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HomeMy WebLinkAbout2024-073 (Giving Host Approval to the Issuance by Oakdale of Conduit Multifamily Housing Revenue Bonds on Behalf of METIS Development Group LLC (METIS Portfolio Project))City of Stillwater Washington County, Minnesota RESOLUTION 2024-073 RESOLUTION GIVING HOST APPROVAL TO THE ISSUANCE BY THE CITY OF OAKDALE OF CONDUIT MULTIFAMILY HOUSING REVENUE BONDS ON BEHALF OF METIS DEVELOPMENT GROUP LLC (METIS PORTFOLIO PROJECT) WHEREAS, the City of Stillwater, Minnesota (the "Stillwater") is a statutory city and political subdivision organized and existing under the Constitution and laws of the State of Minnesota; WHEREAS, Minnesota Statutes, Chapter 462C, as amended (the "Act") confers upon cities the power to issue revenue bonds to finance a program for the purposes of planning, administering, making or purchasing loans with respect to one or more multifamily housing developments within the boundaries of the city or under a joint powers agreement with the jurisdiction in which the development is located and pursuant to Minnesota Statutes, Section 471.59, as amended. By the terms of a joint powers agreement entered into through action of their governing bodies, two cities may jointly or cooperatively exercise any power common to the contracting parties or any similar powers, including those which are the same except for the territorial limits within which they may be exercised; WHEREAS, Metis Investments LLC, a Minnesota limited liability company (one or more other entities to be formed by or affiliated with Metis Investments LLC, the "Borrower") has proposed to finance the acquisition, renovation, construction and equipping of (a) an approximately 42-unit rental housing facility and related amenities known as Westridge Townhomes located at 816-848 12th St SW, Forest Lake, Minnesota ("Forest Lake"); (b) an approximately 42-unit rental housing facility and related amenities known as Sandy Pines located at 709 Old Military Rd S, Sandstone, Minnesota ("Sandstone"); (c) an approximately 42-unit rental housing facility and related amenities known as Braham Meadows located at 106-108 5th St NW, Braham, Minnesota ("Braham" and, together with Forest Lake, Sandstone, and Braham, the "Host Cities"); (d) an approximately 40-unit rental housing facility and related amenities known as Victoria Villa located at 1451 Greeley St, in Stillwater, Minnesota; and (e) an approximately 48-unit rental housing facility and related amenities known as Gentry Townhomes located at 1301-1327, 1333-1341 and 1345-1399 Gentry Avenue N and 1329-1331 Glenbrook Ave N in City of Oakdale, Minnesota ("Oakdale") each constituting a multifamily housing development authorized under the terms of the Act (collectively, the "Project"); WHEREAS, the Borrower will be the initial owner and operator of the Project; WHEREAS, in order to better leverage public funding by creating project cost efficiencies, the Borrower has proposed that Oakdale undertake a housing finance program (the "Housing Program") to finance the Project pursuant to the Act through the issuance by Oakdale of multifamily housing revenue bonds in one or more series in a principal amount not to exceed $26,000,000, approximately $5,300,000 of which will be used for the Stillwater portion of the Project (the "Bonds"); WHEREAS, the Bonds will be payable solely from revenues of the Borrower, and will not be a general or moral obligation of Stillwater, Oakdale, 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; WHEREAS, pursuant to a resolution adopted on May 28, 2024, Oakdale has preliminarily approved the issuance of the Bonds to finance the Project; WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code") requires that an applicable elected representative of each governmental unit in which facilities to be financed by the Bonds are located must approve the issuance of the Bonds following a public hearing; WHEREAS, pursuant to the Act, Minnesota Statutes, Sections 471.59 and 471.656, as amended, and Section 147(f) of the Code, a public hearing on the Housing Program, the Project and the proposed issuance of the Bonds by Oakdale was held by the City Council of Stillwater this same date, following duly published notice, at which time all persons who desired to speak were heard; WHEREAS, there has been presented to the City Council of Stillwater the form of a Joint Powers Agreement anticipated to be executed upon issuance of the Bonds between Stillwater and Oakdale (the "Joint Powers Agreement"); WHEREAS, the Borrower's proposal calls for Oakdale to loan the proceeds realized upon the issuance and delivery of the Bonds to the Borrower pursuant to a loan agreement wherein the Borrower will be obligated to pay all costs and expenses of Stillwater incident to the issuance of the Bonds; WHEREAS, Stillwater desires to facilitate the preservation, renovation and rehabilitation of affordable multifamily housing facilities within Minnesota and the efficient use of limited resources available for funding affordable housing; and the Project will assist Stillwater in achieving these objectives; and WHEREAS, no public official of Stillwater has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Stillwater, Minnesota (the "Council"), as follows: The Council finds that it is in the best interest of Stillwater to approve the issuance of the Bonds by Oakdale to finance, in part, the acquisition renovation and equipping of the Project and hereby consents to the issuance of the Bonds by Oakdale for the purposes set forth above. The Housing Program is hereby approved. 2. Upon payment by the Borrower of any expenses and applicable fees charged by Stillwater, if any, Stillwater hereby consents to and approves the issuance of the Bonds by Oakdale to finance the Project. 3. The Joint Powers Agreement is approved in substantially the form submitted. Stillwater hereby authorizes and directs the Mayor and the City Administrator of Stillwater to execute and deliver the Joint Powers Agreement with such omissions and insertions as do not materially change the substance thereof, or as the Mayor and the City Administrator, in their discretion, shall determine, and the execution thereof by the Mayor and the City Administrator shall be conclusive evidence of such determination. The Mayor and City Administrator 2 are authorized and directed to execute any additional documents deemed necessary to carry out the intentions of this resolution and to complete the financing described herein, so long as Stillwater staff and legal counsel approve such documents. 4. In no event shall the Bonds ever be payable from or charged upon any funds of Stillwater; nor shall Stillwater be subject to any liability thereon; no owners of the Bonds shall ever have the right to compel the exercise of the taxing power of Stillwater to pay any of the Bonds or the interest thereon, nor to enforce payment thereof against any property of Stillwater; the Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of Stillwater; and the Bonds do not constitute an indebtedness of Stillwater within the meaning of any constitutional or statutory limitation. The City Administrator's, staff and legal counsel are authorized and directed to take all necessary action to implement this Resolution. 5. The Borrower has agreed and it is hereby determined that any and all costs incurred by Stillwater in connection with the financing of the Project will be paid by the Borrower, whether or not the Project is carried to completion and whether or not Oakdale issues the Bonds. 6. Kennedy & Graven, Chartered, acting as bond counsel, is authorized to assist in the preparation and review of necessary documents relating to the Project and the financing program therefor. Adopted by the Stillwater City Council this 18th day of June, 2024. CITY OF STILLWATER Te ki, My -or~ ATTEST: � 61- // - A//0/1' - Beth Wolf, City Cler ; 3