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Home My WebLink AboutResolution No. 2004-044 Hearing Date 6/1/04- Vernon Terrace Multi-Family Revenue Bonds w91N�', r� o� e RESOLUTION NO. 2004-44 v � �y •I�CORPOP.MT�9 City of Edina ESTABLISHING THE DATE FOR A PUBLIC HEARING AND AUTHORIZING THE PUBLICATION OF A NOTICE OF PUBLIC HEARING WITH RESPECT TO THE PROPOSED ISSUANCE OF VARIABLE RATE DEMAND MULTIFAMILY HOUSING REVENUE REFUNDING BONDS (VERNON TERRACE APARTMENTS PROJECT) SERIES 2004 IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $5,705,000 BE IT RESOLVED by the City Council (the "City Council") of the City of Edina Minnesota, a municipal corporation and political subdivision of the State of Minnesota (the "City"), as follows: Section 1. Recitals. 1.01. Pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"), the City is authorized to carry out the public purposes described in the Act by providing for the issuance of revenue bonds to provide funds to finance or refinance multifamily developments located within the City. 1.02. Bigos-Vernon Terrace, LLC, a Minnesota limited liability company ("Borrower"), has requested that the City issue revenue refunding bonds under the Act and loan the proceeds derived from the sale of the bonds to Borrower to be applied to the redemption and prepayment of the outstanding Variable Rate Demand Multifamily Mortgage Revenue Refunding Bonds (Vernon Terrace Project) Series 1999, issued by the City in the original principal amount of$6,225,000 to refund revenue refunding bonds previously issued by the City which were issued to refund revenue bonds previously issued by the City which were issued to refund prior obligations of the City issued to finance the acquisition, construction and installation of a 146-unit multifamily housing rental project commonly known as Vernon Terrace together with related costs, developed on an approximately 3.5 acre parcel of land located at 5420 Vernon Avenue in the City(the"Project"). 1.03. The revenue bonds proposed to be issued by the City for the purposes described above are proposed to be issued in one or more series as Variable Rate Demand Multifamily Housing Revenue Refunding Bonds (Vernon Terrace Apartments Project) Series 2004 (the "Series 2004 Bonds") in an original aggregate principal amount not to exceed $5,705,000. The proceeds of the Series 2004 Bonds are to be applied to refinance the Project and such proceeds may also be applied to any of the following purposes: (i) fund a debt service reserve fund or other reserves for the Series 2004 Bonds; (ii) fund a portion of the interest on the Series 2004 Bonds; and (iii)pay costs of issuance with respect to such Series 2004 Bonds. City Hall 952-927-8861 4801 WEST 50TH STREET I FAX 952-826-0390 EDINA,MINNESOTA,55424-1394 www.cityofedina.com TTY 952-826-0379 1.04. Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), and the regulations promulgated thereunder, require that prior to the issuance of such revenue bonds, the City Council of the City must approve the issuance of such revenue bonds after conducting a public hearing in accordance with the requirements of Section 147(f) of the Code. Section 2. Public Hearing. 2.01. As requested by Borrower, at a regular meeting of the City Council of the City to be held on Tuesday, June 1, 2004, the City Council will conduct a public hearing commencing on or after 7:00 p.m. with respect to the proposed issuance of the Series 2004 Bonds for the refinancing of the Project referenced in this resolution. 2.02. A notice of the public hearing shall be published in accordance with the requirements of Section 147(f) of the Code. The costs of the preparation and publication of such notice of public hearing shall be paid by Borrower. Borrower shall work with the staff of the City, Dorsey & Whitney LLP, as counsel for the City, and McGrann Shea Anderson Carnival Straughn & Lamb, Chartered, as Bond Counsel, to coordinate the publication of such notice in accordance with applicable law. Section 3. Miscellaneous Matters. 3.01. If the issuance of the Series 2004 Bonds is approved by the City, the Series 2004 Bonds shall never constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the City's interest in the loan or revenue agreement with respect to the Series 2004 Bonds and the Project refinanced with the proceeds of the Series 2004 Bonds, and the Series 2004 Bonds, when, as, and if issued, shall recite in substance that the Series 2004 Bonds, including interest thereon, are special limited obligations of the City payable solely from the revenues received from such Project and property pledged to the payment thereof, and shall never constitute a general or moral obligation of the City. 3.02. The law firm of McGrann Shea Anderson Carnival Straughn & Lamb, Chartered is authorized to act as Bond Counsel with respect to the Series 2004 Bonds and to assist in the preparation and review of necessary documents relating to the Series 2004 Bonds. The Mayor, the City Manager, and other officers, employees, and agents of the City are hereby authorized to assist Bond Counsel in the preparation of such documents. The law firm of Dorsey & Whitney LLP as counsel for the City is authorized to act as Issuer's Counsel with respect to the Series 2004 Bonds and to assist in the preparation and review of necessary documents relating to the Series 2004 Bonds. 3.03. All actions to be taken by the City with respect to the Series 2004 Bonds are subject to an agreement by the City and Borrower to pay any and all costs incurred by the City in connection with the issuance of the Series 2004 Bonds and the application of the proceeds of the Series 2004 Bonds to the refinancing of the Project referenced above and to pay administrative fees imposed by the City, if any, with respect to the Series 2004 Bonds. 2 3.04. The adoption of this Resolution does not constitute a guaranty or firm commitment that the City will issue the Series 2004 Bonds as requested by Borrower. The City retains the right in its sole and absolute discretion to withdraw from participation and accordingly not to issue the Series 2004 Bonds, or issue the Series 2004 Bonds in an amount less that the amount referred to herein, should the City at any time prior to issuance thereof determine that it is in the best interest of the City not to issue the Series 2004 Bonds, or to issue the Series 2004 Bonds in amounts less than the amounts requested by Borrower, or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. 3.05. The City Council hereby declares its preliminary intention to issue the Series 2004 Bonds, subject to compliance with the terms and conditions of the Act and subject to final agreement among the City, Borrower, and the initial purchaser of the Bonds as to the terms and conditions thereof. This resolution is intended to constitute a declaration of official intent for purposes of Treasury Regulations, Section 1.150-2, and any successor law, regulation, or ruling. Section 4. Effective Date. This Resolution shall be in full force and effect from and after its passage. Approved by the City Council of the City of Edina, Minnesota this 18`h day of May, 2004. ATTEST: City Clerk 1 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 May 18, 2004, and as recorded in the Minutes of said Regular Meeting. T'l� WITNESS my hand and seal of said City this day of l//l 200(-/ City &4k 3