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HomeMy WebLinkAbout1998-112 CCRMember Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION NO. 98-112 RESOLUTION GIVING PRELIMINARY APPROVAL TO A SENIOR HOUSING PROJECT ON BEHALF OF BOCA LIMITED PARTNERSHIP, AUTHORIZING APPLICATION FOR ALLOCATION OF ISSUANCE AUTHORITY AND CALLING PUBLIC HEARING WHEREAS, Boca Limited Partnership, a Minnesota limited partnership to be formed (the "Borrower") has submitted an application to the City requesting revenue bond financing for a project (the "Project") generally described as the acquisition and rehabilitation of a 122-unit residential rental facility for senior citizens known as Shingle Creek Tower at 6221 Shingle Creek Parkway in the City, to be owned and operated by the Borrower; and WHEREAS, pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), the City is authorized to issue its revenue bonds to finance all or part of the cost of the Project, following the adoption of a housing finance program after a public hearing; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 1 Brooklyn Center, Minnesota that: The Project and the issuance of revenue bonds therefor in an amount up to approximately $7,200,000 are hereby given preliminary approval by the City, subject to the mutual agreement of the City, the Borrower and the initial purchaser of the bonds as to the details of the bonds and provisions for their payment. In all events, it is understood, however, that the bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the City's interest in the loan agreement with the Borrower and the Project, and the bonds, when, as, and if issued, shall recite in substance that the bonds, including interest thereon, are payable solely from the revenues received from the Project and property pledged to the payment thereof, and shall not constitute a debt of the City. 2. As required by the Act and by Section 147(f) of the Internal Revenue Code of 1986, as amended, this Council will conduct a public hearing on the Project, the housing financing program, a draft of which is on file with the City, and the proposal to issue the bonds therefor. The hearing will be conducted on Monday, July 27, 1998, at 7 p.m. The City Manager is authorized to cause notice of the hearing to be published and the draft housing program to be submitted to the Metropolitan Council for review as provided in the Act. RESOLUTION NO. 98-112 3. The Borrower may incur expenditures on the Project prior to the issuance of the bonds therefor, and such expenditures may be reimbursed from proceeds of the bonds, when issued. This resolution shall constitute an "official intent" to reimburse such expenditures for purposes of Treasury Regulations, Sections 1.103-8T(a)(5) and 1.150-2. 4. The City Manager is authorized and directed to prepare and submit an application to the Minnesota Department of Finance for an allocation of issuance authority for the Project and the bonds to be issued therefor, pursuant to Minnesota Statutes, Chapter 474A, as amended. Upon receipt form the Borrower of the amount of any required application deposit and application fee, the City shall issue its check or checks to the Department for the amount of the application deposit and application fee. Upon any refund of the application deposit to the City, the City will in turn refund the amount received to the Borrower. 5. The law firm of Kennedy & Graven, Chartered is authorized to act as Bond Counsel and to assist in the preparation and review of necessary documents relating to the Project and bonds issued in connection therewith. The City Manager and other officers, employees and agents of the City are hereby authorized to assist Bond Counsel in the preparation of such documents. 6. The Borrower has agreed to pay directly or through the City any and all cost incurred by the City in connection with the Project, whether or not the project is carried to completion, and whether or not the bonds or operative instruments are executed. 7. All;commitments of the City expressed herein are subject to the condition that by December 31, 1998, the City and the Borrower shall have agreed to mutually acceptable terms and conditions of the loan agreement, the bonds and of the other instruments and proceedings relating to the bonds and their issuance and sale. If the events set forth herein do not take place within the time set forth above, or any extension thereof, and the bonds are not sold within such time, this Resolution shall expire and be of no further effect. 8. The adoption of the Resolution does not constitute a guaranty or firm commitment that the City will issue the bonds as requested by the Borrower. The City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the bonds, or issue the bonds in an amount less than the amount referred to herein should the City at any time prior to issuance thereof determine that it is in the best interest of the City not to issue the bonds, or to issue the bonds in an amount less than the amount referred RESOLUTION NO. 98-112 1 to in paragraph 1 hereof, or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. June 23, 1998 Date /,~10-- 0 May ATTEST: V~ ~6~' City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Kay Lasman and upon vote being taken thereon, the following voted in favor thereof: Mayor Kragness, Kathleen Carmody, Kay Lasman and the following voted against the same: Debra Hilstrom whereupon said resolution was declared duly passed and adopted.