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HomeMy WebLinkAbout19850923_special280 MINUTES OF SPECIAL BUDGET MEETING OF THE EDINA CITY COUNCIL HELD AT CITY HALL SEPTEMBER 23, 1985 7:OO P. M. Answering rollcall were Members Kelly, Richards, Turner and Mayor Courtney. -RESOLUTION ADOPTED AUTHORIZING THE ISSUANCE AND SALE OF HOUSING DEVELOPMENT REVENUE BONDS (FHA INSURED MORTGAGE LOAN-EDINA PARK PLAZA PROJECT), SERIES 1985. Member Kelly introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF HOUSING . DEVELOPMENT REVENUE BONDS (FHA INSURED MORTGAGE LOAN - EDINA PARK PLAZA PROJECT), SERIES 1985, FOR THE PURPOSE OF PROVIDING CONSTRUCTION AND PERMANENT FINANCING FOR A MULTIFAMILY RENTAL HOUSING DEVELOPMENT WITH PARKING AND RELATED FACILITIES UNDER THE MUNICIPAL HOUSING ACT, AND I- AUTHORIZING THE EXECUTION OF NECESSARY DOCUMENTS WHEREAS, by resolution adopted by the City Council of the City of Edina, Minnesota (the City), on June 17, 1985, after conducting a public hearing thereon, the City Council adopted a housing program and gave preliminary approval to the issuance of revenue bonds pursuant to the Act to finance the acquisition and construction of a multifamily rental housing development containing approximately 203 units, together with parking and other functionally related and subordinate facilities, WHEREAS, Edina Park Plaza Associates, an Illinois limited partnership (the I Developer), whose general partner is Partners for Senior Communities, Inc., an 1 t Housing Development Revenue Bonds (FHA Insured Mortgage Loan - Edina Park Plaza Project), in an aggregata principal amount not exceeding $18,500,000 (the Bonds), pursuant to the Act and lend the proceeds to the Developer for the financing of the Project, for the purposes of providing housing in accordance with the Program therefor, adopted by the City, as such program may from tinie to time be amended in accordance with Chapter 462C of the Act; and WHEREAS, the City and the Housing and Redevelopment Authority of Edina, Minnesota (the Authority) have entered into discussions with the East Edina Foundation (the Foundation), The Edina Partnership, the Developer and others, and propose that the Authority enter into a Land Sale Agreement and Contract for Private Redevel- opment with the Foundation and that the Foundation enter into a Land Sale Agree- ment and Contract for Private Redevelopment with The Edina Partnership (collectively, the Redevelopment Contracts), which provide for, among other things, the conveyapce of certain land within the Southeast Edina Redevelopment Project Area to the Developer; and WHEREAS, by the provisions of Chapter 462C of the Act, the City is authorized to 1 I i i . to be located in.the City at 7800 York Avenue (the Project); and Illinois corporation (the General Partner) has proposed that the City issue its ! 7 -i I plan, administer, issue and sell revenue bonds or obligations and to make or purchase loans to finance one or more multifamily housing developments as defined in Chapter 462C of the Act, within the boundaries of the City, which revenue bonds or obligations shall be payable solely from the revenues of the Program or development; pursuant to the requirements of Chapter 462C, the.City Council adopted a Housing Plan on April 19, 1982, after a public hearing held thereon, which Housing Plan was reviewed and commented upon by the Metropolitan Council pursuant to paragraph (c) of Section 462C.01 of the Act; and WHEXEAS, the Bonds will be issued and sold pursuant to the Act and upon the terms and conditions set forth in a Trust Indenture, dated as of October 1, 1985 (the Indenture), to be entered into between the City and First National Bank of Minneapolis (the Trustee); and WHEREAS, the proceeds of the Bonds will be disbursed to the Developer for the construction of the Project in the manner provided in the Indenture and a Financing Agreement, dated as of October 1, 1985 (the Financing Agreement), to be entered into between the City, the Developer, the General Partner and the Trustee; pursuant to the Financing Agreement the City will provide the proceeds of the Bonds to make a .non-recourse mortgage loan to the Developer which will be insured by the Federal Housing Administration (FHA) under Section 221(d)(4) of Title I1 of the National Housing Act of 1934, as amended (the Mortgage Loan) and a supplemental loan which will be secured initially by Bond proceeds and, once disbursed, by one or more letters of credit in the form and amount, and issued by a financial institution, as specified in the Indenture and Financing Agreement (the Supplemental Loan) (the Mortgage Loan and the Supplemental Loan are collectively referred to as the Loan); and WHEREAS, under the Indenture the City will grant a security interest in the City's interest in the Loan and payments to be made thereunder (except the City's right to payment of expenses and indemnification), including the security therefor, as I 9/23/85 281 security for the payment of the principal of, premium, if any, and interest on the Bonds; and WHEREAS , to secure the Developer s obligations under the Mortgage Loan the Developer will deliver to the Trustee, as mortgagee under the Mortgage Loan, a mortgage (the Mortgage), in form and substance to be eligible for mortgage insurance provided by FHA; and WHEREAS, the Developer will also enter into a Building Loan Agreement with the Trustee and a Regulatory Agreement with the United States Department of Housing and Urban Development; and WHEREAS, the Loan will be serviced on behalf of the Trustee pursuant to a Servicing Agreement dated as of October 1, 1985 (the Servicing Agreement) between the Trustee and a servicer to be designated therein; and WHEREAS, the Project will be subject to the terms and restrictions contained in the Deed and Covenants Running with the Land, dated as of October 1, 1985 (the Deed) executed by the party conveying to Project site, and accepted by the Developer; and WHEREAS, the Bonds are to be offered and sold pursuant to an Official Statement (the Official Statement), which Official Statement will be in substantially the form of the Preliminary Official Statement (the Preliminary Official Statement): and WHEREAS, the following documents (collectively, the Documents; documents (a) through (c) are herein referred to as the City's Financing Documents) relating to the financing of the Project and the issuance of the Bonds have been submitted to the City and are on file in the office of the City Clerk: (a) the Indenture ; (b) the Financing Agreement, which includes a form of the Supplemental Loan (c) the form of Bond Purchase Agreement (the Bond Purchase Agreement) between Note and the forms of letters of credit; the City and Dain Bosworth Incorporated and Dougherty, Dawkins, Strand h Yost Incorporated (the Underwriters), for the purchase of the Bonds; (d) the Deed; (e) the Servicing Agreement; (f) a form of Rider to Mortgage Note to be executed by the Developer; (g) the standard form of FHA Mortgage Note and Ilortgage; and (h) a draft Preliminary Official Statement. NOW, TJAIBEFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EDINA, MINNESOTA : 1. It is hereby found, determined and declared: (a) Pursuant to the Act, the City is authorized to plan, administer and make or purchase a loan or loans to finance one or more multifamily housing developments (as defined in Chapter 462C of the Act) and within the boundaries of the City of the kind and upon the conditions set forth in Section 462C.05 of Chapter 462C of the Act and to issue and sell revenue bonds to finance such multifamily housing developments, which revenue bonds shall be payable exclusively from the revenues of the related programs and developments. The Project will constitute a multifamily development under Section 462C.02, Subd. 5 of Chapter 462C of the Act. The program for the Project, as adopted on June 17, 1985, has been submitted to the Minnesota Housing Finance Agency in accordance with Section 462C.05 of the Act for approval as provided in Section 462C.01 on the basis of considerations stated in Section 462C.34 of the Act, and is deemed approved under the provisions of said Section 462C.04, Subdivision 1. (b) The City is authorized to develop and to finance such program by the authorization, issuance and sale of revenue bonds or obligations payable solely from the revenues of such program and the Project. The purpose of the Project is and its effect will be to promote the public welfare and preserve the quality of life in the City by helping to maintian, provide and preserve adequate housing stock within the City and to assist persons of low and moderate income, or elderly persons, or both, to obtain decent, safe and sanitary housing within the City. Project is not otherwise available to the Developer from private lenders upon terms and conditions which are affordable by the Developer, such financing being available only at a rate which, when combined.with the cost of acquisition, construction and other costs incidental to the construction of the Project as well as noneconomic factors, would impair the feasibility of the Project, the Developer anticipates that revenue to be produced by the rental of unites in the Project will be sufficient to meet payments when due on the Loan. (d) principal amount not to exceed $18,000,000 upon the terms set forth herein and in the Indenture. (c) Based upon representations by the Developer, financing €or the , It is desirable that the City issue the Bonds in an aggregate 282 9/23/85 2. The forms of the Indenture and Financing Agreement on file with the City Clerk are hereby approved. Manager, are hereby authorized and directed, on behalf of the City, to execute the Indenture and the Financing Agreement in substantially the form hereby approved, but including such modifications, insertions and additions as are necessary and appropriate in their opinion and in the opinion of the City Attorney, and in conformity with paragraph 3 of this resolution and consistent with the Act. Copies of the Documents, when executed, shall be delivered, filed and recorded as provided therein. Financing Documents by the appropriate officers of the City shall be conclusive evidence of the approval thereof by the City. 3. The execution, delivery and closing of the Redevelopment Contracts according to their terms shall be a condition precedent to the issuance of the Bonds, unless waived in writing by the Mayor and City Manager of the City. issued in an aggregate principal amount not exceeding $18 , 009 , 000 pursuant to and in accordance with, and subject to the terms, conditions and limitations established in, the Indenture. form without coupons. Interest Bonds (as defined in the Indenture) will be dated as of October 1, 1985, and will bear Pnterestfrom their issue date payable semiannually on each April 1 and October 1 in each year, commencing April I, 1986, at-a rate or rates not in excess of 10.50% per annum, and the Capital Appreciation Bonds (as defined in the Indenture) will bear interest from the date of their issuance and delivery, compounded on April 1, 1986 and semiannually thereafter on each October 1 and April 1 so as to produce a yield to maturity not in excess of 11.50% and is payable, together with principal, only at maturity or upon redemption; and provided that the Annual Debt Service due in any Bond Year with respect to the Bonds will not exceed $2,000,000. from October 2 of each calendar year to and including October 1 of the next succeeding calendar year, except that the first Bond Year shall be from the date of initial issuance and delivery of the Bonds to and including October 1, 1986. or Accreted Amount (as defined in the Indenture) scheduled to be due and payable in any Bond Year, excluding any amounts of principal or Accreted Amount attributable to scheduled reductions in the Debt Service Reserve Fund. hereby delegated to the Mayor and the City Manager of the City, acting jointly, to determine the aggregate principal amount of Bonds to be issued, the maturities thereof, and the rate or rates ofinterest payable on the Bonds. With respect to any Bonds which shall be redeemed, in part, by application of Sinking Fund Payments (as defined in the Indenture) as provided in the Indenture, subject to the limitations set forth in this Section, the Mayor and the City Manager of the City, acting jointly , are hereby delegated the authority to fix and determine the schedule of Sinking Fund Payments to be applied to the mandatory redemption of such Bonds. Such Bonds shall be redeemed by the City in accordance with such schedule at a Redemption Price equal to the principal amount, or Accreted Amount in the case of capital appreciation bonds, of each Bond to be redeemed, without premium. Notice of such redemption shall be given as prescribed in the Indenture. Bonds maturing not earlier than the tenth Bond Year nor later than the twentieth Bond Year, are subject to mandatory redemption from Voluntary Prepay- ments (as defined in the Indenture), and optional redemption at the option of the City from any source, in whole or in part, on any April 1 or October 1, on or after the first optional redemption date described above, at a redemption price equal to their principal amount plus accrued interest, or Accreted Amount, as applicable, plus a premium for redemption not to exceed 105% of the principal amount or Accreted Amount of each Bond or portion thereof then redeemed. Subject to the execution, delivery and closings of the Redevelopment Contracts, the City shall proceed forthwith to issue its Bonds, in the form and upon the terms set forth in the Indenture, with the interest rates, maturities, redemption premiums and in the principal amount established as provided in this paragraph 3. 4. hereby approved, subject to such changes as may be deemed desirable by the Mayor, City Manager and City Attorney. authorized and directed to execute and deliver a Bond Purchase Agreement in substantially the form of the Bond Purchase Agreement presented to this meeting, together with such changes and completions thereof as may be approved by the Mayor, the City Manager and the City Attorney, subject to the limitations contained in this Resolution, the execution thereof to constitute conclusive evidence of the approval of such changes and completions. The Mayor of the City, and the City The execution of any of the City's Subject to such condition, the Bonds are hereby authorized to be The Bonds will be issued in fully registered The Bondsshallmature not later than October 1, 2028. The Current A "Bond Year" shall be "Annual Debt Service" shall mean the amount of principal and interesr . Subject to the limitations set forth in this paragraph 3, authority is The form of Bond Purchase Agreement presented to this meeting is The Mayor and City Manager are hereby 9/23/85 5. Authority is hereby delegated to the Mayor 283 nd City Manager of the City, acting jointly, to determine the aggregate purchase price of the Bonds, provided that the aggregate purchase price of the Bonds shall not be less ninety-seven percent (97%) of the principal amount thereof to be issued plus accrued interest thereon from their issue date to the date of delivery thereof and payment therefor. To evidence the exercise of the authority delegated to the Mayor and City Manager of the City by this Resolution, the Mayor and City Nanager are hereby directed to execute and file with the Trustee a certificate setting forth the determinations made by them pursuant to the authority granted in this Resolution, which certificate shall constitute conclusive evidence of the proper exercise by them of such authority. to the Bonds in substantially the form presented to this meeting to pro- spective purchasers and the use thereof by the Underwriters in connection with the offering of the Bonds is hereby authorized and approved. The Mayor is hereby authorized to permit the distribution of the final Official Statement, in substantially the form of said Preliminary Official Statement, with such changes, omissions, insertions and revisions as the Mayor, the City Manager and the City Attorney shall deem advisable. and execute the Bonds and to deliver them to the Trustee for authentication and delivery to the purchasers chereof, together with a certified copy of this Resolution and other documents required by the Indenture. As provided in the Indenture, the Bonds shall be executed by the manual or facsimile signatures of the City or a facsimile thereof and shall be authenticated by the Trustee, as authenticating agent, pursuant to Section 475.55, Subdivision 1, Minnesota Statutes. 9. As provided in the Indenture, the Bonds are special, limited obligations of the City. Principal of, premium, if any, and interest on the Bonds are payable soley out of the revenues derived from the sources described in the Granting Clauses of the Indenture. County of Hennepin shall not in any event be liable for the payment of the principal of, premium, if any, or fnt'ereston the Bonds or for the performance of any pledge, mortgage, obligation or agreement of any kind whatsoever that may be undertaken by the City. or obligations of the City contained in the Indenture or in the Financing Agreement shall be construed to constitute an indebtedness of the State of Minnesota, the County of Hennepin or the City, within the meaning of any constitutional or statutory provisions whatsoever, nor to constitute or give rise to a pencuniary liability or be a charge against the general credit or taxing power of the State of Minnesota, the County of Hennepin or the City. 10. The Mayor, the City Manager and the City Clerk of the City are authorized and directed to prepare and furnish to bond counsel and the TJnderwriters certified copies of all proceedings and records of the City relating to the Bonds, and such other affidavits and certificates as may be required to show the facts relating to the legality of the Bonds as such facts appear from the books and records in the officers' custody and control or as otherwise known to them; and all such certified copies, certificates and affidavits, including any heretofore furnished, shall constitute representations of the City as to the truth of all statements contained therein. 11. Approval hereby given to the various documents referred to above includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and approved by the City Attorney and the Mayor and the City Manager authorized herein to execute said documents prior to their execution; and the Mayor and the City Manager are hereby authorized to approve said changes on behalf of the City. The execution of any instrument by the appropriate officer or officers of the City- herein authorized shall be conclusive evidence of the approval of such documents in accordance with the terms hereof, Manager, the documents authorized by this resolution to be executed may be executed by the Acting Mayor or the Assistant City.Manager. day of September, 1985. 6. 7. The distribution of a Preliminary Official Statement with respect 8. The Mayor and City Manager are authorized and directed to prepare The State of Minnesota and the Neither the Bonds nor any of the agreements In the absence of the Mayor or the City Passed and adopted by the City Council of the City of Edina this 23rd 284 9/23/85 BID AWARDED FOR TRAFFIC SIGNAL AT WEST 70TH STREET & CORNELIA. sented a quote for a traffic signal cabinet complete with eight-phase controller, MNDOT (Contract 7905014849-01; S.A.P. 120-145-15) to be located at West 70th Street and Cornelia. Products, for an amount of $7,868.00. Member Kelly's motion was seconded by Member Richards for award of bid to Riddle Control Products at $7,868.00. Mr. Rosland pre- The only bid was from the State supplier, Riddle Control Ayes: Kelly, Richards, Turner, Courtney Motion carried. I REPORT GIVEN ON HOMART. Member Richards reported on the latest meeting between the City Councils of Edina and Bloomington concerning the Homart Project. will take the necessary action to protect its interest unless Bloomington could act within the time frame set forth by Edina. limiting densities was discussed, predicated upon getting approvals on upgrading public improvements. approve, and the concept of six lanes on France Avenue must be approved by the City. The impact on 494 should be given careful consideration. Edina The possibility of reducing and The density is three times greater than what Edina would Member Richards recommended starting the lawsuit as soon as possible to protect the interests of the City of Edina. Mr. Rosland said it would be commenced imtned5afely.. f ;<e. 1 I I COUNCIL' CONTINUES REVIEW OE PROPOSED 1986 BUDGET. the Council had begun the review of the proposed 1986 Budget at special meetings Mr. Rosland recalled that on October 16 and 17, 1985. for Park & Recreation (Administration, Recreation, Maintenance, Gapital Outlay and Capital Xmprovements). The Council then reviewed proposed expenditures. Next examined were proposed Non-Departmental Expenditures (.Contingencies, Special Assessments on City Property, Central Services-Capital Outlay, Capital Improve- ments and Commissions and Special Projects).' Mr. Hughes reported that the Edina Recycling Commission has proposed a budget of $13,450 to fund a household pickup program of recyclables. The Women's Resource Center in the amount of $1,500 for general program operating expenses or to be applied to any particular program. relocation of the Historical Society and related costs. proposed to be funded one-half by the City, with the other half being shared by The Foundation and the Edina Historical Society. Mr. Rosland then presented the request for funding from Mr. Rosland next addressed thc . A relocation study is The Council discussed the Loss Subsidy Operating Funds (Swimming Pool, Recreation Center, Gun Range and Art Center) and Income Producing Funds. . The Council then discussed the major factors contributing to the increase in recommended expenditures for 1986. penditures were reviewed.. Following completion of the proposed 1986 budget ,- seview,.rhe Council discussed budget adjustments.concerning the f.ollowing areas: insurance, staff, SFYA, prosecution, Community Service Officers, and contingencies. The 1986 budget hearing was continued to September 25, 1985, at 8:OO A. M. The Mayor adjourned the meeting at 11:OO P. M. The proposed Capital Plan Revenues and Ex- asmd Acting City Clerk rnh/k3& I