Loading...
00-109 . Resolution No. 00-109 RESOLUTION RELATING TO A MULTIFAMILY HOUSING DEVELOPMENT AND RELATED HOUSING PROGRAM ON BEHALF OF MOUNT OLIVET ROLLING ACRES, INC., THE ISSUANCE OF REVENUE BONDS THEREFOR UNDER THE MUNICIPAL HOUSING PROGRAMS ACT, AND CALLING FOR A PUBLIC HEARING THEREON BE IT RESOLVED by the City Council of the City of Shorewood, Minnesota (the "City"), as follows: Section 1. Recitals 1.1. The City (sometimes referred to as a "Participating Jurisdiction") is authorized by Minnesota Statutes, Chapter 462C, as amended (the "Housing Programs Act"), to assist in the financing of multifamily housing developments within its boundaries, and, specifically, to authorize the issuance of revenue bonds, which revenue bonds shall be payable solely from revenues of the development or other security pledged therefor. The City is also authorized by the Housing Programs Act and by Minnesota Statutes, Section 471.59 (the "Joint Powers Act"), to enter into a joint powers agreement and, pursuant thereto, to authorize another city (referred to as the "Issuer") to issue revenue bonds of the Issuer to finance multifamily housing developments that are located in the City, in such other city, and in other cities or political jurisdictions. . 1.2. Mount Olivet Rolling Acres, Inc., a Minnesota nonprofit corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code (the "Borrower"), has requested that the City conduct a public hearing on a proposal by the Borrower that the Issuer, or one of the other Participating Jurisdictions to be identified in a joint powers agreement or identified in Exhibit D hereto (all collectively referred to as the "Participating Jurisdictions"), acting pursuant to such joint powers agreement (the "Joint Powers Agreement") between the Issuer and such other Participating Jurisdictions (which Participating Jurisdictions shall in any event include the City), issue revenue bonds in a principal amount of up to $2,250,000 (the "Bonds"), pursuant to the Joint Powers Act and the Housing Programs Act (together referred to as the "Acts"). 1.3. Under the proposal by the Borrower, the Participating Jurisdictions will enter into the Joint Powers Agreement, pursuant to which the Issuer, or one of the other Participating Jurisdictions selected by the Participating Jurisdictions, will issue the Bonds, a portion of the proceeds of which (the "Victoria Portion") would be applied by the Borrower to pay costs of the Victoria Project described below. Proceeds of the Bonds not constituting a part of the Victoria Portion would be applied to finance or refinance costs of acquiring, constructing, improving, rehabilitating, equipping and furnishing facilities of the Borrower located in one or more of the other Participating Jurisdictions, including a facility of the Borrower located in the City, as more particularly described below ( all collectively referred to as the "Development"). . . . . 1.4. The Victoria Project consists of the acquisition and construction of improvements, including equipment, furnishings and site improvements, to the existing facilities of the Borrower for the developmentally disabled located at 7200 Rolling Acres Road in the City of Victoria. The Development consists generally of the Victoria Project, together with the acquisition, construction, rehabilitation, improvement, equipping, furnishing and refinancing of various existing and new facilities of the Borrower, all as further described in Exhibit B. The portion of the Development located in the City consists of the refinancing of existing taxable mortgage indebtedness with respect to, and the rehabilitation of, an existing residential facility of the Borrower for the developmentally disabled, at the specific address set forth in the form of legal notice attached hereto. 1.5. The Development constitutes one or more "multifamily housing developments" eligible for financing by the Issuer under the Housing Programs Act. There is attached as Exhibit C hereto a description of a related Housing Program therefor (the "Housing Program"), developed pursuant to the Housing Programs Act. 1.6. The Borrower has requested the Issuer to issue the Bonds, and has requested in connection therewith that the City approve the attached Housing Program, the execution and delivery of the Joint Powers Agreement, and the issuance of the Bonds by the Issuer, for purposes of Section 147(f) of the Internal Revenue Code of 1986, as amended Section 2. Public Hearing 2.1. The Housing Programs Act requires that the City hold a public hearing on the Housing Program and the Development following not fewer than fifteen days' published notice thereof. 2.2. Section 147(f) of the Internal Revenue Code of 1986, as amended, and regulations promulgated thereunder, requires that, as a condition to the exemption from federal income taxation of interest on the Bonds, this Council conduct a public hearing on the proposal to finance the Development through the issuance of the Bonds by the Issuer. 2.3. A public hearing on the proposal that the City adopt the Housing Program and authorize the issuance of the Bonds by the Issuer is hereby called and shall be held on Monday, December 11, 2000, at 7: 05 o'clock ~.M., at the City Hall. A legal notice of the public hearing, substantially in the form of Exhibit A hereto, shall be published in a newspaper circulating generally in the City, as required by law, not fewer than 15 days in advance of the hearing. -2- . Passed this J2. day of Nov. ,2000. ~AJ:L' .-J Crr)-{A) Mayor (o...c.:t'<")<l) Attest: . i5w~ ()'4/k~ City Clerk ~t\ ":) C-;t, AJ", \ .i4u'+.~ II,. , K.) . . -3- . EXHIBIT A NOTICE OF PUBLIC HEARING ON A PROPOSED HOUSING DEVELOPMENT AND PROGRAM AND THE ISSUANCE OF REVENUE BONDS UNDER THE MUNICIPAL HOUSING PROGRAMS ACT, MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED . NOTICE IS HEREBY GIVEN that a public hearing shall be conducted by the City Council of the City of Shorewood, Minnesota (the "City") on a proposal by Mount Olivet Rolling Acres, Inc., a Minnesota nonprofit corporation (the "Borrower") that the City of Victoria (the "Issuer"), acting pursuant to a joint powers agreement (the "Joint Powers Agreement") issue revenue bonds (the "Bonds") to finance and refinance the costs of acquisition, construction, equipping, furnishing and rehabilitation of the various residential facilities for the developmentally disabled described below (collectively referred to as the "Development"), including the Victoria Project described below, and the Shorewood Project described below, all pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), including related administrative costs, reserves, capitalized interest, and cost of issuance. The Bonds would be issued pursuant to a Housing Program developed in accordance with the Act, a copy of which is on file at the City Hall. The hearing will be held at the City Hall, located at 5755 Country Club Road in the City, on Monday, December 11,2000, at 7: 05 o'clock f..M. The Victoria Project consists of the acquisition and construction of improvements, including equipment, furnishings and site improvements, to the existing facilities of the Borrower for the developmentally disabled located at 7200 Rolling Acres Road, Victoria, Minnesota (referred to as the "Victoria Project"). In addition to the Victoria Project, the Development consists generally of the following: (1) the refinancing, rehabilitation, equipping and furnishing of various existing facilities of the Borrower for the developmentally disabled located in other cities or jurisdictions outside of the City (at specific addresses set forth below); and (2) the acquisition, construction, rehabilitation, improvement, equipping and furnishing of new and/or existing facilities of the Borrower for the developmentally disabled located in those cities or jurisdictions and in Aiken County, Minnesota (at the specific address set forth below). The Shorewood Project consists of the refinancing of existing taxable mortgage indebtedness with respect to, and the rehabilitation of, an existing residential facility of the Borrower for the developmentally disabled, located at the specific address in the City described below. . The facilities included in the Development are situated at the following locations: 7200 Rolling Acres Road, Victoria, Minnesota (serving 44 persons); 129 Mackenthun Lane; Norwood- Young America, Minnesota (serving six persons); 1757 Highwood Drive, Chaska, Minnesota (serving four persons); 320 Fifth Street Northeast, Mayer, Minnesota (serving four persons); 241 West Third Street, Waconia, Minnesota (serving four persons); 3921 Leslie Curve, Chanhassen, Minnesota (serving four persons); 112209 James Court, Jonathan, Minnesota (serving four persons); 25925 Birch Bluff, Shorewood, Minnesota (serving four persons); 6843 and 6845 A-I . . . Lyndale Avenue South, Richfield, Minnesota (serving six persons); 7829 Tessman Drive, Brooklyn Park, Minnesota (serving four persons); 8217 29th Avenue North, New Hope, Minnesota (serving four persons); 2413 Plymouth Road, Minnetonka, Minnesota (serving four persons); and Route T, Jevne Township, McGregor, Minnesota (serving a minimum of20 persons). Under the proposal, the City will enter into the Joint Powers Agreement, pursuant to which the Issuer (or another of the Participating Jurisdictions identified in the Joint Powers Agreement, as determined by the Participating Jurisdictions) will issue its revenue bonds in a principal amount of approximately $2,250,000 (the "Bonds") to provide funds for the costs of the Development, and for related costs, including the funding of required reserves, administrative costs, capitalized interest and issuance costs. The Development involves assistance for housing. Accordingly, the issuance of the Bonds is not a business subsidy, within the meaning of Minnesota Statutes, Sections 116J.993 to 116J.995, as amended. At said time and place the City Council shall give all parties who appear or submit written comments an opportunity to express their views with respect to the proposal. Dated: Nav.13 ,2000. CITY OF SHOREWOOD, MINNESOTA Bradley J. Nielsen By sf . . City Clerk (A .\ ~ (, ~f1 Ad W\'m 17t~cd()r I C )e(IL-) A-2 . . . EXHIBIT B (Description of Development) The Development consists of the acquisition and construction of improvements, including equipment, furnishings and site improvements, to the existing facilities of the Borrower for the developmentally disabled located at 7200 Rolling Acres Road in the City of Victoria (referred to generally as the "Victoria Project"), together with the following: (1) the refinancing, rehabilitation, equipping and furnishing of various existing facilities of the Borrower (sometimes referred to as the "Refinancing and Rehabilitation Projects"), located in other cities or jurisdictions (at specific addresses set forth below); and (2) the acquisition, construction, improvement, rehabilitation, equipping and furnishing of new and/or existing facilities for the developmentally disabled in such cities or jurisdictions and in Aiken County, Minnesota (and/or in other locations, as necessary and suitable, to the extent permitted by law). The Refinancing and Rehabilitation Projects included in the Development will each consist of the rehabilitation of one or more existing buildings and sites located in other cities or jurisdictions outside of the City, and the discharge of any lien or other interest in those buildings and sites. The cost of rehabilitation of each of these existing buildings will be equal to at least $1,000 per dwelling unit, all as provided in and required by the Housing Programs Act. The Development will also include the acquisition, construction, improvement, rehabilitation, equipping and furnishing of facilities for the developmentally disabled in those same cities or jurisdictions and in the County of Aiken. The facilities included in the Development are situated at the following locations: 7200 Rolling Acres Road, Victoria, Minnesota (serving 44 persons); 129 Mackenthun Lane, Norwood- Young America, Minnesota (serving 6 persons); 1757 Highwood Drive, Chaska, Minnesota (serving 4 persons); 320 East Fifth Street Northeast, Mayer, Minnesota (serving 4 persons); 241 West Third Street, Waconia, Minnesota (serving 4 persons); 3921 Leslie Curve, Chanhassen, Minnesota (serving 4 persons); 112209 James Court, Jonathan, Minnesota (serving 4 persons); 25925 Birch Bluff, Shorewood, Minnesota (serving 4 persons); 6843 and 6845 Lyndale Avenue South, Richfield, Minnesota (serving 6 persons); 7829 Tessman Drive, Brooklyn Park, Minnesota (serving 4 persons); 8217 29th Avenue South, New Hope, Minnesota (serving 4 persons); 2413 Plymouth Road, Minnetonka, Minnesota (serving 4 persons); and Route T, Jevne Township, McGregor, Minnesota (serving a minimum of20 persons). B-1 . . . EXHIBIT C (Form of Housing Program) HOUSING PROGRAM FOR MUL TIF AMIL Y HOUSING DEVELOPMENT UNDER MINNESOTA STATUTES, CHAPTER 462C MOUNT OLIVET ROLLING ACRES, INC. This Housing Program describes a housing development initiative to be authorized by the City of Shorewood, Minnesota (the "City"), on behalf of itself and the other political jurisdictions referred to below (and/or any county housing and redevelopment authority authorized to act on behalf of one or more of such political jurisdictions), involving the development and financing of multiple residential facilities for the developmentally disabled, including: (1) the acquisition and construction of improvements, including equipment, furnishings and site improvements, to the existing facilities for the developmentally disabled located at 7200 Rolling Acres Road in the City of Victoria (generally referred to as the "Victoria Project"); (2) the refinancing, rehabilitation, equipping and furnishing of various existing facilities for the developmentally disabled located in other cities or jurisdictions (further described below), all pursuant to a Joint Powers Agreement (the "Joint Powers Agreement") to be entered into by the City in connection therewith (generally referred to as the "Refinancing and Rehabilitation Projects"); and (3) the acquisition, construction, rehabilitation, improvement, equipping and furnishing of new and/or existing facilities for the developmentally disabled in such cities or jurisdictions and in Aiken County, Minnesota (and/or in other locations, as necessary and suitable, to the extent permitted by law), all pursuant to the Joint Powers Agreement (referred to, together with the Victoria Project and the Refinancing and Rehabilitation Projects described above, collectively as the "Development"). The specific portion of the Development located in the City consists of the refinancing of existing taxable mortgage indebtedness with respect to, and the rehabilitation of, an existing residential facility of the Borrower for the developmentally disabled, located at the specific address in the City set forth sbelow. The Development is being undertaken pursuant to the authority of Minnesota Statutes, Chapter 462C, as amended (the "Act"). Each of the facilities in the Development is and is to be owned and operated by Mount Olivet Rolling Acres, Inc., a Minnesota nonprofit corporation (sometimes referred to as the "Borrower"). The Refinancing and Rehabilitation Projects included in the Development will each consist of the rehabilitation of one or more existing buildings and sites and the discharge of any lien or other interest in the buildings and sites. The cost of rehabilitation of each of these existing buildings will be equal to at least $1,000 per dwelling unit, all as provided in and required by the Act. These existing facilities are located in the following cities (and at the specific addresses set forth below): Chaska, Mayer, Waconia, Chanhassen, Norwood-Young C-1 . . . America, Shorewood, Richfield, Brooklyn Park, New Hope, and Shakopee. The Development will also include the acquisition, construction, improvement, rehabilitation, equipping and furnishing of facilities for the developmentally disabled located in those cities and in the County of Aiken (at the specific address set forth below). The facilities included in the Development are situated at the following locations: 7200 Rolling Acres Road, Victoria, Minnesota (serving 44 persons); 129 Mackenthun Lane; Norwood- Young America, Minnesota (serving six persons); 1757 Highwood Drive, Chaska, Minnesota (serving four persons); 320 Fifth Street Northeast, Mayer, Minnesota (serving four persons); 241 West Third Street, Waconia, Minnesota (serving four persons); 3921 Leslie Curve, Chanhassen, Minnesota (serving four persons); 112209 James Court, Jonathan, Minnesota (serving four persons); 25925 Birch Bluff, Shorewood, Minnesota (serving four persons); 6843 and 6845 Lyndale Avenue South, Richfield, Minnesota (serving six persons); 7829 Tessman Drive, Brooklyn Park, Minnesota (serving four persons); 8217 29th Avenue North, New Hope, Minnesota (serving four persons); 2413 Plymouth Road, Minnetonka, Minnesota (serving four persons); and Route T, Jevne Township, McGregor, Minnesota (serving a minimum of 20 persons). The Development will be operated as a multifamily housing development, within the meaning of the Act. The use of the Development will be carried out in accordance with applicable land use and development restrictions, and the Development will be subject to applicable state and local building codes. The Borrower will be required to operate the Development in accordance with state and local anti-discrimination laws and ordinances. The Development will be available for rental primarily to handicapped persons, within the meaning of Section 462C.05, Subd. 4, of the Act, and, accordingly, no limitations on the gross income of occupants will be required by the Act. The Development is needed generally in order to better serve developmentally disabled and handicapped persons and is needed specifically to lower the costs of operating facilities used to house such persons, to improve existing facilities used for housing such persons, and to add to the existing stock of such housing. Meeting these needs is consistent with and authorized by the City's Housing Plan, Comprehensive Plan and overall program for housing, all as authorized and contemplated thereby. To finance the Development, the City of Victoria, or one of the other Participating Jurisdictions, as determined by the Participating Jurisdictions (referred to in the alternative as the "Issuer"), will issue revenue bonds in a principal amount of approximately $2,250,000. The Borrower will be required, pursuant to a revenue agreement, such as a loan agreement, to make payments sufficient to pay when due the principal of, premium, if any, and interest on such revenue bonds when due. The revenue bonds may be structured so as to take advantage of whatever means are available or necessary and are permitted by law to enhance the security for and marketability of the revenue bonds. Such security is expected to consist primarily of mortgage liens granted against each of the facilities included in the Development. The revenue bonds will not constitute a general obligation or indebtedness of the Issuer, within the meaning of any constitutional or statutory provision, nor will the full faith and credit of the Issuer, the State C-2 . . . of Minnesota or any other political subdivision of the State of Minnesota, including the City, be pledged to the payment thereof. The costs of the Development and the program of financing the Development will be paid by the Borrower or from the proceeds of the revenue bonds to be issued, to the extent that such proceeds are lawfully available therefor. C-3 . < . . . EXHIBIT D (Identification of Participating Jurisdictions) In addition to the City of Victoria, the Participating Jurisdictions shall consist of the following cities or other political jurisdictions: 1. City of Chaska 2. City of Mayer 3. City ofWaconia 4. City of Chanhassen 5. City of Norwood-Young America 6. City of Minnetonka 7. City of Shorewood 8. City of Richfield 9. City of Brooklyn Park 10. City of New Hope 11. Housing and Redevelopment Authority of the County of Aitkin D-l