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HomeMy WebLinkAboutSr. Hsg 2003-2004 Orono Woods r • REQUEST FOR COUNCIL ACTION DATE: November 9, 2006 ITEM NO: Department Approval: Administrator Reviewed: Agenda Section: Name Ronald J. Moorse City Administrator's Report Title City Administrator 7Z1 Item Description : Resolution Calling for blic Hearing on Orono Woods Housing Program Amendment and Issuance of Senior Housing Refunding Bonds Attached is a draft of a Housing Program Amendment relating to a proposed refinancing of the 62-unit multifamily housing facility for seniors (the "Project") known as Orono Woods. The Program Amendment describes a proposal to issue housing revenue bonds to refund the outstanding bonds for the Project under Minnesota Statutes, Chapter 462C. A public hearing is required on the Program Amendment and the issuance of revenue refunding bonds. A resolution calling for the public hearing on Monday, December 11, 2006 at 7:00 P.M. is attached for Council adoption. COUNCIL ACTION REQUESTED: Motion regarding the adoption of a resolution calling for a public hearing on the Orono Woods Housing Program Amendment and Issuance of Senior Housing Refunding Bonds. • r RESOLUTION CALLING FOR PUBLIC HEARING ON ORONO WOODS HOUSING PROGRAM AMENDMENT AND ISSUANCE OF SENIOR HOUSING REFUNDING BONDS BE IT RESOLVED by the City Council of the City of Orono: 1. There has been presented to this Council a draft of a Housing Program Amendment relating to a proposed refinancing of the 62-unit multifamily housing facility for seniors (the "Project") known as Orono Woods. The Program Amendment describes a proposal to issue housing revenue bonds to refund the outstanding bonds for the Project under Minnesota Statutes, Chapter 462C. 412. This Council shall hold a public hearing on the Program Amendment and the issuance of revenue refunding bonds at its regular meeting on Monday, December 11, 2006 at 7:05 o'clock P.M. Notice of such hearing shall be given as required by law. Adopted by the City Council of the City of Orono, Minnesota at a regular meeting held on November 13, 2006. ATTEST: Linda S. Vee, City Clerk Barbara A. Peterson, Mayor • Page 1 of 1 I • CITY OF ORONO AMENDED PROGRAM FOR THE FINANCING OF A MULTIFAMILY RENTAL HOUSING DEVELOPMENT FOR SENIORS Pursuant to Minnesota Statutes, Chapter 462C (the "Act"), the City of Orono (the "City") has been authorized to develop and administer programs of multifamily housing developments under the circumstances and within the limitations set forth in the Act. Minnesota Statutes, Section 462C.07 provides that such programs for multifamily housing developments may be financed by revenue bonds issued by the City. The City has created a program of financing to encourage and facilitate the development of multifamily rental housing for seniors in the City (the "Program") owned by Orono Senior Housing, LLC (the "Owner"). The sole member of the Owner will be Volunteers of America in Minnesota, a Minnesota nonprofit corporation. Pursuant to the Act, the Program is hereby amended to permit the Project to be occupied by persons age 55 and older. In addition, the Project financing is to be refunded through the issuance of up to $9,000,000 in refunding revenue bonds issued by the City (the "Bonds") pursuant to the Act. At least twenty percent (20%) of the units financed are specifically reserved for tenants whose incomes are not greater than fifty percent (50%) of the area median income. It is estimated that approximate rents for the Project, depending on unit size and amenities,are: 1 Bedroom $ 1 Bedroom+Den $ 2 Bedroom $ 2 Bedroom+Den $ 50% of Median Income 1 Bedroom $ 1 Bedroom+Den $ The City, in establishing this Program, considered, among other things (i) the availability and affordability of other government housing programs; (ii) the availability and affordability of private marketing financing for the construction of multifamily housing units; (iii) an analysis of population, employment trends and projections of future population trends and future employment needs; (iv) housing trends and future housing needs of the City; and (v) an analysis of how the Program will meet the needs of persons and families residing and expected to reside in the City. The City, in adopting the original Program, further considered (i) the amount, timing and sale of it revenue bonds to finance the estimated costs of the housing units, to fund the appropriate reserves and to pay the cost of issuance; (ii) the method of monitoring and implementation of the Program to insure compliance with the City's housing plan and its objectives; (iii) the method of administering, servicing and supervisingthe Program; (iv) the costs of the City, including future • administrative expenses; (v) the restrictions on the multifamily development to be financed under the Program; and (vi) certain other limitations. HOUSING PROGRAM ‘.. • It is contemplated that the Bonds shall have a maturity of up to forty (40) years and will be priced to the market at the time of issuance. The Bonds may be issued in two series, one of which has a claim on revenues senior to the other. The City has not and will not hire additional staff for the administration of the Program. The City intends to select and contract with a financial institution or trustee experienced in trust matters to administer the Bonds. Insofar as the City will be contracting with underwriters, legal counsel, bond counsel, the trustee, and others, all of whom will be reimbursed from bond proceeds and revenues generated by the Program, no administrative costs will be paid from the City's budget with respect to this Program except as otherwise provided by resolution of the City. The Bonds will not be general obligation bonds of the City, but are to be paid only from properties pledged to the payment thereof, which may include additional security such as additional collateral, insurance or a letter of credit. Subsection C. Standards and Requirements Relating to the Projects Pursuant to the Program. The following standards and requirements shall apply with respect to the operation of the Project by the Owner pursuant to this Program: (1) Substantially all of the proceeds of the sale of the Bonds will be used to provide funds for the refunding of the original Project financing. The funds will be made available to the Owner pursuant to the terms of the Bond offering, which may include certain covenants to be entered into between the City and the Owner. (2) The Owner will not arbitrarily reject an application from a proposed tenant because of race, color, creed, religion, national origin, sex, marital status, or status with regard to public assistance or disability. (3) No Housing Unit may be in violation of applicable zoning ordinances or other applicable land use regulations, including any urban renewal plan or development district plan, and including the state building code as set forth under Minnesota Statutes, Section 16.83, et seq. Subsection D. Evidence of Compliance. The City may periodically require certification from either the Owner or from the Owner or such other person deemed necessary concerning compliance with various aspects of the Program Subsection E. Issuance of Bonds. To refund the Project financing, the City may, by resolution, authorize, issue and sell its refunding revenue bonds in one or more series, and using any additional credit enhancement devices determined by the City to be necessary or desirable for each such series, in an aggregate principal amount estimated to be up to $9,000,000. The Bonds shall be issued pursuant to Section 462C.07, Subdivision 1 of the Act, and shall be payable primarily from the revenues of the Program authorized by this Section. The City anticipates the issuance of such amount prior to the end of 2006. • Subsection F. Severability. The provisions of this Program are severable and if any of its provisions, sentences, clauses or paragraphs shall be held unconstitutional, contrary to statute, HOUSING PROGRAM 3 ...?„0.4 . , CITY of ORONO / fir •° ti loi 4 Municipal Offices Street Address: Mailing Address: $EggO4� 2750 Kelley Parkway P.O. Box 66 Orono, MN 55356 Crystal Bay, MN 55323-0066 April 14, 2003 Frank Dunbar Dunbar Development Corporation 5000 Glenwood Parkway Minneapolis, MN 55422 Re: Orono Woods Senior Housing Tax Statement Dear Frank: I'm enclosing the 2003 property tax statement and valuation notice for Orono Woods. Should we continue to forward these to you as they are received,or would you prefer that they be forwarded to Wedum? Let me know - (952)249-4622. Thanks! Sincerely, Michael P. Gaffron Planning Director encl. cc: Tom Kuehn, Finance Director Telephone(952)249-4600 • Fax(952)249-4616 www.ci.orono.mn.us 2003 NOTICE OF VALUATION AND CLASSIFICATION - COUNTY OF HENNEPIN For taxes payable in 2004 - This is NOT a bill - Municipality: ORONO Property Identification Number: 34-118-23 21 0036 Property Location: 38 ADDRESS PENDING ORONO HSG & RDVLPT ATHY 2750 KELLEY PKWY ORONO MN 55356-9387 The values indicated are for the January 2, 2003, Assessment for taxes payable in 2004. The prior year data has been included fo comparison purposes. 2002 for 2003 Taxes 2003 for 2004 Taxes Property Classification: APARTMENT APARTMENT NON-HOMESTEAD NON-HOMESTEAD Estimated Market Value: $ 660,000 $ 5,270,000 Limited Market Value: $ 660 ,000 $ 5,270,000 Value of New Improvements: $ 10 ,000 $ 3,852,000 This Old House Exclusion: $ 0 S 0 Taxable Market Value: $ 660,000 $ 5,170,000 Appealing the Value or Classification of Your Property If you believe the 2003 estimated market value and/or classification of this property has been determined incorrectly, you have the right to make an appeal. Inquiries concerning valuation or property class should first be directed to your Assessor's Office within the next five days. This is an important first step of the appeal process. Many times questions and concerns can be addressed informally, prior to the Local Board meetings. You can contact your assessor at the following phone number: 952-249-4640 Appeal Option 1: Boards of Appeal and Equalization Step 1:Local Board of Appeal and Equalization or Open Book Meeting • If you believe your value or classification is incorrect you may bring your case to the Local Board of Appeal and Equalization.You may appear in person,by letter,or be represented by an authorized agent. Please call your assessor first, an appointment may be necessary. It is required that you first attend the Local Board prior to attending the County Board of Appeal. • If your municipality has opted for an Open Book Meeting (M.S. 274.13, Subd. lc, Alternative Review Option),the Open Book meeting is designed to give you information about sales activity in your area and the opportunity to discuss your property's value and/or class with an assessor.Under this option,there will not be a Local Board meeting and you are not required to attend the Open Book Meeting prior to attending the Hennepin County Board of Appeal and Equalization(step 2). • The Step 1 meeting time and place for your city is as follows: 7:00 PM on APR 23, 2003 at ORONO COUNCIL CHAMBERS Step 2: Hennepin County Board of Appeal and Equalization • The County Board of Appeal and Equalization begins on June 16,2003, at the Hennepin County Government Center,300 South Sixth St.,Minneapolis,MN 55487. Application is required no later than June 9,2003. To appear before the County Board,you must have appeared before the Local Board of Appeal and Equalization. If your city has opted for the Alternative Review method, it is not a requirement to have attended the Open Book Meeting prior to scheduling an appointment with the County Board. Phone:(612)348-7050.[TTY(612)348-3461 teletype] Appeal Option 2: Minnesota Tax Court Small Claims Division You may take your case directly to the Small Claims Division of Tax Court if: • The assessor's estimated market value of your property is less than$300,000;or • The entire parcel is classified as a residential homestead(1 a or lb)and the parcel contains no more than one dwelling unit;or • The entire property is classified as an agricultural homestead(2a or lb);or • You are appealing the denial of a current year application for homestead classification of your property. Regular Division • Regardless of your property type or the nature of your claim,you always have the option to file directly with the Regular Division of Tax Court. • You have until April 30,2004,to file an appeal with the Small Claims Division or the Regular Division of Tax Court for this year's valuation notice. For more information, contact:Minnesota Tax Court,25 Reverend Martin Luther King Blvd., Room 245, St. Paul, MN 55115 Phone: 651-296-2806 [TTY Relay(800) 627-3529 Teletype] Web site: http://www.taxcourt state.mn.us E-mail: info(a taxcor irt HENNEPIN COUNTY 2003 PROPERTY TAX STATEMENT Hennepin County Treasurer A-600 Government Center Office Hours 8:00 to 4:30 Monday- Friday Minneapolis, MN 55487-0060 Hearing Impaired with TDD Equipment 612-348-3011 612-348-3461 Taxpayer or Agent www.co.hennepin.mn.us TAXPAYER COPY ORONO HSG & RDVLPT ATHY PAYABLE 2002•_, `` PAYABLE'2003 2750 KELLEY PKWY ORONO MN 55356-9387 Property Classf0M LAND PREFERRED/ APT NHSTD New Improvements 0 10,000 Estimated Market Value 420,000 660,000 Taxable Market Value 420,000 660,000 Owner 1. Use this amount on Form M-1 PR to see if you are eligible for a property tax refund. .00 ORONO HSG & RDVLPT ATHY File by August 15.IF BOX IS CHECKED,YOU OWE DELINQUENT TAXES AND ARE NOT ELIGIBLE. 2. Use this amount for the special property tax refund on schedule 1 of Form M-1 PR. .00 Your Property Tax and How It Is Reduced by the State rope'rt v ld13ntlfic tto 1 NO. • 3. Property tax before reduction by state paid aids and credits 22,702.60 18,309.97 4. Aid paid by the state of Minnesota to reduce your property tax 7,982.60 8,078.20 34-118-23 21 0036 5. A.Homestead and agricultural credits paid by the state of Minnesota to reduce your property tax .00 .0 0 B.Other Credits paid by the state of Minnesota .00 .00 Munic School Watershed Sewer TIF 6. Your Property Tax after reduction by state-paid aids and credits 14,720.00 10,231.77 38 278 3 2700 Where Your Property Tax Dollars Go Property Address 7. County ._._._. _.. ... ..........._............................................................._......_............................. 3,127.87 5,010.08 38 ADDRESS PENDING 8. City Or Town............................_.........._........................_....._......................................................_...._...._....................._...._.........._..._..._...._...._.......... 1,300.56 1,967.12 Addition 9. State General Tax4,8 6 6.3 7 .0 0 ................................................................................._..._..................................................................._........_..._........_......_................. ORONO MBAR 10.School District: A.Voter Approved Levies..............._...__...._...._......................_..._...._....................................................................._....................................._...... 1,018.07 1,760.05 LotBlock B.Other Local Levies ........................_..........._........._.............._...._..................................................._................_............... 361.00 6 04.19 002 0 01 11.A.Metropolitan Special Taxing Districts.. 219.47 3 78.6 7 B.Other Special Taxing Districts............................................_....._........._............._.._._..._............_......._..._..._......._...._.........._...._.__...... 391.56 511.6 6 C.Tax Increment ..0 0 .00 Mtg.Code Loan No. D.Fiscal Disparity........................................................................_..__.._.__........_.._....._........................................................_..........._......................._ 3,435.10 .00 This amount Is due no later�than' Ma -154.2003• - • 12.Non-School Voter Approved Referenda Levies..............................._..._.................._....__..._.._..._...._...__..._........._........_................ .00 .00 13.Total Property Tax Before Fees and Special Assessments.__..._........_........._.....__..__...._.._._......._._.............................._........ 14,72 0.0 0 10,231.77 5, 178.55 County Collected Solid Waste Management Fee.................._...._..._........._.................._......................................................................._ 80.05 125.33 14.A.Special Assessment Principal.... ...... 13,98 8.9 8 . ............ B.Special Assessment Interest ..............._.........................._..._.__.._........._......_...._..............................._... 1,083.91 _................................................... This amount is due no later than October 15,2003 5, 178.55 15.YOUR TOTAL PROPERTY TAX AND SPECIAL ASSESSMENTS............................................................... 2 9, 872.94 10,357.10 MAKE CHECK PAYABLE TO HENNEPIN COUNTY TREASURER HENNEPIN COUNTY DETACH AND RETURN THIS-STUB WITH YOUR SECOND HALF PAYMENT 2003 PROPERTY TAX STATEMENT Pay on or before October 15,2003 to avoid penalty. 2ND HALF PAY STUB 2003 Use this copy to claim Property Tax Refunds. Read the back Please read the reverse side for payment Information. for information on eligibility and how to obtain forms. TAXPAYER OR AGENT MUNIC MTG.CODE LOAN NO. STATE COPY ORONO HSG & RDVLPT ATHY 3 8 File by August 15th 2750 KELLEY PKWY ORONO MN 55356-9387 PROPERTY ADDRESS 38 ADDRESS PENDING Taxpayer or Agent ORONO HSG & RDVLPT ATHY 2750 KELLEY PKWY ORONO MN 5 5 3 5 6-9 3 8 7 Check Out the Payment Options! www2.co.hennepin.mn.us/pins Owner PROPERTY IDENTIFICATION NO. SECOND HALF TAX ORONO HSG & RDVLPT ATHY 34-118-23 21 0036 5, 178.55 Property Identification No. Munic 34-118-23 21 0036 38 231183421003600000000000051785523118342100369 Use these amounts when filling out Form M1 PR to see if you are eligible for one or both of the refunds available. BOX IS( ENOT ELED, IGIBLE.G BYLE E DELINQUENT TAXES AND DETACH.AND`RETURNTHIS'STUB WITH YOUR FIRST:'HALF PAYMENT Line 1: nn Pay on or before May 15,2003 to avoid penalty. 1ST HALF PAY STUB 2003