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280 MINUTES OF SPECIAL BUDGET MEETING <br />OF THE EDINA CITY COUNCIL HELD AT CITY HALL <br />SEPTEMBER 23, 1985 <br />7:OO P. M. <br />Answering rollcall were Members Kelly, Richards, Turner and Mayor Courtney. <br />-RESOLUTION ADOPTED AUTHORIZING THE ISSUANCE AND SALE OF HOUSING DEVELOPMENT <br />REVENUE BONDS (FHA INSURED MORTGAGE LOAN-EDINA PARK PLAZA PROJECT), SERIES 1985. <br />Member Kelly introduced the following resolution and moved its adoption: <br />RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF HOUSING <br />. DEVELOPMENT REVENUE BONDS (FHA INSURED MORTGAGE LOAN - <br />EDINA PARK PLAZA PROJECT), SERIES 1985, FOR THE PURPOSE OF <br />PROVIDING CONSTRUCTION AND PERMANENT FINANCING FOR A <br />MULTIFAMILY RENTAL HOUSING DEVELOPMENT WITH PARKING AND <br />RELATED FACILITIES UNDER THE MUNICIPAL HOUSING ACT, AND I- <br />AUTHORIZING THE EXECUTION OF NECESSARY DOCUMENTS <br />WHEREAS, by resolution adopted by the City Council of the City of Edina, Minnesota <br />(the City), on June 17, 1985, after conducting a public hearing thereon, the City <br />Council adopted a housing program and gave preliminary approval to the issuance <br />of revenue bonds pursuant to the Act to finance the acquisition and construction <br />of a multifamily rental housing development containing approximately 203 units, <br />together with parking and other functionally related and subordinate facilities, <br />WHEREAS, Edina Park Plaza Associates, an Illinois limited partnership (the I <br />Developer), whose general partner is Partners for Senior Communities, Inc., an 1 <br />t Housing Development Revenue Bonds (FHA Insured Mortgage Loan - Edina Park Plaza <br />Project), in an aggregata principal amount not exceeding $18,500,000 (the Bonds), <br />pursuant to the Act and lend the proceeds to the Developer for the financing of <br />the Project, for the purposes of providing housing in accordance with the Program <br />therefor, adopted by the City, as such program may from tinie to time be amended in <br />accordance with Chapter 462C of the Act; and <br />WHEREAS, the City and the Housing and Redevelopment Authority of Edina, Minnesota <br />(the Authority) have entered into discussions with the East Edina Foundation (the <br />Foundation), The Edina Partnership, the Developer and others, and propose that <br />the Authority enter into a Land Sale Agreement and Contract for Private Redevel- <br />opment with the Foundation and that the Foundation enter into a Land Sale Agree- <br />ment and Contract for Private Redevelopment with The Edina Partnership (collectively, <br />the Redevelopment Contracts), which provide for, among other things, the conveyapce <br />of certain land within the Southeast Edina Redevelopment Project Area to the <br />Developer; and <br />WHEREAS, by the provisions of Chapter 462C of the Act, the City is authorized to <br />1 <br />I <br />i i <br />. to be located in.the City at 7800 York Avenue (the Project); and <br />Illinois corporation (the General Partner) has proposed that the City issue its ! <br />7 -i <br />I <br />plan, administer, issue and sell revenue bonds or obligations and to make or <br />purchase loans to finance one or more multifamily housing developments as defined <br />in Chapter 462C of the Act, within the boundaries of the City, which revenue <br />bonds or obligations shall be payable solely from the revenues of the Program or <br />development; pursuant to the requirements of Chapter 462C, the.City Council adopted <br />a Housing Plan on April 19, 1982, after a public hearing held thereon, which <br />Housing Plan was reviewed and commented upon by the Metropolitan Council pursuant <br />to paragraph (c) of Section 462C.01 of the Act; and <br />WHEXEAS, the Bonds will be issued and sold pursuant to the Act and upon the terms <br />and conditions set forth in a Trust Indenture, dated as of October 1, 1985 (the <br />Indenture), to be entered into between the City and First National Bank of <br />Minneapolis (the Trustee); and <br />WHEREAS, the proceeds of the Bonds will be disbursed to the Developer for the <br />construction of the Project in the manner provided in the Indenture and a Financing <br />Agreement, dated as of October 1, 1985 (the Financing Agreement), to be entered <br />into between the City, the Developer, the General Partner and the Trustee; pursuant <br />to the Financing Agreement the City will provide the proceeds of the Bonds to make <br />a .non-recourse mortgage loan to the Developer which will be insured by the Federal <br />Housing Administration (FHA) under Section 221(d)(4) of Title I1 of the National <br />Housing Act of 1934, as amended (the Mortgage Loan) and a supplemental loan which <br />will be secured initially by Bond proceeds and, once disbursed, by one or more <br />letters of credit in the form and amount, and issued by a financial institution, as <br />specified in the Indenture and Financing Agreement (the Supplemental Loan) (the <br />Mortgage Loan and the Supplemental Loan are collectively referred to as the Loan); <br />and <br />WHEREAS, under the Indenture the City will grant a security interest in the City's <br />interest in the Loan and payments to be made thereunder (except the City's right to <br />payment of expenses and indemnification), including the security therefor, as <br />I