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83-6850R75 RESOLUTION N0. 6850 _~ RE.~OLUTION RELATING TO Tf~ ISSUANCE OF RFVENIIE BOtu'DS PU~t.SUPrlT TO MINNESOTA STAT[J'I'ES, C 46IC, FOR TIC PURP(?SE OF FINPrICING A MULTIFAMSLY HOUSLVG DEVELpPM~FSiT BE IT R~OLVr'I3 by the City Ccur~cii of the City of Richfield, Minnesota (the City), as follows: Sec~'rion I . Recitals . ~.._.. 1.01. Under Minnesota Statutes., Chapter 4620, as am~zded (the A.ict) , the. City is authorized to plan, administer, issue and sell revenue bonds or other obligations to make or purchase loans to finance one or more multifamily housing develo~nents within its boundaries. 1.02. The Act provides that the City may plan, acminister and make or purchase loans to finance one or mire develop~±~ents of the ki:.^~ds described in Subdivisions 2, 3, 4 and 7 of Section 46X.05 of the Act upon adoption of a program setting forth the information required by Subdivision 6 of Section 4620.05 of the P.~t, after a public hearing held there-on and after approval thereof by tt~.e Minnesota Housing Finance Agency,, as provided in Sectio^. 4620.01 of the Acs on the basis of the considerations stag in Section 4620.01 cf tt~.e Act.. 1..03. Representatives of Derrick Lard Cenaany, (the Developer) have advised this Council of the Developer's desire to accuire certain Land located i.n the City in the Lyndale-Hub-Nicollet Rsdevelognert Project Area., and to construct and equip therein a multifamily rental housing developanent consisting of approximately 150 dwelling units. Development and financing costs of the Project are presently estimated by representatives of the Developer to be approximately $8,000,000. 1.04. Representatives of the Developer have reouested that the City issue reve.*rue bonds or obligations (the Bonds) pursuant to the Act in such aggregate principal amount as may be necessar~r to finance all or a portion of the costs of the Project and make the proceeds of the Bonds available to the Oeveioper for the acquisition, construction and equipping of the Project, subject to acrreer~nt by the Developer, or other persons or institutions, to presttptly ray the prin- cipal of, premium, if any, and interest on the Bonds. 1.05. The City has been advised by represe*~tatives of the Developer that conventional cc~anercial financing of the costs of the Project is available only on a limited basis and at such high costs of borrowing that the nature and extent of the Project and the econcanic feasibility of operating the Project would be significantly affected, but with the aid of naulicipal financing the Project can be constructed as designed and its ope_~-ation made more economically feasible. 1.06. ~7either the full faith and credit nor the taxing Fcw~rs of the City will be pledged to the payment of tt,.e Bonds. VeCt3.OZ1 2. 2.01. It is hereby found interest of tre .City to issue finance the costs of the Project; cvr -entlr e. stimated to be S8, 000, 2.02. Tf°le Project is hereby issuance of t':e Boras for such pi be issued until the housing pr approved as" required by the Aci purchaser of .the Fonds have agre+ visions for their payment. Tf~.e the Fonds, when, as and if issued to the payment thereof and shall meaning of any constitutional, City Att©rney a~ic3 other oyficers cooperation with bond counsel to be appropriate to the financing o: of the Lonas, the security they principal of, pre~r+ium, if any, applicable state and federal stat: 2.04. The City has preparE P~crram) which ras been presente lion demorstrati~g the - reed for prc~aseci and that t'se developmer pursuant to Subdivision 3, Secti after notice duly published, a p Program was adopted by the City the P.ct. 2005. Under Section 4620, exercise, within its corporate 1: accruisi.ti.on, construc~`.ion, and e the Eoras, any of the potaers the under P~.innesota Statutes, Chaptra of NL*znesota Statues, Chapter 47~ ~~orizaton. and` detenninea that it would be in the best he Bends under the provisions of the Act to the aggregate principal mount of the Bonds is given prelimir+.ary approval by the City and fine rrose is hereby approved. The Bonds s:^.all not x3ra~n described below has been revi.e~~ed and and until the City, tte Developer and the :d upon t~^.e details of the Fords and the pro- ~rincpal of, premium, if any, and interest on sha11 be payable solely frcan proper~~ pledged not constitute a debt of tt•.e City within t~^.e tatut4ry or charter limitation therEen. The and employees of the City are aut.~,orized in initiate preparation of such ccctnr~e.^.ts as may 'the ProjECt, setting forth the detailed te_Yms efor and the provisions for payment of the :rd interest on the Boras in cc,~liance with tes and regulations. 3 a program for t':e proposed ~~~eloranent (the to this Council., and which contains inforrna- the Project, stating the method of financing is to be a~uired, corstnzcted and equipped ~n 462C. 05 of the Act. On 1~1oL-em?~ax 29, 1.983 , 51ic hearing was held on the Prey-ram., and the ?ursuant to Section 462C.OS, Subdivision 5 of 7, Subdivision 1 of the r~~t, the City ray pits, in tie raking of the loan to finance the iipment of the Project and in the issuance of innesota I~.ousing ~'inarcing Agency may exercise 46?,A, without i ; m; tati.on under the provisions 2.06. The Leve].oper has ag~eed to pay .any and all costs i.~curred by the City ir, cor-nection with the Project and its financing whether or rot ~t~:e Program is approved by the Minnesota Iious~~'..nnq Finance Age.*~cy, whether or not the Project is cc~leted, and whether or not the Bonds are issued. Passed by the City Council of the City this 19th day of December, 1~~~83. ~ ~ H ATTEST: Sy a K. Bergh, City f Ri.c,~fi~l.d, Minnesota, n, Mayor 76 EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF RICHFIELD,_HENNEPIN COUNTY, MINNESOTA Pursuant to due call and notice thereof a regular meeting of the city Council of the City of Richfield, Hennepin County, LZinnesota, was held. at the City Ha11 in said City on Monday, December 19, 19$3, commencing at 7':00 o'clock P.M. The following members were present: Bunce, Kirsch, Ludeman, Priebe, Mayor Hamilton and the following wire absent: Hassenstab The following resolution was then presented by Councilmember .Bunt a who moved its adoption, the reading of which was dispensed with by unanimous consent: RESOLUTION NO . 6 8 51 RESOLUTION AUTHORIZING THE ISSUAlvCE AND SALE OF 5925,000 COMMERCIAL DEVELOPMENT REVENUE BOND (riETRO SALES PROJECT) PURSUANT TO MINNESOTA STATUTES, CF.APTER 474 WHEREAS, the City of Richf field (the "City") is authorized by the ?~innesota Municipal Industrial Development Act, as amended, (the "Act") to issue its revenue bonds and to make secured or unsecured loans to finance the acquisition of real property and the acquisition or construction of buildings and improvements on such real property and the installation of machinery and equipment of any and all kinds and any other personal prop- erties deemed necessary in connection with a project, as defined in the Act; .and W'FiEREAS, the City ha made the necessary arrangements with Jerry Mathwig, an individual ~esiding in Dakota County,. i~iinnesota (the "Company"), for the acquisition and improvement of lard and the eonstruction and equiaping thereon of commercial office and related parking facilities to be leased t Metro Sales, a Minnesota corporation (the "Project"), which will be of the character contemplated by and will accomplish the purposes prolided by the Act; and WHEREAS, it has been determined that bonds in the principal amount of $925,000 should be issued, sold and delivered to provide proceeds for a loan to be made to the Company to pay a part or all of the cost of the Project; and NOW, THERErORE, BE Ifi RESOLVED By the City Council of the City of Richfield, Minnesota, as follows: Section 1. Definition,'I Exhibits and General Provisions. 1.01. Definitions, Yn this Resolution the following terms have the following respective meanings unless the context hereof clearly squires otherwise: 1.02. Act: the Miar~esota Municipal Industrial Development Act, Dinnesota Stat es, Chapter 1,474, as amended; 1.03. Assignment: 'the Assignment of Rents and Leases between Company and Bank; 1.04. Bond: the Commercial Development Revenue Bond (Metro Sales Project) in the aggregate pr~~.ncipal amount of $925,000, to be issued by the City pursuant to this Resoluition. I.05. Bond Register: Section 4.02 hereof; 1.06. City: the C assigns; 1.07. Disbursing A~ City, Company and the Disl register maintained by the City pursuant to of Richfield, Minnesota, its successors and the Disbursing Agreement among. Bank, Agent. I.08. Guaranty: the Guaranty given by Jerry Mathwig to the Bank. 1.09. Holder; the Registered Holder of the Bond; i 1.10. Loan Agreement: i~ the Loan and Bond Purchase Agreement between the City, the Bank and th~;e Company and any amendments or supplements thereto; ', 1.11. Mortgage: thatcertain Combination ~~lortgage, Security Agree- ment and Fixture Financing S',tatement by the Company to the Bank;