1g Housing Revenue Bonds CITYOF
7700 Iv~arket Boulevard
PO Box 147
Ohanhassen. MN 55317
Administration
Phone: 952.227.1100
Fax,: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190
Engineering
Phone: 952.227.1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
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Phone: 952.227.1120
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Recreation Center
2310 Coulter Boulevard
Phone: 952.227.1400
Fax: 952.227.1404
Planning &
Natural Resources
Phone: 952.227.1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952.227.1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110
Web Site
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TO:
FROM:
DATE:
SUB J:
Mayor
City Council
Bruce M. DeJong, Finance Director(~!
June 17, 2003
Multifamily Housing Revenue Bonds
The City of Chanhassen is being asked by Presbyterian Homes Minnesota to
hold a public hearing regarding a resolution authorizing the issuance of revenue
bonds. This process is necessary for them to obtain financing for their senior
care units in Villages on the Pond.
The project will require bonding in the amount of $27,300,000. The City of
Chanhassen and the City of Victoria actually issue the bonds and lend the
proceeds to Presbyterian Homes. We then contract with a bank to act as trustee
on our behalf. The bonds will be repaid through a combination of rental revenue
from the project and tax increment generated in TIF District 8. This resolution
does not obligate the City to any tax levy or repayment because these bonds only
commit the revenue stream of the project for repayment. This allows the
developer access to favorable interest rates because of our tax-exempt status to
reduce the overall cost of financing the project.
This resolution was prepared by our bond counsel, Mary Ippel from Briggs &
Morgan, who represents us in the transaction.
Recommendation
Staff recommends that the City Council adopt the resolution as presented and
hold the public hearing on July 14, 2003.
Tko Oily of Ckanhassen · A gro,,ving co,q'}rnunJty ',','ith c!ean ~akes. quality schools, a charming dov,,nto,,vn, thriving businesses, winding trails, and beautiful parks. ,,:,, great place to iive. '.,','ork, and
Extract of Minutes of a Meeting of the
City Council of the
City of Chanhassen, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Chanhassen, Minnesota, was duly called and held at the City Hall in said City on Monday, the
23rd day of June, 2003, at o'clock P.M.
The following members were present:
and the following were absent:
Member
introduced the following resolution and moved its adoption:
RESOLUTION CALLING FOR A PUBLIC HEARING
ON A PROPOSAL FOR A HOUSING FINANCE PROGRAM
AND THE ISSUANCE OF REVENUE BONDS
TO FINANCE AN ELDERLY HOUSING DEVELOPMENT
ON BEHAIJF OF PHM/CHANHASSEN, INC.
PURSUANT TO M/NNESOTA LAW, AND AUTHORIZING
THE PUBLICATION OF A NOTICE OF THE HEARING
The motion for the adoption of the foregoing resolution was duly seconded by member
, and after full discussion thereof and upon vote being taken thereon, the
following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
RESOLUTION CALLING FOR A PUBLIC HEARING
ON A PROPOSAL FOR A HOUSING FINANCE PROGRAM
AND THE ISSUANCE OF REVENUE BONDS
TO FINANCE AN ELDERLY HOUSING DEVELOPMENT
ON BEHALF OF PHM/CHANHASSEN, INC.
PURSUANT TO MINNESOTA LAW, AND AUTHORIZING
THE PUBLICATION OF A NOTICE OF THE HEARING
(a) WHEREAS, Minnesota Statutes, Chapter 462C (the "Act"), confers upon cities,
the power to issue revenue bonds to finance multifamily housing developments within the
boundaries of the city; and
(b) WHEREAS, the City Council of the City of Chanhassen, Minnesota (the "City"),
has received from PHM/Chanhassen, Inc. (the "Borrower"), a proposal that the City assist in
financing a Project hereinafter described, through the issuance of revenue bonds or obligations
(in one or more series) (the "Bonds") pursuant to the Act or approving the issuance of the Bonds
by the City of Victoria, Minnesota; and
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(c) WHEREAS, before proceeding with consideration of the request of the Borrower
it is necessary for the City to hold a public hearing on the housing finance program and proposal
pursuant to the Act:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Chanhassen, Minnesota, as follows:
1. A public hearing on the housing finance program and proposal of the Borrower
will be held at the time and place set forth in the Notice of Public Heating hereto attached.
2. The general nature of the proposal and an estimate of the principal amount of
Bonds to be issued to finance the proposal are described in the attached form of Notice of Public
Heating.
3. A draft copy of the housing finance program with proposed forms of all
attachments and exhibits shall be on file in the office of the City Manager on the date the Notice
of Public Hearing is published.
4. The City Manager is hereby authorized and directed to cause notice of the hearing
to be given one publication in the official newspaper of the City and a newspaper of general
circulation available in the City, not less than 15 days nor more than 30 days prior to the date
fixed for the hearing, substantially in the form of the attached Notice of Public Hearing with such
changes as required or approved by Bond Counsel.
Adopted by the City Council of the City of Chanhassen, Minnesota, this 23rd day of
June, 2003.
Mayor
ATTEST:
City Manager
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NOTICE OF PUBLIC HEARING ON A PROPOSAL FOR A HOUSING FINANCE
PROGRAM AND THE ISSUANCE OF REVENUE BONDS TO FINANCE
AN ELDERLY HOUSING DEVELOPMENT
ON BEHALF OF PHM/CHANHASSEN, INC.
TO WHOM IT MAY CONCERN:
Notice is hereby given that the City Council of the City of Chanhassen, Minnesota, will
meet in the City Council Chambers at the Chanhassen City Hall, 7700 Market Boulevard, in the
City of Chanhassen, Minnesota, at ~ p.m. on Monday, July 14, 2003, to consider a housing
finance program of the City and the proposal of PHM/Chanhassen, Inc. (the "Borrower") that
that the project described below be assisted by the issuance of revenue bonds under Minnesota
Statutes, Chapter 462C.
The project consists of the acquisition, construction and equipping of an approximately
161 unit elderly housing development located at the Southeast comer of the intersection of
Highway 101 and Lake Drive in the City. The Borrower will initially own and operate the
Project.
The maximum aggregate estimated principal amount of bonds or other obligations to be
issued in one or more series to finance the Project pursuant to the housing finance program will
be $27,300,000.
It is proposed that the City of Victoria, Minnesota, would issue the bonds or other
obligations to finance the Project or, alternatively, that the City would issue a portion of the
Bonds in an amount not to exceed $8,800,000. The City has been advised that Council approval
of the Bonds by the City of Victoria, Minnesota is required under Section 147(f) of the Internal
Revenue Code because the Project is located in the City.
Subsequent to approval of a housing finance program, the City or the City of Victoria,
Minnesota may issue revenue bonds to finance the housing finance program. Said bonds or other
obligations, as and when issued, will not constitute a charge, lien or encumbrance upon any
property of the City, or its housing and redevelopment authority, except the Project and the
revenues to be derived from the Project. Such bonds or obligations will not be a charge against
the City's general credit or taxing powers but are payable from sums to be paid by the Borrower
pursuant to a revenue agreement.
Further information concerning the housing finance program and the Project may be
obtained from the City Manager during normal business hours.
At the time and place fixed for the public hearing, the City Council of the City will give
all persons who appear at the hearing an opportunity to express their views with respect to the
housing finance program and proposal. Written comments will be considered if submitted at the
above City office on or before the date of the hearing.
1541136vl 3
Dated: June 23, 2003.
BY ORDER OF THE CITY COUNCIL OF THE CITY OF
CHANHASSEN, MINNESOTA
By Todd Gerhardt
Its City Manager
1541136vl 4
STATE OF MINNESOTA
COUNTIES OF CARVER AND HE--PIN
CITY OF CHANHASSEN
I, the undersigned, being the duly qualified and acting Manager of the City of
Chanhassen, Minnesota, DO HEREBY CERTIFY that I have compared the attached and
foregoing extract of minutes with the original thereof on file in my office, and that the same is a
full, true and complete transcript of the minutes of a meeting of the City Council of said City
duly called and held on the date therein indicated, insofar as such minutes relate to calling for a
public hearing on the City's revenue bonds to finance a housing finance program for
PHM/Chanhassen, Inc.
WITNESS my hand this ~ day of ,2003.
City Manager
1541136vl 5