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HomeMy WebLinkAbout3. Res. No. 2003-04 Approving the Execution and Delivery of an Indenture of Trust and Other Documents Related to the Northridge Apartments Project 1*-3 CITY OF SHAKOPEE Memorandum TO: City Council and Economic Development Authority FROM: Paul Snook, Economic Development COOrdina~ SUBJECT: Resolutions giving final approval for financing documents related to the Northridge Court Apartments project MEETING DATE: August 19, 2003 Introduction The Economic Development Authority and City Council are asked to pass resolutions giving final approval to the financing documents related to the Northridge Court Apartments development. Background At the June 3rd meeting, the City Council and EDA authorized execution and delivery of a Development Agreement among the City of Shakopee, Minnesota, the Economic Development Authority for the City of Shakopee and Scott County Housing and Redevelopment Authority (the "Development Agreement"), pursuant to which the parties will undertake a development known as the Northridge Apartments Project (the "Project"). Pursuant to Section 4.1 of the Development Agreement, all parties are required to give final approval to the financing documents related to the Project. The resolutions under consideration would give final approval for the financing documents as required by Section 4.1 of the Development Agreement. As part of final approval, the resolutions authorize execution and delivery of an Indenture of Trust and authorize Scott County Housing and Redevelopment Authority to pledge the full faith and credit of the City of Shakopee to secure a portion of the bonds to be issued pursuant to the Indenture of Trust. Action Required EDA Offer Resolution No. 2003-04, Approving the Execution and Delivery of an Indenture of Trust and Other Documents Related to Northridge Apartments Proj ect City Council Offer Resolution No. 5933, Approving the Execution and Delivery of an Indenture of Trust and Other Documents Related to Northridge Apartments Project Memo on Res Approv Fincg Docs.doc ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF SHAKOPEE Resolution No. 2003-04 Approving the Execution and Delivery of an Indenture of Trust and Other Documents Related to Northridge Apartments Project WHEREAS, the Economic Development Authority of the City of Shakopee (the "EDA") has approved a Development Agreement (the "Development Agreement") to be entered into with the City of Shakopee, Minnesota (the "City") and Scott County Housing and Redevelopment Authority (the "HRA") pursuant to which the parties will jointly undertake to develop an approximately 58-unit multifamily housing development project intended for seniors to be located in the City of Shakopee (the "Project"); and WHEREAS, pursuant to the Development Agreement the HRA will issue bonds (the "Bonds"), secured in part by a pledge of the full faith and credit of the City, to finance acquisition and construction of the Project; and WHEREAS, Section 4.1 of the Development Agreement requires each party thereto to give its final approval of certain of the documents related to the issuance of the Bonds; and WHEREAS, the Board of Commissioners of the EDA believes the Project is in the best interest of the City and the EDA and now wishes to give final approval of the financing documents as required by Section 4.1 of the Development Agreement; NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Economic Development Authority of the City of Shakopee: 1. The Indenture of Trust to be entered into by the HRA and U.S. Bank National Association and to be accepted by Scott County, the City and the EDA, authorizing issuance of the Bonds (the "Indenture"), is hereby approved in substantially the form on file with the City on the date hereof, with such changes or modifications as are not materially adverse to the EDA and which are approved by the President and Executive Director of the EDA. 2. The President and the Executive Director, or in their absence or unavailability, any other officers of the EDA, are authorized to execute and deliver the Indenture on behalf ofthe EDA and to execute and deliver on behalf of the EDA such other documents and certificates and take such other actions as are necessary or desirable to consummate the transactions described in the Development Agreement or Indenture. Passed and adopted on this _ day of August, 2003. President ATTEST: Secretary 2381602vI