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16-28 - 05-03 - Call for Public Hearing Host Approval Minnetonka Resolution 16-28 May 3, 2016 Member Fonnest introduced the following resolution and moved its adoption: RESOLUTION CALLING FOR A PUBLIC HEARING FOR THE PURPOSE OF PROVIDING HOST APPROVAL FOR THE ISSUANCE OF REVENUE OBLIGATIONS BY THE CITY OF MINNETONKA BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota (the "City") as follows: Section 1. Recitals. 1.01. Pursuant to the Constitution and laws of the State of Minnesota, particularly Minnesota Statutes, Chapter 462C, as amended (the "Act"), a municipality is authorized to issue revenue bonds to finance multifamily housing developments. 1.02. Minnesota Statutes, Section 471.656, as amended, authorizes a municipality to issue obligations to finance the acquisition or improvement of property located outside of the corporate boundaries of such municipality if the obligations are issued under a joint powers agreement between the municipality issuing the obligations and the municipality in which the property to be acquired or improved is located. Pursuant to Minnesota Statutes, Section 471.59, as amended, by the terms of a joint powers agreement entered into through action of their governing bodies, two municipalities may jointly or cooperatively exercise any power common to the contracting parties or any similar powers, including those which are the same except for the territorial limits within which they may be exercised and the joint powers agreement may provide for the exercise of such powers by one or more of the participating governmental units on behalf of the other participating units. 1.03. CHC Minnetonka Affordable Housing LLC, a Minnesota limited liability company, or any of its affiliates (collectively, the "Borrower"), has proposed that the City approve the issuance by the City of Minnetonka, Minnesota ("Minnetonka") of one or more series of revenue obligations (the "Bonds") in the approximate aggregate principal amount of$11,500,000. The Borrower intends to apply a portion of the proceeds of the Bonds to finance the substantial rehabilitation of eight (8) existing affordable townhome units on scattered sites located at 2100 Douglas Drive North and 3354 Lilac Drive North in the City (the "Golden Valley Project"), which constitute a multifamily housing development authorized under the terms of the Act. 1.04. Prior to the issuance of the Bonds by Minnetonka, the City Council of the City is required to: (i) conduct a public hearing in accordance with the requirements of the Act and Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code") with respect to the proposal to issue the Bonds; and (ii) approve the issuance of the Bonds by Minnetonka to finance, in part, the rehabilitation of the Golden Valley Project. Section 2. Required Actions. 2.01. The City Council will meet at 6:30 p.m. on Tuesday, June 7, 2016, to conduct a public hearing and consider the proposed issuance of the Bonds by Minnetonka in accordance with Minnesota Statutes, Sections 471.59 and 471.656, as amended, to finance, in part, the Golden Valley Project. Resolution No. 16-28 -3- May 3, 2016 EXHIBIT A NOTICE OF PUBLIC HEARING CITY OF GOLDEN VALLEY, .MINNESOTA NOTICE OF A PUBLIC HEARING TO BE CONDUCTED BY THE CITY OF GOLDEN VALLEY WITH RESPECT TO THE ISSUANCE OF REVENUE OBLIGATIONS BY THE CITY OF MINNETONKA NOTICE IS HEREBY GIVEN that the City Council of the City of Golden Valley, Minnesota (the "City"), will hold a public hearing on Tuesday, June 7, 2016, at or after 6:30 pm at City Hall, located at 7800 Golden Valley Road in the City, to consider a proposal that the City grant host city approval to the issuance of one or more series of revenue obligations (the "Bonds"), in the approximate aggregate principal amount of$11,500,000, by the City of Minnetonka, Minnesota ("Minnetonka") under Minnesota Statutes, Chapter 462C, as amended (the "Act"), and Minnesota Statutes, Sections 471.59 and 471.656, as amended, for the benefit of CHC Minnetonka Affordable Housing LLC, a Minnesota limited liability company, or any of its affiliates (collectively, the "Borrower"). The Borrower intends to apply a portion of the proceeds of the Bonds to finance the substantial rehabilitation of eight (8) existing affordable townhome units on scattered sites located at 2100 Douglas Drive North and 3354 Lilac Drive North in the City (the "Golden Valley Project"), which constitute a multifamily housing development authorized under the terms of the Act. The Bonds will be special, limited obligations of Minnetonka, and the Bonds and interest thereon will be payable solely from the revenues and assets pledged to the payment thereof. No holder of any Bonds will ever have the right to compel any exercise of the taxing power of the City to pay the Bonds or the interest thereon, nor to enforce payment against any property of the City. The Bonds are to be payable solely from revenues and security provided by the Borrower to Minnetonka and pledged to the payment of the Bonds. Before issuing the Bonds, Minnetonka will enter into an agreement with the Borrower, whereby the Borrower will be obligated to make payments at least sufficient at all times to pay the principal of and interest on the Bonds when due. At the time and place fixed for the public hearing, the City Council will give all persons who appear at the hearing an opportunity to express their views with respect to the proposal. In addition, interested persons may direct any questions or file written comments respecting the proposal with the City Clerk, at or prior to said public hearing. Dated: [Date of Publication] BY ORDER OF THE CITY COUNCIL OF THE CITY OF GOLDEN VALLEY, MINNESOTA /s/ Kristine A. Luedke City Clerk City of Golden Valley, Minnesota Resolution No. 16-28 -2- May 3, 2016 2.02. The City Clerk is hereby authorized and directed to publish a notice of the public hearing, in substantially the form attached hereto as EXHIBIT A in the Sun-Post, the official newspaper of and a newspaper of general circulation in the City. The notice shall be published at least once at least fifteen (15) days prior to the date of the public hearing. 2.03. The Borrower shall pay to the City any and all costs paid or incurred by the City in connection with the Bonds or the financing of the Golden Valley Project, whether or not the financing is carried to completion, and whether or not the Bonds or operative instruments are executed and delivered. he rd M. arris, Mayor ATTEST: Kristine A. Luedke, City Clerk The motion for the adoption of the foregoing resolution was seconded by Member Snope and upon a vote being taken thereon, the following voted in favor thereof: Fonnest, Snope, Clausen, Schmidgall and Harris and the following voted against the same: none whereupon said resolution was declared duly passed and adopted, signed by the Mayor and his signature attested by the City Clerk.