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Home My WebLink About1982 12-27 CCM Special Session MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN IN THE STATE OF MINNESOTA SPECIAL SESSION DECEMBER 27,'1982 I CITY HALL CALL TO ORDER The Brooklyn Center City Council met in special session and was called to order by Mayor Dean Nyquist at 7:02 p.m. ROLL CALL Mayor Dean Nyquist, Councilmembers Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis. Also present were City Manager Gerald Splinter, Chief of Police James Lindsay, and Administrative Assistants Brad Hoffman and Tom Bublitz. RESOLUTIONS RESOLUTION NO. 82 -258 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION APPROVING AGREEMENT NO. 61263M WITH THE MINNESOTA DEPARTMENT OF TRANSPORTATION The motion for the adoption of the foregoing resolution was duly seconded by member Bill Hawes, and upon vote being ta'.en thereon, the following voted in favor thereof: Dean Nyquist, Gene Lhotka, Celia Scott, Bill "awes, and Rich Theis; and the following voted against the same: 'none, whereupon said resolution was declared duly passed and adopted. RESOLUTION NO. 82 -259 Member Gene Lhotka introduced the following resolution and moved its adoption: RESOLUTION AMENDING THE 1982 AND 1983 GENERAL FUND BUDGETS 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. The City Manager introduced a Resolution Authorizing Joint Powers Agreement for a Single - Family Housing Revenue Bond Program. He explained to the Council that by joining a joint powers group, the City can get a better interest rate on the Housing Revenue Bonds, than if the City would undertake the program alone. He added that the Joint Powers Agreement does not restrict the City with regard to administration of the program. RESOLUTION NO. 82 -260 Member Bill Hawes introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING JOINT POWERS AGREEMENT FOR A SINGLE•-FAMILY HOUSING REVENUE BOND PROGRAM 12 -27 -82 -1- The motion for the adoption of the foregoing resolution was duly seconded by member Celia Scott, 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. The City Manager - introduced 'a Resolution Authorizing the Issuance of Single-Family Mortgage Revenue Bonds. He explained the bond program has the: same type of features found in industrial development revenue bonds, except that it is for housing and is issued under state authority. Administrative Assistant Hoffman explained the program allows the City to issue $8,250,000 in housing revenue bonds. He added that slightly more than $7,000,000 will be put out in the community for mortgage loans.." He noted that the $7,000,000 will provide between 1:20 and -140 mortgages in Brooklyn Center for first time home buyers who meet the income criteria for the program. He added that the program is limited to the purchase of homes in Brooklyn Center. Administrative Assistant Hoffman explained that, because of federal statutes, if the project developer would pay the $70,000 of the origination fee, the City could not issue tax exempt bonds. He added that the developer will add the $70,000 to the cost of purchasing land from the City'. He explained that the mortgage interest rate under the program is ll.65%_ and is an assumable mortgage. He also pointed out the mortgage involves only two points, one point to the seller, and one point paid by the buyer. He reviewed current FHA and GI mortgage interest rates which are at a2% plus six to seven points. Councilmember Theis inquired what would happen to the program if the interest rate went down another three points. Administrative Assistant Hoffman stated' that at that point the bonds may have to be called in. Councilmember Lhotka then inquired what the cost to the City would be if this would occur. Adminis- trative Assistant Hoffman replied That there would be no cost to the City and that the City's liability would be with the developer. He explained that the developer pays the 3% Origination fee which is $75,000, and that $2,500,000 in mortgage revenue funds is reserved for the developer. He explained that the City adds $70,000 to this amount and the HRA indemnifies Brutger for this amount if the `City ;is unable to deliver the land to the developer. The total maximum doss to the City would be the $70,000 plus $75,000 for a total of $145,000. He added that if the City delivers the land to the developer, then there would be no loss, even if the market rates go bad. Councilmember Theis inquired as to the bond rating for the mortgage revenue bonds. Administrative Assistant Hoffman stated that the bond rating for all the cities participating in the joint powers group would be AA +, and that if Brooklyn Center were to run the project alone, the rating would be BB +. Mayor Nyquist recognized Ms. Andrea Lubhou, the representative from Miller & Schroeder, who reviewed the bond summary sheet for Council members and explained that no FHA or VA loans would be made under the program, and that all loans would be privately insured. Councilmember.Hawes inquired what the income limits would be for first -time 12 -27 -82 -2- home buyers. The representative from Miller & Schroeder explained that the funds would be reserved for the first six months of the program for persons with adjusted gross incomes of less than $25,168. She explained that 90% of the funds will be set aside for first -time home buyers and lot for persons other than 'first -time buyers. 6 RESOLUTION 'NO. 82 -261 Member Celia Scott introduced the following resolution and moved its adoption: 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 CONTRACTING FOR THE ORIGINATION THEREOF PURSUANT TO THE PROGRAM; AUTHORIZING THE CONTRACTING FOR SERVICING THE MORTGAGE MANS 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 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 Nx =quist, 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. Councilmember Lhotka left the table at 7:38 p.m. LELS COLLECTIVE BARGAINING AGREEMENT The City Manager reviewed for Council members the language discussed between the City and LELS with regard to the Police Collective Bargaining Agreement. He explained the City staff has reviewed the language with the union but that they have not signed, and he is not sure where the problem, is with regard to the contract language. Councilmember Lhotka returned to the table at 7:40 p.m. The City Manager explained that- apparently -the problem with the contract is in a portion of the contract language, and that he recommends the Council take no action on the Collective Bargaining Agreement until it is signed by the union. The consensus of Council members was to defer action on the Collective Bargaining Agreement between the Law Enforcement Labor; Services Local No. 82, and the City of Brooklyn Center until the contract language can be resolved with the union. ADJOURNMENT There was a motion by Councilmember Hawes and seconded by Councilmember Theis to adjourn the meeting. Voting in favor: Mayor Nyquist Councilmembers Lhotka, Scott, Hawes, and Theis. Voting against: none. The motion passed unanimously. The Brooklyn Center City Council adjourned at 7 :41 p.m.. - r `Cler Mayor f 12 -27 -82 -3- w,