HomeMy WebLinkAboutApril 21, 1987OFFICIAL PROCEEDINGS
CONTINUED SPECIAL COUNCIL MEETING
COLUHBIA HEIGHTS CITY COUNCIL
APRIL 21, 1987
The special meeting was called to order by Mayor Nawrockl at 8:15 p.m..
1. Roll Cat1
Paulson, Petkoff, Carlson, Peterson, Nawrocki - present
2. Purpose of Heetln~
This meeting is a continuation of the special Councll meeting of April 20th
regarding the slngle family mortgage revenue bond issue. Members of the Council
had requested additlonal information regarding partlclpa{'ion in this bond Issue
and the joint powers agreement associated with it.
3. Presentation by Staff and Consultants
The HRA's Director of Community Development, Todd Stutz, had been requested to seek
originators of loan funds within the community. Stutz advised the Council that two
local banks had expressed interest in this program. It was his opinion that two to
five million dollars will be available for the program in our community and that
it would be attractive enouah for all of the funds to be used.
Discussion was had regarding the use of the funds by all of the participants of
the program, Members of the Council had previously expressed concern with the
ability of other communities or counties being able to use funds designated for
use in the City of Columbia Heights. It was noted by the bond counsel that no
other entity may use other community funds before all of its own funds had been
exhausted. The tlmeframes for closing loans was reviewed and it was felt by the
bond counsel this timing was a built-in safeguard for the City.
The Clty Manager noted that developer commitments in the program will have specific
periods of time plus requested extensions. The Community Development Director noted
that some of the City's funds may be committed to Rottlund Builders.
The Mayor again inquired what costs the City would incur If the project does not
go through. He was advised there would not be costs to the City if this were to
happen.
The Council requested that the resolution for this project include language which
addressed the Council's request not to participate if the Interest rates exceed
~ 3/8 ~ The bond counsel stated the resolution w111 include this stipulation.
4. Resolution Approving Participation
Motion by Petkoff, second by Carlson to waive the reading of the resolution there
being ample copies available to the public. Roll call: All ayes
RESOLUTION NO. 87-32
RESOLUTION APPROVING PARTICIPATION IN THE DAKOTA COUNTY HOUSING AND REDEVELOPMENT
AUTHORITY, MINNEAPOLIS/ST. PAUL HOUSING FINANCE BOARD, AND WASHINGTON COUNTY
HOUSING AND REDEVELOPMENT AUTHORITY JOINT SINGLE FAMILY MORTGAGE REVENUE BOND
PROGRAH AS DEFINED HEREIN AND AUTHORIZING EXECUTION OF A JOINT POWERS AGREEMENT.
WHEREAS, pursuant to Minnesota Statutes, Chapter h62C, as amended (the "Act")
the City of Columbia Heights (the '~City") is authorized to issue revenue bonds
to finance single family residential rental facilities within the jurisdiction
of the City; and
WHEREAS, pursuant to 1971 Minnesota Laws, Chapter 333, as amended, The Dakota
County Housing and Redevelopment Authority (the "Dakota County Authorityt') has
all powers and duties of a housing and redevelopment authority under the municlpal
Continued Special Council Meeting
April 21, 1987
page 2
housing and redevelopment act, Minnesota Statutes, Sections 462.411 and 462.711,
as amended; and
WHEREAS, pursuant to 1974 Minnesota Laws, Chapter 475, The Washington County
Housing and Redevelopment Authority (the "Washington County Authority") has
all powers and duties of a housing and redevelopment authority under the
municipal housing and redevelopment act, Minnesota Statutes, Sections 462.411
to 462.711, as amended; and
WHEREAS, pursuant to Minnesota Statutes, Section 462.12; the Minneapolis/St.
Paul Housing Finance Board (the "Minneapolis/St. Paul Board") is authorized
to execute the powers conferred upon the Cities of Minneapolis and St. Paul,
the Minneapolis Community Development Agency and the Housing and Redevelopment
Authority in and for the City of St. Paul, Minnesota, by Minnesota Statutes,
Chapters 462C and 462, among other things; and
WHEREAS, pursuant to the Act, the Dakota County Authority, the Minneapolis/
St. Paul Board, and the Washington County Authority (collectively the "Auth-
orities'') are authorized to issue revenue bonds to finance single family
residential rental facilities within Dakota County, Washington County and
the Cities of Minneapolis and St. Paul; and
WHEREAS, pursuant to Minnesota Statutes, Section 471.59 (the "Joint Powers
Act"), the City and the Authorities are authorized to enter into an agreement
for the exercise of such powers by the Authorities on behalf of the City' and
WHEREAS, the City has previously approved a program (the "Program") for the
issuance of single family mortgage revenue bonds pursuant to and in accordance
with Minnesota Statutes, Chapter 462 C, after duly noticed public hearing and
has received an allocation of authority for issuance of single family bonds
under Minnesota Statutes, Chapter 474A in the amount of $10,000,000; and
WHEREAs, the Authorities propose to jointly issue their single family housing
revenue bonds to finance various single family residential programs in various
cities, and acting on behalf of the City, to finance the Program (the "Joint
Program"); and
WHEREAS, it appears that participation by the City in the Joint Program will
result in significant financial benefit to the City and will accordingly
ultimately result in lower housing costs to residents of the City; and
WHEREAS, there has been submitted to the City a form of Joint Powers Agreement
providing for participation of the City in the Joint Program and the issuance
by the Authorities of obligations to finance the Program;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Columbia
Heights as follows:
i. The City gives final approval to the issuance of obligations pursuant to the
Act to finance the Program.
2. The City approves the participation of the City in the Joint Program under-
taken by the Authorities for the purpose of financing the Program and authorizes
the staff of the City to cooperate with the Authority with respect to such parti-
cipation.
Continued Special Council Meeting
April 21, 1987
page 3
3. The City approved the form of Joint Powers Agreement submitted to the City,
and the Mayor and City Clerk (or, in their absence or unavailabillty, any
other members of the City Council or City officers, respectlvely) and such other
officers or employees of the City as may be appropriate are hereby authorized
and directed to execute the Joint Powers Agreement, with only such alterations,
additions or deletions as may be necessary or desirable to effectuate the pur-
poses of this resolutlon and are not, in the opinion of the City Attorney,
materially adverse to the interests of the City. The execution of the Joint
Powers Agreement by the parties herein authorized to sign shall he conclusive
evidence of such determination.
4. If the mortgage rate to be provided by the Program is greater than 8 3/8~
the consent of the City Council shall be required prior to the issuance of
the Bonds.
Dated this 21st day of April, 1987.
ATTEST:
Mayor Bruce G. Nawrocki
William J. Elrite, City Clerk
5. Adjournment
Motion by Paulson, second by Peterson t~t 9:30 p.m.
Roll call: All ayes
Mayor~Bruce G. Nawrocki
~-Anne Student, Cou~q~il Secretary