Laserfiche WebLink
<br />e <br /> <br />e <br /> <br /> <br />e <br /> <br />RESOLUTION 07-~ <br /> <br />A RESOLUTION OF THE CITY OF ELK RIVER <br /> <br />RECITING A PROPOSAL FOR A MULTIFAMILY HOUSING DEVELOPMENT <br />PROJECT, INDICATING PRELIMINARY INTENT, SUBJECT TO CERTAIN <br />CONDITIONS, TO ASSIST THE FINANCING OF THE PROJECT PURSUANT TO <br />MINNESOTA STATUTES, CHAPTER 462C <br />(BIRCHWOOD COURT APARTMENTS PROJECT) <br /> <br />WHEREAS, <br /> <br />(a) The City is authorized pursuant to Minnesota Statutes, Chapter 462C, as amended <br />(the "Act") to finance the making or purchasing of loans with respect to multifamily housing <br />developments within the boundaries of the City of Elk River (the "City") through the issuance of <br />revenue bonds; <br /> <br />(b) Pursuant to the Act, the full faith and credit of the City will not be pledged to the <br />payment of the principal of, 'premium, if any, and interest on the revenue bonds; <br /> <br />(c) The City has received a proposal from Elk River Leased Housing Associates II, LP, a <br />Minnesota limited partnership (the "Company"), that the City assist in financing a Project hereinafter <br />described, through the issuance of revenue bonds in the maximum aggregate principal amount of <br />approximately $2,500,000 (the "Revenue Bonds") pursuant to the Act and in accordance with a <br />housing finance program prepared with respect to the Project; <br /> <br />(d) The undertaking of the proposed Project and the issuance of the Revenue Bonds to <br />finance the cost thereof will further promote the public purposes and legislative objectives of the <br />Act by expanding and assisting the multifamily housing facilities available in the City; <br /> <br />(e) The Project to be financed by the Revenue Bonds is the acquisition and renovation <br />of an existing 51-unit multifamily rental housing facility at 1227 School Street NW in the City <br />currently known as Birchwood Courts Apartments (the "Project"). The Project will be owned and <br />operated by the Company; <br /> <br />(f) The City has been advised by representatives of the Company that conventional, <br />commercial financing to pay the capital cost of the Project is available only on a limited basis and at <br />such high cosrs of borrowing that the economic feasibility of operating the Project would be <br />significantly reduced; <br /> <br />(g) No public official of the City has either a direct or indirect financial interest in the <br />Project nor will any public official either directly or indirectly benefit financially from the Project. <br /> <br />0/-13 <br />