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City Council Resolution 1995-41THE CITY OF MONTICELLO, MINNESOTA RESOLUTION NO. 95-41 ADOPTING A MODIFIED PROGRAM FOR THE ISSUANCE OF SENIOR HOUSING REVENUE BONDS WHEREAS, pursuant to the Minnesota Municipal Housing Act, Minnesota Statutes, Chapter 462C (the "Act") , the City of Monticello, Minnesota (the "City") is authorized to adopt a housing plan and carry out programs for the financing of rental housing which is intended primarily for elderly persons or is affordable to persons of low and moderate income; and WHEREAS, on March 13, 1995, the City Council held a public hearing on and adopted a housing plan ( the "Plan") and program ( the "Program") in accordance with the requirements of the Act; and WHEREAS, the Program provides for the acquisition and construction of a 48 - unit rental housing facility for elderly persons (the "Project") to be located in the City; and WHEREAS, the City has determined a need to modify the Program in order to reflect a change in ownership of the Project, and on this date conducted a public hearing on the modified Program attached as Exhibit A hereto, following publication of notice at least 15 days prior to the date hereof, all in conformance with the requirements of the Act; and WHEREAS, the City is not located within the area of jurisdiction of either the Metropolitan Council or any currently active regional development commission, and therefore the Plan and Program have not been submitted for review and comment by such bodies as would otherwise be required under the Act; and WHEREAS, the modified Program provides for the issuance by the City of up to $3, 500, 000 in revenue bonds to finance the acquisition and construction of the Project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MONTICELLO, MINNESOTA: 1. That the modified Program is hereby in all respects adopted. 2. That the staff of the City is hereby authorized to do all other things and take all other actions as may be necessary or appropriate to carry out the modified Program in accordance with the Act and any other apRlicable laws and regulations. Adopted this 12th day of June, 1995. CZ, �A � ��, City "Administi#tor SJB90091 MN190-47 Resolution 95-41 EXHIBIT A MODIFIED PROGRAM FOR THE FINANCING OF SENIOR RENTAL HOUSING DEVELOPMENT Pursuant to Minnesota Statutes, Chapter 462C (the "Act") , the City of Monticello (the "City") has been authorized to develop and administer programs of multifamily housing developments under the circumstances and within the limitations set forth in the Act. Minnesota Statutes, Section 462C.07 provides that such programs for multifamily housing developments may be financed by revenue bonds issued by the City. The City has determined that it is in the best interests of the residents of the City to create a program of financing to encourage and facilitate the development of rental housing developments for elderly persons in the City ( the "Program") . The City has received a proposal from representatives of Presbyterian Homes Housing and Assisted Living, Inc. ( the "Developer") , that, pursuant to the authority found in the Act, the City approves a program providing for the acquisition and construction of the Presbyterian Homes Housing and Assisted Living, Inc. Project, a senior housing development located at 1215 Hart Boulevard in the City (the "Project") . The acquisition and construction of the Project is to be funded through the issuance of up to $3,500,000 in revenue bonds issued by the City (the "Bonds") . The Project will be designed for rental primarily to elderly persons . The City, in establishing this senior housing program ( the "Program") , has considered the information contained in the City's 462C Housing Plan (the "Housing Plan") , including particularly (i) the availability and affordability of other government housing programs; (ii) the availability and affordability of private marketing financing for the construction of multifamily housing units; (iii) an analysis of population, unemployment trends and projections of future population trends and future employment needs; (iv) the recent housing trends and future housing needs of the City; and (v) an analysis of how the Program will meet the needs of persons and families residing and expected to reside in the City . The City, in adopting the Program, has further considered (i) the amount, timing and sale of Bonds to finance the estimated costs of the housing units, to fund the appropriate reserves and to pay the cost of issuance; (ii) the method of monitoring and implementation of the Program to insure compliance with the City's housing plan and its objectives; (iii) the method of administering, servicing and supervising the Program; (iv) the costs of the City, including future administrative expenses; (v) the restrictions on the multifamily development to be financed under the Program; and (vi) certain other limitations. The City, in adopting the Program, considered the potential financing impact of a bond issuance on affected public agencies. In addition, the City reviewed the method of marketing the Program. Such review examined the equal opportunity for participation by (i) minorities; (ii) households with incomes at the lower end of the range that can be served by the Program; (iii) households displaced by public or private actions; (iv) elderly persons; and (v) accessibility to the handicapped. The Project will be constructed and financed pursuant to Subdivisions 1 and 4 of Section 462C.05 of the Act. SJB81905 MN190-47 Resolution 95-41 Subsection A. Definitions. The following terms used in this Program shall have the following meanings, respectively: (1) "Act" shall mean Minnesota Statutes, Section 462C . 01, et seq... as currently in effect and as the same may be from time to time amended . (2) "Bonds" shall mean the revenue bonds to be issued by the City to finance the Program. (3) "City" shall mean the City of Monticello, State of Minnesota. (4) "Developer" shall mean Presbyterian Homes Housing and Assisted Living, Inc., a Minnesota nonprofit corporation. (5) "Housing Plan" shall mean the City of Monticello 462C Housing Plan, as amended, setting forth certain information required by the Act . (6) "Housing Unit" shall mean any one of the 48 units located in the Project, occupied by one person or family, and containing complete living facilities. (7) "Land" shall mean the real property upon which each Project is situated. (8) "Program" shall mean the program for the financing of the Projects pursuant to the Act . (9) "Project" shall mean the Presbyterian Homes Housing and Assisted Living, Inc. Project . Subsection B. Program For Financing the Project. It is proposed that the City establish this Program to provide financing for acquisition of the Project to be owned by the Developer, or a related entity, at a cost and upon such other terms and conditions as are set forth herein and as may be agreed upon in writing between the City, the initial purchaser of the Bonds and the respective Developer. To do this, the City expects to issue Bonds the proceeds of which will be loaned to the Developer for financing the acquisition and construction of the Project. It is expected that a trustee will be appointed by the City to monitor the construction of the Project and payments of principal and interest on the Bonds. The cost of any additional security devices for the Bonds will be borne by the Developer and payable in addition to the principal and interest on the Bonds except as otherwise provided by resolution of the City. It is contemplated that the Bonds shall have a maturity of thirty (30) years and will be priced to the market at the time of issuance. The City will hire no additional staff for the administration of the Program. The City intends to select and contract with a financial institution or trustee, experienced in trust matters to administer the Bonds . Insofar as the City will be contracting with underwriters, legal counsel, bond counsel, the trustee, and others, all of whom will be reimbursed from bond proceeds and revenues generated by the Program, no administrative costs will be paid from the City's budget with respect to this Program except as otherwise provided by resolution of the City. The Bonds will not be general obligation bonds of the City, but are to be paid only from properties pledged to the payment thereof, which may SJB81905 MN190-47 Resolution 95-41 include additional security such as additional collateral, insurance or a letter of credit. Subsection C. Local Contributions To The Program. The City through its Housing and Redevelopment Authority ( "HRA") , will provide certain tax increment financing assistance for the Project in accordance with a Contract for Private Redevelopment between the HRA and the Developer. Subsection D. Standards and Requirements Relating to the Financing of the Projects Pursuant to the Program. The following standards and requirements shall apply with respect to the operation of the Project by the Developer pursuant to this Program: (1) Substantially all of the proceeds of the sale of the Bonds will be used to provide funds for the acquisition and rehabilitation of the Project. The funds will be made available to the Developer pursuant to the terms of the Bond offering, which may include certain covenants to be entered into between the City and the Developer. (2) The Developer or subsequent owner of the Project will not arbitrarily reject an application from a proposed tenant because of race, color, creed, religion, national origin, sex, marital status, or status with regard to public assistance or disability. (3) No Housing Unit may be in violation of applicable zoning ordinances or other applicable land use regulations, including any urban renewal plan or development district plan, and including the state building code as set forth under Minnesota Statutes, Section 16.83 , et seq . Subsection E. Evidence of Compliance. The City may require from the Developer or such other person deemed necessary at or before the issuance of the Bonds, evidence satisfactory to the City of the ability and intention of the Developer to complete the Project, and evidence satisfactory to the City of compliance with the standards and requirements for the making of the financing established by the City, as set forth herein; and in connection therewith, the City or its representatives may inspect the relevant books and records of the Developer in order to confirm such ability, intention and compliance . In addition, the City may periodically require certification from either the Developer or such other person deemed necessary concerning compliance with various aspects of the Program . Subsection F. Issuance of Bonds. To finance the Program authorized by this Section, the City may by resolution authorize, issue and sell its revenue Bonds in one or mores series, and using any additional credit enhancement devices determined by the City to be necessary or desirable for each such series, in an aggregate principal amount estimated to be up to $3,500,000. The Bonds shall be issued pursuant to Section 462C . 07, Subdivision 1 of the Act, and shall be payable primarily from the revenues of the Program authorized by this Section. The City anticipates the issuance of such amount prior to the end of 1995. Subsection G . Severability. The provisions of this Program are severable and if any of its provisions, sentences, clauses or paragraphs shall be held unconstitutional, contrary to statute, exceeding the authority of the City or otherwise illegal or inoperative by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions . SJB81905 MN190-47 Resolution 95-41 Subsection Bonds authorized Bonds. SJB81905 MN190-47 H. Amendment. The City shall not amend this Program while hereby are outstanding, to the detriment of the holders of such