04-25 Resolution No. 12085CITY OF RICHFIELD, MINNESOTA
RESOLUTION NO. 12085
RESOLUTION APPROVING THE ISSUANCE, SALE, AND
DELIVERY BY THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF RICHFIELD,
MINNESOTA OF ITS REVENUE OBLIGATIONS; DELEGATING
AUTHORITY TO THE AUTHORITY TO CONDUCT A PUBLIC
HEARING; 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 (i) 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; or (ii) the governing body of the county in which
the property is located consents, by resolution, to the issuance of the obligations.
1.03. 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; and
1.04. On November 25, 2020, the Hennepin County Housing and Redevelopment
Authority (the “County HRA”) issued its Multifamily Housing Revenue Note (Fort Snelling Upper
Post Project), Series 2020, in the original aggregate principal amount of $88,000,000 and
loaned the proceeds thereof to Fort Snelling Leased Housing Associates I, LLLP, a Minnesota
limited liability limited partnership (the “Borrower”), to finance all or a portion of the costs of the
leasehold acquisition, rehabilitation and/or construction, and equipping of an approximately
191-unit multifamily housing rental facility and facilities functionally related and subordinate
thereto located at 58 Taylor Avenue, Unorganized Territory of Fort Snelling, Minnesota 55111,
known as the Fort Snelling Upper Post Project (the “2020 Project”), of which at least forty
percent (40%) of the units are available to individuals and families with incomes at or below
(60%) of the area median income.
Resolution #12085
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1.05. The Borrower has proposed that the Housing and Redevelopment Authority in
and for the City of Richfield, Minnesota (the “Authority”) issue one or more series of taxable or
tax-exempt revenue obligations (the “Obligations”) in the approximate aggregate principal
amount of $10,000,000 to complete the construction and/or rehabilitation of the 2020 Project
(the “2023 Project”). The Borrower has also proposed to use the proceeds of the Obligations to
finance capitalized interest, if necessary, any required reserves, and costs of issuance of the
Obligations.
1.06. On February 28, 2023, the Administration, Operations, and Budget Committee of
Hennepin County, Minnesota (the “County”) 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 Obligations by the Authority pursuant to the
requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended (the
“Code”), and the regulations promulgated thereunder.
1.07. On April 11, 2023, the Board of Commissioners of the County adopted a
resolution consenting to the issuance of the Obligations by the Authority to finance the 2023
Project, all in accordance with Section 147(f) of the Code and Minnesota Statutes,
Sections 471.59 and 471.656, as amended.
1.08. Section 147(f) of the Code and regulations promulgated thereunder require that,
because the Authority’s governing body is appointed and not elected, prior to the issuance of
the Obligations, the City Council must consent to the issuance of the Obligations by the
Authority 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 in the City at least seven (7) days prior to the public hearing
date.
1.09. Pursuant to Section 1.147(f)-1(d)(3) of the Treasury Regulations, the City is
authorized to delegate authority to the Board of Commissioners of the Authority to conduct the
public hearing as required by Section 147(f) of the Code and the regulations promulgated
thereunder.
1.10. On a date to be determined by staff of the City and the Authority, the Board of
Commissioners of the Authority will conduct a public hearing on the issuance of the Obligations
and a housing program prepared in accordance with the Act.
1.11. The Borrower has represented to the City that the principal of, premium (if any),
and interest on the Obligations (i) shall be payable solely from the revenue pledged therefor;
(ii)shall not constitute a debt of the City, the Authority, the State of Minnesota, or any political
subdivision thereof within the meaning of any constitutional or statutory limitation; (iii) shall not
constitute nor give rise to a pecuniary liability of the City, the Authority, the State of Minnesota,
or any political subdivision thereof or a charge against their 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 Authority other than the interest of the Authority as set forth in one or more loan
agreements to be entered into between the Authority and the Borrower.
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Section 2. Approvals.
2.01. The City Council hereby delegates authority to the Board of Commissioners of
the Authority to conduct the public hearing required by Section 147(f) of the Code and the
regulations promulgated thereunder.
2.02. The City Council finds that it is in the best interest of the City to approve the
issuance of the Obligations by the Authority in an estimated aggregate principal amount not to
exceed $10,000,000 to finance the 2023 Project and hereby approves to the issuance of the
Obligations by the Authority for the purposes set forth above.
2.03. The Obligations shall be special, limited obligations of the Authority payable
solely from the revenues and security provided by the Borrower to the Authority and pledged to
the payment of the Obligations.
2.04. The Mayor and the City Manager are hereby authorized and directed to execute
and deliver any documents deemed necessary to fulfill the intentions of this resolution.
2.05. 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 Kennedy & Graven,
Chartered, as bond counsel to the City and the Authority, and the original purchaser(s) of the
Obligations certified copies of all proceedings and records of the City relating to the approval of
the issuance of the Obligations, including a certification of this resolution.
2.06. The Borrower shall pay to the City any and all costs paid or incurred by the City
in connection with this resolution, the Obligations, or the financing contemplated herein,
whether or not the financing is carried to completion, and whether or not the Obligations or
operative instruments are executed and delivered.
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 25th day of April,
2023.
Mary B. Supple, Mayor
ATTEST:
Dustin Leslie, City Clerk
RC125-394 (JAE)
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