HomeMy WebLinkAbout06-307
OCTOBER 24, 2006
06-307
RESOLUTION
(CARRIED 7 -0
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PURPOSE:
SUPPORT HOUSING AUTHORITY REVENUE BONDS!
MARION MANOR
INITIATED BY:
CITY ADMINISTRATION
A Resolution Relating to City Support for Revenue Bonds
to be Issued by the Housing Authority of the City of Oshkosh, Wisconsin
in Respect to the Marian Manor Housing Facility
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"); and
WHEREAS, the City and the Authority have determined that the Facility is in need
of substantial renovations 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 fund the necessary
renovations and improvements, and the retirement of existing indebtedness of the
Authority in respect to the Facility, by (i) the creation of a Wisconsin limited liability
company in which the Authority is the Managing Member (the "LLC") to acquire ownership
of the Facility and sell low income housing tax credits which have been awarded to the
Authority for such renovations and improvements and (ii) the issuance of taxable revenue
bonds (the "Revenue Bonds") by the Authority in a principal amount not to exceed
$3,800,000; 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 debt service payment
obligations on the Revenue Bonds; and
OCTOBER 24, 2006
06-307
RESOLUTION
CONTD
WHEREAS, the Revenue Bonds shall not be general obligations of the Authority
or the City, but shall be revenue obligations of the Authority payable solely from a reserve
fund and other trust funds established under the indenture for the Revenue Bonds and (i)
prior to transfer of the Facility to the LLC, revenues derived by the Authority from the
Facility and (ii) following transfer of the Facility to the LLC, payments made by the LLC to
the Authority from revenues derived by the LLC from the Facility; and 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;
and
WHEREAS, the City desires to support the Authority's efforts to refinance and
renovate the Facility as described herein, 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 debt service payment obligations with respect to the Revenue Bonds; and
WHEREAS, the Authority has presented this body and the City with proposed
documentation in connection with such moral obligation and the Revenue Bonds as
follows:
(a) a Contribution and Cooperation Agreement (the "Contribution
Agreement") to be entered into between the Authority and the City
which sets forth the terms and conditions of such moral obligation
pledge of the City.
(b) a Bond Purchase Agreement (the "Bond Purchase Agreement") to be
entered into by and among the Authority, the City, the LLC and
Robert W. Baird & Co. Incorporated (the "Underwriter") setting forth
the terms and conditions on which the Authority will sell and the
Underwriter will purchase the Revenue Bonds;
(c) a draft of a Preliminary Official Statement (collectively, with a final
Official Statement, the "Official Statement") describing the Revenue
Bonds and the related financing documents and sources of payment;
and
(d) a Continuing Disclosure Undertaking (the "Undertaking") setting forth
the City's undertaking to provide continuing disclosure of certain
financial information and operating data in respect to the City.
NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of
Oshkosh as follows:
(1) Approval of the Proiect. The Marion Manor refinancing, renovation
and improvement project to be undertaken by the Authority and the
LLC is hereby approved.
OCTOBER 24, 2006
06-307
RESOLUTION
CONTD
(2) Approval of Contribution Aqreement. The City shall provide its moral
obligation to support the debt service obligations on the Revenue
Bonds, and, in order to accomplish the same, the City Manager and
the City Clerk are hereby authorized and directed for and in the name
of the City to execute and deliver the Contribution Agreement in
substantially the form attached hereto as Exhibit A and incorporated
herein by this reference, with such insertions therein or corrections
thereto as shall be approved by them consistent with this resolution,
their execution thereof to constitute conclusive evidence of their
approval of any such insertions and corrections.
(3) Approval of Undertakinq, Bond Purchase Aqreement and Official
Statement. The Undertaking, the Bond Purchase Agreement and the
Official Statement, in substantially the respective forms thereof
presented to this body, are hereby authorized and approved, and the
City Manager, acting alone or together with the City Clerk, is hereby
authorized to execute and deliver the Undertaking, the Bond
Purchase Agreement and the Official Statement for and on behalf of
the City, with such additions or modifications thereto not inconsistent
with this resolution as shall be approved by the City Manager
(following review by the City Attorney) as evidenced by his execution
thereof.
(4) General Authorizations. The City Manager and the City Clerk are
hereby authorized to execute such other documents and take such
other actions as shall be necessary or desirable to accomplish the
purposes of this Resolution and to comply with and perform the
obligations of the City under the documents referenced herein:
APPROVAL OF RESOLUTION BY MAYOR
The attached Resolution No.
, entitled
A RESOLUTION RELATING TO CITY SUPPORT FOR REVENUE BONDS
TO BE ISSUED BY THE HOUSING AUTHORITY OF THE CITY OF OSHKOSH,
WISCONSIN IN RESPECT TO THE MARIAN MANOR HOUSING FACILITY
which was adopted by the Common Council of the City of Oshkosh, Wisconsin, on
October 24, 2006, is hereby approved.
Dated: October 24, 2006.
Mayor
CERTIFICATIONS BY CLERK
I, Pamela R. Ubrig, hereby certify that I am the duly qualified and acting Clerk of the
City of Oshkosh, Wisconsin (the "Government Unit"), and as such I have in my possession,
or have access to, the complete corporate records of said City and of its Common Council
(the "Governing Body") and that attached hereto is a true, correct and complete copy of
the resolution (the "Resolution") entitled:
A Resolution Relating to City Support for Revenue Bonds
to be Issued by the Housing Authority of the City of Oshkosh, Wisconsin
in Respect to the Marian Manor Housing Facility
I do hereby further certify as follows:
1. MeetinQ Date. On the 24th day of October, 2006 a meeting of the
Governing Body was held commencing at 6:00 PM.
2. PostinQ. On the 20th day of October, 2006 (and not less than 24
hours prior to the meeting), I posted or caused to be posted at the Government Unit's
offices in Oshkosh, Wisconsin a notice setting forth the time, date, place and subject
matter (including specific reference to the Resolution) of said meeting.
3. Notification of Media. On the 20th day of October, 2006 (and not
less than 24 hours prior to the meeting), I communicated or caused to be communicated,
the time, date, place and subject matter (including specific reference to the Resolution) of
said meeting to those news media who have filed a written request for such notice and to
the official newspaper of the Government Unit.
4. Open MeetinQ Law Compliance. Said meeting was a regular
meeting of the Governing Body that was held in open session in compliance with
Subchapter V of Chapter 19 of the Wisconsin Statutes and any other applicable local rules
and state statutes.
5. Members Present. Said meeting was duly called to order by the
Mayor (the "Presiding Officer"), who chaired the meeting. Upon roll I noted and recorded
that there were _ members of the Governing Body present at the meeting, such
number being a quorum of the Governing Body.
6. Consideration of and Roll Call Vote on Resolution. Various
matters and business were taken up during the course of the meeting without intervention
of any closed session. One of the matters taken up was the Resolution. A proper quorum
of the Governing Body was present for the consideration of the Resolution, and each
member of the Governing Body had received a copy of the Resolution. All rules of the
Governing Body that interfered with the consideration of the Resolution, if any, were
suspended by a two-thirds vote of the Governing Body. The Resolution was then
introduced, moved and seconded, and after due consideration, upon roll call, of the
Governing Body members voted Aye, voted Nay and _ Abstained.
7. Adoption of Resolution. The Resolution was supported by the
affirmative vote of a majority of a quorum of the members of the Governing Body in
attendance. The Presiding Officer then declared that the Resolution was adopted, and I
so recorded it.
8. Approval of PresidinQ Officer. The Resolution was approved by the
Presiding Officer on October 24, 2006 and I have so recorded.
IN WITNESS WHEREOF, I have signed my name and affixed the seal of the
Government Unit hereto on this 25th day of October 2006.
Pamela R. Ubrig, City Clerk
[Seal]