HomeMy WebLinkAboutResolution No. 2002-038 Hearing -- Issuance of Revenue Bonds/Fraser Project (City of Blaine)RESOLUTION NO. 2002-38
RESOLUTION RELATING T(
FACILITIES OWNED AND OPE:
NONPROFIT CORPORATION,.
BONDS TO FINANCE THE CO'
STATUTES, CHAPTER 462C, )
STATUTES, SECTIONS 469.152 -
TO A JOINT POWERS AGREE
APPROVAL THERETO; ES �
CERTAIN REIMBURSEMENT
INTERNAL REVENUE CODE C
APPROVAL FOR ENTERING I;
AND TAKING CERTAIN O'
THERETO
BE IT RESOLVED by the City
"City"), as follows:
Section 1. Recitals.
1.01. The City is a statutory
Constitution and laws of the State of M
RESIDENTIAL GRC
TED BY FRASER, A h
D THE ISSUANCE O
THEREOF UNDER N
AMENDED, AND b
1.165, AS AMENDED,
?NT; GRANTING PR
REGULATIONS UP
F 1986, AS AMENDED;
F0 A JOINT POWERS A
ER ACTIONS WTI]
1.02. Pursuant to Minnesota StE
Minnesota Statutes, Sections 469.152 - 469.1
City is authorized to carry out the public pt
the issuance of revenue bonds to provi
developments and revenue producing 6ntej
1.03. Fraser, a Minnesota nonpr(
that the City, pursuant to the Act, authp
Blaine") to issue revenue bonds of the
principal amount not to exceed $4,0005
time to time (the "Bonds"), the proceeds
the Company to be applied by the Coml
of twenty-two residential group home i
the City, the City of Blaine, and in the
Golden Valley, Minnetonka, Plymouth a
City of Minneapolis, the "Participant
located at 5617 Hansen Road, 5004 Edint:
of
Ci
finance the costs of the rehabilitation of the
of the City of
duly organized and
.tes, Chapter 462C,
, as amended, (collect
)oses described in the
funds to finance r
-ises located within th
UP HOME
INNESOTA
REVENUE
INNESOTA
INNESOTA
'URSUANT
;LIMINARY
[CE WITH
DER THE
RANTING
;REEMENT,
RESPECT
Minnesota (the
existing under the
as amended, and
vely, the "Act"), the
kct by providing for
tultifamily housing
City.
corporation (the "Com any") has proposed
the City of Blaine, Mh nesota (the "City of
ty of Blaine in the approximate aggregate
in one or more series it one time or from
which will be loaned by the City of Blaine to
y to: (i) refinance the costs to the Company
hies (collectively, the Project") located in
es of Brooklyn Park, Eden Prairie, Edina,
Richfield (collectively with the City and the
'es"), including the group home facilities
k Lane, and 6708 Sioux Trail in the City; (ii)
residential group home facilities comprising
Edina Resolution 2002-38
April 16, 2002
Page 2
the Project; (iii) refinance the costs of development achievement center for children
with autism and related disorders located at 3333 University Avenue S.E. in the City of
Minneapolis (the "Minneapolis Facility"); and (iv) finance the costs of issuing the
Bonds.
1.04. The City is required to aopt a housing pro gr m (the "Housing
Program") pursuant to Section 462C.03,' su ptsion 1a, of the Act, rior to the issuance
of revenue bonds. ivi
1.05. Under Section 147(f) of the Ir ternal Revenue Code o 1986, as amended
(the "Code"), prior to the issuance of the Bonds, a public hearing, duly noticed, must be
held by the City Council. Under Section 462C.04, subdivision 2, of the Act, the City
must conduct a public hearing, duly noticed, with respect to the Hc using Program and
the portion of the Project located in theCity. A public hearing w s held on April 16,
2002, after publication of notice on Mrch 27, 2002, in the Sun -Current, a newspaper
circulating generally in the City, with respect to: (i) the required public hearing under
Section 147(f) of the Code; (ii) the Hous�ingProgram; and (iii) the preliminary approval
of the issuance of the Bonds.
Section 2. Preliminary Finding. Based on representations made by the
Company to the City to date, the City (ou cil of the City hereby makes the following
preliminary findings, determinations, and declarations:
(a) The Bonds will refinanc th outstanding indebted ess incurred with
respect to the residential ou hoe facilities for the develo mentall disabled
P �' P Y
comprising the Project and will also refin-ice a development ach evement center for
children with autism and related disord rs c Dmprising the Minneapi lis Facility.
(b) The proceeds of the Bonds wi be loaned to the Com any by the City of
Blaine and the proceeds of the loan will be applied to refinance the Project, finance the
rehabilitation of the Project, refinance thle Minneapolis Facility, and finance the issuance
costs of the Bonds. The City of Blaine will enter into a Loan Agreement with the
Company requiring loan repayments fromt e Company in amountssufficient to repay
the loan when due and requiring the Co pany to pay all costs f maintaining and
insuring the Project, including taxes thereon.
(c) In authorizing the issuance) of e Bonds and the fina:
of the portion of the Project located in the City and related costs,
and the effect thereof will be to promote the public welfare of the
by retaining and improving group l ome facilities and other
purposes and policies of the Act.
g and refinancing
City's purpose is
and its residents
e furthering the
Edina Resolution 2002-38
April 16, 2002
Page 3
(d) The Bonds will be limited obl gations of the City of
from the revenues pledged to the payment thereof, and will not
obligation of the City or be secured by thet ing power or any pr
City.
Section 3. Preliminary A1212rqal
approval to the issuance of the Bonds pul
City of Blaine and the Participant Cities in
not to exceed $4,000,000 to finance all or
Minneapolis Facility, subject to final appr(
following the preparation of bond docume
that the financing of the Project and the
Bonds are in the best interests of the Panic:
Section 4. joint Powers A r�eeMei
Powers Agreement between the Participa
Powers Agreement") substantially in the f
file with the City. The City Council hereby
Joint Powers Agreement by the Mayor a
members of the City Council or other offic(
and delivery the Joint Powers Agreement
provisions of this resolution.
Section 5. Housing Program. T
Program and authorizes submission of
Council for its review pursuant to Minnes
Section 6. Reimbursement of
aine payable solely
a general or moral
ertv or assets of the
The City Council here y gives preliminary
.iant to a Joint Powers Agreement with the
ie approximate aggregate principal amount
portion of the costs of the Project and the
al by the City Council of the City of Blaine,
is and a determination by the City of Blaine
inneapolis Facility and the issuance of the
ant Cities and the City of Blaine.
:. The City Council her by approves a Joint
t Cities and the City f Blaine (the "Joint
rm of the Joint Powers Agreement now on
authorizes the execution and delivery of the
.d City Manager of th City (or by other
s of the City who are a thorized to execute
on behalf of the City) consistent with the
City Council hereby a proves the Housing
.e Housing Program o the Metropolitan
Statutes, Section 462C.)4, subdivision 2.
6.1. The United States Departm t of the Treasury halc promulgated final
regulations, designated as Treasury Regulations, Section 1.150-2 the "Regulations"),
governing the use of the proceeds of tax-exempt bonds, all or a portion of which are to
be used to project expenditures paid prior to the date of issuance Df such bonds. The
Regulations require that the City adopt a statement of official in nt to reimburse an
original expenditure not later than sixty dai rs after payment of the riginal expenditure.
The Regulations also generally require that the bonds be issued and the reimbursement
allocation made from the proceeds of the bonds occur within eighteen months after the
later of: (i) the date the expenditure is paid; or (ii) the date the project is placed in
service or abandoned, but in no event more than three years after the date the
expenditure is paid. The Regulations generally permit reimb rsement of capital
expenditures and costs of issuance of the bonds.
Edina Resolution 2002-38
April 16, 2002
Page 4
6.2. To the extent any portion 'of t
expenditures with respect to the Project, tY
Company for the expenditures made for o
Bonds after the date of payment of ' all
reimbursed expenditures shall be capital e).
or other expenditures eligible for reinibu:
Regulations and also qualifying expenditure
proceeds of the Bon(
City reasonably expe
is of the Project from
r a portion of such
enditures, a cost of is:
�ment under Section
under the Act.
Based on representations by the Com any, other than (i) exp
or reimbursed from sources other than th Bonds, (ii) expenditu
reimbursed under prior regulations pursua t to the transitional pr
Section 1.150-20)(2)(i)(B) of the Regulations, (iii) expenditures cons
expenditures within the meaning of Socti 1.150-2(f)(2) of the
expenditures in a "de minimus" amount as defined in Section
Regulations), no expenditures with re5pec to the Project have
Company more than sixty days before the da e of adoption of this r(
6.3. Based on representations by th Company, as of the di
no funds of the Company reserved, allocated on a long term -basis or
(or reasonably expected to be reserved, 4lloc ted on a long-term ba
aside) to provide permanent financing for t expenditures related
financed
This resolution, therefore, is determined t be consistent with i
financial circumstances of the Company as t ey exist or are reason
the date hereof.
will be applied to
s to reimburse the
he proceeds of the
!xpenditures. All
ance of the Bonds,
.150-2(d)(3) of the
ditures to be paid
> permitted to be
ision contained in
uting preliminary
gulations, or (iv)
150-2(f)(1) of the
!en made by the
lution.
hereof, there are
ierwise set aside
or otherwise set
the Project to be
ice of the Bonds.
budgetary and
v foreseeable on
Section 7. Costs. The Company w' 1 pay the administrati a fees of the City
and pay, or, upon demand, reimburse the City for payment of, ny and all costs
incurred by the City in connection with the roject, the Minneapoli Facility, and the
issuance of the Bonds, whether or not the Bon s are issued.
Section 8. Commitment Conditional The adoption of this i
constitute a guarantee or a firm commitment at the City of Blaine A
as requested by the Company. The City also retains the right, in its
withdraw from participation should the City ouncil, at any time pr
thereof, determine that it is in the best int rests of the City not
financing of the Project and the MinneApol s Facility or should
transaction be unable to reach agreement as t the terms and condii
documents for the transaction.
)lution does not
issue the Bonds
le discretion, to
to the issuance
rticipate in the
parties to the
Ls of any of the
Section 9. Effective Date. This Resolu 'on shall be in full fore and effect from
and after its passage.
Edina Resolution 2002-38
i April 16, 2002
Page 5
Adopted by the City Council of the C ty of Edina, Minnesota,
April, 2002.
w",
Attest
Debra A. Mangen, City lerk i Dennis F. Maetz
STATE OF MINNESOTA
COUNTY OF HENNEPIN ) SS
CITY OF EDINA CERTIFICATE OF CIT
Ci Clerk of the Ci of Ed
I, the undersigned duly appointed and acting C City
that the attached and foregoing City Co u cil Minutes is a true and
Resolution duly adopted by the Edina City Co cil at its regular meetin
and as recorded in the Minutes of said regular me ting.
WITNESS, my hand and seal of said City this day of April,
on this 16th day of
a do hereby certify
:)rrect copy of the
of April 16th 2002,
City Clerk