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Resolution 3732 - Resolution of Intent & Call for PH - Immanuel Lutheran HomeRESOLUTION NO.3732 RESOLUTION PROVIDING FOR THE GIVING OF NOTICE OF A PUBLIC HEARING ON A PROPOSED PROJECT FOR IMMANUEL LUTHERAN HOME AND THE ISSUANCE OF FIRST MORTGAGE HOUSING REFUNDING REVENUE BONDS THEREFOR UNDER TITLE 90, CHAPTER 5, PART 1, MONTANA CODE ANNOTATED BE IT RESOLVED by the City Council of Kalispell, Montana (the City), as follows: Section 1. Recitals. 1.01. The City is authorized by Title 90, Chapter 5, Part 1, Montana _Code Annotated (the Act), to issue and sell its revenue bonds to provide funds to be loaned to persons for the purpose of financing costs of acquiring, constructing, equipping and improving real and personal properties suitable for use for multifamily housing projects. Such bonds are to be secured by such security devices as may be deemed advantageous - by the City. 1.02_. A proposal has been presented to this Board on behalf of Immanuel Lutheran Home, a Montana non-profit corporation organized and existing under the laws of the State of Montana (the Borrower), that the City, acting pursuant to and in accordance with the Act, authorize the issuance of revenue bonds (the Bonds) of the City in the maximum aggregate principal amount of $8,000,000, the proceeds of which will be loaned to the Borrower for the purpose of: (i) paying costs of acquiring, constructing and equipping a project (the Project) consisting of 4.86 acres of land, a 100 unit retirement housing complex with congregate, dining and incidental facilities and furnishings and equipment therefor, (ii) establishing appropriate reserves for the Bonds and (iii) paying costs and expenses incidental to the financing. The Project financed with the Bonds will be located at Buffalo.Hill•behind the Immanuel Lutheran Nursing Home in the City of Kalispell. The Project will be owned by the Borrower. 1.03. Under the provisions of the Act, the Bonds shall be limited obligations of the City payable solely from the revenues of the Project, including loan repayments from the Borrower, and shall not constitute nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers. Section 2. Public Hearing. The Act and Section 147(f) of the Internal Revenue Code of 1986 (the Code) require that, prior to the issuance of any Bonds under the authority of the Act and the Code, this Council shall give notice and hold a public hearing on the proposed Project. Pursuant to such authority a public hearing on the Project is called and shall be held on August 3, 1987 at 7:30 o'clock p.m. in the City Council Chambers, City Hall, Kalispell, Montana. Section 3. Form of Notice. The notice of the public hearing shall be in substantially the following form: NOTICE OF PUBLIC 'HEARING ON A PROPOSED PROJECT FOR INZIANUEL LUTHERAN HOME AND THE ISSUANCE OF FIRST MORTGAGE HOUSING REVENUE BONDS THEREFOR UNDER TITLE 90, CHAPTER 5, PART 1, MONTANA CODE ANNOTATED CITY OF KALISPELL, MONTANA NOTICE IS HEREBY GIVEN that_thel'City Council.of`the City of Kalispell, Montana (the City) will meet on August 3, 1987, at 7:30 o'clock p.m., in the City Council Chambers, City Hall, Kalispell, Montana, for the purpose of holding a public hearing on a project (the Project) and the issuance of first mortgage housing revenue bonds (the Bonds) therefor under Title 90, Chapter 5, Part 1, Montana Code Annotated (the Act). The .Project will consist 4.86 acres of land and of real and personal properties suitable for use as a 100 unit retirement housing complex with congregate, dining and other incidental facilities. The Bonds will be issued for -the purpose of (i) paying costs acquiring, constructing and equipping the Project; (ii) establishing appropriate reserves for the Bonds and (iii) paying costs and expenses incidental to the financing. The Project will be located at Buffalo Hill behind the Immanuel Lutheran Nursing Home in Kalispell, Montana. The Project will be owned by the Immanuel Lutheran Home, a Montana non-profit corporation organized and existing under the laws of the State of Montana, located in Kalispell, Montana (the Borrower). To pay costs of the Project, establish reserves for the Bonds and pay costs and expenses incidental to the financing, the City proposes to issue and sell the Bonds under the Act in the maximum aggregate principal amount of $8,000,000. The proceeds of the Bonds will be loaned to the Borrower which will be required to apply the same to pay costs of the Project including the e$tablishment of,re.serves and costs and expenses of the financing), and to repay the loan at the times and in the amounts sufficient to provide for the payment of the principal of and interest on the Bonds as due. The Bonds will be payable from and secured by a pledge of the loan repayments from the Borrower and a first mortgage on the Project and may be secured by and payable from such additional collateral provided by the Borrower as may be deemed advisable. The Bonds shall be limited special obligations of the City payable solely from the loan repayments, the mortgage and proceeds of additional collateral, if any. The Bonds shall not constitute nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers. All persons interested may appear and be heard at said time and place or may file written notice with the City Clerk prior to the date of hearing set forth hereinabove. Dated: July 6, 1987. BY ORDER OF THE CITY COUNCIL OF KALISPELL, MONTANA PUBLICATION DATES: July 12, 1987 July 1.9, 1987 July 26, 1987 1 Section 4. Publication of Notice. The City shall cause the notice to be published in a newspaper of general circulation in the City at least once a week for three consecutive weeks prior to the date set for the hearing. Section 5. Costs and Commit men . The Borrower will make payment either directly or through the City of any and all costs incurred by the.City in connection with the project whether or not the project is finally approved, whether or not the project is carried to completion and whether or not the bonds are issued. Section 6. Commitment Conditional. The adoption of this Resolution does not constitute a guarantee or. commitment that the City will issue the Bonds as requested by the Borrower. If, based on comments received at the public hearing, hereby scheduled, it appears that the Project and the issuance of Bonds therefor is not in the public interest or consistent with the purposes of the Act, the City reserves the right to revoke this Resolution. The City retains the right in its sole discretion to withdraw from participation and accordingly not issue the Bonds should the City at any time prior to the issuance thereof determine that it is in the best interests of the City to not issue the Bonds or should the parties to the transactions be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. PASSED AND APPROVED BY THE CITY COUNCIL OF KALISPELL, MONTANA this 6th day of July, 1987. Mayo ATTEST: City Clerk 1 I, the undersigned, City Clerk of the City of Kalizpell, certify that U e fa:egoing is a true copy of the Resolution passed by the City Council of the City of Kalispell, Hontana at a regular ineetirg held City Clerk of the City of Kalispell