2003-62
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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 held at the City Hall in said City on Monday, the
14th day of July, 2003 at 7:00 P.M.
The following members were present: Mayor Tom Furlong, Councilmen Ayotte,
Labatt, Lundquist
and the following were absent: Councilman Peterson
Member Labatt introduced the following resolution and moved its adoption:
RESOLUTION NO. 2003-62
RESOLUTION GIVING APPROVAL TO THE
ISSUANCE OF TAX EXEMPT REVENUE OBLIGATIONS
AND AUTHORIZING EXECUTION OF A
JOINT POWERS AND ALLOCATION AGREEMENT
RELATING TO BANK QUALIFICATION OF SUCH REVENUE OBLIGATIONS
The motion for the adoption of the foregoing resolution was duly seconded by
",.... member Lundquist, and after full discussion thereof and upon vote being taken thereon, the
following voted in favor thereof: Furlong, Ayotte, Lundquist, Labatt and the following voted
against the same: None
whereupon said resolution was declared duly passed and adopted.
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RESOLUTION GIVING APPROVAL TO THE
ISSUANCE OF TAX EXEMPT LOAN REVENUE OBLIGATIONS
AND AUTHORIZING EXECUTION OF A
JOINT POWERS AND ALLOCATION AGREEMENT
RELATING TO BANK QUALIFICATION OF SUCH REVENUE OBLIGATIONS
WHEREAS, PHM/Chanhassen, Inc., a Minnesota nonprofit corporation (the
"Borrower") proposes to acquire, construct and equip an approximately 161 unit elderly housing
development located at the Southeast corner of the intersection of Highway 101 and Lake Drive
in the City (the "Project"); and
WHEREAS, the Borrower has proposed that the City of Chanhassen (the "City") and the
City of Victoria, Minnesota ("Victoria") enter into a joint powers agreement under Minnesota
Statutes ~ 471.59, to jointly issue "bank qualified" tax exempt revenue obligations in the
aggregate principal amount of not more than $27,300,000 (the "Bonds") to finance the Project
pursuant to Minnesota Statutes, Chapter 462C (the "Act"); and
WHEREAS, Section 265(b) of the Internal Revenue Code of 1986, as amended (the
"Code"), allows a governmental unit such as the City to designate obligations as "qualified tax
exempt obligations" even if it is not the issuer of the obligations thereby allocating all or a
portion of its "small issuer status" limit of $10,000,000 under Section 265(b) ("bank
qualification ") of the Code upon the conditions set forth in Section 265(b) of the Code; and
,....
WHEREAS, the Bonds will be payable solely from revenues of the Borrower, will not be
a general or moral obligation of the City or Victoria, or any other political subdivision of the
State of Minnesota, but will be payable solely from revenues of the Borrower, to the extent and
in the manner provided in the documents executed in connection with the issuance of the Bonds;
and
WHEREAS, the City has issued, or expects to issue during calendar year 2003 $630,000
of governmental bonds or "qualified 501(c)(3) bonds" or any other obligations within the
meaning of Section 265(b) of the Code that need to be taken into account in determining whether
the City is a "qualified small issuer" within the meaning of Section 265(b) of the Code and does
not expect to issue any additional amounts of such bonds.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Chanhassen, Minnesota, as follows:
1. The City will receive substantial benefit from the Project which will help to
provide additional elderly multifamily housing facilities within the meaning of the Act,
accessible and available to residents of the City, and also facilities providing needed health,
wellness, congregate dining and other services particularly needed by the elderly in the City.
2. This Council has received a copy of the Joint Powers and Allocation Agreement
between the City and Victoria (the "Allocation Agreement"). Pursuant to such Agreement, the
City hereby designates up to $9,370,000 of the Bonds to be issued by the City of Victoria for the
Project as "qualified tax-exempt obligations" for purposes of Section 265(b) of the Code and
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agrees that the amount of such designation bears a reasonable relationship to the benefit to the
City of the Project.
3. In no event shall the Bonds ever be payable from or charged upon any funds of
the City; the City is not subject to any liability thereon; no owners of the Bonds shall ever have
the right to compel the exercise of the taxing power of the City to pay any of the Bonds or the
interest thereon, nor to enforce payment thereof against any property of the City; the Bonds shall
not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City;
and the Bonds do not constitute an indebtedness of the City within the meaning of any
constitutional, statutory, or charter limitation.
4. The City hereby gives the host approval of the Project for purposes of Section
147(f) of the Internal Revenue Code and to the issuance of the obligations for the Project by the
City of Victoria, Minnesota.
5. The Allocation Agreement is hereby approved in substantially the form now on
file in the office of the City; and the Mayor and Manager of the City are authorized to execute
the same in the name of and on behalf of the City. In the event of the disability or the resignation
or other absence of the Mayor or Manager of the City, such other officers of the City who may
act in their behalf shall without further act or authorization of the City do all things and execute
all instruments and documents required to be done or to be executed by such absent or disabled
officials. The approval hereby given to the Allocation Agreement includes approval of such
additional details therein as may be necessary and appropriate and such modifications thereof,
deletions therefrom and additions thereto as may be necessary and appropriate and approved by
the City Attorney and by the City officials authorized herein to execute the Allocation
Agreement prior to their execution; and such City officials are hereby authorized to approve said
changes on behalf of the City.
Adopted by the City Council of the City of Chanhassen, Minnesota, this 14th day of July,
2003. "---I A
(~ .
Mayor
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ST ATE OF MINNESOTA
COUNTIES OF CARVER AND HENNEPIN
,.., 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 a resolution
giving host approval to the issuance of revenue bonds and authorizing execution of a Joint
Powers and Allocation Agreement.
,....
WITNESS my hand this 14th day of July, 2003
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