11-28-94 agendai
CITY OF RICHFIELD, MINNESOTA
MONDAY, NOVEMBER 28, 1994
REGULAR CITY COUNCIL MEETING
7:00 P.M.
COUNCIL CHAMBERS
AGENDA
CALL TO ORDER
INTRODUCTORY PROCEEDINGS
PLEDGE OF ALLEGIANCE
APPROVAL OF MINUTES OF THE REGULAR CITY COUNCIL MEETING OF
NOVEMBER 14, 1994
PRESENTATIONS
1. OPPORTUNITY FOR PERSONS TO ADDRESS THE COUNCIL ON ITEMS NOT
LISTED ON THE AGENDA
• 2. RECOGNITION OF RICHFIELD INTERMEDIATE SCHOOL FIFTH GRADE
STUDENTS WHO PARTICIPATED IN D-DAY SMOKING POSTER PROGRAM
SPONSORED BY RICHFIELD ADVISORY BOARD OF HEALTH AND PROJECT
CHARLIE
COUNCIL LETTER NO. 314
AGENDA APPROVAL
3. COUNCIL APPROVAL OF AGENDA
CONSENT CALENDAR
NOTE: CONSENT CALENDAR CONTAINS SEVERAL SEPARATE ITEMS WHICH ARE
ACTED UPON BY THE CITY COUNCIL IN ONE MOTION. ONCE THE CONSENT
CALENDAR HAS BEEN APPROVED, THE INDIVIDUAL ITEMS AND RECOMMENDED
ACTIONS HAVE ALSO BEEN APPROVED. NO FURTHER COUNCIL ACTION IS
NECESSARY. HOWEVER, ANY COUNCIL MEMBER MAY REQUEST THAT AN ITEM
BE REMOVED FROM THE CONSENT CALENDAR AND PLACED ON THE REGULAR
AGENDA FOR COUNCIL DISCUSSION AND ACTION. ALL ITEMS LISTED ON
THE CONSENT CALENDAR ARE RECOMMENDED FOR APPROVAL.
4A. CONSIDERATION OF APPROVAL OF BID MINUTES/TABULATION AND
AWARD OF TWO YEAR CONTRACT FOR APPROXIMATELY 2,800 TONS OF
• QUICK LIME FOR WATER TREATMENT TO CUTLER-MAGNER COMPANY IN
AMOUNT OF $178,630 C.L. 315
B. CONSIDERATION OF APPROVAL OF PURCHASE IN EXCESS OF $5,000
• FOR HYDROFLUOSILICIC ACID (FLUORIDE) REQUIRED IN WATER
TREATMENT.FROM--FEED-RITE CONTROLS, INC. IN ESTIMATED YEARLY
TOTAL OF $7,560 C.L. 316
C. CONSIDERATION OF APPROVAL OF PURCHASE IN EXCESS OF $5,000
FOR CHLORINE REQUIRED IN WATER TREATMENT FROM FEED-RITE
CONTROLS, INC. IN YEARLY TOTAL OF $6,440.00 C.L. 317
D. CONSIDERATION OF APPROVAL OF PURCHASE IN EXCESS OF $5,000
FOR CHANGE ORDERS #5, #6 AND #7 FOR WATER TREATMENT PLANT
MODIFICATIONS TO BOR-SON CONTRUCTIONS, INC. IN AMOUNT OF
$12,835.69 C.L. 318
E. FINAL PAYMENT FOR WATER TREATMENT PLANT MODIFICATIONS; BOR-
SON CONSTRUCTION; $31,365.48
PUBLIC HEARING
5. PUBLIC HEARING AND CONSIDERATION OF RESOLUTION AUTHORIZING
ISSUANCE, SALE AND DELIVERY OF $8,010,000 MULTI-FAMILY
HOUSING REVENUE REFUNDING BONDS, SERIES 1994, FOR VILLAGE
SHORES PROJECT (DEFFERED FROM OCTOBER 24, 1994)
COUNCIL LETTER NO. 319
ADMINISTRATIVE REPORTS & OTHER BUSINESS
•
AIRPORT BUSINESS
6. AIRPORT STATUS REPORT
77TH STREET PROJECT BUSINESS
7. 77TH STREET PROJECT STATUS REPORT
CORRESPONDENCE
8. LEGISLATIVE REPORT
COUNCIL CHOICE
9. COUNCIL DISCUSSION ITEMS
10. CLAIMS AND PAYROLLS
ADJOURNMENT
Auxiliary aids for individuals with disabilities are available
upon request. Requests must be made at least 96 hours in advance
to the Administrative Services Director at 861-9702.
C)-
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 314
Agenda November 29, 1994
Issue Statement:
Recognition of Richfield Intermediate School fifth grade
students who participated in D-Day Smoking Poster program
sponsored by the Richfield Advisory Board of Health and Project
Charlie.
Background:
The Richfield Advisory Board of Health initiated a D-Day Smoking
poster program in conjunction with Sylvia Stevens of Project
Charlie. The program was with select fifth grade teachers in the
Richfield Intermediate School.
Participating classrooms were provided with poster materials.
Approximately 50 fifth grade students participated by designing
and drawing a poster regarding D-Day and smoking.
Members of the Advisory Board of Health contacted business people
throughout the community who were willing to publicly display the
students' posters. Posters have been on display in these
businesses for the last month.
Recommended Motion:
• City Council recognition of all participating fifth grade
students in the Advisory Board/Project Charlie D-Day Smoking
Poster program.
Basis of Recommendation:
1. To acknowledge the students'
reinforce the importance of
efforts in this program and to
not smoking at any age.
Alternative Recommendation:
None.
Discussion/Decision Mode:
Recognition of fifth grade students' participation in the D-Day
Smoking Poster program is presented to the City Council at this
time.
y submitted,
Resplanagaer
Jame osser
City JDP:cak
CITY OF RICHFIELD rr7
Council Letter No-315
Agenda November 28, 1994
Issue Statement:
Award of contract for 2,800 tons of quick lime for water treatment.
Background:
The chemical, quick lime, is used in the water treatment process to
produce soft water. Approximately 1,400 tons of quick lime are
required each year for treatment.
Bids were opened in a formal bidding process on November 3, 1994 for
the purchase of 2,800 tons of quick lime. The department requested
bids for a two year period. The results of the bids are as follows:
Estimated
Vendor Unit Price Two Year Cost
Cutler-Magner Company $63.70/ton $178,360
Western Lime & Cement Company 63.94/ton 179,032
Mississippi Lime Company - no bid
The 1993 contract was awarded to Western Lime & Cement Company at a
unit price of $64 per ton, approximately $89,600 per year. The
renewal option was exercised for 1994. This year, Cutler-Magner
Company submitted a quote for $63.70 per ton, $89,180 yearly for a two
year 1995/1996 contract of approximately $178,360.
Recommended Motion:
. .Accept the bid minutes/tabulation and award a two year contract for
the purchase of approximately 2,800 tons of quick lime to Cutler-
Magner Company in the amount of $63.70 per ton.
Basis of Recommendation:
1. Quick lime is a necessary chemical required to reduce water
hardness.
2. Cutler-Magner Company was the lowest bidder and meets all
requirements.
3. There are funds available for the chemical purchase.
Alternative Recommendation:
Council may reject all bids and direct staff to readvertise; however,
staff does not believe a better price can be obtained.
Discussion/Decision Mode:
Council may choose to delay a decision on this item; however, city
staff is requesting approval to prevent interruption of delivery.
Respectfu y submitted,
• James T.Prosser
City Manager
JDP:cak
CITY OF RICHFIELD, MINNESOTA
Bid Opening
November 3, 1994
11:00 A.M.
2,800 Ton Quick Lime
Bid No. 94-14
Pursuant to requirements of Resolution No. 1015, a meeting of the
Administrative Staff was called by Thomas P. Ferber, City Clerk,
who announced that the purpose of the meeting was to receive,
open and read aloud, bids for 2,800 ton quick lime, as advertised
in the official newspaper on October 12, 1994.
Present: Thomas Ferber, City Clerk
Donald Fondrick, Community Services Director
Cheryl Krumholz, City Manager Representative
John Thom, Water Superintendent
Carol Kaszynski, Sr. Clerk Typist
The following bids were submitted and read aloud:
VENDOR ; 'BID ; TOTAL ;
SECURITY
Cutler-Magner Co. Duluth ; 5% Bid Bond ;Unit: $63.70 ;
;Base: ;
$178,360.00 ;
The Western Lime & Cement Co. ; Money Order ;Unit: $63.94 ;
West Bend, WI ; ;Base: ;
$179,032.00 ;
The City Clerk announced that the bids would be tabulated and
considered at the November 28, 1994 City Council Meeting.
Thomas P. Ferber City Clerk
L)8
CITY OF RICHFIELD, MINNESOTA
Council Letter No. 316
Agenda November 28, 1994
Issue Statement:
Purchase in excess of $5,000 for hydrofluosilicic acid
(fluoride), essential and required in water treatment.
Background:
The City Council policy resolution on purchasing provides that
when the purchase of merchandise, materials, equipment or
construction exceeds the amount of $5,000, authority to purchase
shall be submitted to the City Council for consideration.
The City purchases hydrofluosilicic acid yearly as an additive to
water treatment to prevent tooth decay. Hydrofluosilicic acid is
also required and regulated by Minnesota state law. In 1994, the
City purchased hydrofluosilicic acid from Feed-Rite Controls,
Inc. at a purchase price of $1.26 per gallon, approximately
$7,560 for the year.
Two vendors were contacted and proposals were received for
approximately 6,000 gallons of hydrofluosilicic acid from:
Feed-Rite Controls, Inc. $1.26/gallon $7,560/year
DPC Industries, Inc. $1.35/gallon $8,100/year
• Recommended Motion:.
Approve a 1995 Master Purchase Order to Feed-Rite Controls, Inc.
for the purchase of approximately 6,000 gallons of
hydrofluosilicic acid for an estimated yearly total of $7,560.
Basis of Recommendation:
1. Hydrofluosilicic acid is a required chemical additive in
water treatment.
2. Feed-Rite Controls, Inc. submitted the lowest quotation.
3. The 1995 Proposed budget includes sufficient funds for the
chemical purchase. The price has remained the same for the
past four years.
Alternative Recommendation:
Council may choose not to accept
require new quotes be obtained.
better prices can be obtained.
any of the quotations and
However, staff does not believe
Discussion/Decision Mode:
Staff requests approval at the November 28, 1994 Council meeting.
y submitted,
•
James . Prosser
City Manager
JDP:cak
W-1
CITY OF RICHFIELD, MINNESOTA
Council Letter No.317
Agenda November 28, 1994
Issue Statement:
Purchase in excess of $5,000 for chlorine, a chemical required in
water treatment.
Background:
The City Council policy resolution on purchasing provides that
when the purchase of merchandise, materials, equipment or
construction exceeds the amount of $5,000, authority to purchase
shall be submitted to the City Council for consideration.
Each year, the City purchases chlorine as a disinfectant to
purify water. This year pool staff, in conjunction with water
staff, requested quotations for the purchase of 14 tons of
chlorine: 10 tons for the Water Treatment Plant, and 4 tons for
the swimming pool. In 1994, the City purchased eight tons of
chlorine for the Water Treatment Plant from DPC Industries, Inc.
at a purchase price of $410 per ton, or approximately $3,280 for
the year.
Two vendors were contacted and proposals were received for
. approximately 14 tons of chlorine from:
Feed-Rite Controls, Inc. $460.00/ton $6,440.00/year
DPC Industries, Inc. $462.70/ton $6,477.80/year
Recommended Motion:
Approve a 1995 Master Purchase Order to Feed-Rite Controls, Inc.
for the purchase, at a unit price of $460 per ton, of
approximately ten tons of chlorine for the Water Maintenance
Division at a yearly total of $4,600, and approximately four tons
of chlorine for the Pool Division, at a yearly total of $1,840.
Basis of Recommendation:
1. Chlorine is a necessary disinfectant chemical required for
potable drinking water and safe swimming water.
2. Feed-Rite Controls, Inc. submitted the lowest quotation.
3. Both divisions included sufficient funds for this purchase in
their 1995 Proposed budgets.
Alternative Recommendation:
Council may choose not to accept any of the quotations and direct
staff to obtain new quotes. However, staff does not believe
better prices can be obtained from a reputable dealer.
L`
q C, i
• Discussion/Decision Mode:
Council may choose to delay
meeting; however, approval
Council meeting in order to
beginning of the new year.
decision on this purchase for one
is requested at the November 28, 1994
facilitate timely delivery for the
Resp tf ly submitted,
Jame D. Prosser
City Manager
JDP:cak
0
• CITY OF RICHFIELD, MINNESOTA
Council Letter No. 318
Agenda November 28, 1994
Issue Statement:
Approval of change orders for Bor-Son Construction, Inc. for City
Project 703-1592.
Background:
The City Council policy resolution on purchasing provides that
when the purchase of merchandise, materials, equipment or
construction exceeds the amount of $5,000, authority to purchase
shall be submitted to the City Council for consideration.
Change orders are adjustments to the contract. Bor-Son
Construction, Inc. holds a contract for the Water Treatment Plant
modifications. Over the course of the contract, which was
approved in 1993, there have been several change orders. To
close the contract, there are three change orders which total
$12,835.69. Change Order #5, an addition of $4,275.26, is for
modification to the clarifier basin. Change Order #6, an
addition of $4,711.93, is to accommodate changes to the contract
including relocation of generator exhaust pipes, installation of
trench drain in slaker room, repair of terrazzo under existing
control panels, installation of three additional roof vents,
installation of one 24" x 24" aluminum access door, and
. furnishing and installation of seal water to recycle pump.
Change Order #7, an addition of $3,848.50, is to make
modification required for installation of equipment supplied by
Infilco-Degremont, Inc.
Recommended Motion:
Approve Change Orders #5, #6 and #7 to Bor-Son Construction, Inc.
in the sum of $12,835.69.
Basis of Recommendation:
1. The changes were required to complete the Water Treatment
Plant modifications.
2. The necessary equipment, work and labor has been provided by
Bor-Son Construction, Inc.
Alternative Recommendation:
None.
Discussion/Decision Mode:
This item is on the consent calendar of the November 28, 1994
City Council meeting.
Res c 1 y submitted,
•
Jame . Prosser
City anager
JDP:cak
5
0
CITY OF RICHFIELD, MINNESOTA
Council Letter No.319
Agenda November 28, 1994
Issue Statement:
Public hearing and consideration of resolution authorizing the
issuance, sale and delivery of $8,010,000 Multi-Family Housing
Revenue Refunding Bonds, Series 1994, for Village Shores Project.
(Deferred from October 24, 1994)
Background:
The City of Richfield is authorized by Minnesota State Statutes
Chapter 462C to issue revenue bonds for the purpose of financing
the acquisition and construction of multi-family rental housing.
Under that authority, the City of Richfield issued $8,025,000
Multi-Family Housing Revenue Bonds in 1985 for the Market Plaza
Housing Project. This financed a 166 unit housing project
located at 6501 Wood Lake Drive.
On February 8, 1993, the City Council approved a resolution
amending the indentures related to the bonds for Market Plaza and
Market Towers. This enabled the purchase of bonds from the
Resolution Trust Corporation which had acquired the initial bonds
from Midwest Federal. The temporary refinancing enabled the
project to secure more favorable financing terms and to proceed
with remodeling and upgrading of the project.
• On December 13, 1993, the City passed a resolution giving
preliminary approval to the issuance of refunding bonds in
connection with the Market Towers Apartment Project under
Minnesota Statutes 462C and authorized the preparation of
necessary documents. The preliminary approval was for the sale
of revenue bonds that were estimated not to exceed $8,010,000 to
finance the refunding of the outstanding bonds. Final
consideration was expected to take place early in 1994. However,
it took longer than anticipated.
On October 24, 1994, the City Council held a public hearing
regarding the issuance, sale and delivery of $8,010,000 Multi-
Family Housing Revenue Refunding Bonds. At the public hearing, a
number of residents from Market Towers addressed the City Council
regarding this project. The residents strongly objected to the
significant rent increase that would be implemented in April 1995
to reflect the upgrades in the facility. The City Council
deferred consideration of this matter for 30 days. The Council
asked the developers to meet with the residents in an effort to
resolve these rental issues.
A mediation session was held on November 9, 1994 with
representatives of Village Shores and five tenant
representatives. There was not complete agreement but Village
• Shores agreed to five items of assistance including:
5'I
? Relocation counseling assistance;
? Apartment search assistance;
? Transportation to view apartments;
? $200 moving allowance; and
? Names of moving companies that should be able to move people
for that allowance.
All residents were invited to a meeting on November 22, 1994 to
present this package of assistance for those who wish to rent
elsewhere.
The City Council is now considering final approval for the
issuance of $8,010,000 Multi-Family Housing Revenue Refunding
Bonds (Village Shores Project), Series 1994. Issuance of these
bonds would then complete the refinancing package for the
original Market Towers Housing Project.
The Multi-Family Housing Revenue Refunding Bonds under
consideration for approval will represent no obligation to the
City of Richfield. The bonds shall be paid solely from the
revenues provided under the loan agreement and other funds
pledged pursuant to the indenture which accompanies the bonds.
The Holmes & Graven law firm is serving as bond counsel to assist
in the preparation, review and issuance of the necessary bond
documents. In addition, a representative of the Market Plaza
Housing Project (now known as Village Shores Project) will be
available at the Council meeting to answer questions regarding
this request.
Recommended Motion:
Conduct a public hearing and adopt the resolution authorizing the
issuance, sale and delivery of the $8,010,000 Multi-Family
Housing Revenue Refunding Bonds (Village Shores Project), Series
1994 and authorizing the execution and delivery of related bond
documents.
Basis of Recommendation:
1. According to the law firm of Holmes & Graven, it appears to
be in the best interests of the City to issue these revenue
bonds under Chapter 462C.
2. The City Council action on December 13, 1993 gave
preliminary authority for the Market Towers Apartment
Project to proceed with the preparation of bond documents
for final approval by the City.
3. The refunding bonds will provide new permanent financing for
the project and help to ensure its financial stability.
4. There is no obligation for the City to back these bonds as
• they are backed solely by revenues received from the
project.
c?-
• 5. The developers and renters have met to try to resolve
outstanding issues.
Alternative Recommendation:
1. The City could decline to issue these revenue bonds.
Discussion/Decision Mode:
In order to proceed with a timely sale and issuance of the
refunding bonds, the City Council will need to conduct a public
hearing on November 28, 1994 and adopt the attached resolution in
order to provide adequate time to execute the necessary
documentation and complete the sale. Published notice of the
public hearing was done in accordance with Minnesota State
Statutes.
Respectfully submitted,
James Prosser
City\M W./ Prosser
JDP:cak
•
11
5553
• STEFANIE N. GALEY
Attomey at Law
Direct Dial (612) 337-9212
October 20, 1994
Mr. Steve Devich
Assistant Manager
City of Richfield
6700 Portland Avenue South
Richfield, MN 55423
$8,010,000
City of Richfield, Minnesota
Multifamily Housing Revenue Refunding Bonds
(Village Shores Project)
Series 1994
Dear Mr. Devich:
OCT 21 /994
We are acting as bond counsel in connection with a request made to the City of Richfield to approve the issuance
of the above-referenced Bonds for the purpose of refunding certain outstanding revenue bonds issued in 1985 to
finance the construction of the Market Plaza Housing Project located at 6501 Woodlake Drive. The requested
• approval is on the City Council agenda for the meeting of October 24, 1994. You have asked me to address certain
concerns raised by tenants of the Project concerning certain changes proposed to be . made at the Project, for the
Council's consideration in their review of the requested resolution.
Apparently, the tenants of the Project have been given notice from the landlord that the rents on their units will be
increasing, and have inquired of the City whether the City has any ability to prevent such rent increases. Nothing
in connection with the outstanding bonds and nothing that is proposed to be entered into in connection with the
refunding Bonds would give the City any authority to control the rents at a privately owned and operated project.
Nor does the approval of a refunding cause the increase in rents in any way; it is reasonable to conclude that if the
Project cannot be refunded on a tax-exempt basis (i.e. if the City refused to approve the refunding), the owner would
seek to refund the Project on a conventional basis which would result in higher debt service costs, and therefore a
need for even higher rents. Under the terms of the outstanding financing, the owners are required to refinance the
Project in the near future, and accomplishing such refinancing through the use of tax-exempt bonds approved by the
City will resuit in the iowest cost to the Project and, therefore, the lowest rents to the tenants.
A question has also been raised with regard to the need for the tenant income certifications. This is a requirement
for the tax exemption of the Project financing. While it may be viewed negatively by some of the tenants, the
absence of such tenant income certifications would cause the Project to be fail to qualify for tax-exempt financing,
thereby resulting in higher debt service costs and higher rents.
I hope this information is helpful to you and the Council. Please feel free to call me if you have any further
questions.
Sincerely,
Stefanie N. Galey
SNG/bjm '
HOLMES & GRAVEN
CHARTERED
470 Pillsbury Center, Minneapolis, Minnesota 55402
Telephone (612) 337-9300
Facsimile (612) 337-9310
SNG78049
RC14S-262
• CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO.
AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF THE
$8,010,000 MULTIFAMILY HOUSING REVENUE REFUNDING BONDS
(VILLAGE SHORES PROJECT) SERIES 1994 (THE "BONDS");
AUTHORIZING THE EXECUTION AND DELIVERY OF AN INDENTURE
OF TRUST, A BOND PURCHASE AGREEMENT, A LOAN AGREEMENT
AND A REGULATORY AGREEMENT; APPROVING DISTRIBUTION OF
PRELIMINARY AND FINAL OFFICIAL STATEMENTS; AUTHORIZING
THE EXECUTION AND DELIVERY OF THE BONDS; AND PROVIDING
FOR THE SECURITY, RIGHTS AND REMEDIES OF THE HOLDERS OF
SAID BONDS
WHEREAS, the City of Richfield, Minnesota (the "Issuer") is a municipal
corporation duly organized and existing under the Constitution and laws of the State
of Minnesota; and
WHEREAS, pursuant to the. Constitution and laws of the State of Minnesota,
particularly Minnesota Statutes, Chapter 462C, as amended (the "Act"), the Issuer
is authorized to carry out the public purposes described therein and contemplated
thereby by issuing its revenue bonds to defray, in whole or in part, the development
costs of a multifamily rental housing development, or to refund any such revenue
bonds, and by entering into any agreements made in connection therewith and
• pledging them as security for the payment of the principal of and interest on any
such revenue bonds; and
WHEREAS, the Issuer has adopted a Housing Plan, pursuant to and in
conformity with the Act (the "Housing Plan"), after public hearing thereon and after
one publication of notice in a newspaper circulating generally in the Issuer at least
thirty (30) days before the date of the hearing, as required by the Act; and
WHEREAS, the Issuer has adopted a Program (the "Program") relating to the
Market Plaza Housing Project, now to be known as Village Shores Project (the
"Project") pursuant to and in conformity with the Act after public hearing thereon
and after one publication of notice in a newspaper circulating generally in the Issuer
at least fifteen (15) days before the date of the hearing, as required by the Act; and
WHEREAS, the Program was submitted to the Minnesota Housing Finance
Agency, which then reviewed the Program and application and determined it to be
complete and did not reject the Program within the 30-day period provided by the
Act; 'and
WHEREAS, pursuant to the Program, the Issuer issued its Multifamily Housing
Revenue Bonds, Series 1985 (Market Plaza Housing Project) (the "Prior Bonds") in
the aggregate principal amount of $8,025,000, for the purpose of financing the
acquisition and construction of the Project; and
WHEREAS, the Issuer proposes to refinance the Project by the issuance of its
$8,010,000 Multifamily Housing Revenue Refunding Bonds (Village Shores Project)
Series 1994 (the "Bonds") under the Act pursuant to this Resolution; and
SNG77056
RC145-262 1
5S-
WHEREAS, the Bonds will be issued under an Indenture of Trust, as
hereinafter defined, and will be payable from revenues derived from a Loan
Agreement, as hereinafter defined, between the Issuer and Market Plaza Housing
Limited Partnership, a Minnesota limited partnership (the "Company"), and secured
by a mortgage lien on the Project pursuant to that certain First Mortgage, Security
Agreement and Fixture Financing Statement with Collateral Assignment of Rents and
Leases (the "Mortgage"), dated as of October 1, 1994, from the Company to the
Issuer, and are further secured by a pledge and assignment of certain other
revenues, all in accordance with the terms of the Indenture of Trust, and said Bonds
and the interest on said Bonds shall be payable solely from the revenue pledged
therefor and the Bonds shall not constitute a debt of the Issuer within the meaning
of any constitutional or statutory limitation, nor shall the Bonds constitute nor give
rise to a pecuniary liability of the Issuer or a charge against its general credit or
taxing powers and shall not constitute a charge, lien or encumbrance, legal or
equitable, upon any property of the Issuer other than the Issuer's interest in said
Project; and
WHEREAS, in order to comply with the requirements of Section 147(f) of the
Internal Revenue Code of 1986, as amended, the City Council has held a public
hearing, after publication of notice thereof in a newspaper of general circulation in
the City of Richfield at least fourteen (14) days before the hearing;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF RICHFIELD, MINNESOTA, AS FOLLOWS:
1. For the purpose of refunding the Prior Bonds, and thereby refinancing
. the Project, there is hereby authorized the issuance, sale and delivery of the Bonds
in the principal amount of $8,010,000, the proceeds of which shall be applied to
redemption of the outstanding Prior Bonds. The Bonds shall be in such principal
amounts, shall bear interest at rates, shall be numbered, shall be dated, shall
mature, shall be subject to redemption prior to maturity, and shall be in such form
and have such other details and provisions as may be prescribed in the Indenture
of Trust, dated as of October 1, 1994 (the "Indenture"), between the Issuer and
First Trust National Association, as trustee (the "Trustee"), substantially in the
form now on file with the Issuer; provided that the aggregate principal amount of the
Bonds shall be $8, 010, 000, the maximum interest rate on the Bonds shall not exceed
8.50% per annum, the final maturity of the Bonds shall be October 1, 2024, the
average maturity of the Bonds shall not-,exceed 120 percent of the remaining average
reasonably expected economic life of the Project, and there shall be maturities or
mandatory sinking fund redemptions of the Bonds so as to result in approximately
level debt service throughout the term of the Bonds. The Bonds shall be special
obligations of the Issuer payable solely from the revenues provided by the Loan
Agreement and other funds pledged pursuant to the Indenture. The Bonds are not
to be payable from nor charged upon any funds of the Issuer other than the
revenues pledged to their payment, nor is the Issuer subject to any liability
thereon; no holders of the Bonds shall ever have the right to compel any exercise
of the taxing power of the Issuer to pay any of the principal of, premium, if any, or
interest on the Bonds; the Bonds shall not constitute a charge, lien or encumbrance,
legal or equitable, upon any property of the Issuer, and each Bond shall recite that
the Bonds, including interest thereon, are payable solely from the revenues pledged
to the payment thereof and that no Bond shall constitute a debt of the Issuer within
• the meaning of any constitutional or statutory limitation. The Bonds shall contain
a recital that they are issued pursuant to the Act and such recital shall be conclusive
evidence of the validity and regularity of the issuance thereof. The Mayor and City
SNG77056
RC145-262 2
5--6
Manager are authorized and directed to prepare and execute by manual or facsimile
signature the Bonds as prescribed in the Indenture, to affix the seal of the Issuer
manually or by facsimile and to deliver them to the Trustee, together with a certified
copy of this resolution and other documents required by the Indenture, for
authentication and delivery to the Underwriter (defined below).
2. The City Council of the Issuer hereby authorizes and directs the Mayor
and the City Manager of the Issuer (the "Mayor" and "Manager," respectively) to
execute and deliver the Indenture by and between the Issuer and the Trustee, affix
the seal-of the Issuer thereto, and to deliver the Indenture to the Trustee.
All of the provisions of the Indenture, when executed 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 Indenture shall be substantially in the form on
file with the Issuer; which is hereby approved, with such necessary or desirable and
appropriate variations, omissions and insertions as do not materially change the
substance thereof, or as the Mayor, in his discretion, shall determine, and the
execution thereof by the Mayor shall be conclusive evidence of such determination.
3 The Mayor and the Manager are hereby authorized and directed to
execute and deliver the Amended and Restated Regulatory Agreement (the
"Regulatory Agreement") dated as of October. 1, 1994 by and among the Issuer, the
Trustee and the Company. All of the provisions of the Regulatory 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
Regulatory Agreement shall be substantially in the form on file with the Issuer which
is hereby approved, with such variations, omissions and insertions as - do not
materially change the substance thereof, or as the Mayor, in his discretion, shall
determine, and the execution thereof by the Mayor shall be conclusive evidence of
such determination.
4. The Mayor and the Manager are hereby authorized and directed to
execute and deliver the Loan Agreement (the "Loan Agreement") dated as of
October 1, 1994 by and between the Issuer and the Company providing for the loan
of the proceeds of the Bonds. All of the provisions of the Loan 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
Loan Agreement shall be substantially in the form on file with the Issuer which is
hereby approved, with such variations, omissions and insertions as do not materially
change the substance thereof, or as the Mayor, in his discretion, shall determine,
and the execution thereof by the Mayor shall be conclusive evidence of such
determination.
5. The Mayor and the Manager are hereby authorized and directed to
execute the Bond Purchase Agreement with Piper Jaffray Inc., the purchaser named
therein (the "Underwriter") relating to the Bonds (the "Bond Purchase
Agreement"). All of the provisions of the Bond Purchase 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 Bond Purchase
Agreement shall be substantially in the form on file with the Issuer, which is hereby
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approved, with such necessary or desirable and appropriate variations, omissions
and insertions as are not materially inconsistent with the form on file with the Issuer
or as the Mayor, in his discretion, shall determine and execution thereof by the
Mayor shall be conclusive evidence of such determination.
6. The acceptance of the Mortgage substantially in the form on file with the
Issuer, and execution by the Mayor and Manager of an Assignment of Mortgage to the
Trustee, is hereby authorized.
7. The Mayor and the Manager of the Issuer or either of them are hereby
authorized to-execute and deliver, on behalf of the Issuer, such other documents
and certificates as are necessary or appropriate in connection with the issuance, sale
and delivery of the Bonds, including without limitation a request and authorization
to the Trustee to authenticate and deliver the Bonds, a Tax Certificate and a Letter
of Representations to The Depository Trust Company ("DTC") for appointment of
DTC as securities depository for the Bonds.
8. The Issuer hereby consents to the, distribution of the Preliminary
Official Statement relating to the Bonds, substantially in the form on file with the
Issuer. The Issuer hereby consents to the use by the Underwriter in connection
with the sale of the Bonds of a final Official Statement, substantially in the form of
the Preliminary Official Statement described above. The Preliminary Official
Statement and the Official Statement are the sole materials consented to by the Issuer
for use in connection with the offer and sale of the Bonds. The Issuer has not
participated in the preparation thereof and shall have no liability in connection with
the contents of or use of such offering materials.
• 9. All covenants, stipulations, obligations and agreements of the Issuer
contained in this resolution and the aforementioned documents shall be deemed to be
the covenants, stipulations, obligations and agreements of the Issuer to the full
extent authorized or permitted by law, and all such covenants, stipulations,
obligations and agreements shall be binding upon the Issuer. Except as otherwise
provided in this resolution, all rights, powers and privileges conferred and duties
and liabilities imposed upon the Issuer or the City Council, or such officers, board,
body or agency thereof as may be required or authorized by law to exercise such
powers and to perform such duties.
No covenant, stipulation, obligation or agreement herein contained or
contained in the aforementioned documents shall be deemed to be a covenant,
stipulation, obligation or agreement of any member of the City Council of the Issuer,
or any officer, agent or employee of the Issuer in that person's individual capacity,
and neither the City Council of the Issuer nor any officer or employee executing the
Bonds shall be liable personally on the Bonds or be subject to any personal liability
or accountability by reason of the issuance thereof.
No provision, covenant or agreement contained in the aforementioned
documents, the Bonds or in any other document related to the Bonds, -and no
obligation therein or herein imposed upon the Issuer or the breach thereof, shall
constitute or give rise to any pecuniary liability of the Issuer or any charge upon
its general credit or taxing powers. In making the agreements, provisions,
covenants and representations set forth in such documents, the Issuer has not
obligated itself to pay or remit any funds or revenues, other than funds and
revenues derived from the Loan Agreement and Mortgage which are to be applied to
the payment of the Bonds, as provided therein and in the Indenture.
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Except as herein otherwise expressly provided, nothing in this resolution or
in the aforementioned documents expressed or implied, is intended or shall be
construed to confer upon any person or firm or corporation, other than the Issuer
or any holder of the Bonds issued under the provisions of this resolution, any right,
remedy or claim, legal or equitable, under and by reason of this resolution or any
provision hereof, this resolution, the aforementioned documents and all of their
provisions being intended to be and being for the sole and exclusive benefit of the
Issuer and any holder from time to time of the Bonds issued under the provisions of
this resolution.
10. In case any one or more of the provisions of this resolution, or of the
aforementioned documents, or of the Bonds issued hereunder shall for any reason
be held to be legal or invalid, such illegality or invalidity shall not affect any other
provision of this resolution, or of the aforementioned documents, or of the Bonds,
but this resolution, the aforementioned documents, and the Bonds shall be construed
and endorsed as if such illegal or invalid provision had not been contained therein.
11. The Bonds, when executed and delivered, shall contain a recital and
such recital shall be conclusive evidence of the validity of the Bonds and the
regularity of the issuance thereof, that all acts, conditions and things required by
the laws of the State of Minnesota relating to the adoption of this resolution, to the
issuance of the Bonds and to the execution of the aforementioned documents to
happen, exist and be performed precedent to and in the enactment of this resolution,
and precedent to issuance of the Bonds and precedent to the execution of the
aforementioned documents have happened, exist and have been performed as so
required by law.
• 12. The officers of the Issuer and its attorneys, agents and employees are
hereby authorized to do all acts and things required of them by or in connection with
this resolution, the aforementioned documents, and the Bonds for the full, punctual
and complete performance of all the terms, covenants and agreements contained in
the Bonds, the aforementioned documents and this resolution. In the event that for
any reason the Mayor of the Issuer is unable to carry out the execution of any of the
documents or other acts provided herein, any other member of the City Council of
the Issuer shall be authorized to act in his capacity and undertake such execution
or acts on behalf of the Issuer with full force and effect, which execution shall be
valid and binding on the Issuer. If for any reason the Manager of the Issuer is
unable to execute and deliver the documents referred to in this resolution, such
documents may be executed by a member of the City Council or the Assistant
Manager with the same force and effect as if such documents were executed and
delivered by the Manager of the Issuer.
13. This resolution shall be in full force and effect from and after its
passage.
n
U
SNG77056
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• Adopted this day of October, 1994.
Attest
Manager
•
Mayor
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G8 P Properties, Inc.
Real Estate Development, Consulting and Management
15 Parkshore Place, 3663 Park Center Blvd.
:Minneapolis, Minnesota 55416 612-922-9540 FAX 922-9520
November 16, 1994
Mr. Byron Wallace
City of Richfield
6700 Portland Avenue
Richfield, Minnesota 55423
Re: Village Shores
Dear Byron:
In follow up to our mediation meeting last week, G & P Properties has developed the following
package of assistance that we can offer to some of the residents at Village Shores.
1. G & P Properties has coordinated with the Apartment Guide in order to make rental
• information available regarding other apartments in the area. We will have 1-2
Apartment Guide Representatives on site for one day to be scheduled shortly and again
for one day in early Spring.
2. The Apartment Guide will make transportation services available to take residents out to
view properties they may be interested in.
3. G & P Properties will provide a $200 moving allowance to any residents either moving
within or out of the building between now and March 31, 1995.
4. We will be providing the names and contacts of two to three local moving companies.
5. We will also make available a consultant for any of the residents who want assistance in
financial planning or other issues relating to their particular situation. We have not
selected such a person yet, but will do so. We will set one day where they are available
to any of our residents.
0
• Mr. Byron Wallace
Page 2
November 16, 1994
I believe this covers everything that was described in our mediation meeting. We will put this up
in written form to our residents. We have set Tuesday, November 22 at 3:30 as the date for the
meeting with the residents to discuss the above. Please give me a call if you have any questions.
Sincerely,
G & P P PERTIES, INC.
Tim Trim le
Vice President
0