3.4. SR 08-16-2010 - Laserfiche WebLink

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RESOLUTION NO. 10-36 • RESOLUTION RELATING TO A MULTIFAMILY HOUSING DEVELOPMENT AND THE ISSUANCE OF REVENUE BONDS TO FINANCE THE COSTS THEREOF UNDER NIINNESOTA STATUTES, CHAPTER 462C, AS AMENDED; GRANTING PRELIMINARY APPROVAL THERETO; AND TAKING CERTAIN OTHER ACTIONS WITH RESPECT THERETO BE IT RESOLVED by the City Council of the City of Elk River, Minnesota (the "City"}, as follows: Section 1. •Recitals. 1.01 The City is a municipal corporation duly organized and existing under the Constitution and laws of the State of Minnesota. 1.02. Pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act's, the City is authorized to carry out the public purposes described in the Act by issuing revenue bonds to provide funds to finance or refinance multifamily housing developments located within the City. The Act imposes certain affordability standards on such multifamily housing developments. 1.03. As a condition to the issuance of revenue bonds pursuant to the Act, the City must adopt a housing program providing the information required by Section 46X.03, subdivision la, of the Act (the "Housing Program"). In addition, a public hearing must be held in accordance with the requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"}, and in accordance with the requirements of the Act. Under Section 146 of the Code, an allocation of private activity bonding authority must be received from the State of Minnesota. An application for such an allocation must be made pursuant to the requirements of Minnesota • Statutes, Chapter 474A, as amended (the "Allocation Act"). 1.04. Elk River Leased Housing Associates III, Limited Partnership, a Minnesota limited partnership, or an affiliate thereof (the `Borrower"), has proposed that the City, pursuant to the Act, issue its revenue bonds in the approximate aggregate principal amount of $7,000,000, in one or more series at one time or from time to time (the "Bonds"), the proceeds of which will be loaned by the City to the Borrower to be applied by the Borrower to the acquisition and renovation of an existing 68-unit multifamily rental housing facility located at 1105 Lions Park Drive in the City (the "Project"). The Borrower will apply the proceeds of the loan to: (i) the acquisition and renovation of the Project; (ii) the funding of one or more reserve funds to secure the .timely payment of the Bonds; (iii) the payment of certain interest on the Bonds during renovation of the Project; and (iv) the payment of certain costs of issuing the Bonds. Section 2. Preliminarv Findings. Based on representations made by the Borrower to the City to date, the City Council of the City hereby makes the following preliminary findings, determinations, and declarations: (a) The Project consists of a multifamily housing development, and at least forty percent (40%) of the units in the Project will be set-aside for persons or families with sixty percent (60%) or less of median area income, adjusted for family size.