Res 1994 - 09 Giving Preliminary Approval to the Issuance of Bonds to Refund MH Multifamily Housing Revenue Refunding Bonds�
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RESOLTJTION NO. 9 4- 0 9
RESOLUTION GIVING PRELIlVIINARY APPROVAL TO TI�
ISSUANCE OF BONDS TO REFUND TI� CITY OF MENDOTA
HEIGHTS, D�VNTSOTA, MULTIF'AMII.Y IiOUSING REVENUE
REFUNDING BONDS (LEXINGTON HEIGHTS APARTMENTS
PROJECI� SERIES 1991A AND SERIES 1991B AND TO REFUND
TI� CITY OF MAPLE GROVE, 11IINNESOTA, MULTIFAMII.Y
HOUSING REVENUE REFUNDING BONDS (EAGLE RIDGE
APARTMENTS PROJEC� SERIFS 1991A AND SERIFS 1991B
AND APPROVING E;NTERING INTO A JOINT POWERS
AGREEMENT WITH THE CITY OF MAPLE GROVE,
MINNESOTA, TO AUTHORIZE THE ISSUANCE OF
REFUNDING BONDS ON ITS BIIiALF.
WHEREAS, the City of Mendota Heights ("Mendota Heights") and the City of Maple Grove
("Maple Grove") (collectively, the "Prior Issuer") each adopted a Program pursuant to Minnesota
Statutes, chapters 462C and 475 as amendetl, (collectively, the "Act"), which Act authorizes cities to
issue revenue bonds and use the proceeds thereof for the purpose of developing and administering
programs of making or purchasing loans to finance multifamily housing developments affordable to
persons and families of low and moderate income and to issue bonds to refund such bonds previously
issued; and
WHEREAS, Mendota Heights, pursuant to the Program (as defined in the Act) adopted by it,
issued its Housing Mortgage Revenue Bonds (Lexington Heights Apartments Project) Series 1983 (the
"1983 Lexington Bonds") in the aggregate principal amount of $11,000,000, dated December 1, 1983,
the proceeds of which were loaned by Mendota Heights to Lexington Heights Associates Limited
Partnership, a Minnesota limited partnership ("Lexington") to finance the cost of acquisition and
construction of a 255-unit multifamily rental housing facility (the "Lexington Heights Project"); and
WHEREAS, Maple Grove adopted a Program (as defined in the Act) under which it issued its
$11,000,040 Housing Mortgage Revenue Bonds (Eagle Ridge Apartments Project) Series 1983 (the "1983
Eagle Ridge Bonds") dated December 1, 1983, the proceeds of which were loaned by Maple Grove to
Eagle Lake Associates Limited Partnership, a Minnesota limited partnership ("Eagle") to finance the cost
of acquisition and construction of a 240-unit multifamily rental housing facility (the "Eagle Ridge
Project"); and
WHEREAS, Mendota Heights has previously issued its Multifamily Housing Revenue Refunding
Bonds (Lexington Heights Apartments Project) Series 1991A and Series 1991B (the "Lexington Heights
Prior Bonds") and Maple Grove has previously issued its Multifamily Housing Revenue Refunding Bonds
(Eagle Ridge Apartments Project) Series 1991A and Series 1991B (the "Eagle Ridge Prior Bonds")
(collectively, the "Prior Bonds"); and
WHEREAS, Mendota Heights issued the Lexington Heights Prior Bonds in the aggregate
principal amount of $11,000,000, the proceeds of which were used to refund the 1983 Lexington Bonds;
and
WHEREAS, Maple Grove issued the Eagle Ridge Prior Bonds in the aggregate principal amount
of $11,000,000, the proceeds of which were used to refund the 1983 Eagle Ridge Bonds; and
WHEREAS, Mendota Heights is authorized pursuant to the Act and Minnesota Statutes, section
471.59, as amended, to enter into a joint powers agreement and, pursuant thereto, to issue refunding
bonds for the Eagle Ridge Prior Bonds previously issued by the City of Maple Grove; and
WHEREAS, Lexington and Eagle Ridge, in order to reduce the outstanding principal amount of
the Prior Bonds and to change the interest rate thereon from a floating rate to fixed rates have proposed
that Mendota Heights issue its revenue bonds or notes in the approximate aggregate principal amount of
$22,000,000, but not to exceed the outstanding principal amount of the Prior Bonds, for the purpose of
refunding the Prior Bonds in whole; and
WHEREAS, Mendota Heights shall not be liable on the Bonds, defined below, and the Bonds
shall not be a debt of Mendota Heights within the meaning of any state constitutional provision or
statutory limitation, and will not constitute or give rise to a chazge against the general credit or taxing
power of Mendota Heights or a pecuniary liability of Mendota Heights, nor shall the Bonds be payable
out of any funds or properties other those than provided as security therefor; and
WHEREAS, Lexington and Eagle Ridge have proposed that Mendota Heights issue its
Multifamily Housing Revenue Refunding Bonds (Lexington Heights Apartments Project) Series A, in an
amount not to exceed $11,000,000 (the "Series A Bonds"); and
WHEREAS, to authorize Mendota Heights to exercise certain powers on behalf of Maple Grove
Lexington and Eagle Ridge have proposed that Maple Grove and Mendota Heights enter into a joint
powers agreement, which agreement will allow Mendota Heights to issue, on behalf of Maple Grove, its
Multifamily Housing Revenue Refunding Bonds (Eagle Ridge Apartments Project) Series B, not to exceed
$11,QU0,000 (the "Series B Bonds"); and '
WHEREAS, the Series A Bonds and the Series B Bonds are hereinafter collectively refened to
as the "Bonds"; and
WHEREAS, there has been prepared and presented to this City Council a form of Joint Powers
Agreement (the "Joint Powers Agreement"), which Agreement will allow Mendota Heights to exercise
all powers on behalf of Maple Grove necessary to issue the Series B Bonds; and
WHEREAS, in order to comply with the requirements of the Act and of section 1313 of the Tax
Reform Act of 1986 and section 147(� of the Intemal Revenue Code of 1986, as amended, the Ciry
Council proposes to hold a public hearing on March 15, 1994, after publication of notice thereof in a
newspaper of general circulation in the City of Mendota Heights at least fourteen days before the hearing;
and
WHEREAS, it is necessary and proper at this time that Mendota Heights (a) authorize the
execution and delivery of the Joint Powers Agreement and (b) authorize the issuance of the Bonds and
the application of the proceeds thereof to the refunding of the Prior Bonds;
NOW THEREFORE BE TT RESOLVED, by the City Council of Mendota Heights, as follows:
1. The form of the Joint Powers Agreement is approved, with such changes therein, not
inconsistent with this Resolution and not materially adverse to Mendota Heights, as may be permitted by
the Act and approved by the officers executing the same on behalf of Mendota Heights. The Mayor and
the Clerk are hereby authorized and directed to execute, attest, and deliver the Joint Powers Agreement.
All of the provisions of the Joint Powers Agreement, when executed and delivered as authorized herein,
shall be deemed to be a part of this Resolution as fiilly and to the same extent as if incorporated verbatim
herein and shall be in full force and effect from the date of execution and delivery thereaf.
2. Mendota Heights hereby gives preliminary approval to the issuance of the Bonds.
Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to establish
a legal obligation on the part of Mendota Heights or its council to issue or cause the issuance of the
Bonds, and Mendota Heights and its Council retain the right not to issue such bonds or to issue the bonds
in an amount less than referred to above, should Mendota Heights or its Council, at any time prior to the
issuance thereof, determine that it is in the best interests of Mendota Heights not to issue the bonds or
to issue the bonds in an amount less than set forth above.
3. Lexington and Eagle Ridge have agreed to pay directly or through Mendota Heights any
and all costs incuned by Mendota Heights in connection with the Bonds whether or not the Bonds are
issued by Mendota Heights.
4. All commitments of Mendota Heights expressed herein are subject to the condition that
Mendota Heights, Lexington Heights, and Eagle Ridge shall have agreed to mutually acceptable terms
and conditions of a loan agreement, the Bonds, and of the other instruments and proceedings relating to
the Bonds, that the public hearing be held on March 15, 1994, after publication of notice thereof in a
newspaper of general circulation in Mendota Heights at least fourteen days before the hearing, and that
the closing of the issuance and sale of the Bonds shall have occurred by no later than January 18, 1995.
If the events set forth herein do not take place within the time set forth above, or any extension thereof,
and the Bonds are not sold within such time, the preliminary approval herein of the Bonds shall expire
and be of no further effect.
5. For the purpose of financing a portion of the cost of refunding the Prior Bonds, there is
hereby authorized the issuance of not to exceed $11,000,000 aggregate principal amount of Series A
Bonds and not to exceed $11,000,000 aggregate principal amount of Series B Bonds. The bonds shall
be issued in fully registered form, shall be in such denominations, shall bear interest, shall be numbered,
shall be dated, shall mature, shall be in such form and shall have such other details and provisions as are
prescribed by the Indenture.
6. The Mayor, Clerk and other officials of Mendota Heights aze hereby authorized to
execute and deliver such other agreements, certificates or instruments, approved by legal counsel to
Mendota Heights, as may be reasonably necessary or desirable to implement the matters approve� hereby,
the execution of such agreements, certificates or instruments being conclusive evidence of such approval.
Adopted: F e b r u a r y 1� 1994
ATI'EST:
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lerk
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Mayor