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HomeMy WebLinkAbout05-258.doc AUGUST 23, 2005 05-258RESOLUTION (CARRIED___7-0___LOST________LAID OVER________WITHDRAWN________) PURPOSE:APPROVE PRELIMINARY RESOLUTION FOR FUNDING SUPPORT / OSHKOSH HOUSING AUTHORITY / MARIAN MANOR PROJECT INITIATED BY:CITY ADMINISTRATION A Preliminary Resolution Relating to City Support for a Proposed Refinancing and Renovation of the Marian Manor Housing Facility of the Housing Authority of the City of Oshkosh, Wisconsin WHEREAS, the Housing Authority of the City of Oshkosh, Wisconsin (the “Authority”) owns and operates a 121-unit apartment facility for low income disabled and elderly persons located at 600 Merritt Avenue in the City of Oshkosh, Wisconsin (the “City”) known as Marian Manor (the “Facility”), which Facility is currently being financed by the Authority with a mortgage loan (the “WHEDA Loan”) from the Wisconsin Housing and Economic Development Authority; and WHEREAS, the Authority has determined that the Facility is in need of renovation and improvements, and that it would be most efficient and in the best interest of the Authority and the City if the Authority were to issue a series of revenue bonds in a principal amount of up to $4.4 million for the purpose of (i) refunding and refinancing the WHEDA Loan, (ii) paying the costs of renovating and improving the Facility and related financing costs and (iii) funding certain reserves which may be required in connection with the revenue bonds; and WHEREAS, in order to reduce the Authority’s borrowing costs in respect to such revenue bonds and enhance the marketability of the revenue bonds, the Authority has requested that the City provide its “moral obligation” to support the Authority’s payment obligations on the revenue bonds; and WHEREAS, the City desires to support the Authority’s efforts to refinance and renovate the Facility, and is willing to cooperate with the Authority in structuring an agreement pursuant to which the City would incur a moral obligation to support the Authority’s payment obligations with respect to the revenue bonds. AUGUST 23, 2005 05-258RESOLUTION CONT’D NOW, THEREFORE, BE IT RESOLVED: Subject to the conditions specified in paragraph 2 hereof, the staff 1. of the City is hereby directed to work with the Authority and its staff to develop a financing structure for the proposed revenue bonds, which structure shall include an undertaking and agreement by the City to provide its moral obligation to support the Authority’s debt service obligations on the revenue bonds. Such moral obligation may be in the form of an agreement by the City to replenish funds required to be expended from a debt service reserve fund created by the Authority for the revenue bonds or in such other form as representatives of the City and the Authority and their advisors determine best accomplishes the purposes thereof. The final approval by this body of any such moral obligation 2. undertaking by the City, and issuance of the revenue bonds by the Authority, shall be subject to the following conditions: Prior to the issuance of the revenue bonds, this Common (a) Council, by further resolution, shall have authorized and approved the specific terms of the moral obligation undertaking and the execution and delivery of an appropriate support agreement evidencing the same. The revenue bonds shall not be general obligations of the (b) Authority or the City, but shall be revenue obligations payable solely from revenues derived from the Facility and reserve funds established for the revenue bonds; the revenue bonds and the City’s support obligation in respect thereto shall not constitute an indebtedness of the City within the meaning of any State constitutional provision or statutory limitation.