HomeMy WebLinkAbout15.F.3. Approve Financing Documents for Northridge Apartments-Res. No. 5933
IS.F.3.
CITY OF SHAKO PEE
Memorandum
TO: City Council and Economic Development Authority
FROM: Paul Snook, Economic Development coordinat~
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 fudenture 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
CITY OF SHAKOPEE, MINNESOTA
Resolution No. 5933
Approving the Execution and Delivery of an Indenture of Trust and
Other Documents Related to Northridge Apartments Project
WHEREAS, the City Council of the City of Shakopee, Minnesota (the "City") has approved a
Development Agreement (the "Development Agreement") to be entered into with the Economic
Development Authority for the City of Shakopee (the "EDA") 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, as required by law, the City has held a public hearing regarding the issuance of the
Bonds and the pledge of the City's full faith and credit; 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 City Council believes the Project is in the best interest of the City and now
wishes to authorize the issuance of the Bonds and the City's pledge of its full faith and credit and give
final approval of the financing documents as required by Section 4.1 of the Development Agreement;
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Shakopee:
1. The City Council hereby authorizes the HRA to pledge the full faith and credit of the City to the
payment of the Bonds, up to an aggregate principal amount not to exceed $7,000,000 or such lesser
amount as may be allowable by law.
2. The Indenture of Trust to be entered into by the HRA and u.S. Bank National Association and to be
accepted by Scott County and the City, 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 City and which are approved by the Mayor and the
City Administrator of the City.
3. The Mayor and the City Administrator, or in their absence or unavailability, any other
councilmembers of the City, are authorized to execute and deliver the Indenture on behalf of the City
and to execute and deliver on behalf of the City 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.
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