EDA 1995 08 14FILE COPY
~. AGENDA
SPECIAL MF. ETING
HOUSING & REDEVELOPMENT AUTHORITY
MONDAY, AUGUST 14, 1995, 6'.30 P.M.
CHANHASSEN CITY HALL, 690 COULTER DRIVE
CALL TO ORDER
1. Consider Approval of Additional Subsidy to the Senior Housing Project
ADJOURNMENT
CITY OF
690 COULTER DRIVE · P.O. BOX 147 · CHANHASSEN, MINNESOTA 55317
(612) 937-1900 · FAX (612) 937-5739
MEMORANDUM
TO:
FROM:
DATE:
SUB J:
Housing and Redevelopment Authority
Todd Gerhardt, Assistant Executive ~~
·
August 11, 1995
Consider Approval of Additional Subsidy to the Senior Housing Project
As I stated on the phone' this past week, the
the increased subsidy amount from $31,000
What has caused this increase is that interest
.20% over the last two to three months (see
possibility that we may be able to get an
the amount of the subsidy by the I-IRA
go
for this meeting is to consider approving
;3,433 for the Senior Housing Project.
the municipal bond market have gone up
#1). However, there is still the
the bonds and if this does happen,
;53,433 to $39,000.
I have attached the Development the
between the insured and not insured Attachment
proforma that the first year subsid~ _ would start
Attached is a resolution (Attac~nt #3) for the HRA's
previous approval for the project's subsidy and also
powers agreement with the Carver county Board of
amounts. Currently, the exact
Proforma showing the difference
You will also notice in the
budget year 1997.
to confirm your
the modification to the joint
regarding the subsidy
recommends the I-IRA
approve the subsidY'in the in order to
sell the bonds. The' proposed closing is scheduled for August 22, 1995. ~!~'
"· :7.":. ,' .~..-..~.....~ ~.
'-.:': '.":=L.-..-,. '~¢L'~-
Staff will also be handing out at M ~ t~g~~~on the I-IRA's Revenue
and Expenditures to date.
ATTACHMENTS
.
Bond Buyers Index
Development Budgets/Project Proforma for Insured/Not Insured Bonds
Resolution
SPRINGSTED INC.
·
~007/007
L
08/11/95 09:41 FAX 612 223 3002 SPRINGSTEI) INC. ~003/007
ABSUI~lI:ri'lONS:
NUMBER OF UNITS
NUMBER OF MODERATE INCOME UNITS
TOTAL NET RENTABLE AREA
'GROSS BUILDING S.F.
AVERAGE NET RENTABLE AREA/UNIT
GROSS S.F. PER UNIT
BUILDING EFFICIENCY
LAND
CONSTRUCTION & RELATED
DESIGN & RELATED
DEVELOPMENT COSTS
DEVELOPER FEES
FINANCING COSTS
REQUIRED RESERVES
CONTINGENCY
TOTAL PROJECT CO~I':
65
49,480
49,480
761
781
100%
DEVELOPMENT
$0
$3,816,622
$188,986
$19t,272
$54,1:;~
$771,050
$379,00O
$11,196
COST
$0
$58,717
$2.907
$2,943
$11,862
$5,e31
$172
$5,412,248
$83,286
SOURCES:
TAX EXEMPT BONDS
ACCRUED INTEREST
CITY OF CHANHASSEN
DEBT SERVICE RESERVE
BUILDING
INTEREST EARNED DURING CONSTRUCTION
TOTAL 8OURCES OF FUNDS:
$17,500
$379,000
$o
$95,748
'$5,412,248
$75,692
$269
$5,e31
$0
$1.473
$83,265
I _ II .. I I
Prepared by: SPPJNGSTED/nc.
F:~.USERS~EATHER'tHOUSI NG~ARVER~D EVB 10.WK4
08/11/95 09'42 FAX 812 225 $002 SPRINGS'lED INC. ~004/007
05/11/95 09:~3
FA~ $1~ ~$ ~oo~
SPRIN~STED INC.
Un~ nsm-ed Bonds
~005/007
NIJMRFR OF I {NITR
NUMBER OF MODERATE INCOME UNITS
TOTAL NET RENTABLE AREA
GROSS BUILDING S.F.
AVERAGE NET RENTABLE AREA/UNIT
GROSS S.F. PER UNIT
BUILDING EFFICIENCY
LAND
CONSTRUCTION & RELATED
DESIGN & RELATED
DEVELOPMENT COSTS
DEVELOPER FEES
FINANCING COSTS
REQUIRED RESERVES
CONTINGENCY
TOTAL PROJECT COST'
65
49,4~0
?~1
100%
DEVELOPMENT COST
$o $o
$3,815,999 $58,708
$188,985 $2,907!
$190,649 $2,933
$53,499 $823
$702,600 $10,809
$396,000 $6,092
$2.187 $34
$5,349,920 fd{2,306
SOURCES'
TAX EXEMPT BONDS
CITY OF CHANHASSEN LAND
DEBT SERVICE RESERVE
BUILDING
INTEREST EARNED DURING CONSTRUCTION
TOTAL SOURCE8 OF FUNDS:
$4,865, .000 $74,692
$396,000 $8,092
$o $o
$98,920 Sl
$6,349,920 ~
I Il .... Il -- . I [
Prepared by: SPRINGSTED Ino.(07/27/95) F:\USERS~HEATHER'ddOUSING~ARVEFADEV727.WK4
08/11/95 09:44 FA.X~ 812 223 3002
SPRINGSTED INC,
..
~008/007
HOUSING AND REI~EVF. J.~PMF~ AUTHORITY
OF THE CITY OF CHANHASSEN, bIINNESOTA
,,
RESOLUTION NO.
RESOL~ON RAnG AND CONFIRMING RF~OLUTION NO.
AND APPROVING AND AUTHORIZING ~ EXECUTION OF A JOINT
POWERS AGREEME~ WITH ~ CARVER COUNTY HOUSING AND
REDEVELOPMENT AUTHORITY AND ~ CITY OF CHANHASSEN,
MINNESOTA IN SUPPORT OF ~ ISSUANCE OF HOUSING AND
DEVELOPMENT GROSS REVENUE BONDS (CHA_NHASS~ APARTMENTS
PROJECT) SERIES 1995A AND HOUSING AND DEVI~J~OPMENT REVENUE
BONDS (CITY OF CHANHASSEN, MINNESOTA UNI.IMITF~r~ TAX GENERAL
OBLIGATION -- CHANHASSEN APARTMENTS PROJECT) SERW~S 1995B
BE IT HEREBY RESOLVED by the Board of Commissioners of The Housing and
Redevelopment Authority of the City of Chaahassen, lMinnesota (the "Authority") as follows:
1. The Carver County Housing and Redevelopment Authority (the "Issuer"), 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 (~
Apartments Project) Series 1995A (the "Series A Bonds") in the aggregate principal amount not
exceeding $725,000 and its Housing and Development Revenue Bonds (City of Chanhassen,
Minnesota Unlimited Tax General Obligation-- Chanhassen Apartments Project) Series 1995B
in the aggregate principal amount not exceeding of $4,131,542 (the "Series B Bonds" and
together with the Series A Bonds, the "Bonds") to finance an approximately 65-unit multifamily
housing facility for senior citizens of low and moderate income (the "Project"), which constitutes
a qualified housing development project as defined in the Act.
2. By Resolution No. (the "Joint Powers Resolution"), the Board of
Commissioners has previously found and determined, among other things, that it is in the best-
interest of the public health, safety and welfare of the City of Chanhassen, Minnesota (the "City")
that the Issuer issue the Bonds for the purpose of acq~ and constructing the Project, and
approved the execution and delivery of a Joint Powers Agreement (the "Joint Powers Agreement")
among the Authority, the City and the Issuer providing for (i) a contribution by the City to the
debt service reserve fund created under an Indenture of Trust to be executed in connection with
the Bonds, and (ii) the pledge of certain amounts from the Authority's and the Issuer's annual
tax levies to support the operations of the Project and the annual debt service on the Bonds.
3. Financial projections prepared by the Issuer's finaacial advisor (the '~Financial
Advisor") indicate that the amount of the annual tax levy contemplated by the Joint Powers
Agreement in the form approved by the Joint Powers Resolution must be increased to induce the
sale of the Bonds at a favorable interest rate and to provide additional security for the Bonds and
operations of the Project;
..
4. To induce the sale of the Bonds and to provide additional security for the Bonds
and the operations of the Project, the Authority hereby approves the modification to the Joint
Powers Agreement to increase the annual tax levy pledged by the Authority. Subject to such
modification, the Authority hereby ratifies and confirms Resolution No. , and
approves such further modifications to the Joint Powers Agreement which, in the opinion of the
Financial Advisor and the Chair and the Secretary of the Authority shall be necessary or desirable
to further the public purposes herein specified. The Chair and the Secretary of the Authority are
hereby directed and authorized to execute and deliver said Agreement, as modified, on behalf of
the Authority.
ADOPTED: August __, 1995
Attest:
Chair
Secretary
341014.3