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HomeMy WebLinkAbout1982-261 CCRMember Celia Scott introduced the following resolution and moved its adoption: RESOLUTION NO. 82 -261 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER, AUTHORIZING THE ISSUANCE OF SINGLE FAMILY MORTGAGE REVENUE BONDS, IN THE AGGREGATE PRINCIPAL AMOUNT OF $31,758,000, WHICH BONDS AND THE INTEREST AND PREMIUM THEREON SHALL BE PAYABLE SOLELY FROM THE REVENUES OF THE PROGRAM; PRESCRIBING THE FORM OF AND AUTHORIZING THE EXECUTION OF AN INDENTURE OF TRUST; AUTHORIZING THE EXECUTION AND SALE OF THE BONDS AND DIRECTING DELIVERY THEREOF; AUTHORIZING ACCEPTANCE OF THE BOND PURCHASE AGREEMENT IN CONNECTION WITH THE BONDS; AUTHORIZING THE PURCHASE OF MORTGAGE LOANS AND THE CONTRACT- ING FOR THE ORIGINATION THEREOF PURSUANT TO THE PROGRAM; AUTHORIZING THE CONTRACTING FOR SERVICING THE MORTGAGE LOANS AND FOR PROGRAM ADMINISTRATION SERVICES PURSUANT TO THE PROGRAM; AUTHORIZING THE EXECUTION OF A JOINT POWERS AGREEMENT FOR THE ISSUANCE OF THE BONDS; APPROVING A PRELIMINARY OFFICIAL STATEMENT AND A FORM OF FINAL OFFICIAL STATEMENT AND PROVIDING FOR THE SECURITIES, RIGHTS, AND REMEDIES OF THE HOLDERS OF SAID REVENUE BONDS. WHEREAS, the City of Brooklyn Center, Minnesota (the "City is a home rule charter city duly organized and existing under the Constitution and laws of the State of Minnesota; and WHEREAS, the City, together with the City of Moorhead, Minnesota, the City of Columbia Heights, Minnesota and The Housing and Redevelopment Authority in and for the City of Robbinsdale, Minnesota (collectively, the "Issuers desires to issue revenue bonds for the financing of housing within its boundaries; and WHEREAS, pursuant to the Constitution and laws of the State of Minnesota, particularly Minnesota Statutes, Chapter 462C, as amended (the "Act and Minnesota Statutes, Section 471.59 (the "Joint Powers Act the Issuers are authorized to jointly carry out the public purposes described therein and contemplated thereby in the financing of housing within each of their boundaries, by acquiring home mortgage loans (the "Mortgage Loans by issuing revenue bonds -1- RESOLUTION NO. $2 -261 to carry out such financing and by pledging the Mortgage Loans and any agreements made in' connection therewith as security for the payment of the principal of and interest on any such revenue bonds (the "Program"); and WHEREAS, the City developed a Housing Plan pursuant to and in conformity with the Act and on September 20, 1982, held a public hearing thereon after one publication of notice in a newspaper circulating generally in the City; and WHEREAS, the Metropolitan Council reviewed the Housing Plan on November 4, 1982, and forwarded its comments to the City, which comments were received by the City on November 22, 1982 and incorporated into the Housing Plan by Amendment Number 1 to the Housing Plan on such date; and WHEREAS, the. Single Family Mortgage Revenue Bond Program (the "Housing Program"}, constituting a separate section of the Housing Plan for which an issue of revenue bonds or obligations was proposed, was developed by the City and made a part of the Housing Plan; and WHEREAS, the Act requires approval of the Housing Program by the Minnesota Housing Finance Agency (the "Agency which approval was given on September 23, 1982; and WHEREAS, pursuant to the Act, the State Housing Act, the Joint Powers Act and the Indenture of Trust (the "Indenture dated December 29, 1982 between the Issuers and First Trust Company of Saint Paul, Saint Paul, Minnesota (the "Trustee the Issuers propose to undertake the Program, and for the financing thereof, to authorize, issue and sell jointly, the Single Family Mortgage Revenue Bonds, Series 1982 in the aggregate principal amount of $31,758,000, payable solely from the revenues of the Program (the 'Bonds and WHEREAS, the Program will be administered and the Mortgage Loans serviced on behalf of the Issuers and the Trustee by Banco Mortgage Company, an Iowa corporation (the "Program Administrator pursuant to a Program -2- RESOLUTION NO. 82 -261 Administration and Servicing Agreement (the "Program Administration Agreement by and between the Issuers, the Trustee and the Program I Administrator; and the Mortgage Loans will be originated and sold to the Issuers by various lending institutions (the "Originators pursuant to Mortgage Origination and Sale Agreements (the "Origination Agreements by and among each Originator, the Issuers, the Program Administrator, and accepted by the Trustee and pursuant to Builder Developer Commitment. Agreements by and among the Builder Developers, the Originators, and the various Issuers (the "Builder Developer Commitment Agreements'l; and said agreements (collectively the "Agreements') will be duly executed by the parties thereto; and WHEREAS, neither the City nor any of the Issuers nor the State of Minnesota or any political subdivision thereof .(other than the City) shall be liable on the Bonds, and the Bonds shall not be a debt of the City, the issuers, the State of Minnesota, or any political subdivision thereof (other than the City), and in any event shall not give rise to a charge against the general credit or taxing power of the City, the Issuers, the State of Minnesota, or any political subdivision thereof (including without limitation the City), and shall not be payable out of any funds or properties other than those of the City provided as security by the Indenture; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER, MINNESOTA, THAT: Section 1. The City Council of the City acknowledges, finds, determines, and declares that the preservation of the quality of life in the City is dependent upon the maintenance, provision, and preservation of an adequate housing stook, that accomplishing this is a public purpose, and that many would -be purchasers or providers of housing units in the City are either unable to afford mortgage credit at present market rates of interest or are unable to obtain mortgage credit because the mortgage credit market is severely restricted. -3- RESOLUTION NO. 82 -261 Section 2. The City Council of the City further finds, determines, and declares that the purpose of the Program is to purchase Mortgage Loans made to finance the purchase of owner- occupied,. single- family housing units located anywhere within the boundaries of the City, for occupancy primarily by persons of low and moderate income. Section 3. For the purpose of financing the Program there is hereby 1 authorized the issuance of $31,758,000 Single Family Mortgage Revenue Bonds, Series 1982 (the "Bonds'l issued jointly with the City of Moorhead, Minnesota, the City of Columbia Heights, Minnesota and The Housing and Redevelopment Authority in and for the City of Robbinsdale, Minnesota. The Bonds shall bear interest at such rates, shall be in such denomination, shall be numbered, shall be dated, shall mature, shall be subject to redemption prior to maturity, shall be in such form, and shall have such other details and provisions as are prescribed by the Indenture and the Official Statement hereinafter referred to. Section 4. The Bonds shall be special obligations of the Issuers payable solely from the revenues of the Program, in the manner provided in the Indenture. The City Council of the City hereby authorizes and directs the Mayor of the City (the "Mayor and the City Manager of the City (the "City Manager to execute, under the corporate seal of the City, the Indenture by and between the Issuers and th e Trustee, and to deliver to said Trustee the Indenture, and hereby authorizes and directs the execution of the Bonds in accordance with the Indenture, and hereby provides that the Indenture shall provide the terms and conditions, covenants, rights, obligations, duties, and agreements of the bondholders, the Issuers, and the Trustee as set forth therein. All of the provisions of the Indenture, when executed 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 RESOLUTION NO. 82 -261 execution and delivery thereof. The Indenture shall be substantially in the form on file with this City Council on the date hereof, and is hereby approved, with such necessary and appropriate variations, omissions, and insertions as are not materially inconsistent with such form and as the Mayor, in his discretion, shall determine; provided that the execution thereof by the Mayor shall be conclusive evidence of such determination. Section 5. The Mayor and City Manager are hereby authorized and directed to execute and deliver the Bond Purchase Agreement (the "Underwriting Agreement from Miller and Schroeder Municipals, Incorporated (the "Underwriter All of the provisions of the Underwriting Agreement, 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_ form the date of execution and .delivery thereof. The Underwriting Agreement shall be substantially in the form on file with this City Council on the date hereof, and is hereby approved, with such necessary and appropriate variations, omissions, and insertions as are not materially inconsistent with such form and as the Mayor, in his discretion, shall determine; provided that the execution thereof by the Mayor shall be conclusive evidence of such determination. Section 6. The Mayor and City Manager are hereby authorized and directed to execute and deliver the Origination Agreements with all of the mortgage lending institutions which delivered executed Origination Agreements to the Issuers in accordance with the instructions of the Issuers and, when executed and delivered as authorized herein, the Origination Agreements 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. The Origination Agreements shall be substantially in the form on file with this City -5- RESOLUTION NO. 82 -261 Council on the date hereof, which is hereby approved, with such necessary variations, omissions, and insertions as are not materially inconsistent with such form and as the Mayor, in his discretion, shall determine; provided that the execution thereof by the Mayor shall be conclusive evidence of such determination. The Mayor and City Manager are hereby authorized and directed to execute and accept the Builder Developer Commitment Agreements with ali of the Builder Developers and Originators which delivered executed Builder- Developer Commitment Agreements to the City in accordance with the instructions of the City and, when executed and delivered as authorized herein, the Builder Developer Commitment Agreements 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. The Builder Developer Commitment Agreements shall be substantially in the form on file with this City Council on the date hereof, and is hereby approved, with such necessary variations, omissions, and insertions as are not materially inconsistent with such form and as the Mayor, in his discretion, shall determine; provided that the execution thereof by the Mayor shall be conclusive evidence of such determination. Section 7. The Mayor and City Manager are hereby authorized and directed to execute and deliver the Program Administration Agreement and, when executed and delivered as authorized herein, the Program Administration Agreement 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. The Program Administration Agreement shall be substantially in the form on file with this City Council on the date hereof, and is hereby approved, with such necessary variations, omissions, and insertions as are not materially inconsistent with such form and as the Mayor, in his discretion, shall determine; provided that the execution thereof by the Mayor shall be conclusive evidence of such determination. RESOLUTION NO. 82 -261 Section 8. The Mayor and City Manager are hereby authorized and directed to execute and deliver the Joint Powers Agreement between and among the Issuers, providing for a joint housing program and the joint issuance of the Bonds, and, when executed and delivered as authorized herein, the Joint Powers Agreement shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated herein and shall be in full force and effect from the date of execution and delivery thereof. The Joint Powers Agreement shall be substantially in the form which is on file with this City Council, which is hereby approved, with such necessary and appropriate variations, omissions and insertions as are not materially inconsistent with such form and as the Mayor, in his discretion, shall determine; provided that the execution thereof by the Mayor shall be conclusive evidence of such determination. Section 9. The City Council of the City hereby approves the Investment Agreement to be executed by the Trustee and The First National Bank of Saint Paul, providing for the investment of moneys held by the Trustee, and when executed and delivered as authorized herein, the Investment Agreement shall be deemed to be a part of this resolution as fully and to the same extent as if Incorporated herein. The Investment Agreement shall be substantially in the form .Which is on file with this City Council, which is hereby approved, with such necessary and appropriate variations, omissions and insertions.as are not materially inconsistent with such form and as the Mayor, in his discretion, shall determine. Section 10. The City Council of the City hereby approves the Letter of Credit to be executed and delivered on behalf of the Underwriter by The First National Bank of Saint Paul to the Trustee (and accompanying documents), and, when executed and delivered as authorized herein, the Letter of Credit shall be deemed to be a part of this resolution as fully and to the same_ extent as if incorporated herein. The Letter of Credit shall be substantially in the form which rr T RESOLUTION NO. 82 -261 is on file with this City Council which is hereby approved, with such necessary and appropriate variations, omissions and insertions as are not materially inconsistent r with such form and as the Mayor, in his discretion, shall determine. Section 11. All covenants, stipulations, obligations, representations, and agreements of the City contained in this resolution or contained in the Indenture or other documents referred to above shall be deemed to be the covenants, stipulations, obligations, representations, and agreements of the City to the full extent authorized or permitted by law, and all such covenants, stipulations, obligations, representations, and agreements shall be binding upon the City. Except as otherwise provided in this resolution, all rights, powers, and privileges conferred, and duties and liabilities imposed, upon the City or the City Council members thereof by the provisions of this resolution or of the Indenture or other documents referred to above shall be exercised or performed by the City, or by such members, officers, board, body, or agency as may be required or authorized by law to exercise such powers and to perform such duties. No covenant, stipulation, obligation, representation, or agreement herein contained or contained in the Indenture or other documents referred to above shall be deemed to be a covenant, stipulation, obligation, representation, or agreement of any officer, agent, or employee of the City in that person's individual capacity, and neither the members City Council of the City nor any officer or employee executing the Bonds shall be liable personally on the Bonds or be subject to any personal liability, or accountability by reason of the issuance thereof. Section 12. Except as herein otherwise expressly provided, nothing in this resolution or in the Indenture, expressed or implied, is intended or shall be construed to confer upon any person, firm, or corporation other than the City, the holders of the Bonds, and the Trustee any right, remedy, or claim, legal or equitable, under and by reason of this resolution or any provision hereof or of the -8- At Indenture or any provision thereof, this resolution, the Indenture and all of their provisions being intended. to be and being for the sole and exclusive benefit of the City and the holders from time to time of the Bonds issued under the provisions of this resolution and the Indenture. Section 13. In case any one or more of the provisions of this resolution or of the Indenture or of the Bonds issued hereunder shall for any reason be held to be Illegal or invalid, such illegality or invalidity shall not affect any other provision of this resolution or of the Indenture or of the Bonds, but this resolution, the Indenture, and the Bonds shall be construed as if such illegal or invalid provision had not been contained therein. The terms and conditions set forth in the Indenture, the pledge of revenues derived from the Program referred to in the Indenture, the pledge of collateral derived from the Program referred to in the Indenture, the creation of the funds provided for in the Indenture, the provisions relating to the application of the proceeds derived from the sale of the Bonds pursuant to and under the Indenture, and the application of said revenues, collateral, and other monies are all commitments, obligations, and agreements on the part of the City contained in the Indenture, and the invalidity of the Indenture shall not affect the commitments, obligations, and agreements on the part of the City to create such funds and to apply said revenues, other monies, and proceeds of the Bonds for the purposes, in the manner, and according to the terms and conditions fixed in the Indenture, it being the intention hereof that such commitments on the part of -the City are as binding as if contained in this resolution separate and apart from the Indenture. Section 14. All acts, conditions, and things required by the laws of the State of Minnesota, relating to the adoption of this resolution, to the issuance of the Bonds, and to the execution of the Indenture and the other documents referred to above to happen, exist, and be performed precedent to and in the enactment of this RESOLUTION NO. 82 -261 i a s RESOLUTION NO. 82 -261 resolution, and precedent to the issuance of the Bonds, and precedent to the execution of the Indenture and the other documents referred to above have happened, exist, and have been performed as so required by law. Section 15. The City Council of the City, officers of the City, and attorneys and other agents or employees of the City are hereby authorized to do all acts and things required of them by or in connection with this resolution and the Indenture and the other documents referred to above for the full, punctual, and complete performance of all the terms, covenants, and agreements contained in the Bonds, the Indenture and the other documents referred to above, and this resolution. Section 16. The City hereby approves the Preliminary Official Statement, dated December 10, 1982, relating to the Bonds, and ratifies the distribution thereof by the Underwriter. The City hereby approves the form and authorizes the use by. the Underwriter in connection with the sale of the Bonds of the Final Official Statement, and hereby authorizes and directs the Mayor to execute and deliver copies thereof to the Underwriter; provided that the Mayor may approve such variations, omissions, and insertions as are not materially inconsistent with the form on file with this City Council on the date hereof. The Preliminary Official Statement and the Final Official Statement are the sole materials authorized by the City for use in connection with the offer and sale of the Bonds. Section 17. The City Manager and any designee of the City Manager are hereby designated and authorized to execute the Officer's Certificates, as defined in the Indenture, and to take such other administrative action as is permitted or required by the Indenture, the Origination Agreements, the Program Administration Agreement, and the Joint Powers Agreement. Section 18. The Mayor and City Manager of the City are authorized and directed to execute and deliver any and all certificates, agreements or other -10- RESOLUTION NO. 82 -261 documents which are required by the Indenture, the Origination Agreements, the Underwriting Agreement- or the Program Administration Agreement, or any other certificates or documents which are deemed necessary by bond counsel to evidence the validity or enforceability of the Bonds, the Indenture or the other documents referred to in this Resolution, or to evidence compliance with Section 103A or Section 103(c) of the Internal Revenue Code, as amended; and all such agreements or representations when made shall be deemed to be agreements or representations, as the case may be, of the City. Section 19. If for any reason the Mayor of the City is unable to execute and deliver those documents referred to in this Resolution any other member of the City Council of the City may execute and deliver such documents with the same force and effect as if such documents were executed by the Mayor. If for any reason the City Manager of the City is unable to execute and deliver the documents referred to in this Resolution, such documents may be executed and delivered by any other member of the City Council with the same force and effect if such documents were executed and delivered by the City Manager of the City. 1 RESOLUTION NO. 82 -261 Section 20. This resolution shall be in full force and effect from and after its passage. December 27, 1982 Date Mayor ATTEST: Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Bill Hawes and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. -12-