2014-52CITY OF CHANHASSEN, MINNESOTA
Resolution No. 2014 -52
Approving the issuance by the Carver County Community Development Agency of
bonds in an aggregate principal amount not to exceed $5,000,000 to refinance and
improve a qualified housing development project and the pledge of the full faith and
credit of the City of Chanhassen thereto, and authorizing the execution and delivery
of related documents.
WHEREAS, pursuant to Minnesota Statutes, Sections 469 001 through 469 047 (the "Act "), the
Carver County Community Development Agency (the "Agency ") is authorized to undertake housing
development projects and to issue bonds to finance such projects or to refinance prior bonds issued for
such purpose; and
WHEREAS, the Agency has previously issued its Housing Development Refunding Bonds (City of
Chanhassen, Minnesota Unlimited Tax General Obligation — Chanhassen Apartments Project), Series 2004
(the "Prior Bonds ") the proceeds of which were used to refund certain prior bonds, originally issued to
finance the construction of the Centennial Hill senior housing facility in the City which is owned by the
Agency (the "Project ") and which constitutes a "qualified housing development project" under the Act; and
WHEREAS, in order to refund the Prior Bonds and finance certain improvements to the Project, the
Agency proposes to issue its Housing Development Refunding Bonds (City of Chanhassen, Minnesota
Unlimited Tax General Obligation — Chanhassen Apartments Project), Series 2014 (the "Tax Exempt
Bonds "), in an aggregate principal amount not exceeding the outstanding principal amount of the Prior
Bonds, and its Taxable Housing Development and Refunding Bonds (City of Chanhassen, Minnesota —
Chanhassen Apartments Project) Series 2014T (the "Taxable Bonds" and, together with the Tax Exempt
Bonds, the "Bonds "), and to pledge the full faith and credit of the City of Chanhassen (the "City ") to both
series of Bonds; and
WHEREAS, pursuant to Minnesota Statutes, Section 469 034, Subd. 2, the Agency is authorized
to pledge the full faith and credit of the City to bonds issued to finance or refinance qualified housing
development projects following, (a) a determination by the Agency that pledged revenues will equal or
exceed 110% of the principal and interest due on such bonds for each year, and (b) approval by the City
of the principal amount of the Bonds following a public hearing, provided however, that (a) and (b) are
not required for any refunding bonds, and
WHEREAS, pursuant to Section 469 034, Subd. 2(c), the full faith and credit of the City may not
be pledged to outstanding bond in an amount greater than one -half of one percent of the estimated market
value of the City; and
WHEREAS, on the date hereof, the City has conducted a public hearing following publication of
notice pursuant to Minnesota Statutes, Section 469 034, subd. 2,
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Chanhassen,
Minnesota, as follows
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I That one -half of one percent of the estimated market value of the City is not less than $16,700,000,
and the outstanding principal amount of bonds issued pursuant to Minnesota Statutes, Section
469 034, Subd. 2, to which the City's full faith and credit is pledged, including the Bonds (but not
including the Prior Bonds which will be retired upon issuance of the Bonds) is not greater than
$5,000,000
2 That the City hereby approves (i) the issuance by the Agency of the Bonds in an aggregate principal
amount not exceeding $5,000,000, and (ii) the pledge by the Agency of the full faith and credit of
the City thereto, subject to a final determination by the Agency that the projected revenues pledged
to the payment of any new money Bonds will equal or exceed 110% of the principal and interest
due on such Bonds for each year of their term.
3 That the Mayor and City Manager are authorized to execute and deliver on behalf of the City a
Continuing Disclosure Certificate in substantially the form on file with the City on the date hereof,
with such modifications as may be approved by the Mayor and City Manager, and any other
documents as may be necessary or convenient in connection with the issuance of the Bonds in
forms approved by the Mayor and City Manager Execution and delivery of such documents shall
constitute conclusive evidence that any modifications and any such other documents have been
approved by the Mayor and City Manager
4 The Prior Bonds were designated as bank - qualified bonds for purposes of Section 265 of the
Internal Revenue Code of 1986, as amended (the "Code ") The Agency has advised the City that
(i) the Refunding Bonds will not exceed the outstanding principal amount of the Prior Bonds, (ii)
the average maturity date of the Refunding Bonds will not be later than the average maturity date
of the Prior Bonds refunded thereby, and (iii) the Refunding Bonds will have maturity dates which
are not later than the date which is 30 years after the date the Prior Bonds were issued.
Accordingly, the Agency anticipates that the Refunding Bonds will be deemed designated as
qualified tax exempt bonds and will not count against the City's annual $10,000,000 limit of
qualified tax exempt bonds.
Adopted on this 28th day of July, 2014
ATTEST
A�
Todd Gerhardt, City Manager Thomas A. Furlong
YES NO ABSENT
Furlong None None
Ernst
Laufenburger
McDonald
Tj ornhom
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