Loading...
HomeMy WebLinkAbout2024-70 CCRCouncilmember Jerzak introduced the following resolution: CITY OF BROOKLYN CENTER, MINNESOTA COUNTY OF HENNEPIN STATE OF MINNESOTA RESOLUTION NO.2024-70 APPROVING AMENDMENTS TO AND AUTHORIZING THE DEEMED REISSUANCE OF A CONDUIT MULTIFAMILY HOUSING REVENUE NOTE AND AMENDMENTS TO DOCUMENTS IN CONNECTION THEREWITH (THE CREST APARTMENTS PROJECT) WHEREAS, pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), the City of Brooklyn Center, Minnesota (the "City") is authorized to carry out the public purposes described in the Act by issuing revenue bonds and notes or other obligations to finance or refinance multifamily housing developments located within the City; WHEREAS, in connection with the issuance of the City's revenue bonds and in the making of a loan to finance a multifamily housing development, the City may exercise, within the corporate limits, any of the powers that the Minnesota Housing Finance Agency may exercise under Minnesota Statutes, Chapter 462A; WHEREAS, on December 28, 2021, the City issued and sold to Bridgewater Investment Management, Inc., a Minnesota corporation (the "Lender"), its $19,000,000 Multifamily Housing Revenue Note (The Crest Apartments Project), Series 2021 (the "Note"), to (i) finance the acquisition of The Crest Apartments, an existing 122-unit rental housing facility located at 6221 Shingle Creek Parkway in the City, the rehabilitation thereof to include, among other things, one additional unit, and the construction and equipping of an approximately 48-unit building to be located on the same property in the City (the "Project"), owned and operated by Crest Limited Partnership, a Minnesota limited partnership (as successor to The Crest Apartments LLC, a Minnesota limited liability company, the `Borrower"); (ii) fund one or more reserve funds to secure the timely payment of the Note, if necessary; (iii) pay interest on the Note during the renovation of the Project, if necessary; and (iv) pay the costs of issuing the Note; WHEREAS, in accordance with a certain Loan Agreement, by and between the City and the Borrower, dated December 28, 2021 (the "Loan Agreement"), the City loaned the proceeds of the Note to the Borrower to complete the Project; and the City assigned to and granted to the Lender a security interest in all of the City's right, title and interest in and to the Loan Agreement (except the City's rights to indemnification and payment of costs and expenses as provided in the Loan Agreement) pursuant to an Assignment of Loan Agreement, dated as of December 28, 2021, between the City and the Lender; WHEREAS, the Borrower has heretofore requested and the Lender has heretofore agreed to extend the Purchase Date (as defined in the Note) to June 28, 2024, pursuant to that certain First BR291409-956287.v2 Amendment to Certain Loan Documents, by and between the Borrower and the Lender, dated as of December 7, 2023; WHEREAS, the Borrower has now requested that the Lender and the City agree to extend the maturity date of the Note pursuant to an Amendment No. 1 to Multifamily Housing Revenue Note (The Crest Apartments Project), Series 2021 (the "Note Amendment"); WHEREAS, the Lender is willing to agree to the Borrower's request on certain conditions set forth in a Second Amendment to Certain Loan Documents, between the Borrower and the Lender, and an Amendment No. 1 to Loan Agreement between the Borrower and the City (the "Loan Agreement Amendments" and, together with the Note Amendment, the "Amendments"); WHEREAS, the Amendments, if approved, would cause a reissuance of the Note (the "Reissuance") for tax purposes pursuant to Section 1.1001-3 of the Treasury Regulations promulgated under the Internal Revenue Code of 1986 (the "Code"), as amended; WHEREAS, on the date hereof, in accordance with Section 147(f) of the Code, the City Council held a public hearing on the Reissuance and the Amendments, following duly published notice in the Sun Post, a newspaper of general circulation in the City; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota (the "Council"), as follows: 1. The City hereby authorizes the Reissuance and approves the Amendments together with any related documents necessary in connection therewith or in connection with the extension of the maturity date, including without limitation a tax certificate and an Information Return for Tax - Exempt Private Activity Bond Issues, Form 8038 (collectively, the "Amendment Documents"), and hereby authorizes and directs the Mayor and the City Manager of the City to execute the Amendment Documents on behalf of the City, and to carry out, on behalf of the City, the City's obligations thereunder. 2. All of the provisions of the Amendment Documents, when executed and delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated verbatim herein and shall be in full force and effect from the date of execution and delivery thereof. 3. The approval hereby given to the Amendment Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the City and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the City. The execution of any instrument by the appropriate officers of the City herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. In the event of absence or disability of the officers, any of the documents authorized by this Resolution to be executed may be executed without further act or authorization of the Council by any duly designated acting official, or by such other officer or officers of the City as, in the opinion of legal counsel to the City, may act in their behalf. BR291409-956287.v2 2 This Resolution shall be in full force and effect from and after its approval. Whereupon said resolution was declared duly passed and adopted, and was signed by the Mayor, and attested by the Clerk dated this 24th day of June, 2024. Mayor ATTEST: &4A A_&� Assistant City Manager/City Clerk The motion for the adoption of the foregoing resolution was duly seconded by Councilmember: Graves and upon vote being taken thereon, the following voted in favor thereof: Graves, Jerzak, Kragness, Lawrence -Anderson and the following voted against the same: none whereupon said resolution was declared duly passed and adopted. BR291-409-956287.v2