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HomeMy WebLinkAbout1998-132 CCRMember Kathleen Carmody introduced the following resolution and moved its adoption: RESOLUTION NO. 98-132 RESOLUTION ADOPTING A HOUSING PROGRAM PROVIDING FOR THE ISSUANCE AND SALE OF MULTIFAMILY REVENUE BONDS IN THE APPROXIMATE AMOUNT OF $7,200,000 RELATING TO SHINGLE CREEK TOWER PROJECT WHEREAS, the City of Brooklyn Center, Minnesota (hereinafter referred to as the "Issuer"), is a body corporate and politic organized and existing under the laws and the Constitution of the State of Minnesota (the "State"), is authorized and empowered by Minnesota Statutes, Chapter 462C, as amended (hereinafter referred to as the "Act"), to issue its obligations and use the proceeds from the sale of said obligations to finance the acquisition and rehabilitation of multifamily housing developments, and to secure such obligations by the pledge of all or any part of the revenues of the project financed: and WHEREAS, the Issuer has been requested by Boisclair Corporation, the general partner of Boca Limited Partnership, a Minnesota limited partnership (the "Borrower") to issue its obligations to finance the acquisition and rehabilitation of an existing 122-unit residential rental facility for senior citizens located at 6221 Shingle Creek Parkway in Brooklyn Center and known as Shingle Creek Tower (the "Project") by the Borrower; and WHEREAS, the Issuer has by Resolution No. 98-112 adopted on June 23, 1998 given its preliminary approval to the issuance of revenue bonds in an amount up to approximately $7,200,000 for the purpose of financing the Project; and WHEREAS, there has been proposed a program (the "Program") for the issuance of bonds to make a loan to finance the acquisition and rehabilitation of the Project; and WHEREAS, the Issuer on the date hereof has conducted a public hearing on the Program, following publication of notice as required by the Act; and WHEREAS, the Program was submitted to the Metropolitan Council on or prior to the date of publication of notice of the public hearing on such Program, and the Metropolitan Council has been afforded an opportunity to present comments at the public hearing, all as required by the Act; and WHEREAS, the Issuer desires to encourage the preservation of affordable housing opportunities for residents of the Issuer, encourage the preservation of housing facilities designed for occupancy by persons of low or moderate income, including senior citizens, within the boundaries of the Issuer, and the maintenance of affordable units in the Project would assist the Issuer in achieving these objectives; and RESOLUTION NO. 93-132 WHEREAS, the Program will result in the provision of decent, safe and sanitary rental housing opportunities to persons within the community; and WHEREAS, this City Council has been advised that conventional commercial financing to pay the capital costs of the Program 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 City Council has been further advised that with the aid of municipal financing and resulting low borrowing costs, the Project is economically more feasible; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota: 1. The issuance of multifamily housing revenue bonds pursuant to the Act in the approximate amount presently estimated not to exceed $7,200,000 to finance the costs of the Program is hereby preliminary approved by the City Council subject to final agreement between the Issuer, the Borrower, and the purchaser of the bonds as to the detailed terms and conditions on which the bonds will be issued. 2. The Program is hereby adopted, with the following specific conditions: a. Tenant paid portion of the monthly rent will not be increased by the Borrower for one year from the date of acquisition. b. If a resident has to move while building is under construction, the Borrower will bear the expense. c. Annual rent for existing tenant will not be increased by more than 3% or the Consumer Price Index, whichever is lower. d. Current residents will be able to stay as tenants after purchase of the Project by the Borrower as long as they desire and meet their obligations as tenants. e. Cable hook-ups will be provided at no cost to the residents, provided actual monthly service will be at the tenant's expense, 3. The Issuer shall have the right in its sole discretion to withdraw from participation and, accordingly, not to issue the bonds for the Project should the Issuer, at any time prior to the issuance thereof, determine that it is in the interest of the Issuer not to issue the bonds or should the parties to this transaction be unable to reach agreement as to the terms and conditions of any of the documents required for this transaction. The decision of the Issuer with respect to the aforementioned matters shall be uncontestable. RESOLUTION NO. 98-132 4. Nothing in this Resolution or the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Program other than as specified and authorized by separate actions of the City Council and other than the revenues derived from the Project. July 27, 1998 itlv~~ Date MayorO ATTEST: ~/~~2Y! 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 Myrna Kragness, Kathleen Carmody, Kay Lasman, and Robert Peppe; and the following voted against the same: Debra Hilstrom whereupon said resolution was declared duly passed and adopted.