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HomeMy WebLinkAboutResolution 2539 Authorizing bonds for Cowdrey for construction of 32 unit complex: KILLED 12-10-84 C.f3G KILLED 12-10-84 KILLED 12-10-84 RESOLUTION NO. 2539 RESOLUTION RELATING TO A PROJECT AND REVENUE BONDS UNDER TITLE 90, CHAPTER 5, PART 1, MONTANA CODE ANNOTATED; APPROVING AND AUTHORIZING HOUSING DEVELOPMENT REVENUE BONDS OR NOTES IN THE MAXIMUM AMOUNT OF $950,000 FOR MARVIN R. AND JUDY G. COWDREY FOR THE CONSTRUCTION OF A 32 UNIT APARTMENT COMPLEX. BE IT RESOLVED by the City Commission of the City of Bozeman, Montana (the City), I as follows: 1. General Recitals. The City, by Resolution No. 2530 duly adopted on November 5, 1984, called a public hearing on a proposed project (the Project) under Title 90, Chapter 5, Part 1, Montana Code Annotated (the Act), consisting of the acquisition and construction of a 32 unit Apartment Complex to be located in the City of Bozeman on the corner of West Dickerson and South 22nd and to be owned by Marvin R. and Judy G. Cowdrey (the Borrower) and the issuance of revenue bonds (which may be designated notes) in the maximum aggregate face amount of $950,000 as authorized by the Act, to defray the costs of the Project and costs and expenses incident to the financing. 2. Public Hearing. 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. 3. Findings and Determinations. Based on the public hearing, any written comments filed with the Clerk of Commission I and such other facts and circumstances as the City deems relevant, the City hereby finds, determines and declares, as follows: a. The Project comprises real and personal properties which shall be suitable for use as a multi-family housing facility as contemplated by the Act; b. In authorizing the acquisition, construction and equipment of the Project, and the financing thereof by the issuance and sale of the Note and the loaning of the proceeds thereof to the Borrower, the Municipality's purpose is and in its judgment the effect thereof wi II be to promote the public welfare by encouraging the location and development of multifamily housing in the Municipality thereby increasing the availability of affordable mUlti-family housing units for low income residents of the City, improving employment opportunities for present and future residents, increasing and balancing the tax base of the Municipality and over- lapping taxing jurisdictions and promoting and stimulating economic activity within the Municipality; c. The City is authorized thereby to issue revenue bonds (Note) and to loan the I proceeds thereof to the Borrower to defray all or a portion of the costs of the acquisition and construction of the Project and to enter into a loan agreement with the Borrower providing for loan payments from the Borrower to the City in amounts at least sufficient to provide for the full and prompt payment of the principal of and interest on the bonds as due and requiring the Borrower to pay COMMISSION RESOLUTION NO. 2539 .......----- -. ----- KILLED 12-10-84 KILLED 12-10-84 037 all costs of maintaining and insuring the Project, including taxes thereon; d. Thirty percent (30%) of the units in the Project wi II be reserved for occupancy by persons of low income as required by Section 103(b)(4)(A) of the Internal Revenue Code of 1954, as amended; 4. Preliminary Approval and Authorization. I The City hereby approves the Project and the issuance of the City's Industrial Development Revenue Bonds (Note) (32 unit Apartment Complex--Marvin R. and Judy G. Cowdrey Project) (the Bonds) in the maximum aggregate face amount of $950,000 for the purpose of defraying all or a portion of the costs of acquiring and constructing the Project and costs and expenses incident to the financing, including all costs authorized by Section 90-5-109 of the Act. The Project will be located in the City of Bozeman, Montana, on the corner of West Dickerson and South 22nd (Lots 1 and 2--Block 1, University Square Subdivision). 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 City, the Borrower and the purchasers of the Bonds. The Borrower shall, pursuant to a loan agreement (the Loan Agreement), agree to acquire and construct 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 repayments sufficient to pay the principal of, premium, if any, and interest on the Bonds and all costs and expenses of the City and any trustee in connection with the Project; and to establish and maintain all I necessary reserves therefor. The Bonds will be secured by a trust indenture or mortgage and a pledge and assignment of the loan repayments under the Loan Agreement and such other security devices as shall be deemed advantageous. 5. Payment of City's Costs. The Developer has agreed to pay directly or through the City any and all costs in- curred by the City in connection with the project whether or not the project is approved, whether or not the project is carried to completion, and whether or not the Bonds are executed. 6. City Attorney Approval. The City Attorney shall approve all agreements to be entered into by the City in connection with the issuance of the Bonds and such agreements shall be authorized and approved by this Commission after due consideration prior to their execution by the City. 7. Ratification. All acts and doings of any officer or agent of the City in furtherance of the purpose and intent of this Resolution, including without limitation, the publication of Notice of Public Hearing in the manner provided for in Section 2 hereof and are hereby ratified, confirmed I and made the act and deed of this governing body. 8. Confl icting Resolutions Repealed. All resolutions and orders of parts thereof in conflict with the provisions of this Resolution are to the extent of such conflict thereby repealed and this Resolution shall be in immediate effect from and after its adoption. COMMISSION RESOLUTION NO. 2539 038 KILLED 12-10-84 KILLED 12-10-84 PASSED AND APPROVED by the Bozeman City Commission this day of , 1984. Mayor Attest: Clerk of the City Commission I I I KILLED - 12-10-84 KILLED 12-10-84 COMMISSION RESOLUTION NO. 2539