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HomeMy WebLinkAboutResolution 3033 Approving issuance of revenue bonds for Dickinson Manor COMMISSION RESOLUTION NO. 3033 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO A PROJECT ON BEHALF OF DICKMAN APARTMENTS, 1.1.C., AND THE ISSUANCE OF REVENUE BONDS TO FINANCE THE COSTS THEREOF UNDER MONTANA CODE ANNOTATED, TITLE 90, CHAPTER 5, PART 1, AS AMENDED; APPROVING THE PROJECT AND AUTHORIZING THE ISSUANCE OF BONDS THEREFOR. BE IT RESOLVED by the City Commission (the "Commission) of the City of Bozeman, Montana (the "City"), as follows: Section 1 This Commission, by Commission Resolution No. 3021, duly adopted on October 17, 1994, called a public hearing on a proposed project and the issuance of revenue bonds therefor under Title 90, Chapter 5, Part 1, Montana Code Annotated (the Act), consisting of the development, construction and equipping of a 160 unit multi-family housing development consisting of 16 two-story, walk-up buildings, clubhouse, rental offices and related improvements (the "Project") which will be owned by Dickman Apartments, L.L.C, a Wyoming limited liability company (the "Borrower"). The project will be located at the northwest corner of Durston Road and North 22nd Avenue in Bozeman. The revenue bonds shall be issued in the maximum aggregate face amount of $9,050,000 (the "Bonds) as authorized by the Act to defray the costs of the Project and to pay for the cost and expenses incident to the issuance, sale, and security of the Bonds. Section 2 At the public hearing duly called, noticed and held as required by the Act all persons who appeared were afforded an opportunity to express their views with respect to the proposal to undertake and finance the Project. Based on the public hearing, any written comments filed with the Clerk of the Commission and such other facts and circumstances as this Commission deems relevant, this Commission hereby finds, determines and declares, as follows: (a) The Project, as proposed, will be suitable for use as a commercial enterprise and multifamily housing project eligible for financing under the Act. (b) The City is authorized by the Act to issue its revenue bonds to defray the costs of making a loan to the Borrower, the proceeds of which will be used to finance part or all of the costs of developing, constructing, and equipping the Project and the costs and -- ,. -.--------.. ..-.- - .- --- --- .....--- ..-....- ....---------.-.-.-. .---- -.---------...--.--------.-- expenses incident to the issuance and sale of the Bonds, and to enter into an agreement (the "Loan Agreement") with the Borrower requiring loan repayments from the Borrower in amounts and at times sufficient to pay the principal of and interest on the Bonds when due and requiring the Borrower to pay all costs of maintaining and insuring the Project, including taxes thereon. (c) In preliminarily authorizing the development, construction, and equipping of the Project and the issuance of the Bonds, the City's purpose is and the Commission believes the effect thereof will be to promote the public welfare of the City and its residents by providing additional housing facilities for residents of the City, including particularly persons of low and moderate income, providing additional employment during construction of the Project, promoting and stimulating economic activity within the City, increasing and providing a better balance tax base of the City and overlapping taxing jurisdictions, and otherwise furthering the purposes and policies of the Act. (d) The undertaking of the Project and the issuance of the Bonds to finance all or a portion of the cost thereof are in the public interest. Section 3 The Commission hereby approves the Project and the issuance of the Bonds in the approximate aggregate principal amount of $9,050,000 to finance all or a portion of the costs thereof. The Bonds shall mature over a term not to exceed 30 years and shall bear interest at a rate or rates allowable by law and contain such other terms and provisions as shall be agreed upon by the Commission and the Borrower. The Borrower shall, pursuant to a loan agreement (the Loan Agreement), agree to acquire, construct, improve and equip the Project; to operate and maintain the Project and keep it properly insured; to pay all taxes and assessments on or against the Project; and to make loan payments sufficient to pay the principal of, premium, if any, and interest on the Bonds, all costs and expenses of the City and any trustee in connection with the Project. There shall be a pledge and assignment of certain of the City's interests in the Loan Agreement under an Assignment (the Assignment), Section 4 Dorsey & Whitney, as bond counsel, is authorized in cooperation with the City Attorney, the Borrower and the Underwriter of the Bonds to prepare forms of the Loan Agreement, Indenture of Trust, Guaranty, Bonds and any other documents necessary to - 2 - --., .-.--- ---." -...--.- -'~.~ -.. ~ ----- provide for financing of the Project for review and approval of the final terms and conditions thereof by this Commission. Section 5 The Borrower will pay, or upon demand reimburse the City for payment of, any and all costs incurred by the City in connection with the Project and the issuance of the Bonds, whether or not the Project is carried to completion and whether or not the Bonds are issued. Section 6 The adoption of this Resolution does not constitute a guarantee or a firm commitment that the City will issue the Bonds as requested by the Borrower. The City retains the right, in its sole discretion, to withdraw from participation and accordingly not issue the Bonds if the Commission, at any time prior to the issuance thereof, determines that it is in the best interests of the City not to issue the Bonds or if the City and other parties to the transaction are unable to reach agreement as to the terms and conditions of any of the documents for the transaction. PASSED AND ADOPTED by the City Commission of the City of Bozeman, Montana, at a regular session thereof held on the 21 st day of November 1994. ~~\\.-M.~ - N VINCE T, Mayor- , ATTEST: r2kYk~ ROBIN L. SULLIVAN Clerk of the Commission APPROVED AS TO FORM: .....,.....-, - 3 -