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HomeMy WebLinkAbout85-020 • CERTIFICATION OF MINUTES RELATING TO $11,600,000 HOUSING DEVELOPMENT REVENUE BONDS Issuer: City of Lakeville, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A council meeting held on Monday, March 18, 1985, at 7:00 P.M. at the Council Chambers in Airlake Industrial Park. Members present: Nelson, Sindt, Enright, Harvey, Zaun Members absent: None Documents Attached: Minutes of said meeting (pages): RESOLUTION N0. 85-20 RESOLUTION RELATING TO THE ISSUANCE OF REVENUE BONDS PURSUANT TO CHAPTER 462C, MINNESOTA STATUTES, FOR THE PURPOSE OF FINANCING A MULTI-FAMILY HOUSING DEVELOPMENT; GIVING PRELIMINARY APPROVAL TO THE DEVELOPMENT, AND AUTHORIZING SUBMISSION OF THE HOUSING PROGRAM FOR REVIEW I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the bonds referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they .relate to said bonds; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this 18th day of March, 1985. Signature (SEAL) Patrick McGarvey, City Clerk Name and Title i Member Enright introduced the following resolution and moved its adoption: RESOLUTION N0. 85-20 RESOLUTION RELATING TO THE ISSUANCE OF .REVENUE BONDS PURSUANT TO CHAPTER 462C, MINNESOTA STATUTES, FOR THE .PURPOSE OF FINANCING A MULTI-FAMILY HOUSING DEVELOPMENT; GIVING PRELIMINARY APPROVAL TO THE DEVELOPMENT, AND AUTHORIZING SUBMISSION OF THE HOUSING PROGRAM FOR REVIEW BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota, (the City) as follows: Section 1. Recitals and Findings. 1.01. By the provisions of Minnesota Statutes, Chapter 462C, as amended (the Act), the City is authorized to plan, administer, issue and sell revenue bonds or obligations to make or purchase loans to finance one or mare multi-family housing developments within its boundaries which revenue bonds or obligations shall be payable solely. from. the revenues of .the development. • 1,02. The Act provides that, prior to issuing revenue bonds or obligations to finance a multi-family housing development, the City must develop a housing plan and submit the housing plan :for review to the Metropolitan Council. 1.03. The Act further provides that the City may plan, administer and make or purchase a loan or loans to finance one or more developments of the kinds described in Subdivisions 2, 3, 4 and 7 of Section 46X.05 of the Act upon adoption of a program setting forth the information required by Subdivision 6 of Section 46X..05 of the Act. 1.04. James H. Sorenson, on behalf of a partnership to be formed with James H. Sorenson as a general partner (the Borrower), has advised this Council of his desire to acquire certain land located in the City t 1$Oth Street West and Highway 50 and to construct and equip thereon rental $partment buildings consisting of up to 249 units together with parking and related facilities (the Project). The Froject will be designed, in part, for rental to .persons of low and moderate income. Total development and financing costs are presently estimated by the Borrower to be approximately $11,.160,000. • 1.05. The Borrower has requested that the City issue its . xevenue bonds in one or more series (the Bonds) pursuant to the author- i y of the Act in such aggregate principal amount as may be necessary to finance all or a portion of the :costs of the project and make the proceeds of the Bonds available to the Borrower for the acquisition,. construction and equipping of the Project, subject to agreement by the Borrower to paq promptly the principal of .and interest on the Bonds. 1.06. This Council has been advised by the Borrower that conventional, commercial financing to pay the cost 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 signifi- cantly reduced, but that with the aid of municipal borrowing, and its resulting lower borrowing cost, the Project is economically more. feasible. 1.07. This Council has also been advised by the Borrower that on the basis of its discussions with potential buyers of tax-exempt bonds, revenue bonds of the City (which may be in the form of a housing development revenue note or notes) could be issued and sold upon favorable rates and terms to finance the Project. 1.08. The full faith and credit of the City will not be pledged to or responsible for the payment of the principal of and interest on the Bonds. Section 2. Approvals and Authorizations. 2.01. On the basis of the information given. the. City-to date, it appears that it would be desirable for .the City to issue its revenue bonds under the provisions of the Act, in one or more .series, to finance the Project in a total amount .not to exceed $11,160,000. 2.02. ..The Council hereby gives preliminary approval to the Project financing, and hereby declares its present intent to have the City issue its revenue bonds under the Act to finance the Project. The City is making no commitment to approve the Project. The Bonds shall not be issued until the City's housing plan and housing .program for the Project. have been adopted and reviewed as provided in the Act, and the City Administrator and City Attorney are authorized to proceed with the preparation of such documents as may be required. Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the City or this Council to issue or to cause the issuance of such revenue bonds. All details of .such revenue bond issue and the provisions for payment thereof shall be subject to the mutual agreement of this Council, the Borrower and the purchaser or purchasers of the revenue bonds and such further conditions as the City may specify, such agreement and specifications on the part of the City to be evidenced by a resolution of this Council authorizing the issuance of the revenue bonds on the terms and conditions agreed upon and authorizing the execution of necessary documents. In all events, it is understood that the revenue bonds shall not constitute a • 2 # charge, lien or encumbrance, legal or equitable, upon any property of the City except the revenues pledged to payment of such revenue bonds, and each bond, when, as and if issued, shall recite in substance that. the bond, including interest thereon, is payable solely from the revenues .received from the Project and any property pledged to the payment thereof and shall not constitute a debt of the City within the meaning of any constitutional, statutory. or charter limitation. 2.03. The Borrower shall pay .any and all costs incurred by the City in connection with the Project whether or not the program is approved by the Minnesota Housing Finance Agency; whether or not the Project is carried to completion; and whether or not the Bonds and all operative instruments are executed. ADOPTED this 18th day of March, 1985 CITY OF LAKEVILLE i BY: ne Zaun, May ATTEST: } ~A Patrick E. Mc arvey, ity Clerk The motion for the adoption of the foregoing resolution was duly seconded by Member Sind t and upon vote being taken thereon, the following voted in favor thereof: Enright, Harvey, Nelson, Zaun, Sindt and the following voted against the same: None whereupon the resolution was declared duly passed and adopted. • 3