93-065 - Laserfiche WebLink

Home Browse Search

/ ~. F 4 Resolution No. 93-065 -11 RESOLUTION ESTABLISHING THE DATE FOR A PUBLIC HEARING AND GIVING PRELIMINARY APPROVAL TO PROPOSED ISSUANCE OF REFUNDING REVENUE BONDS FOR A MULTIFAMILY HOUSING PROJECT WHEREAS, the City of New Brighton, Minnesota (the "City") has previously issued its Multifamily Housing Revenue Bonds, Series 1985 (Brightondale Residence Project) (the "Series 1985 Bonds") pursuant to the provisions of Minnesota Statutes Chapter 462C, as amended (the "Act") and an Indenture of Trust dated as of December 1, 1985, as amended (the "Indenture") between the City and First Trust National Association, formerly known as First Trust Company, Inc., as trustee (the "Trustee"); and WHEREAS, the City loaned the proceeds of the Series 1985 Bonds to Park Place Senior Housing Limited Partnership, a Minnesota limited partnership (the "Prior Developer") pursuant to the terms of Loan Agreement dated as of December 1, 1985, as amended (the "Loan Agreement") between the City and the Prior Developer in order to finance the costs of the acquisition, construction and equipping of a multifamily rental housing development located in the City (the "Project"); and WHEREAS, the Prior Developer secured its obligations pursuant to the Loan Agreement by granting to the Trustee a mortgage lien on and security interest in the Project; and WHEREAS, the Prior Developer defaulted in its obligations with respect to the Loan Agreement and the Series 1985 Bonds, and the Trustee foreclosed upon its security interest in and lien on the Project; and WHEREAS, the Trustee proposes to sell the Project to G & P Properties, Inc. , a Minnesota corporation (the "Developer") and as a result thereof the Developer will assume certain obligations with respect to the Series 1985 Bonds; and WHEREAS, the Developer has requested the City to issue refunding revenue bonds in a principal amount not to exceed $3,500,000 (the "Series 1993 Bonds") to provide funds to refund the Series 1985 Bonds; and WHEREAS, the Series 1993 Bonds and the interest on said Series 1993 Bonds shall be payable solely from the revenue pledged therefor and the Series 1993 Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation nor shall constitute nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers and shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City other than the City's interest in the Project and in the revenue agreement related to the Series 1993 Bonds; and WHEREAS, prior to issuance of the Series 1993 Bonds, it will be necessary to hold a public hearing with respect to the Series 1993 Bonds, after publication of a notice of public hearing; and WHEREAS, the Act authorizes the City to issue revenue bonds to refund, in whole or in part, bonds previously issued by the City. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of New Brighton, Minnesota as follows: LKM52460 NE136-102 1