Res 2019-34 PH for Bonds for Station Village AptsRESOLUTION NO. 2019 - 34
RESOLUTION CALLING FOR A PUBLIC HEARING ON A PROPOSAL
FOR A HOUSING FINANCE PROGRAM AND GIVING PRELIMINARY
APPROVAL TO THE ISSUANCE OF HOUSING FACILITY REVENUE
BONDS TO FINANCE A MULTIFAMILY HOUSING PROJECT
PURSUANT TO MINNESOTA LAW, AND AUTHORIZING
THE PUBLICATION OF A NOTICE OF THE HEARING
(a) WHEREAS, Minnesota Statutes, Chapter 462C (the "Act"), confers upon a city the
power to issue revenue obligations to finance multifamily housing developments within the
boundaries of the city; and
(b) WHEREAS, the City Council of the City of Fridley, Minnesota (the "City") has
received a proposal from Fridley City Apartments, Limited Partnership, a Minnesota limited
partnership (the 'Borrower"), with Fridley Apartments GP, LLC, a Minnesota limited liability
company, as general partner, that the City assist in financing a Project hereinafter described,
through the issuance of revenue bonds or obligations (in one or more series) (the 'Bonds") to be
issued in 2019 pursuant to the Act; and
(c) WHEREAS, the City desires to facilitate the maintenance and development of
multifamily rental housing within the community; encourage the development of affordable
housing opportunities for residents of the City; encourage the development and maintenance of
housing facilities designed for occupancy by persons or families of low and moderate incomes;
and encourage the development of blighted or underutilized land and structures within the
boundaries of the City; and the Project will assist the City in achieving these objectives; and
(d) WHEREAS, the Project to be financed by the Bonds consists of acquisition and
construction of an approximately 72 -unit multifamily housing facility for low- and moderate -
income individuals and families to be located immediately to the east of Fridley Station, 6050
Main Street, in the City (the "Project"). The Borrower will be the owner and operator of the
Project; and
(e) WHEREAS, no public official of the City has either a direct or indirect financial
interest in the Project nor will any public official either directly or indirectly benefit financially
from the Project; and
(f) WHEREAS, before proceeding with final consideration of the request of the
Borrower it is necessary for the City to hold a public hearing on the housing finance program and
proposal pursuant to the Act:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fridley,
Minnesota, as follows:
1. A public hearing on the housing finance program and proposal of the Borrower will
be held at the time and place as determined by the City Manager and as set forth in a Notice of
Public Hearing substantially in the form attached hereto as Exhibit A.
Resolution No. 2019 - 34 Page 2
2. The general nature of the proposal and an estimate of the principal amount of Bonds
to be issued to finance the proposal are described in the attached form of Notice of Public Hearing.
3. A draft copy of the housing finance program with proposed forms of all attachments
and exhibits shall be on file in the office of the City Manager on the date the Notice of Public
Hearing is published.
4. The City Manager is hereby authorized and directed to cause notice of the hearing
to be given one publication in the official newspaper of the City and a newspaper of general
circulation available in the City, not less than 15 days nor more than 30 days prior to the date fixed
for the hearing, substantially in the form of the attached Notice of Public Hearing with such
changes as required or approved by Briggs and Morgan, Professional Association, acting as bond
counsel.
5. The City hereby gives preliminary approval to the proposal of the Borrower that
the Borrower undertake the Project, and the City undertake the program of financing therefor,
pursuant to the Act, consisting of financing the acquisition and construction of the Project pursuant
to the Borrower's specifications and to a loan agreement between the City and the Borrower on
such terms and conditions with provisions for revision from time to time as necessary, so as to
produce income and revenues sufficient to pay, when due, the principal and interest on the Bonds
to be issued in a total principal amount not to exceed $19,700,000 pursuant to the Act to finance
the Project; and said agreement may also provide for the entire interest of the Borrower therein to
be mortgaged to the purchasers of the Bonds, or a trustee for the purchasers and subsequent
holder(s) of the Bonds; and the City, acting by and through the City, hereby undertakes
preliminarily to issue the Bonds in accordance with such terms and conditions.
6. At the option of the City, the financing may be structured so as to take advantage
of whatever means are available and are permitted by law to enhance the security for, or
marketability of, the Bonds; provided that any such financing structure must be consented to by
the Borrower.
7. On the basis of information available to the City it appears, and the City hereby
finds, that the Project constitutes a multifamily housing development within the meaning of
subdivision 5 of Section 462C.02 of the Act; that the availability of the financing under the Act
and the willingness of the City to furnish such financing will be a substantial inducement to the
Borrower to undertake the Project, and that the effect of the Project, if undertaken, will be to
encourage the development of new multifamily rental housing opportunities for residents of the
City, and to promote more intensive development and use of land within the City.
8. The Project and the program to finance the Project by the issuance of revenue
obligations, are hereby given preliminary approval by the City subject to holding a public hearing
thereon and final approval by the City, the Borrower, and the purchasers of the Bonds as to ultimate
details of the financing of the Project.
9. Briggs and Morgan, Professional Association, acting as bond counsel, is hereby
directed to prepare a housing program for financing the Project in accordance with the provisions
of Minnesota Statutes, Section 462C.03.
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10. The Borrower has agreed and it is hereby determined that any and all costs incurred
by the City in connection with the financing of the Project whether or not the Project is carried to
completion will be paid by the Borrower.
11. Briggs and Morgan, Professional Association, acting as bond counsel, is authorized
to assist in the preparation and review of necessary documents relating to the Project, to consult
with Borrower and the purchasers of the Bonds as to the maturities, interest rates and other terms
and provisions of the Bonds and as to the covenants and other provisions of the necessary
documents and submit such documents to the City for final approval.
12. Nothing in this Resolution or the documents prepared pursuant hereto shall
authorize the expenditure of any municipal funds on the Project other than the revenues derived
from the Project or otherwise granted to the City for this purpose. The Bonds shall not constitute
a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City except
the revenue and proceeds pledged to the payment thereof, nor shall the City be subject to any
liability thereon. The holders of the Bonds shall never have the right to compel any exercise of
the taxing power of the City to pay the outstanding principal on the Bonds or the interest thereon,
or to enforce payment thereon against any property of the City, except such property as may be
expressly pledged for the security of the Bonds. The Bonds shall recite in substance that the Bonds,
including the interest thereon, are payable solely from the revenue and proceeds pledged to the
payment thereof. The Bonds shall not constitute a debt of the City within the meaning of any
constitutional or statutory limitation.
13. Subject to final approval of the Project by the City and in anticipation of the
approval by all necessary entities of the housing program and the issuance of the Bonds to finance
all or a portion of the Project, and in order that completion of the Project will not be unduly delayed
when approved, the Borrower is hereby authorized to make such expenditures and advances
toward payment of that portion of the costs of the Project to be financed from the proceeds of the
Bonds, as the Borrower considers necessary, including the use of interim, short term financing,
subject to reimbursement from the proceeds of the Bonds, if any, when delivered but otherwise
without liability on the part of the City.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 22�D
DAY OF JULY, 2019.
SCOTT J. LUND — MAYOR
ATTEST:
DEBRA A. SKOGEN - CITY CLERK
Extract of Minutes of a Meeting of the
City Council of the
City of Fridley, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Fridley, Minnesota, was duly called and held at the City Hall in said City on Monday, the 22nd
day of July, 2019, at 7:00 p.m.
The following members were present: Mayor Scott Lund, Councilmember-at-Large
Robert Barnette, Councilmember Tom Tillberry, Councilmember Stephen Eggert and
Councilmember Ann Bolkcom.
and the following were absent: None.
Councilmember Ann Bolkcom introduced the following resolution and moved its adoption:
RESOLUTION CALLING FOR A PUBLIC HEARING
ON A PROPOSAL FOR A HOUSING FINANCE PROGRAM
AND GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF
HOUSING FACILITY REVENUE BONDS
TO FINANCE A MULTIFAMILY HOUSING PROJECT
PURSUANT TO MINNESOTA LAW, AND AUTHORIZING
THE PUBLICATION OF A NOTICE OF THE HEARING
(STATION VILLAGE APARTMENTS PROJECT)
The motion for the adoption of the foregoing resolution was duly seconded by
Councilmember-at-Large Robert Barnette, and after full discussion thereof and upon vote being
taken thereon, the following voted in favor thereof: Mayor Scott Lund, Councilmember-at-Large
Robert Barnette, Councilmember Tom Tillberry, Councilmember Stephen Eggert and
Councilmember Ann Bolkcom.
and the following voted against the same: None.
whereupon said resolution was declared duly passed and adopted.
STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF FRIDLEY
I, the undersigned, being the duly qualified and acting Clerk of the City of Fridley,
Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of
minutes with the original thereof on file in my office, and that the same is a full, true and complete
transcript of the minutes of a meeting of the City Council of said City duly called and held on the
date therein indicated, insofar as such minutes relate to calling for a public hearing on and giving
preliminary approval to housing facility revenue bonds to finance a housing finance program.
WITNESS my hand this 23rd day of July, 2019.
Debra A. Skogen - City Clerk