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17-50 - 09-05 - Cooperative Agreement with the City of Minnetonka Resolution 17-50 September 5, 2017 Member Fonnest introduced the following resolution and moved its adoption: RESOLUTION CONSENTING TO AND APPROVING THE ISSUANCE, SALE, AND DELIVERY BY THE CITY OF MINNETONKA OF ITS REVENUE OBLIGATIONS; APPROVING AND AUTHORIZING THE EXECUTION OF A COOPERATIVE AGREEMENT WITH THE CITY OF MINNETONKA; AND TAKING OTHER ACTIONS WITH RESPECT THERETO BE IT RESOLVED by the City Council (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 (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 "Obligations") in the approximate aggregate principal amount of$7,000,000. The Borrower intends to apply a portion of the proceeds of the Obligations to finance the substantial rehabilitation of six (6) existing affordable townhome units located at 2100 Douglas Drive North and two (2) existing affordable townhome units located at 3354 Lilac Drive North in the City (together, the "Project"), each constituting a multifamily housing development authorized under the terms of the Act. 1.04. The City and Minnetonka are proposing to enter into a Cooperative Agreement (the "Cooperative Agreement") pursuant to which the City will consent to the issuance of the Obligations by Minnetonka to finance the acquisition and substantial rehabilitation of the Project, and Minnetonka will agree to issue the Obligations to finance the acquisition and substantial rehabilitation of the Project. 1.05. On the date hereof, the City Council conducted a public hearing at which a reasonable opportunity was provided for interested individuals to express their views, both Resolution No. 17-50 -2- September 5, 2017 orally and in writing on the following: (i) consent to the issuance of the Obligations by Minnetonka pursuant to the requirements of Section 147(f) of the Code and the regulations promulgated thereunder; and (ii) approval of the financing of the acquisition and substantial rehabilitation of the Project pursuant to the requirements of the Act. 1.06. The Borrower has represented to the City that the principal of, premium (if any), and interest on the Obligations: (i) shall be payable solely from the revenue pledged therefor; (ii) shall not constitute a debt of the City or Minnetonka within the meaning of any constitutional or statutory limitation; (iii) shall not constitute nor give rise to a,pecuniary liability of the City or Minnetonka or a charge against its general credit or taxing powers; and (iv) shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City or Minnetonka other than the interest of Minnetonka as set forth in one or more loan agreements to be entered into between Minnetonka and the Borrower. Section 2. Approvals. 2.01. The City Council finds that it is in the best interest of the City to approve the issuance of the Obligations by Minnetonka to finance, in part, the acquisition and substantial rehabilitation of the Project and hereby consents to the issuance of the Obligations by Minnetonka for the purposes set forth above. 2.02. The Obligations shall be special, limited obligations of Minnetonka payable solely from the revenues and security provided by the Borrower to Minnetonka and pledged to the payment of the Obligations. 2.03. The Mayor and the City Manager are hereby authorized and directed to execute and deliver the Cooperative Agreement. All of the provisions of the Cooperative Agreement, when executed and delivered as authorized herein, shall be deemed to be a part of this resolution as fully 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 thereof. The Cooperative Agreement shall be substantially in the form on file with the City which is hereby approved, with such omissions and insertions as do not materially change the substance thereof, or as the Mayor and the City Manager, in their discretion, shall determine, and the execution thereof by the Mayor and the City Manager shall be conclusive evidence of such determination. 2.04. The Mayor and City Manager and other officers, employees, and agents of the City are hereby authorized and directed to prepare and furnish to bond counsel, the trustee, and the original purchaser of the Obligations certified copies of all proceedings and records of the City relating to the approval of the issuance of the Obligations, including a certification of this resolution. 2.05. The Borrower will, upon demand, reimburse the City for costs paid or incurred by the City in connection with this resolution and the Cooperative Agreement. Section 3. Effective Date. This resolution shall be in full force and effect from and after its passage. Resolution No. 17-50 -3- September 5, 2017 Approved by the City Council of the City of Golden Valley, Minnesota this 5th day of September, 2017. Shep rd M. Harris, iayor ATTEST: Kristine A. Luedke, City Clerk The motion for the adoption of the foregoing resolution was seconded by Member Fonnest and upon a vote being taken thereon, the following voted in favor thereof: Clausen, Fonnest, Harris, Schmidgall and Snope 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.