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Home My WebLink About15.F.9. HRA Northridge Housing Revenue Bond Sale-Res. No. 5902 l5.t=.9. CITY OF SHAKO PEE CONSENT Memorandum TO: Mayor and City Council FROM: Mark McNeill, City Administrator SUBJECT: Public Hearing - HRA Northridge Housing Revenue Bond Sale DATE: June 12, 2003 INTRODUCTION: The City Council is asked to establish a date for public hearing regarding the issuance of up to $7 million in housing revenue bonds, to be backed by the general obligation of the City. The purpose of the bonds is to construct the Northridge Senior Housing Development. BACKGROUND: At the June 3rd City Council meeting, the City Council, acting upon a recommendation from the Economic Development Authority, authorized entering into a Developer's Agreement with the Scott County Housing and Redevelopment Authority, which will provide for the construction of 58 market rate apartments. The apartments would be eligible for occupancy by individuals aged 55 and older, and would be constructed on a site currently owned by the City (the parking lot east of 200 Levee Drive). Funding for this project will be through bonds sold by the Scott County Housing and Redevelopment Authority. The amount of the bonds is $7 million; those are to be repaid by revenues from the rents ofthe building. However, the City of Shakopee is pledging its full faith and credit to guaranty payment of the bonds, should the rents charged be insufficient. This arrangement results in a lower interest rate. Because the City is a guarantor of the bonds, a public hearing is required, and is recommended to be scheduled for Tuesday, July 15th, in the City Council Chambers. This will allow individuals who have questions about the bond sale to have concerns addressed. RECOMMENDATION: I recommend that the City Council authorize a public hearing for the bond sales to be scheduled for Tuesday, July 15, 2003 in the City Council Chambers. ACTION REQUIRED: If the Council concurs, it should, by motion, adopt the following resolution: CITY OF SHAKO PEE, MINNESOTA RESOLUTION NO. 5902 RESOLUTION ESTABLISHING THE DATE FOR A PUBLIC HEARING REGARDING THE ISSUANCE BY THE SCOTT COUNTY HOUSING AND REDEVELOPMENT AUTHORITY OF BONDS TO FINANCE A QUALIFIED MULTIFAMILY HOUSING DEVELOPMENT PURSUANT TO MINNESOTA STATUTES, SECTION 469.034, SUBD. 2 ~~~ Mark McNeill City Administrator MM:th CITY OF SHAKOPEE, MINNESOTA RESOLUTION NO. 5902 RESOLUTION ESTABLISHING THE DATE FOR A PUBLIC HEARING REGARDING THE ISSUANCE BY THE SCOTT COUNTY HOUSING AND REDEVELOPMENT AUTHORITY OF BONDS TO FINANCE A QUALIFIED MULTIFAMILY HOUSING DEVELOPMENT PURSUANT TO MINNESOTA STATUTES, SECTION 469.034, SUBD. 2 WHEREAS, pursuant to Minnesota Statutes, Sections 469.001 through 469.047 (the "Act"), and particularly Section 469.034, Subd. 2, the Scott County Housing and Redevelopment Authority (the "BRA") is authorized to issue its bonds for the purpose of financing the acquisition and construction of qualified housing development projects, and with the consent of a general jurisdiction governmental unit subject certain conditions, to pledge the full faith and credit of such general jurisdiction governmental unit to such bonds; and WHEREAS, in cooperation with the City of Shakopee (the "City") the HRA proposes to undertake a multifamily rental housing facility containing approximately 58 units (the "Development") to be located in the City, which will provide housing for low and moderate income seniors, age 55 and older; and WHEREAS, the BRA has requested that the City approve the pledge by the HRA of the City's full faith and credit and general obligation to housing development revenue bonds to be issued by the BRA in an aggregate principal amount not to exceed $7,000,000 (the "Bonds") to finance the construction and acquisition of the Development; and WHEREAS, the Act requires as a condition precedent to issuance of the Bonds that the BRA and the City each hold a public hearing regarding the issuance of the Bonds and the pledge of the City's full faith and credit as described above; and NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA as follows: 1. That a public hearing regarding the issuance of the Bonds by the BRA will be held by the City on July 15, 2003 at or after 7:00 p. m. 2. That the City Administrator or his designee is hereby authorized and directed to cause notice of such public hearing in substantially the form attached hereto to be published in a newspaper of general circulation in the City not less than fifteen (15) days prior to such hearing. 2358380vl Adopted in session of the City Council of the City of Shakopee, Minnesota, held this day of ,2003. Mayor Attest: City Clerk 2358380vl NOTICE OF PUBLIC HEARING REGARDING THE ISSUANCE OF BONDS PURSUANT TO MINNESOTA STATUTES, SECTION 469.034, SUBD. 2, AS AMENDED, TO A FINANCE MULTIFAMILY HOUSING DEVELOPMENTFORSENIORSINSHAKOPEE SHAKOPEE, MINNESOTA NOTICE IS HEREBY GIVEN that the City Council of the City of Shakopee, Minnesota (the "City") will meet on July 15, 2003, at or after 7:00 p.m., at the City Council offices at 129 Holmes Street South, in Shakopee, Minnesota, for the purpose of conducting a public hearing regarding the issuance by the Scott County Housing and Redevelopment Authority (the "HRA") of its housing development revenue bonds (the "Bonds"). The Bonds will be issued in an aggregate principal amount not exceeding $7,000,000 to finance the acquisition and construction of an approximately 58-unit multifamily rental housing development for seniors (the "Development") to be located at the intersection of Levee Drive and Fuller Street in the City of Shakopee (the "City"). The Bonds are expected to be paid from net revenues of the Development pledged to the payment thereof, but will also be secured'by a pledge of the full faith and credit of the City . All persons interested may appear and be heard at the time and place set forth above. Dated: BY ORDER OF THE CITY COUNCIL OF SHAKOPEE,MINNESOTA By /s/ William P. Mars Its Mayor 2358380vl