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HomeMy WebLinkAboutOrdinance 1210ORDINANCE NO. 12 ! 0 ORDINANCE GIVING PRELIMINARY APPROVAL TO A CARE AND RESIDENTIAL HOUSING PROGRAM AND BONDS ON BEHALF OF CREST VIEW LUTHERAN HOME COMBINATION HEALTH ISSUANCE OF REVENUE The City of Columbia Heights, Minnesota (the "City"), does ordain, as follows: Section 1. Reeitais. 1.01. By the provisions of Minnesota Statutes Chapter 462C, as amended (the "Act"), the City is authorized to plan, administer, and develop housing pro.'ams, as well as combination health care and residential housing programs, and to issue and sell revenue bonds or obligations to make or purchase loans to finance combination health care and residential housing developments within its boundaries, which revenue bonds or obligations shall be payable solely from the revenues of such developments. 1.02. The City has prepared pursuant to the Aeta Housing plan for the City, whieh Housing Plan has been duly adopted by the City pursuant to the Act (the "Housing Plan"). The Act provides that, prior to issuing revenue bonds or obligations to finance a development described in Section 462C.05~ subd. ?, of the Act, the City shall prepare a Program setting forth the information required by Section 462C.05, subd. 6, of the Act, submit the Program to the Metropolitan Council, and, after holding a public hearing thereon~ submit the Program for approval by the Minnesota Housing Finance Agency, as provided in Section 462C.01 of the Act, on the basis of the considerations stated in Section 462C.04 of the Act. 1.03. Crest View Lutheran Home, a Minnesota nonprofit corporation, or a nonprofit affiliate thereof (the "Corporation"), has proposed to undertake the acquisition, construction and equipping of a combination health care and residential housing development under the Act tn accordance with the City's Housing Plan and pursuant to a proposed Program therefor (the "Program"), on file in the offiee of the City Clerk-Treasurer, a copy of which is attached hereto as Exhibit A. The description of the facilities set forth tn the Program is incorporated herein by reference and made a part hereof (the WFaeilities"). 1.04. Under the Program it is proposed that the City issue its Residential Care Facility Revenue Bonds (the "Bonds") pursuant to the Act in such a~,regate principal amount as may be necessary to finance the acquisition, construction and equipping of the Facilities, sub:leer to the agreement by the Corporation to pay promptly when due all the principal of and interest on the Bonds. 1.05. A public hearing for the Program was held on October 22, 195~, as provided in a notice of public hearing published tn the City's official newspaper on October 3, 1990 which is a date no less than 15 days in advance of the hearing. At said hearing all persons present were afforded an opportunity to express their views concerning the Program. Section 2. Approvals and Authorization. 2.01. The Program is hereby adopted by the City pursuant to Section 462C.04, subd. ?, of the Act, and the issuance of the Bonds of the City, in an aggregate principal amount of not to exceed $3,500,000 is hereby approved. The Bonds shall not be issued until the Program has been reviewed and approved as provided by the Act and until the City, the Corporation and the purchaser of the Bonds have agreed upon the details of the Bonds and the provisions for their payment. The principal of, premium, if any, and interest on the Bonds, when, as and if i.~ued, shall be payable ~olely from the revenues derived from the Facilities, including loan repayments to b~ made with respect thereto, and the property pledged to the payment thereof, and shall not constitute a debt of the City within the meaning of any constitutional, statutory or charter Hmitation. 2.02. The submission of the Program to the Metropolitan Council and the publication of notice of the public hearing held thereon are hereby ratified, confirmed, and approved. The Mayor, City Manager and .other officers and employees of the City are hereby authorized to submit the Program, accompanied by the Housing Plan, and all required certificates, to the Minnesota Housing Finance Agency for review and approval pursuant to Subdivision 2 of Section 462C.04 of the Act. 2.03 Pursuant to Subdivision 1, Section 462C.07, of the Act, in the making of a loan with respect to the Program and in the issuance of the Bonds or other obligations of the City, the City may exercise, within its corporate limits, any of the powers the Minnesota Housing' Finance Agency may exercise under Chapter 462A, Minnesota Statutes, without limitation under the provisions of Chapter 475, Minnesota Statutes. 2.04 The Corporation has agreed to and shall pay any and all costs incurred by the City in connection with the Program and the Facilities whether or not the Program is approved by the Minnesota Housing Finance Agency and whether or not the Bonds are issued. Section 3. This Ordinance shall be in full force and effect from and after thirty (30) days after its passage. First Reading: Second Reading: Date of Passage: October 22, 1990 November 13, 1990 November 13, 1990 Offered by: Pete r son Seconded by: Ruett imann Roll call: A 11 a ye s Mayor F.d~ard M. Carlson-- ATTF.~T: W~flliam J. Elrite, City Clerk-Treasurer