2002-74CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
RESOLUTION NO. 2002-74
RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT
AND TO THE ISSUANCE OF MULTIFAMILY HOUSING REVENUE
BONDS AND AUTHORIZING APPLICATION FOR ALLOCATION OF
ISSUANCE AUTHORITY
WHEREAS, VOP I, LLC (including all successors and assigns, the "Company"), has
requested the City of Chanhassen, Minnesota (the "City") to provide revenue bond financing
for a project to be located on the northeast quadrant of the intersection of Lake Drive and
Main Street in the City of Chanhassen, generally described as the acquisition of land and
construction and equipping thereon of an approximately 54 -unit multifamily residential
rental project for occupancy by persons and families of low and moderate income (the
"Project"); and
WHEREAS, pursuant to Minnesota Statutes, Chapter 462C, as amended (the "Act"),
the City is authorized to issue its revenue bonds to finance all or part of the cost of the
Project;
• NOW, THEREFORE, BE IT RESOLVED by the City of Chanhassen, Minnesota
that:
1. The Project and the issuance of revenue bonds therefor in an amount up to
approximately $8,000,000 are hereby given preliminary approval by the City, subject to the
mutual agreement of the City, the Company and the initial purchaser of the bonds as to the
details of the bonds and provisions for their payment. In all events, it is understood, however,
that the bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any
property of the City except the City's interest in the loan agreement with the Company and in
the Project, and the bonds, when, as, and if issued, shall recite in substance that the bonds,
including the interest thereon, are payable solely from the revenues received from the Project
and property pledged to the payment thereof, and shall not constitute a debt of the City.
The bonds will be payable solely from the revenues of the Project and other moneys,
if any, provided by the Company, and the bonds will not constitute or give rise to a pecuniary
liability of the City or a charge against the general credit or taxing powers of the City.
No holder of any such bonds shall ever have the right to compel any exercise of the
taxing power of the City to pay the bonds, or the interest thereon, nor to enforce payment
against any property of the City, except revenues of the Project pledged to the payment
thereof.
2. The Company may incur expenditures on the Project prior to the issuance of
the bonds therefor, and such expenditures may be reimbursed from proceeds of the bonds,
•
•
•
when, and if, issued. This resolution shall constitute an "official intent" to reimburse such
expenditures for purposes of Treasury Regulations, Sections 1.103-8T(a)(5) and 1.150-2.
3. The City Manager is authorized and directed to prepare and submit an
application to the Minnesota Department of Finance for an allocation of issuance authority
for the Project and the bonds to be issued therefor in an amount up to $8,000,000, pursuant to
Minnesota Statutes, Chapter 474A, as amended.
4. The City Manager and other officers, employees and agents of the City are
hereby authorized to participate in the preparation and review of necessary documents
relating to the Project and bonds issued in connection therewith.
5. The Company will be responsible for paying directly or through the City any
and all costs incurred by the City in connection with the Project, including any reasonable
costs that the City may incur for legal counsel and any reasonable fees the City may charge,
whether or not the Project is carried to completion, and whether or not the bonds or operative
instruments are executed.
6. The adoption of the Resolution does not constitute a guaranty or firm
commitment that the City will issue the bonds as requested by the Company. The City retains
the right in its sole discretion to withdraw from participation and accordingly not to issue the
bonds or issue the bonds in an amount less than the amount referred to herein if the City at
any time prior to issuance thereof determines that it is in its best interest not to issue the
bonds, or if the parties to the transaction are unable to reach agreement as to the terms and
conditions of any of the documents required for the transaction.
Passed and adopted by the Chanhassen City Council this 26th day of August 2002.
ATTEST:
Todd Gerhardt, City Manager
VW
Jansen
Ayotte
Boyle
Peterson
Labatt
Linda C. Jansen, MayoVA
NO BSENT
None
None