HomeMy WebLinkAboutApril 20, 1987OFFICIAL PROCEEDINGS
COLUMBIA HEIGHTS CITY COUNCIL
SPECIAL MEETING
APRIL 20, 1987
The Special Meeting of the City Council was called to order by Mayor Nawrockl
at 7:00 p.m..
1. Roll Call
Paulson, Petkoff, Carlson, Peterson, Nawrocki - present
2. Purpose of Meeting
This meeting is to hold a second reading/public hearing on an ordinance authorizing
issuance of single family mortgage revenue bonds and to'approve participation in
the single family mortgage revenue bond program.
3. Presentation by Staff and Consultants
The City Manager stated that the Council is being requested to take two actions
at this meeting, one to approve Ordinance No. 1147 which would authorize the is-
suance of single family mortgage revenue bonds and secondly, to authorize the
selling of these bonds. It is anticipated that ten million dollars will be al-
located to the City of Co]umbia Heights. The financing funds will be loaned to
first time homebuyers at a lower rate of interest.
Mayor Nawrocki inquired if any lending institutions in our City had expressed
interest in being originators of these loans. Todd Stutz, HRA Director of Com-
munity Development, advised that no one from the Cit~ had responded but they
will be contacted again. The City's bond counsel from Miller Schroeder Finan-
cials, Incorporated, said the bonds will be sold through the Federal National
Mortgage Association (Fannie Mae) and that this arrangement will be a negotiated
transaction.
The City Manager stated that the resolution will authorize the City of Columbia
Heights to participate in a joint powers agreement with other communities who
have approved the agreement. Mayor Nawrocki inquired as to who is actually is-
suing the bonds. The legal counsel for the City's bonding program advised that
Dakota County HRA, Washington County HRA and the Minneapolis/St. Paul Housing
Finance Board are issuing the bonds. Allocation of the bonding money was dis-
cussed as was how participants could use allocations of other participants
when there was funding remaining. Mayor Nawrocki inquired if the City had
the opportunity to decline the bond issue if another provider of funds expressed
interest or if the interest rate changed. The bond counsel advised that the
City could do its own program and another stipulation could be added to the
resolution which would address an acceptable rate of interest. The Council
agreed to a "not to exceed" rate of interest of 8½~ and requested this be
included in the resolution. Legal costs for this program will be paid out of
the program itself.
Stutz felt that the entire ten million dollars may not be used in the City of
Columbia Heights. Previously when the City participated in single family mortgage
revenue bonds some of the funding was committed to a specific developer who
had a project in the City. It was noted that none of the funds from this issue
are committed at this time.
4. Second Reading of Ordinance No. 1147; Authorizing Issuance of Single Family
Mortgage Revenue Bonds
Motion by Peterson, second by Petkoff to waive the reading of the ordinance there
being ample copies available to the public. Roll call: All ayes
Special Councll Meeting
April 20, 1987
page 2
ORDINANCE NO. 1147
AUTHORIZING THE ISSUANCE OF SINGLE FAMILY MORTGAGE REVENUE BONDS UNDER THE 1987
SINGLE FAMILY HOUSING BOND PROGRAM
The City of Columbia Heights does ordain:
1. The City Council (the "Council") of the City of Columbia Heights (the "City")
has adopted a housing plan pursuant to Minnesota Statutes, Chapter 462C (the
"Act").
2. The Council has adopted a Single Family Housing Bond Program after publication
of notice and by public hearing as required by the Act which program calls for
the issuance of $10,000,000 Single Family Mortgage Revenue Bonds of the City.
3. The program has been submitted to the Minnesota Housing Finance Agency as
required by law and, pursuant to Minnesota Statutes, Chapter 474A, the City
has received an allocation of authority to issue qualified mortgage bonds.
4. On the basis of the information available to the City to date, it appears
that it would be in the best interests of the City to issue its Single Family
Mortgage Revenue Bonds in the aggregate principal amount of $10,000,000; and
it further appears that it would be in the best interests of the City to issue
its bonds jointly with other issuers including, without limitation, The Dakota
County Housing and Redevelopment Authority and The Washington County Housing
and Redevelopment Authority.
5. The issuance by the City of its $10,000,000 Single Family Mortgage Revenue Bonds,
Series 1987 is hereby approved subject to the mutual agreement of this body
and the inltial purchasers of the bonds as to the details of the bond issue and
the provisions for their payment. In all events, it is understood, however, that
such bonds of the City shall not constitute a charge, lien or encumbrance legal
or equitable upon any property of the City except the mortgages duly acquired
pursuant to the bond documents; and each bond, when, as, and if issued, shall
recite in substance that the bond, including interest thereon is payable
solely from the revenues received from the program, and shall not constitute
a debt of the City.
6. The bonds shall be issued jointly with other issuers as determined by resolu-
tion of the City.
7. Miller & Schroeder Financial, Inc. is authorized to act as placement agent for
the bonds under terms and conditions to be determined by the City and Miller
& Schroeder Financial, Inc..
8. The law firm of Holmes & Graven, Chartered is authorized to act as bond
counsel and to assist in the preparation and review of necessary documents
relating to the program and bonds issued in connection therewith.
9. This ordinance shall be in ful'l force and effect from and after thirty (30)
days after its passage.
First Reading:
Second Reading:
Offered by:
April 13, 1987
April 2~, 1987
Peterson
Special Councll Meeting
April 20, 1987
page 3
Seconded by: Petkoff
Roll call: All ayes
Date of Passage: April 27, 1987
Jo-Anne Student, Councll Secretary
~ayor Bruce G. Nawrocki
5. Resolution Authorizing Participation in the Joint Single Family Mortgage
Revenue Bond Program as Defined and Authorizing Executio,n, ofa JOint Powers
Agreement
Members of the Council felt additional information was needed on this resolution.
Mayor Nawrocki felt a time for using the funds should be included in the resolu-
tion. Staff and consultants will have additional information prepared.
6. Recess
Motion by Petkoff, second by Paulson to recess this special council meeting until
Tuesday, Aprll 21, 1987 at 8:00 p.m.. Roll call: All ayes