93-8078r35
CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. 8078
RESOLUTION GIVING PRELIMINARY APPROVAL TO THE ISSUANCE
OF REFUNDING BONDS IN CONNECTION WITH THE MARKET TOWERS
APARTMENTS PROJECT UNDER MINNESOTA STATUTES, CHAPTER
462C AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS
WHEREAS, the City of Richfield (the "City") is authorized by the provisions
of Minnesota Statutes, Chapter 462C to issue its revenue bonds for the purpose of
financing the acquisition and construction of multifamily rental housing; and
WHEREAS, the City has previously issued its $8, 250, 000 Multifamily Housing
Revenue Bonds, Series 1985 (Market Plaza Housing Project) (the "Refunded
Bonds"), the proceeds of which Refunded Bonds were loaned to Market Plaza
Housing Limited Partnership, a Minnesota limited partnership. (the "Borrower") to
finance a 166-unit multifamily housing project located at 6501 Woodlake Drive in the
City (the "Project") ; and
WHEREAS, the Borrower has requested the City to issue its multifamily
housing refunding revenue bonds in an aggregate principal amount not to exceed
$8, 010, 000 (collectively, the "Bonds") , in order to finance a loan to be made to the
Borrower for the purpose of refunding the Refunded Bonds;
WHEREAS, the City has been advised by the Borrower that on the basis of
information submitted to them and their discussions with representatives of area
financial institutions and potential buyers of tax-exempt bonds, revenue bonds of
the City could be issued and sold upon favorable rates and terms to finance the
refunding of the Refunded Bonds; and
WHEREAS, on the basis of information given the City to date, it appears that
it would be in the best interest of the City to issue its revenue bonds under the
provisions of Chapter 462C, in an amount presently estimated not to exceed
$8, 010, 000 to finance the refunding of the Refunded Bonds;
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The issuance of the Bonds is hereby given preliminary approval by the
City in an amount not to exceed $8, 010, 000, subject to the mutual agreement of this
body, the Borrower and the initial purchaser of the Bonds as to the details of the
Bonds and provisions for their payment. In all events, it is understood, however,
that the Bonds of the City shall not constitute a charge, lien or encumbrance legal
or equitable upon any property of the City except the Project, and the Bonds, when,
as, and if issued, shall recite in substance that the Bonds, including interest
thereon, are payable solely from the revenues received from the Project and
property pledged to the payment thereof, and shall not constitute a debt of the City.
2. The law firm of Holmes & Graven, Chartered, is authorized to act as
Bond Counsel and to assist in the preparation and review of necessary documents
relating to the Project and Bonds issued in connection therewith. The Mayor, City
Manager, and other officers, employees and agents of the City are hereby authorized
to assist Bond Counsel in the preparation of such documents .
Resolution No. 8078
3. The Borrower has agreed to pay directly or through the City any and
all cost incurred by the City in connection with the Project or the Bonds whether or
not the Bonds or operative instruments are executed.
4. The adoption of this Resolution does not constitute a guarantee or firm
commitment that the City will issue the Bonds as requested by the Borrower. The
City retains the right in its sole discretion to withdraw from participation and
accordingly not to issue the Bonds, or issue the Bonds in an amount less that the
amount referred to herein, should the City at any time prior to issuance thereof
determine that it is in the best interest of the City not to issue the Bonds, or to
issue the Bonds in an amount less than the amount referred to in paragraph 1
hereof, or should the parties to the transaction be unable to reach agreement as to
the terms and. conditions of any of the documents required for the transaction.
Adopted by the City Council of the City of Richfield, Minnesota on the 13th
day of December 1993.
Mayor Martin J. Kirsch
Attest
~~u~ ~~~
City Clerk Thomas P. Ferber
2