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HomeMy WebLinkAboutResolution No. 2025-94 Approving the Participation of the HCHRA in an Affordable Housing Project with Bond Financing176518843v2 RESOLUTION NO. 2025-94 RESOLUTION GRANTING APPROVAL TO HENNEPIN COUNTY HOUSING AND REDEVELOPMENT AUTHORITY TO UNDERTAKE A HOUSING OR REDEVELOPMENT PROJECT PURSUANT TO MINNESOTA STATUTES, SECTION 383B.77, AS AMENDED WHEREAS, at the request of CB South Haven Summit Point Limited Partnership, a Minnesota limited partnership (together with its affiliates or assigns, the “Borrower”), the Hennepin County Housing and Redevelopment Authority (the “Issuer”) is proposing to issue one or more series of taxable or tax-exempt multifamily housing revenue bonds or other obligations (the “Bonds”) and apply the proceeds derived from the sale of the Bonds to make a loan (the “Loan”) to the Borrower; and WHEREAS, the Borrower has represented that it intends to apply the proceeds of the Loan to finance the acquisition, rehabilitation, and equipping of (i) a 100-unit multifamily rental housing development and facilities functionally related and subordinate thereto, located at or about 3400 Parklawn Avenue in the City of Edina (the “City”), known as South Haven, and (ii) a 29-unit multifamily rental housing development and facilities functionally related and subordinate thereto, located at or about 5010 Summit Avenue in the City, known as Summit Point, each for occupancy by persons and families of low and moderate income (the “Project”); and WHEREAS, the Issuer has represented to the City that on June 24, 2025, the Board of Commissioners of the Issuer (the “Board”) adopted a resolution granting preliminary approval to the issuance of the Bonds, in an aggregate principal amount not to exceed $22,000,000, and directing a public hearing be held on a housing program and the proposed issuance of the Bonds thereunder to provide financing for the Project, and approving the submission of one or more applications to the State of Minnesota Department of Management and Budget (“MMB”) for an allocation of bonding authority under Minnesota Statutes, Chapter 474A, as amended; and WHEREAS, the Issuer has represented that it submitted an application for an allocation of bonding authority to MMB, and on July 7, 2025 received (i) Certificate of Allocation No. 507 from MMB allocating bonding authority of the State of Minnesota to the Issuer in the amount of $15,772,903 for South Haven and (ii) Certificate of Allocation No. 508 from MMB allocating bonding authority of the State of Minnesota to the Issuer in the amount of $4,773,601 for Summit Point, both pursuant to Chapter 474A; and WHEREAS, the Issuer has represented to the City that on September 25, 2025, the Board of the Issuer held a public hearing on the proposed issuance of the Bonds to provide financing for the Project; and WHEREAS, the Issuer has requested that the City approve the Project pursuant to Minnesota Statutes, Section 383B.77, as amended; 176518843v2 NOW, THEREFORE, BE IT RESOLVED: 1. The Issuer’s work or undertakings to assist the Project within the meaning of Minnesota Statutes, Section 383B.77, subdivision 3 is hereby approved. 2. The Bonds to be issued by the Issuer to finance the Project will not constitute a general or moral obligation of the City or be secured by any taxing power of the City. 3. The City Manager and other officers of the City are authorized and directed to furnish to Taft Stettinius & Hollister LLP, in its capacity as bond counsel to the Issuer with respect to the Project (“Bond Counsel”), certified copies of all proceedings and records of the City relating to this resolution and such other affidavits, certificates, and other documents as may be required by Bond Counsel, and all such certificates, affidavits, and other documents, including any heretofore furnished, shall constitute representations of the City as to the truth of all statements contained therein. 4. Any and all costs incurred by the City in connection with the financing of the Project will be paid by the Borrower. It is understood and agreed by the Borrower that the Borrower shall indemnify the City against all liabilities, losses, damages, costs, and expenses (including attorneys’ fees and expenses incurred by the City) arising with respect to the Project or the Bonds. Adopted this 7th day of October, 2025 by the City Council of the City of Edina, Minnesota Attest: __________________________ ___________________________ Sharon Allison, City Clerk James B. Hovland, Mayor STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) SS CITY OF EDINA ) CERTIFICATE OF CITY CLERK I, the undersigned duly appointed and acting City Clerk for the City of Edina do hereby certify that the attached and foregoing Resolution was duly adopted by the Edina City Council at its Regular Meeting of October 7, 2025, and as recorded in the Minutes of said Regular Meeting. WITNESS my hand and seal of said City this ________ day of _________, 2025. ___________________________________ Sharon Allison, City Clerk Sharon Allison (Oct 8, 2025 13:50:47 CDT)