08-10129rRESOLUTION NO. 10129
RESOLUTION GIVING HOST APPROVAL TO THE
ISSUANCE OF A HOUSING AND CARE FACILITY REVENUE NOTE FOR A
PROJECT BY COMMUNITY INVOLVEMENT PROGRAMS
LOCATED IN RICHFIELD, MINNESOTA UNDER
MINNESOTA STATUTES, CHAPTER 462C AND MINNESOTA
STATUTES SECTIONS 469.152 THROUGH 469.1651
BE IT RESOLVED, by the City Council (the "Council") of the City of Richfield,
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 Project.
(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 7044 Columbus Avenue, in the City (the
"Richfield Facility"); 4303 North Colorado Street, Crystal,. MN; 6427 Westchester Circle,
Golden Valley, 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; 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.
(b) 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.
(c) As more fully described above, portions of the Project are located in the City,
Hinckley and the Cities of Crystal, Golden Valley, Hopkins, Minneapolis, Minnetonka, New
Hope, St. Louis Park and Sandstone (collectively, the "Host Cities").
(d) The total amount of the obligations to be issued is presently estimated to not
exceed $2,500,000, approximately $246,000 of which will be used for refinancing the
Richfield Facility.
(e) 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.
(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 Hearing
(a) As required by Section 147(f) of the Code a Notice of Public Hearing was
published in the Richfield Sun-Current, 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.
Adopted by the City Council of the City of Ric d, Minnesota this 12th day of
August 2008.
ie Goettel, ayor
ATTEST:
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Nancy Gibbs, Clerk