Loading...
HomeMy WebLinkAbout2016-60CITY OF COLUMBIA HEIGHTS, MINNESOTA RESOLUTION 2016 -60 AUTHORIZING, APPROVING, AND ADOPTING AN AMENDED AND RESTATED PROGRAM FOR A MULTIFAMILY HOUSING DEVELOPMENT PURSUANT TO MINNESOTA STATUTES, CHAPTER 462C WHEREAS, the City of Columbia Heights, Minnesota (the "City ") is a home rule charter city duly organized and existing under the Constitution and laws of the State of Minnesota; and WHEREAS, pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act "), the City is authorized to carry out the public purposes described in the Act by issuing revenue bonds or other obligations to finance or refinance multifamily housing developments located within the City, and as a condition to the issuance of such revenue bonds, adopt a housing program providing the information required by Section 462C.03, subdivision la, of the Act; and WHEREAS, pursuant to Section 462.04, subdivision 2, a public hearing must be held on a proposed housing program and the city must submit the housing program to the Metropolitan Council on or before the day on which notice of the public hearing is published for review and comment on: (1) whether the housing program furthers local and regional housing policies and is consistent with the Metropolitan Development Guide, and (ii) the compatibility of the housing program with the housing portion of the comprehensive plan of the city, if any; and WHEREAS, Columbia Heights Leased Housing Associates I, LLLP, a Minnesota limited liability limited partnership (the "Borrower "), has requested that the City issue its multifamily housing revenue obligations under the Act and lend the proceeds thereof to the Borrower to finance the following: (i) the construction and equipping of a multifamily housing facility comprised of 191 affordable independent - living rental apartments to be located in a four -story building, together with related common amenity spaces over one floor of underground parking, including a party room, theatre, fitness center, cards /crafts room, salon, library and a landscaped patio, to be located at 3700 5"' Street NE in the City to be known as Lily Gables (the "Project "); (ii) the funding of one or more reserve funds to secure the timely payment of the multifamily housing revenue obligations; (iii) the payment of a portion of the capitalized interest on the multifamily housing revenue obligations; and (iv) the payment of the costs of issuing the multifamily housing revenue obligations; and WHEREAS, following a duly noticed public hearing held on October 26, 2016 in accordance with the requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code ") and the Act, the City Council adopted Resolution 2015 -86 (the "Preliminary Resolution ") under the terms of which the City: (i) granted preliminary approval to the issuance of multifamily housing revenue obligations in the approximate principal amount of $32,000,000 under the terms of the Act to finance the Project; (ii) authorized the submission of an application to the Minnesota Department of Management and Budget ( "MMB ") for an allocation of bonding authority under Minnesota Statutes, Chapter 474A, as amended (the "Allocation Act ") as required by Section 146 of the Code; and (iii) acknowledged the preparation of a housing program (the "Original Housing Program" or "Program ") to authorize the issuance by the City of multifamily housing revenue obligations in the aggregate principal amount of approximately $32,000,000 to finance the acquisition, construction, and equipping of the Project in accordance with the requirements of the Act and the submission of the Housing Program to the Metropolitan Council for its review and comment; and WHEREAS, the Original Housing Program provided that all housing units within the Project shall be occupied by at least one person who is at least 55 years of age at the time of initial occupancy and that the City would by resolution authorize, issue and sell its revenue bonds in one or more series in an aggregate principal amount of approximately $32,000,000 to finance the Program; and WHEREAS, the Original Housing Program was submitted to the Metropolitan Council for its review and comment in accordance with the requirements of Section 462C.04, subdivision 2 of the Act, and by a letter dated December 21, 2015, the Metropolitan Council informed the City that it had completed its review of the Program and provided its comments; WHEREAS, following a duly noticed public hearing held on March 14, 2016 in accordance with the requirements of Section 147(f) of the Code and the Act, the City Council adopted Resolution No. 2016 -24 (the "Bond Resolution "), under the terms of which the City: (i) adopted, ratified and approved the Original Housing Program; (ii) ratified the authorization granted pursuant to the Preliminary Resolution with respect to the submission of an application for allocation of bonding authority pursuant to Section 146 of the Code and the Allocation Act; (iii) authorized the issuance, sale, and delivery of its multifamily housing revenue obligations in an increased maximum aggregate principal amount not to exceed $35,000,000 (the "Series 2016 Obligations ") upon receipt of an allocation of bonding authority from MMB; (iv) approved the forms of financing documents on file with the City and prepared in connection with the Series 2016 Obligations (the "Financing Documents "), and authorized and directed the delivery of the same; (v) obligated the Borrower to pay the administrative fee of the City in accordance with the terms of the Financing Documents; and (vi) granted to the Mayor of the City and the City Manager and such other officials of the City who execute and deliver the Series 2016 Obligations and related documents, Kennedy & Graven, Chartered ( "Bond Counsel "), other attorneys, engineers, and other agents or employees of the City the authority to do all acts and things required of them by or in connection with the Bond Resolution, the Financing Documents, and the Series 2016 Obligations; and WHEREAS, the Borrower desires to modify the occupancy restrictions of the Project and thereby amend the Original Housing Program to provide that not more than eighty percent (80 %) of the housing units within the Project shall be occupied by at least one person who is at least 55 years of age at the time of initial occupancy and not more than twenty percent (20 %) of the housing units within the Project shall be occupied by at least one person who is at least 50 years of age at the time of initial occupancy; and WHEREAS, the Borrower has requested that the City also amend the Original Housing Program to provide for the issuance of the Series 2016 Obligations in the maximum aggregate principal amount not to exceed $35,000,000, in accordance with the Bond Resolution; and WHEREAS, Bond Counsel, on behalf of the City, has prepared a draft Amended and Restated Program for a Multifamily Housing Development (the "Amended Housing Program "), in the form now on file with the City, that amends the Original Housing Program by: (i) providing that not more than eighty percent (80 %) of the housing units within the Project shall be occupied by at least one person who is at least 55 years of age at the time of initial occupancy and not more than twenty percent (20 %) of the housing units within the Project shall be occupied by at least one person who is at least 50 years of age at the time of initial occupancy and; (ii) authorizing the issuance by the City of up to $35,000,000 in revenue bonds to finance the acquisition, construction, and equipping of the Project by the Borrower; and WHEREAS, the proposed amendments to the Original Housing Program, as set forth in the Amended Housing Program, do not constitute material changes from the Original Housing Program submitted to the Metropolitan Council other than changes in the financial aspects of the proposed Series 2016 Obligations, and are not inconsistent with the comments of the Metropolitan Council to the Original 2 Housing Program under Section 462C.04, subdivision 2 under the Act; therefore the City is not required to resubmit the Amended Housing Program to the Metropolitan Council for review and comment and a public hearing is not required to be held on the Amended Housing Program before the City may adopt the Amended Housing Program. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, MINNESOTA AS FOLLOWS: 1. The Amended Housing Program, in the form now on file with the City, is hereby authorized, approved and adopted in all respects. The preparation of the Amended Housing Program is hereby ratified, confirmed, and approved. The City Manager is hereby authorized to do all other things and take all other actions as may be necessary or appropriate to carry out the Amended Housing Program in accordance with the Act and any other applicable laws and regulations. Pursuant to the Amended Housing Program, not more than eighty percent (80 %) of the housing units within the Project shall be occupied by at least one person who is at least 55 years of age at the time of initial occupancy and not more than twenty percent (20 %) of the housing units within the Project shall be occupied by at least one person who is at least 50 years of age at the time of initial occupancy. 2. This resolution shall be in full force and effect from and after its approval. Adopted: July 11, 2016. Offered by: Schmitt Seconded by: Murzyn, Jr. Roll Call: All Ayes ATTEST: �f Katie Bruno, City Clerk CL 162-052 (SEL) 482170v.1 3