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Resolution 10500 RESOLUTION RECITING A PROPOSAL FOR A FINANCING PROGRAM FOR A MULTI-FAMILY RENTAL HOUSING DEVELOPMENT GIVING PRELIMINARY APPROVAL TO THE PROJECT AND THE PROGRAM, AUTHORIZING AN APPLICATION FOR BONDING AUTHORITY AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS (CENTENNIAL GARDENS PROJECT) WHEREAS, Briggs and Morgan, the City's bond counsel, has advised the City of Roseville, Minnesota (the "City") that it is generally authorized, pursuant to Minnesota Statutes, Chapter 462C (the "Act"), to issue revenue bonds to finance a program for the purpose of planning, administering, making or purchasing loans with respect to one or more multi-family housing developments; and WHEREAS, Gardens East Limited Partnership, a Minnesota limited partnership (the "Developer") has proposed that the City undertake a program to finance the Project (as defined below), through the issuance of approximately $12,500,000 of revenue bonds or other obligations (which may be issued in one or more series) (the "Bonds") pursuant to the Act; and WHEREAS, the Developer has advised the City that in order to bear tax-exempt interest as bonds for a qualified residential rental project, the Bonds require an allocation of federal volume limit to issue tax-exempt private activity bonds ("bonding authority"), and Minnesota Statutes, Chapter 474A, requires submission of a preliminary resolution in connection with an application for bonding authority; and WHEREAS, the Developer has advised the City that the Developer is currently engaged in the business of real estate development; and the project to be financed by the Bonds will consist of the acquisition, renovation and equipping of two 95-unit multi-family rental housing facilities for low and moderate income tenants located at 1420 Centennial Drive and 2825 North Pascal Street in the City (the "Project"); and WHEREAS, the City has been advised by representatives of the Developer that conventional, commercial financing to pay the capital costs of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced, but the Developer has also advised the City that with the aid of municipal financing, and resulting low borrowing costs, the Project is economically more feasible; and WHEREAS, this resolution is adopted prior to a public hearing on the Project and a program meeting the requirements of the Act; and WHEREAS, the Developer has advised the City that 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: 2019195v3 2