HomeMy WebLinkAboutResolution No. 2014-058 Approving Housing Revenue Bonds Yoiktown Contnental, LP CERTIFICATION OF MINUTES RELATING TO
THE ISSUANCE OF HOUSING REVENUE BONDS PURSUANT TO
MINNESOTA STATUTES, CHAPTERS 462A AND 462C ON BEHALF OF
YORKTOWN CONTINENTAL,LP
Issuer: City of Edina,Minnesota
Governing Body: City Council
Kind, date,time and place of meeting: A regular meeting held on May 20, 2014, at
7:00 o'clock P.M., at the City Hall.
Councilmembers present: Bennett, Brindle, Sprague, Swenson, and Mayor Hovland
Councilmembers absent: None
Documents Attached:
Minutes of said meeting(pages): 1 through_
RESOLUTION NO.2014-58
RESOLUTION GIVING PRELIMINARY APPROVAL
TO THE ISSUANCE OF HOUSING REVENUE BONDS
PURSUANT TO MINNESOTA STATUTES, CHAPTERS
462A AND 462C ON BEHALF OF YORKTOWN
CONTINENTAL, LP
I,the undersigned,being the duly qualified and acting recording officer of the
public corporation issuing the bonds referred to in the title of this certificate, certifying
that the documents attached hereto, as described above,have been carefully compared
with the original records of said corporation in my legal custody, from which they have
been transcribed;that said documents are a correct and complete transcript of the minutes
of a meeting of the governing body of said corporation,and correct and complete copies
of all resolutions and other actions taken and of all documents approved by the governing
body at said meeting, so far as they relate to said bonds; and that said meeting was duly
held by the governing body at the time and place and was attended throughout by the
members indicated above,pursuant to call and notice of such meeting given as required
by law.
,r� WITNESS my hand officially as such recording officer this�day of
� 1 , 2014.
Debra Mangen, City Cle k
Councilmember Swenson introduced the following resolution and moved its
adoption:
RESOLUTION NO. 2014-58
RESOLUTION GIVING PRELIMINARY APPROVAL
TO THE ISSUANCE OF HOUSING REVENUE BONDS
PURSUANT TO MINNESOTA STATUTES, CHAPTERS
462A AND 462C ON BEHALF OF YORKTOWN
CONTINENTAL, LP
BE IT RESOLVED by the City Council of the City of Edina,Minnesota(the
"City"), as follows:
Section 1. Recitals
1.1 Yorktown Continental, LP, a Minnesota limited partnership(the
"Borrower"),has proposed that the City issue its housing revenue bonds in one or more
series(the "Bonds") and loan the proceeds to the Borrower. The proceeds of the Bonds
would be used to finance a portion of the costs of the acquisition, rehabilitation and
equipping of a 264-unit low-income housing development(the"Development")located
at 7151 York Avenue South in the City. The Borrower has requested that the City
consider the issuance of the Bonds in a principal amount not to exceed $26,500,000,to
assist in the financing of the Development.
1.2 The City is authorized by Minnesota Statutes, Chapter 462C (the"Act'
to issue the Bonds to finance multifamily housing developments such as the
Development. Minnesota Statutes, Section 462C.07 provides that programs for such
multifamily housing developments may be financed with revenue bonds issued by the
City,following adoption of a housing program, after a public hearing,and other
proceedings conducted in accordance with the requirements of the Act.
Section 2. Preliminaa Approval of Bond Financing
2.1 On the basis of the information given the City to date,but subject to the
adoption of a housing program following a public hearing as required by the Act,
preliminary approval is hereby given to the issuance of the Bonds, in an amount not to
exceed $26,500,000,to provide financing for the Development. The adoption of this
resolution shall not be deemed,however,to establish a legal obligation on the part of the
City or its Council to issue or to cause the issuance of the Bonds. All details of the Bonds
and the provisions for payment thereof shall be subject to final approval of this Council
prior to their issuance. The Bonds, if issued, shall not constitute a charge, lien or
encumbrance, legal or equitable, upon any property of the City, except the revenues to be
received from the operation of the Development and owner thereof specifically pledged
to the payment thereof, and each Bond,when, as and if issued, shall recite in substance
that the Bond, including interest thereon, is payable solely from said revenues and funds
specifically pledged to the payment thereof, and shall not constitute a debt or pecuniary
liability of the City within the meaning of any constitutional or statutory limitation.
2.2 The City Finance Director is authorized to cause the housing program
required by the Act to be prepared and prepare and publish a notice of hearing in
substantially the form attached hereto as Exhibit A on the adoption of the housing
program and the issuance of the Bonds as required by the Act and Section 147(f) of the
Internal Revenue Code of 1986, as amended. The public hearing is expected to be held
on June 17, 2014.
Section 3. Application for Bond Issuance Allocation. The Mayor and City
Finance Director, in consultation with the Borrower, are authorized to execute the
necessary documents on behalf of the City to apply for an allocation of bonding authority
for the Development pursuant to the provisions of Minnesota Statut , Chapter 474A.
Adopted this 201h day of May, 2014.
Mayor
Attest: J2� r
City Clerk
The motion for the adoption of the foregoing resolution was duly
seconded by Councilmember Brindle and upon vote being taken thereon,the following
voted in favor thereof: Bennett, Brindle, Sprague, Swenson, and Mayor Hovland
and the following voted against the same: None
whereupon said resolution was declared duly passed and adopted.
NOTICE OF PUBLIC HEARING RELATING TO A HOUSING PROGRAM
AND PROJECT ON BEHALF OF YORKTOWN CONTINENTAL, LP AND
ITS FINANCING UNDER SECTION 142(D) OF THE INTERNAL REVENUE
CODE OF 1986, AS AMENDED, AND CHAPTERS 462A AND 462C,
MINNESOTA STATUTES; CALLING FOR A PUBLIC HEARING ON THE
FINANCING AND A RELATED HOUSING PROGRAM
CITY OF EDINA, MINNESOTA
NOTICE IS HEREBY GIVEN that the City Council of the City of Edina,
Minnesota(the"City"), will meet on Tuesday,June 17, 2014, at 7:00 p.m., or as soon
thereafter as practicable, in the Council Chambers located at Edina City Hall,4801 West
5Wh Street in the City,for the purpose of conducting a public hearing on(i) a proposal
that the City issue tax-exempt revenue bonds (the `Bonds"),under Minnesota Statutes,
Chapters 462A and 462C, as amended(the"Act") and Section 142(d) of the Internal
Revenue Code of 1986, as amended(the "Code"), in order to finance a project(the
"Project") consisting of the acquisition, rehabilitation and equipping of a 264-unit
multifamily housing facility located at 7151 York Avenue South in the City (the
"Facilities"),together with related project costs, on behalf of Yorktown Continental, LP,
a Minnesota limited partnership and(ii) a housing program prepared with respect to the
Project and its financing. The aggregate principal amount of the Bonds to be issued for
the Project will not exceed $26,500,000.
The Bonds shall be special, limited obligations of the City and shall be payable
solely from the revenues pledged to the payment thereof. No holder of any Bond shall
ever have the right to compel any exercise of the taxing power of the City to pay the
Bonds, or the interest thereon, nor to enforce payment thereon against any property of the
City,except money payable by the Borrower to the City and pledged to the payment of
the Bonds.
A draft copy of the housing program relating to the Project is available for
public inspection at the office of the City Finance Director, located in City offices,
between the hours of 8:00 a.m. and 4:30 p.m. on normal City business days.
All persons interested may appear and be heard at the time and place set forth
above, or may file written comments with the City Finance Director prior to the date of
the hearing set forth above.
Dated: , 2014. BY ORDER OF THE EDINA CITY
COUNCIL
/s/Debra Mangen, City Clerk
City Finance Director