08-33 - 08-06 - Issuance Housing and Care Facility Revenue Note Project by Community Involvement Programs Under Chapter 462C and 469.152 thru 469.165Resolution 08-33
August 6, 2008
0 Member Freiberg introduced the following resolution and moved its adoption:
RESOLUTION GIVING HOST APPROVAL TO THE ISSUANCE OF A
HOUSING AND CARE FACILITY REVENUE NOTE FOR A PROJECT BY
COMMUNITY INVOLVEMENT PROGRAMS LOCATED IN GOLDEN VALLEY,
MINNESOTA UNDER MINNESOTA STATUTES, CHAPTER 462C AND
MINNESOTASTATUTES SECTIONS 469.152 THROUGH 469.1651
BE IT RESOLVED, by the City Council (the "Council') of the City of Golden Valley,
Hennepin County, Minnesota (the "City") as follows:
Section 1. General Recitals.
(a) The purpose of Minnesota Statutes, Chapter 462C (the "Housing Program
Act"), is, among other things, to confer upon cities the power to issue revenue bonds to
finance multifamily housing developments; and
(b) The purpose of Minnesota Statutes, Sections 469.152 through 469.1651 as
amended, (the "Industrial Development Act"), is, among other things, to promote the
welfare of the State of Minnesota (the "State") by the active attraction and encouragement
and development of economically sound industry and commerce to prevent so far as
possible the emergence of blighted and marginal lands and areas of chronic unemployment
and by providing necessary care facilities so that adequate care services are available to
residents of the State at reasonable cost.
Section 2. Description of the Proiect.
(a) Community Involvement Programs (the "Borrower"), a Minnesota nonprofit
corporation and organization described in Section 501(c)(3) of the Internal Revenue Code
of 1986, as amended (the "Code") has proposed the issuance of a revenue note under the
Housing Program Act and the Industrial Development Act, in one or more series, in an
amount not to exceed $2,500,000 (the "Note") by the City of Hinckley, Minnesota (the
"Issuer") to finance the costs of a project (the "Project") consisting of (i) refinancing the
acquisition of an approximately 8 unit housing facility for the developmentally disabled
known as the North Court Apartments which is located at 403 North Court Avenue,
Sandstone, MN, (ii) refinancing the acquisition of group residential facilities for the
developmentally disabled which are located at 6427 Westchester Circle in the City (the
"Golden Valley Facility"); 4303 North Colorado Street, Crystal, MN; 501 First Street SW,
Hinckley, MN; 300 18th Avenue North, Hopkins, MN; 4731 Clear Spring Road and 4725
Clear Spring Road, Minnetonka, MN; 7600 48th Circle North, New Hope, MN; 7044
Columbus Avenue, Richfield, MN; 9011 34th Street West, St. Louis Park, MN; and 618
South Pine Street and 112 Division Street, Sandstone, MN, (iii) financing renovations to the
group residential facilities located at 4725 Clear Spring Road in Minnetonka and at 112
Division Street in Sandstone, and (iv) financing renovations to the corporate headquarters
of the Borrower located at 1600 Broadway Street NE, Minneapolis, MN.
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Resolution 08-33 - Continued August 6, 2008
• (a) The facility located at 403 North Court Avenue in Sandstone will be owned by
North Court Apartments, the facility located at 4731 Clear Spring Road in Minnetonka will
be owned by Clear Spring Road Residences, Inc., all of the remaining facilities comprising
the Project will be owned by the Borrower and the entire Project will be operated by the
Borrower.
(b) As more fully described above, portions of the Project are located in the City,
Hinckley and the Cities of Crystal, Hopkins, Minneapolis, Minnetonka, New Hope, Richfield,
St. Louis Park and Sandstone (collectively, the "Host Cities").
(c) The total amount of the obligations to be issued is presently estimated to not
exceed $2,500,000, approximately $99,000 of which will be used for refinancing the Golden
Valley Facility.
(d) The City has been advised that the Note or other obligations, as and when
issued, will not constitute a charge, lien or encumbrance upon any property of the City, the
Host Cities or the Issuer, except the Project and the revenues to be derived from the
Project. Such Note or obligations will not be a charge against the general credit or taxing
powers of the City, the Host Cities or the Issuer, but is payable from sums to be paid by the
Borrower pursuant to a revenue agreement.
Section 3. Recital of Representations Made by the Borrower.
40 (a) The Borrower has agreed to pay any and all costs incurred by the City in
connection with the issuance of the Note, whether or not such issuance is carried to
completion.
(b) The Borrower has represented to the City that no public official of the City has
either a direct or indirect financial interest in the Project nor will any public official either
directly or indirectly benefit financially from the Project.
Section 4. Public Hearin
(a) As required by Section 147(f) of the Code a Notice of Public Hearing was
published in the Golden Valley Sun -Post, the City's official newspaper and newspaper of
general circulation, for a public hearing on the proposed issuance of the Note and the
proposal to undertake and finance the Project.
(b) As required by Section 147(f) of the Code the City Council has on this same
date held a public hearing on the issuance of the Note and the proposal to undertake and
finance the portion of the Project located within the jurisdictional limits of the City, at which
all those appearing who desired to speak were heard and written comments were
accepted.
Section 5. Host Approval. The City hereby gives the host approval required under the
• Internal Revenue Code to the issuance of the Note and, pursuant to Minnesota Statutes,
Section 471.656, Subd. 2(2), the City Council hereby consents to the issuance of the Note.
Resolution 08-33 - Continued
•
ATTEST:
(A ulm�e
Susan M. Virnig, City Clerk
August 6, 2008
Linda R. Loomis, Mayor
The motion for the adoption of the foregoing resolution was seconded by Member Scanlon
and upon a vote being taken thereon, the following voted in favor thereof: Freiberg, Loomis,
Pentel, Scanlon and Shaffer; and the following voted against the same: none, whereupon
said resolution was declared duly passed and adopted, signed by the Mayor and her
signature attested by the City Clerk.
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