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RESOLUTION 99 - 91 <br /> <br />A RESOLUTION OF THE CITY OF ELK RIVER <br /> <br />A RESOLUTION RECITING A PROPOSAL FOR A MULTIFAMILY <br />HOUSING DEVELOPMENT PROJECT, TAKING OFFICIAL ACTION <br />WITH RESPECT THERETO, AND INDICATING PRELIMINARY <br />INTENT TO ASSIST THE FINANCING OF THE PROJECT PURSUANT <br />TO MINNESOTA STATUTES, CHAPTER 462C <br /> <br />WHEREAS, <br /> <br />the City is authorized pursuant to Minnesota Statutes, Chapter <br />462C, as amended (the "Act") to finance the making or purchasing of <br />loans with respect to multifamily housing developments within the <br />boundaries of the City of Elk River (the "City"); and, <br /> <br />WHEREAS, <br /> <br />neither the full faith and credit of the City or the Authority will be <br />pledged to the payment of the principal of, premium, if any, and <br />interest on the Revenue Bonds; and, <br /> <br />WHEREAS, <br /> <br />the City has received a proposal from West Suburban Housing <br />Partners II Limited Partnership, a Minnesota limited partnership <br />(the "Company"), that the City assist in financing a Project <br />hereinafter described, through the issuance of Revenue Bonds in the <br />maximum aggregate principal amount of $4,000,000 (hereinafter <br />referred to in this resolution as "Revenue Bonds") pursuant to the <br />Act and in accordance with a housing finance program prepared <br />with respect to the Project (the "Housing Program"); and, <br /> <br />WHEREAS, <br /> <br />the undertaking of the proposed Housing Program and the issuance <br />of the Revenue Bonds to finance the cost thereof will further <br />promote the public purposes and legislative objectives of the Act by <br />expanding and assisting the existing multifamily housing operations <br />of the Company in the City; and, <br /> <br />WHEREAS, <br /> <br />the Project to be financed by the Revenue Bonds is the acquisition <br />and renovation of an 18 unit housing facility (Elk Ridge Estates <br />Facility) located at 11755 191½ Avenue Northwest in the City and a <br />54 unit housing facility (Oak Crest Apartments Facility) located at <br />300, 340, and 380 Third Street Northwest in the City (collectively, <br />the "Project"). <br /> <br />WHEREAS, <br /> <br />the City has been advised by representatives of the Company that <br />conventional, commercial financing to pay the capital cost of the <br />Project is available only on a limited basis and at such high costs of <br />borrowing that the economic feasibility of operating the Project <br />would be significantly reduced; and, <br /> <br /> <br />