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3b. Approval of Joint Powers Agreement for Multi-Family HousingMEMORANDUM 36 CITY OF ---� CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 TO: Mayor and City Council FROM: Don Ashworth, City Manager DATE: May 5, 1995 SUBJ: Approval of Joint Powers Agreement for Multi - Family Housing Various requirements placed on both the city as well as HRA were approved on April 24, 1995. The attached resolutions formally recognize "those commitments. The attached "Joint Powers Agreement" sets out responsibilities for'both the county as well as city to build, manage, etc. the facility itself. Similar to the comments made during our last meeting, if all aspects of the rezoning, density, site plan approval, etc. are not approved, any joint powers or financial commitments would disappear. Approval of the attached Joint Powers Agreement for a Multi - Family Housing Revenue Bond Program is recommended contingent upon review by the City Attorney. JOINT POWERS AGREEMENT FOR A MULTIFAMILY HOUSING REVENUE BOND PROGRAM THIS AGREEMENT has been entered into as of the 1st day of May, 1995', between and among The Carver County Housing and Redevelopment Authority (the "Issuer "), The Housing and Redevelopment Authority of the City of Chanhassen, Minnesota (the "City HRA ") and the City of Chanhassen, Minnesota (the "City ") (together the "Joint Parties ") pursuant to Minnesota Statutes, Section 471.59 and Chapter 462C. 1. Statement of Purpose and Powers to be Exercised There is a need in Carver County, Minnesota (the "County, ") and particularly in the City, to preserve the quality of life through the maintenance, provision and preservation of adequate housing stock, to encourage ne-,N- housing construction, and to provide affordable housing to persons of low and moderate income. To promote the public health and welfare, the Joint Parties will jointly undertake a housing development project (the "Project ") to provide an approximately 70 -unit multifamily rental housing facility to be occupied by low and moderate income elderly persons. The powers to be exercised jointly under this Agreement are those common or substantial]} similar powers conferred upon the Issuer and the City HRA pursuant to Minnesota Statutes, Sections 469.001 through 469.047, to undertake housing development projects and to issue housing revenue bonds backed by the full faith and credit of the City pursuant to Minnesota Statutes, Section 469.034, Subd. 2; and the powers conferred on the City to assist a housing and redevelopment authority in the development of a Project. 305641.1 Joint Powers Agreement CCHRA, Chanhassen and Chanhassen HRA May 2, 1995 I 2. Method of Achievin- Purpose, Manner of Exercising Power The powers described above (a) to undertake the Project, (b) to issue housing revenue bonds of the Issuer backed by the full faith and credit and taxing power of the City in an aggregate principal amount I not exceeding $ u I .. - 0 (the "Bonds "), and (c) to issue such additional revenue bonds of the Issuer in accordance with Section 469.034, as are necessary to provide financing for the acquisition, construction and equipping of the Project (the "Revenue Bonds "), are to be exercised by the Issuer pursuant to this Agreement. The Issuer is authorized and directed to execute and deliver such contracts, agreements and other documents as shall be necessary or convenient, in the judgment of the Issuer, for it to undertake the issue and sell the Bonds and the Revenue Bonds, and to adopt such resolutions and to take all such actions as the Issuer determines, in its judgment, to undertake the Project, to issue the Bonds and the Revenue Bonds, and to properly own, operate and manage the Project. The Program shall be owned, operated and managed by the Issuer in accordance with the documents providing for the issuance of the Bonds and Revenue Bonds, and otherwise in the manner determined appropriate by the Issuer. 3. Source and Contribution of Funds The source of funds for the Program shall be (i) the proceeds of the Bonds; (ii) a $350,000 contribution by the City to be deposited to a debt service reserve fund created pursuant to the indenture of trust to be entered into by the Issuer and a trustee providing for the issuance of and security for the Bonds and the Revenue Bonds (the "Indenture "); (iii) a pledge by the Issuerof $ of the Issuer's annual tax levy for each year during which the Bonds are outstanding, payable into the Revenue Fund created pursuant to the Indenture on each January l and July 1, commencing 305641.1 1, 199_; Joint Powers Agreement CCHRA, Chanhassen and Chanhassen HRA May 2, 1995 (iv) a pledge by the City HRA of $ of the City HRH's annual tax levy for each ' year during which the Bonds are outstanding, payable into the Revenue Fund created pursuant to the Indenture on each January 1 and July 1, commencing 1, 199_; and (v) such other properties and revenues as shall be loaned or contributed to or derived from the ' Program, including the revenues, profits, receipts and other moneys pledged to the Bonds ' pursuant to the Indenture. 4. Budget and Disbursements The Issuer shall provide (a) an initial budged for the acquisition and construction of the Project and the issuance of the Bonds and Revenue Bonds, and (b) annual budgets for the operation, maintenance and repair of the Project. Moneys and funds shall be held, applied, disbursed, and accounted for in such manner as is provided for in the Indenture or as the Issuer may determine. Any surplus funds resulting from the operation of the Project by the Issuer shall be applied by the Issuer as provided in Section of the Indenture, or any indenture of trust or other document providing for the refunding of the Bonds or Revenue Bonds, and following the retirement of the Bonds, Revenue Bonds and any bonds or other financing issued to refund the Bonds or Revenue Bonds, any such surplus funds shall be and remain the property of the Issuer. The Issuer shall provide to the City and the City HRA copies of its annual budgets for the Project and any revisions thereto from time to time. 305691.1 Joint Powers Agreement CCHRA, Chanhassen and Chanhassen HRA May 2, 1995 ' 5. Liability for Debts and Obligations The Issuer shall not do any act or thing the ' effect of which is to create a charge on or lien against the property or revenues of the Joint Parties, other than the trust estate pledged pursuant to the Indenture. ' The Bonds shall be special, limited obligations of the Issuer payable solely from proceeds, revenues and other amounts pledged thereto under, including, without limitation, as to the Bonds, the full faith and credit of the City, all as more fully described in, the Indenture. ' The Revenue Bonds and the interest thereon shall neither constitute nor give rise to an ' indebtedness, pecuniary liability, general or moral obligation or a pledge of the faith or loan of credit of the the Joint Parties, the State of Minnesota or any political subdivision thereof. nor ' shall the Revenue Bonds constitute a debt of the Joint Parties, the State of Minnesota or any ' political subdivision thereof within the meaning of any constitutional or statutory limitations. The Bonds and the interest thereon shall neither constitute nor give rise to an ' indebtedness, pecuniary liability, general or moral obligation or a pledge of the faith or loan of ' credit of the the Issuer or the City HRA, the State of Minnesota or any political subdivision ' thereof, other than the City, nor shall the Bonds constitute a debt of the Issuer or the City HRA, the State of Minnesota or any political subdivision thereof, within the meaning of any ' constitutional or statutory limitations. ' 6. Indemnification The City HRA and the City, to the extent permitted by law, shall indemnify and hold harmless the Issuer for any liability or costs of defense incurred by the Issuer ' pursuant to Section 12.9 of the Indenture, relating to environmental matters. ' 7. Term of Agreement; Termination This Agreement shall terminate upon the latest to occur of the retirement or defeasance of the entire principal amount of the Bonds and Revenue ' 305641.1 Joint Powers Agreement CCHRA, Chanhassen and Chanhassen HRA May 2, 1995 Bonds, or the retirement of any bonds or other financing issued to refunding the Bonds or Revenue Bonds, the payment of all amounts required to be paid under the Indenture, or any indenture or similar document executed and delivered in connection with the refunding of the Bonds or the Revenue Bonds, and the disposition of all property held by the Trustee pursuant to ' the Indenture, and this Agreement may not be terminated in advance of such retirement or , defeasance. If the Bonds and /or Revenue Bonds are not issued on or before December 31, 1995, this Agreement shall terminate on such date. ' 8. Distribution of Assets upon Termination Upon termination of this Agreement, any I property acquired as the result of this Agreement shall be 9. Amendments Except as to the term of this Agreement, this Agreement may be amended by the unanimous consent of the Joint Parties at any time, No amendment may materially prejudice the rights of the holders of the Bonds or the Revenue Bonds, or any bonds or other instrument issued to refund the Bonds or Revenue Bonds, unless they have consented to such amendment in the manner provided for amendment of the Indenture or other applicable instrument. IN WITNESS WHEREOF, The Carver County Housing and Redevelopment Authority, the Housing and Redevelopment Authority of the City of Chanhassen, Minnesota and the City of Chanhassen, Minnesota have each caused this Agreement to be executed on its behalf by their duly authorized officers and have caused their official seals, if any, to be affixed hereto, all as of the day and year first above written. 305641.1 Joint Powers Agreement CCHRA, Chanhassen and Chanhassen HRA May 2, 1995 Dated this (SEAL) day of May, 1995. THE CARVER COUNTY HOUSING AND REDEVELOPMENT AUTHORITY By: Its: By: Its: 305641.1 Joint Powers Agreement CCHRA, Chanhassen and Chanhassen HRA May 2, 1995 THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF CHANHASSEN, MINNESOTA (SEAL) By: Its: By: Its: 305641.1 Joint Powers Agreement CCHRA, Chanhassen and Chanhassen HRA May 2, 1995 (SEAL) 305641.1 CITY OF CHANHASSEN, MINNESOTA By: Its: By: Its: Joint Powers Agreement CCHRA, Chanhassen and Chanhassen HRA May 2, 1995 MAY 4 '95 14:37 FROM 1959 TO 99 75739 LAW OFFICE$ LEONARD, STREET AND DEiNARD SIDNEY NRRew•3 wL.ROLp D. rlc: P. JR. ANGELA M, N ALLLN !- SACKS TN04AA P. FLINBiCRG TIMOTNY PAX.ST J, . AV,S ROBERT P. YMAVIS MERRY{ M. ILLY k JAMES G. euLLARD JOSEPH M, r INLET GCel1Gi RClLLV CMARLEE M. PATTOM LAWRCNCC J. hrLO 3TCPNCN R. PrLAVM OAVFO W, xELLCY MAR2 S. win CMARLCS A, MAYS LOWCLL J. NPTESOOM ROBERT J. MVSEft DAV14 KANYOR GEOR6C Y. M60UNNIGLE RICH S. PC #IN. JR. JOMN M, sNCR AN AN IIYRON C. i AN4EM M. CM LbwiLL V. 3TORt$ iTEVCN M. R A, RUS, JOHN M. MERMAN DOVGLAS S, G*Z;CNSWAa STCVYN O. R ELLEN 6. SAMFSDN JOAN ER+CKS[N LAN 6ft*CY %TrP" C 7 EPN J. , DA MV,GNON ROAANME NATHAN*gh N M C, TAYLOR JOHN W. "MA GER EbWA . 69ASr EOWARD M. MOCREr.LDCR ReBCAT LCW+i SAVdk0%4S TN OM.LS P' 9AMOER3 IkIC .ARD J. WEGeMSR TIMQT T C 6 O TCM 7 1MOTHY WCLCh DuNCL J. MW MORRI - rRE JR. DCkICR W. McRRI$ 6 REGG J. CAVANAG.. JOHN G. RVEMN SVEAN M. Aoe;NCR SRAOLCY J. 61L AA MICHAEL A. NCK ZRADLCY J. GUNN SLAKE SN[PARO, JR. +CN MARTHA C. "AN [t NANO A. WILTGEN WILLIAM L. 4 JAMCrJ V, ROTI. STEVEN L. tiLTON RICH ARO H. MARTIN ROBYN —k.UA A MAC O. R.MPg6N SwAVN C. MCELMAT'/ON JAMCs ReACRT L. J. SCATRAND ° 21A FAC$ Lg Mr. Todd Gerhardt Assistant City Manager City of Chanhassen 694 Coulter Drive P.O. Box 147 Chanhassen, MN 55317 BAIC6ARA ►APLUCY.Y ACRENS PROFESSIONAL ASSOCIATION ' PANISL L. PALMOUFT CATMCRINE A. Mr1 wROt "&*A G. STRYMLOW S UITE 2300 PETER L. SCMIFSAY CAROLYN V. WEL61LI 150 SOUTH FIFTH STREET irCVCN R, LIND CMANk WILLIAM „. xeCN JOHN [. K+NO DANK: OBfkPOR /tR RONAIp J. SCNVLTZ MfNN£APQ�,IS MINNESOTA s SOTA 5S402 CL.L;MG - LUCCR RA TRICx M. O JERRY s, 01 0QA0I`A1= TCLEPH 500 4NE (6 335.1 gam' �N J- 'etNpgl6 JA4A M. xw!= FACSIMILE (612) 335.1657 WCkOr C' M7E*VCN LPRCN w. uMT[r}ItFMER JAMCS R. rRET ROIDERY M, TOl1lQdRfON AMY t. EDWARD A. Mvltokv .. CQ'C Ci JCANNC .. ISRAN THOMAS J. CONLEY MICMAEL A-G. KORCNGOLD 6 R000RT4.PO[ KATHRYN A. Me[AVLEY JAMEi r, V0E6c1,1 May "O"SMUA 1, KAIt,",TCOA 4, 1995 'ANN M. EICMLEASMIYM ROBERT L. ATNIAJA RUT. S, O ME L ANOREW I. LLC I. PAN OOLTON NICOLe A. EN6js . TAMN i. PYAt9A MlCMAEL J. WUILaR JCrrROY C. GREu BAIC6ARA ►APLUCY.Y ACRENS KCITN S. MOMESAN ALAN W. VAN DCLLEN JANE r GOD? PAGE. 002 ' ROSANNE "CV=, ' PANISL L. PALMOUFT CATMCRINE A. Mr1 wROt KAT'ILCCN ROAtER6I, SERI r iPLR MAwx JOHN [. K+NO DANK: OBfkPOR /tR JCrrREY A. KYRES ' RA TRICx M. O STEVE.. R. ZASCL DAVID R. CROSBY JAMCS R. rRET AMY t. .. CQ'C Ci JCANNC .. ISRAN MICMAEL A-G. KORCNGOLD ' KATHRYN A. Me[AVLEY GREW— R. rn7 ARR,s PAUL A. VANnLR VORY ROBERT L. ATNIAJA 6COR4f 6. LCONAR`. ry�i., I ARTNUR L.H. STREET I1177. 1t , •ENLDI T OCL4ARD I , ® . AM i DCINARD IIAf II Pl , REY SIONCY LOftBYR EIlrG k, GALAT' IRCNC SCOTT DW,Ga'T A. LARSON Mitts, ELLE A. M I / R (612) 335 -1551 WRITERS O+RECT C)IA(- NUtea£R The Carver Coun Housing and Redevelopment Housing and Development Gross Revenue Bond Authority (Chanhassen Apartment, Project) Series 1995A and pausing and Development ReVenue Chanhassen, 142r toads M*sota Unlimited Tsx general obligation of Ch Apartments Project) Series 1995E Dear Todd: At the request of Barb Portwood, adoption by enclosed are Resolutions for the City regarding Agreement and authorization of the app of the Joint Powers Barb (335 -1594) or me if y HRA tax levy. please call You have any questions or comments. Very tru1Y yours, JEK /dh Enclosur CC: Barb Portwood LEONARD EE D DEIN By 4 .r Jo E. King 3 07831 1 MA'Y 4 '95 14:37 FROM 1959 TO 9937579 PAGE. I_03 I I I CITY OF CHANHASSEN, MINNESOTA R.ESOLUTTON NO. ' RESOLUTION APPROVING AND AUTHORIZING 71M EXECUTION OF A JOINT POWERS AGREEMENT WITH THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF CHANHASSEN, MINNESOTA AND THE CARVER COUNTY HOUSING AND REDEVELOPMENT AUTHORITY (THE 'AUTHORITY ' IN SUPPORT OF THE AUTHORITY'S ISSUANCE OF HOUSING AND DEVELOPMENT GROSS REVENUE BONDS (CHAN'HASSEN APARTMENTS PROSECT) SERIES 1995A AND HOUSING AND DEVELOPMENT REVENUE BONDS (CI'T'Y OF CHANHASSEN MINNESOTA UNLIMITED TAX GENERAL OBLIGATION -- HOUSING DEVELOPMENT PROJECTS) SERIES 1995H ' BE IT HEREBY RESOLVED by the City Council of the City of Chanhassen, County of Carver, Minnesota (the "City ") as follows: ' 1. The Carver County Housing and Redevelopment Authority (the "Authority "), a public body corporate and politic, organized under Minnesota Statutes, Section 469.001 through 469.047 (the "Act ") proposes to issue its Housing and Development Gross Revenue Bonds ' (Chanhassen Apartments Project) Series 1995A (the "Series A Bonds ") in the aggregate principal amount not exceeding $600,000 and its Housing and Development Revenue Bonds (City of ' Chanhassen, Minnesota Unlimited Tax General Obligation -- Chanhassen Apartments Project) Series 1995B (the "Series B Bonds" and together with the Series A Bonds, the "Bonds ") in the aggregate principal amount not exceeding of $4,131 ,542 to finance an approximately 63 -unit ' multifamily housing facility for senior citizens of low and moderate income, which constitutes a housing development project as defined in the Act (the 'Project"). ' 2. The City previously approved the issuance by the Authority of the Series B Bonds and the pledge by the Authority of the City's full faith and credit thereto. ' 3 • A Joint Powers Agreement (the "Joint Powers Agreement ") between the Authority, the City and the Housing and Redevelopment Authority of the City of Chanhassen the "City HRA ") providing for 0) a $350,000 contribution by the City to the debt service reserve fund ' created under the Indenture of Trust dated as of May 1, 1995 by and between the Authority and the trustee named therein, and (ii) the pledge of certain amounts from the Authority's and the City HRH's annual tax levies to support the operations of the Project and the annual debt service ' on the Bonds, has been submitted to the City Council for approval. 30053.1 MAY 4 '95 14:38 FROM 1959 TO 9 9375 7 1:39 PRGE. 004 N 4. It is hereby found, determined and declared that the irnplementatioz3 of the Project, and the issuance and sale of the Bonds by the Author' Joint Powers Agreement and the o execution and delivery of the contained therein are authorized tinder the constitution and law of the Stee ments of the Cit}' of Minnesota. 5. The Joint Powers Agreement is hereby approved in substaat�ly form on ale with -the City an the date hereof. The Mayor and the City Administrator of the City are here Erected and authorized to execute said Agreement on behalf of the City. by ADOPTED: May _, 1995 Mayor Attu: City Administrator 306453.1 I MAY 4 '95 14:38 1 i FROM 1959 TO 99375 739 CITY OF CBAmHAsSEN, MINI+=CyTA R OOLUTION PTO. PAi �E. x_05 SAS, pursuant to Minnesota Statutes, Section 469.003, the City Council of the City of Chanhassen, Minnesota (the "City Council") created the Housing and Redevelopment Authority of the City of Chanhassen, Minnesota (the "Authority"); and WHEREAS, pursuant to such statute the City Council granted to the Authority all of the powers and duties of a housing and redevelopment authority under the provisions of the Municipal Housing and Redevelopment Act, Minnesota Statutes, Sections 469.001, et. seg. (the "Act "); and WHEREAS, Section 469.033, subdivision 6 of the Act authorizes ' the Authority to levy a tax upon all taxable p r o pe r ty to be expended for the purposes authorizedbte Act; and WHEREAS, such levy may be in an amount not to exceed 0.0131 ' percent of taxable market value of the City for general operational purposes and an additional levy not to exceed 0.0013 percent of taxable value in the City for purposes of defraying the cost of ' providing informational service and relocation assistance as Provided in Section 469.012, subdivision 1 of the Act; and ' WHEREAS, the Authority has and will annually file its budget in accordance with the budget procedures of the City; and WHERF,AS, based upon such budgets the Authority will levy all or such portion of the authorized levy as it deems necessary and proper; NOW, THEREFORE, BE IT RESOLVED, By the City Council of the City of Chanhassen, Minnesota: 1. That approval is hereby given for the Authority to levy, ' for taxes payable in 1996 and any subsequent year, such tax upon the taxable property of the City as the Authority may determine, subject to such limitations as may from time to time be contained ' in the Act. Approved this day of May, 1995 by the City Council of the ' City of Chanhassen, Minnesota. ' Its: ATTEST: Its: 307710.1