Res 1996 - 89 Establishing the Date for a Public Hearing on Proposed Amendments to the Financing of a Project (Lexington Heights Apartments), Under MN Statutes, Ch. 462C, as Amended & Authorizing Certian Other Actions in Connectio Therewith�
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RESOLUTION NO. 96-89
RESOLUTION ESTABLISHING THE DATE FOR A PUBLIC HEARING
ON PROPOSED AMENDMENTS TO THE FINANCING OF A PROJECT
(LEXINGTON HEIGHTS APARTMENTS PROJECT), UNDER MINNESOTA
STATUTES, CHAPTER 462C, AS AMENDED AND AUTHORIZING
CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH
WHEREAS, pursuant to and in accordance with the provisions of Minnesota
Statutes, Chapter 462C, as amended (the "Act"), by appropriate action duly taken by the
governing body of the City of Mendota Heights, Minnesota (the "City) in furtherance of
the purposes of the Act, the City is authorized to issue revenue bonds to finance the
acquisition, construction, improving and equipping of certain facilities located within the
corporate boundaries of the City; and
WHEREAS, the City has previously issued its Housing Mortgage Revenue Bonds
(Lexington Heights Apartments Project) Series 1983 (the "Prior Bonds"); and
WHEREAS, the City loaned the proceeds of the Prior Bonds to Le�ngton
Heights Associates Limited Partnership, a Minnesota limited partnership (the
"Company"), for the purpose of acquiring, construction and equipping of a 225-unit
multifamily housing development located within the corporate boundaries of the City
(the "Project"); and
WHEREAS, the City has previously issued its $9,100,000 Multifamily Housing
Revenue Refunding Bonds (Lexington Heights Apartments Project) Series 1991A (the
"Series A Bonds") and its $1,870,000 Multifamily Housing Revenue Refunding Bonds
(Lexington Heights Apartments Project) Series 1991B (the "Series B Bonds") (the Series
A Bonds and the Series B Bonds collectively referred to as, the "Bonds"), the proceeds of
which were used to provide for the funding of a loan (the "Loan") to the Company for
the purpose of refunding the Prior Bonds; and
WHEREAS, the Series A Bonds were issued under a Trust Indenture, dated as of
April 1, 1991 (the "Series A Indenture") and the Series B Bonds were issued under a
Trust Indenture, dated as of April 1, 1991 (the "Series B Indenture") (the Series A
Indenture and the Series B Indenture collectively referred to as the "Indentures"); and
WHEREAS, the Company has restructured the financing on the Bonds by
entering into an Amended and Restated Letter of Credit Agreement with The Sumitomo
Bank, Limited, acting through its Chicago Branch ("Sumitomo"); and
�, WHEREAS, as a condition to the restructuring of the financing, Sumitomo
requires that certain amendments be made to the Indentures, including the adoption of
new principal payment schedules for the Bonds; and
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WHEREAS, prior to approving the amendments to the Indentures containing new
principal payments schedules for the Bonds, such amendments must be considered at a
public hearing after notice, published at least 15 days before the hearing, in a newspaper
circulating generally within the City; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Mendota Heights, Minnesota;
1. That the City Council of the City will conduct a public hearing on the
proposal to amend the Indentures to provide new principal payment schedules for the
Bonds on December 17, 1996, at approximately 7:30 P.M.
2. That the City Clerk will cause a public notice to be published once in a
newspaper circulating generally with the boundaries of the City not less than fifteen (15)
days prior to the date established for the public hearing by the preceding paragraph of
this Resolution.
3. The Mayor and City Administrator is hereby authorized and directed to
take all steps necessary and desirable to proceed with the amendments to the Indentures.
PASSED AND ADOPTED:
ATTEST: ,�1.u„� /y1 ,�..�e�
City Clerk
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Mayor