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HomeMy WebLinkAboutResolution 3021 Authorize issuance of $9,050,000 bonds for Dickman Apartments . "- RESOLUTION NO. 3021 RESOLUTION RELATING TO A PROJECT ON BEHALF OF DICKMAN APARTMENTS, L.L.c., AND THE ISSUANCE OF REVENUE BONDS TO FINANCE THE COSTS THEREOF UNDER MONTANA CODE ANNOTATED, TITLE 90, CHAPTER 5, PART 1, AS AMENDED; GRANTING PRELIMINARY APPROVAL THERETO AND CALLING A PUBLIC HEARING THEREON BE IT RESOLVED by the City Commission (the "Commission") of the City of Bozeman, Montana (the "City"), as follows: Section 1. Recitals. 1.01. The City is authorized by Montana Code Annotated, Title 90, Chapter 5, Part 1, as amended (the "Act"),to enter into agreements upon terms the Commission considers advantageous and not in conflict with the provisions of the Act to issue revenue bonds of the City and sell such bonds at public or private sale in such manner and at such times as may be determined by the Commission to be most advantageous; and to loan the proceeds of its revenue bonds for the purpose of defraying the cost of acquiring or improving real and personal properties suitable for use for, among other things, commercial enterprises and multifamily housing, or to refund bonds or notes issued under the Act. Such revenue bonds may be secured by a pledge of the revenues to be derived by the City from a loan agreement with the borrower, by a mortgage on the project and by such other security devices as the Commission may deem advantageous. Under the provisions of the Act, any bonds so issued by the City shall be speciaC limited obligations of the City and shall not constitute or give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers. 1.02. It has been proposed that the City, pursuant to the Act, issue its revenue bonds in the approximate aggregate principal amount of $ 9.050.000 , in one or more series at one time or from time to time (the "Bonds"), the proceeds of which will be loaned by the City to Dickman Apartments, L.L.c., a Wyoming limited liability company (the "Borrower"), to finance all or a portion of the costs to be incurred by the Borrower in 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") to be located on 10.6 acres located at the northwest corner of Durston Street and 22nd Avenue in the City. It is anticipated that the Project will constitute a "qualified residential rental project" within the meaning of the Internal Revenue Code of 1986, as amended, and related Regulations (the "Code"), and accordingly that a portion of the units in the Project will be occupied by persons of low and moderate .. ..-- ...-------...-.. -...----- . income, as defined by the Code. The maximum aggregate principal amount of the proposed bond issue is $ 9.050.000 Section 2. Preliminary Findings. Based on representations made to the City by representatives of the Borrower, the Commission hereby makes the following preliminary findings, determinations and declarations, subject to final findings, determinations and declarations following the public hearing called by Section 4 hereof: (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 balanced 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 costs thereof are in the public interest. Section 3. Preliminary Approval. This Commission hereby gives preliminary approval to 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, subject to final approval following the public hearing provided for in Section 4, and subject to final determination by the Commission that the financing of the Project and the issuance of the Bonds are in the best interest of the City. - 2- -----.. . Section 4. Public Hearing. Section 90-5-104 of the Act requires that, prior to the issuance of the Bonds a public hearing be held by the Commission on the proposed Project and the issuance of the Bonds to finance the costs thereof. Pursuant to such authority, a public hearing on the proposed Project and the issuance of the Bonds to finance the costs thereof shall be held by the Commission on November 21 I 1994, at 7: 00 E..m., in the Commissioner's Meeting Room, in the City Hall. Section 5. Notice of Hearing. The City Clerk is hereby authorized and directed to cause notice of the public hearing to be published in the official newspaper of the City, once a week for three consecutive weeks before the date of the hearing, as required by Section 90-5-104(1) of the Act. The notice shall be published in substantially the following form: NOTICE OF PUBLIC HEARING ON A PROPOSED PROJECT AND THE ISSUANCE OF REVENUE BONDS UNDER MONTANA CODE ANNOTATED, TITLE 90, CHAPTER 5, PART I, AS AMENDED, TO FINANCE THE COSTS THEREOF CITY OF BOZEMAN, MONTANA NOTICE IS HEREBY GIVEN that the City Commission of the City of Bozeman, Montana (the "City"), will meet on Monday I Nov. 21 , 1994, at L E..m., M.T., in the Commissioner's Meeting Room of the City Hall located at 411 East Main in the City, for the purpose of conducting a public hearing on a proposal that the City issue its revenue bonds, at one time or from time to time, in one or more series (collectively, the "Bonds"), under Montana Code Annotated, Title 90, Chapter 5, Part I, as amended (the "Act"), on behalf of Dickman Apartments, a Wyoming limited liability company (the "Borrower"). The proceeds of the Bonds, if issued, are to be used to provide funds to finance part or all of the costs to be incurred by the Developer in the development, construction and equipment of a 160 unit multi-family housing development consisting of 16 two-story, walk-up buildings, clubhouse, rental offices and related improvements (the "Project") to be located on 10.6 acres located at the northwest corner of Ourston Street and 22nd Avenue in the City. It is anticipated that the Project will constitute a "qualified residential rental project" within the meaning of the Internal Revenue Code of 1986, as amended, and related Regulations (the "Code"), and, accordingly, that a portion of the units in the Project will be occupied by persons of low and moderate income, as defined by the Code. The maximum aggregate principal amount of the proposed Bonds issue is currently estimated to be $ 9,050.000 -3- . ~ The Bonds will be secured by a pledge of the revenues to be derived by the City from a loan agreement with the Borrower and by such other security devices, if any, as may be deemed advantageous. The Bonds will be special, limited obligations of the City, and the Bonds and interest thereon will be payable solely from the revenues pledged to the payment thereof. No holder of any of the Bonds will 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 thereof against any property of the City except money payable by the Borrower to the City and pledged to the payment of the Bonds. All persons interested may appear and be heard at the time and place set forth above, or may file written comments with the City Clerk before the date of the hearing set forth above. Further information may be obtained from Robin Sullivan, the City Clerk of the City, at the City Hall (telephone: 586-3321. Dated: Oct. 17 , 1994. BY ORDER OF THE CITY COMMISSION City Clerk Section 6. Costs. 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 7. Commitment Conditional. 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. If, based on comments received at the public hearing to be held pursuant to this Resolution, or other information made available to or obtained by the City during its consideration of the Project and the issuance of the Bonds to finance the costs thereof, it appears that the Project or the issuance of the Bonds is not in the public interest or is inconsistent with the purposes of the Act, the City reserves the right not to authorize the issuance of the Bonds. The City also 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. -4- - .-.- .-.---......----....... _.._.....__.___.mm ,. . , PASSED AND APPROVED by the City Commission of the City of Bozeman, Montana this R day of October , 1994. ~~t~t: d~ ~ City Clerk (SEAL) - 5 -