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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