the "Council") a program to
finance the Project; and
WHEREAS, a public hearing on the Project was held on the date hereof, after notice was
published and materials made available for public inspection at the City Hall, all as
required by the Housing Program Act, the Industrial Development Act and Section l47(f)
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
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 ofthe City of Arden
Hills, Minnesota, as follows:
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Resolution No. 99-19
Page Three
June 28, 1999
I. 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, construction or
renovation of housing and/or health care facilities within the City pursuant to
the Developer's specifications 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 revenues sufficient to
pay, when due, the principal and interest on the Bonds in the total principal
amount of not to exceed $30,000,000 to be issued pursuant to the Housing
Program Act and the Industrial Development Act to finance the refinancing,
acquisition, construction and renovation of the Project; and said agreement may
also provide for the entire interest of the Developer therein to be mortgaged to
the purchasers of the Bonds, or a trustee for the holder(s) of the Bonds; and the
City, acting by and through the City, hereby undertakes preliminarily to issue
its bonds in accordance with such terms and conditions.
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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 enhance
the security for, or marketability of, the Bonds; 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 City, and to
promote more intensive development and use of land within the City.
.
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 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
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Resolution No. 99-19
Page Four
June 28, 1999
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 ofland 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 Bonds as to
ultimate details ofthe 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
underwriter of the Bonds as to the maturities, interest rates and other terms and
provisions of the Bonds and as to the covenants and other provisions ofthe
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 Bonds shall not constitute a charge, lien or encumbrance, legal or
equitable, upon any property or funds of the City except the revenue and
proceeds pledged to the payment thereof, nor shall the City be subject to any
liability thereon.
.
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Resolution No. 99-19
Page Five
June 28, 1999
The holder of the Bonds shall never have the right to compel any exercise of
the taxing power of the City to pay the outstanding principal on the Bonds or
the interest thereon, or to enforce payment thereon against any property of the
City, except such property as may be expressly pledged tor the security of the
Bonds. The Bonds shall recite in substance that Bonds, including the interest
thereon, are payable solely from the revenue and proceeds pledged to the
payment thereof. The Bonds shall not constitute a debt of the City within the
meaning of any constitutional or statutory limitation.
10. In anticipation ofthe approval by all necessary entities of the housing program
and the issuance of the Bonds to finance all or a portion ofthe 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 portion of the costs of the Project to be financed from
the proceeds of the Bonds, as the Developer considers necessary, including the
use of interim, short-term financing, subject to reimbursement from the
proceeds of the Bonds if any when delivered but otherwise without liability on
the part of the City.
PASSED AND ADOPTED BY THE CITY COUNCIL ~THEeJ'TY OF ARDEN
HILLS THIS 281M DAY OF JUNE, 1999.. ~/ /
/I / .. /
//.. '7?#At'
ENNIS ROBST, MAYOR
ATTEST:
nRJ~~DMINTSTR^TOR
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EXTRACT OF MINUTES OF A 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 the City Hall in said City on Monday, the 28th day of
June, 1999, at 7:30 p.m.
The following members were present:
Councilmembers Aplikowski, Larson, Malone and Rem; Mayor Probst
and the following were absent:
N/A
Member Malone
introduced the following resolution and moved its adoption:
RESOLUTION NO. 99-19
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)
The motion for the adoption of the foregoing resolution was duly seconded by member
Rem
, and after full discussion thereof and upon vote being taken thereon,
the following voted in favor thereof:
Aplikowski, Larson, Malone, Probst, and Rem
and the following voted against the same:
N/A
whereupon said resolution was declared duly passed and adopted.
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.
CITY OF ARDEN HILLS
COUNTY OF RAMSEY
STATE OF MINNESOTA
I, the undersigned, being the duly qualified and acting Administrator of the City of Arden
Hills, MN, DO HEREBY CERTIFY that I have compared the attached and foregoing
extract of minutes with the original thereof on file in my office, and that the same is a full,
true and complete transcript of the minutes of a meeting of the City Council of said City,
duly called and held on the date therein indicated, insofar as such minutes related to a
resolution granting preliminary approval to the Presbyterian Homes Obligated Group
Project.
WITNESS my hand this 28th day of June, 1999.
B~&~S1RATOR
(Seal)