07-034 RES - Laserfiche WebLink

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e e e 1. the City. The Housing Program is hereby approved in substantially the forms on file with 2. The Company has proposed that the City issue its Multifamily Housing Revenue Bonds (Birchwood Court Apartments Project), Series 2007 in the maximum principal amount of $2,500,000 (the "Bonds") to finance the costs of the acquisition and renovation of the Project in accordance with a Bond Purchase Agreement (the "Bond Purchase Agreement") among the City, Elk River Leased Housing Associates II, LP, a Minnesota limited partnership (the "Company") and Dougherty & Company LLC (the "Purchaser"). 3. The Bonds will be issued by the City pursuant to an Indenture of Trust dated as of April I, 2007 (the "Indenture"), executed by the City and U.S. Bank National Association, S1. Paul, Minnesota (the "Trustee"). The Bonds will be secured by a Combination Mortgage, Security Agreement and Fixture Financing Statement dated as of April 1, 2007 executed by the Company in favor of the Issuer and assigned by the Issuer to the Trustee pursuant to an Assignment of Mortgage dated as of April 1, 2007 (the "Assignment of Mortgage"). 4. Pursuant to the terms of a proposed Loan Agreement dated as of April I, 2007 between the City and the Company (the "Loan Agreement"), the City will loan the proceeds of the Bonds to the Company to finance the Project. The Company has agreed, pursuant to a Regulatory Agreement dated as of April 1, 2007, by and among the City, the Company and the Trustee (the "Regulatory Agreement") to operate the Project as a "residential rental project" under Section 142( d) of the Internal Revenue Code of 1986, as amended. The Bonds will be offered for resale by the Purchaser pursuant to an Official Statement (the "Official Statement"). 5. Forms of the following documents have been submitted to the City Council: (a) The Loan Agreement; (b) The Indenture; (c) The Regulatory Agreement; (d) The Bond Purchase Agreement; and (e) The Assignment of Mortgage. The foregoing documents are hereafter referred to as the "Bond Documents." 6. It is hereby found, determined and declared that: (a) the issuance and sale of the Bonds, the execution and delivery by the City of the Bond Documents and the performance of all covenants and agreements of the City contained in the Bond Documents and of all other acts and things required under the constitution and laws of the State of Minnesota to make the Bond Documents and the Bonds valid and binding obligations of the City in accordance with their terms, are authorized by the Act; 2