Loading...
12-14 Resolution No. 11908RESOLUTION NO. 11908 RESOLUTION PROVIDING HOST APPROVAL TO AND CONSENTING TO THE ISSUANCE, SALE, AND DELIVERY BY THE CITY OF BETHEL OR ANOTHER MUNICIPALITY OF THE STATE OF MINNESOTA OF ITS REVENUE BONDS; APPROVING AND AUTHORIZING THE EXECUTION OF A COOPERATIVE AGREEMENT; AND TAKING OTHER ACTIONS WITH RESPECT THERETO BE IT RESOLVED by the City Council (the "City Council") of the City of Richfield, 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, 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 or more 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. MWF Properties, LLC, a Minnesota limited liability company, or an affiliate or assign (collectively, the "Borrower"), has proposed that the City approve the issuance by the City of Bethel, Minnesota or another municipality of the State of Minnesota (collectively, the "Issuer") of one or more series of taxable or tax-exempt revenue bonds (the "Bonds") in an estimated principal amount not to exceed $10,000,000. The Borrower intends to apply the proceeds of the Bonds to acquire, construct, and equip an approximately 55-unit multifamily housing development, including a number of units of housing for people with disabilities, accompanied by supportive services, and facilities functionally related and subordinate thereto located at 7700 Pillsbury Avenue South in the City (the "Project"). The Borrower will own the Project. 1.04. Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), and regulations promulgated thereunder require that, prior to the issuance of the Bonds, the City Council must consent to the issuance of the Bonds by the Issuer after conducting a public hearing thereon preceded by publication of a notice of public hearing (in the form required by Section 147(f) of the Code and applicable regulations) in a newspaper of general circulation within the City at least seven (7) days prior to the public hearing date. Resolution No. 11908 1.05. A notice of public hearing (the "Public Notice") was published at least seven (7) days before the regularly scheduled meeting of the City Council on the date hereof in the Sun Current, the official newspaper of and a newspaper of general circulation in the City, with respect to the required public hearing under Section 147(f) of the Code. 1.06. 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 orally and in writing, on providing consent to the issuance of the Bonds by the Issuer pursuant to the requirements of Section 147(f) of the Code and the regulations promulgated thereunder. 1.07. The City and the Issuer are proposing to enter into a Cooperative Agreement (the "Cooperative Agreement") pursuant to which the City will consent to the issuance of the Bonds by the Issuer to finance the acquisition, construction, and equipping of the Project, and the Issuer will agree to issue the Bonds to finance the acquisition, construction, and equipping of the Project. 1.08. The Borrower has represented to the City that the principal of, premium (if any), and interest on the Bonds: (i) shall be payable solely from the revenue pledged therefor; (ii) shall not constitute a debt of the City or the Issuer within the meaning of any constitutional or statutory limitation; (iii) shall not constitute nor give rise to a pecuniary liability of the City or the Issuer 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 the Issuer other than the interest of the Issuer as set forth in one or more loan agreements to be entered into between the Issuer 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 Bonds by the Issuer to finance, in part, the acquisition, construction, and equipping of the Project and hereby consents to the issuance of the Bonds by the Issuer for the purposes set forth above. 2.02. The Bonds shall be special, limited obligations of the Issuer payable solely from the revenues and security provided by the Borrower to the Issuer and pledged to the payment of the Bonds. 2.03. The Mayor and the City Manager are hereby authorized and directed to execute and deliver the Cooperative Agreement and any other documents deemed necessary to fulfill the intentions of this resolution. 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 the 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, Resolution No. 11908 2 and the original purchaser of the Bonds certified copies of all proceedings and records of the City relating to the approval of the issuance of the Bonds, including a certification of this resolution. 2.05. The Borrower shall pay to the City any and all costs paid or incurred by the City in connection with this resolution, the Cooperative Agreement, the Bonds or the financing contemplated herein, whether or not the financing is carried to completion, and whether or not the Bonds or operative instruments are executed and delivered. 2.06. The electronic signature of the Mayor, the City Manager, and/or the City Clerk to this resolution, the Cooperative Agreement, and any certificate authorized to be executed hereunder shall be as valid as an original signature of such party and shall be effective to bind the City thereto. For purposes hereof, (i) "electronic signature" means a manually signed original signature that is then transmitted by electronic means; and (ii) "transmitted by electronic means" means sent in the form of a facsimile or sent via the internet as a portable document format ("pdf") or other replicating image attached to an electronic mail or internet message. Section 3. Effective Date. This resolution shall be in full force and effect from and after its passage. Adopted by the City Council of the City of Richfield, Minnesota this 14th day of December, 2021. hoic Pjw jAz:- Maria Regan Gonzalez, Mayor ATTEST: Kari Sinning, City Clerk Resolution No. 11908 3