Resolution 5317 - Reaffirms Preliminary Approval - Multifamily Housing Revenue BondsRESOLi.UTION NO.5317
RESOLUTION REAFFIRMING THE PRELIMINARY APPROVAL OF THE
ISSUANCE OF REVENUE BONDS FOR THE FINANCING OF THE ACQUISITION
AND REHABILITATION OF A MULTIFAMILY HOUSING DEVELOPMENT
LOCATED IN THE CITY OF KALISPELL AFTER HOLDING A PUBLIC HEARING
WITH RESPECT THERETO
BE IT RESOLVED by the City Council (the "City Council") of the City of Kalispell,
Flathead County, Montana (the "City") as follows:
Section 1. Recitals.
1.01. Montana Code Annotated, Title 90 Chapter 5 Part 1, as amended (the "Act"),
authorizes the City to issue revenue bonds for the purpose of defraying the cost of acquiring or
improving any land, building, other improvement, and real or personal property considered
necessary in connection with an improvement that is suitable for: (i) commercial, manufacturing,
agricultural, or industrial enterprises; (ii) recreation or tourist facilities; (iii) local, state, and
federal governmental facilities; (iv) multifamily housing; (v) hospitals; (vi) long --term care
facilities; (vii) community -based facilities for individuals who are persons with developmental
disabilities as defined in Montana Code Annotated Title 53 Chapter 20 Part 102, as amended;
(viii) medical facilities; (ix) higher education facilities; (x) electric energy generation facilities;
(xi) family service provider facilities; (xii) the production of energy using an alternative
renewable energy source as defined in Montana Code Annotated, Title 90 Chapter 4 Part 102, as
amended; and (xiii) any combination of these projects.. As a condition to the issuance of such
revenue bonds, the City must hold a public hearing in accordance with the requirements of
Section 147(f) of the Internal Revenue Code of 1956, as amended (the "Code"), and the
requirements of the Act. The City Council of the City must also authorize the submission of an
application to the Montana Department of Administration for an allocation of bonding authority
with respect to the Project (as hereafter defined) and such revenue bonds.
1.02. The City has been requested to issue its revenue bonds in the approximate
aggregate principal amount not to exceed $5,000,000, in one or more series at one time or from
time to time (the "Bonds"), the proceeds of which will be loaned by the City to Glacier State
Associates, LP, a Montana limited partnership (the "Borrower"). Morena Glacier, LLC and the
United way, Inc. will be general partners in the Borrower.
1.03. Under Section 147(f) of the Code and the Act, prior to the issuance of the Bonds,
the City must hold a public hearing.
Section 2. Public Hearin.
Kennedy & Graven, Chartered, P.C., as bond counsel to the City, with cooperation from
City staff and staff of the Borrower, prepared a Notice of Public Hearing (the "Hearing Notice")
with respect to the Project and the issuance of the Bonds by the City. As required by the Act, the
Hearing Notice was published in the Daily Inter Lake once a week for three consecutive weeks in
preparation for a public hearing. The public hearing was held by the City Council prior to
consideration of this resolution on Monday, October 6, 2008. All persons who appeared at the
public hearing were given an opportunity to express their views with respect to the Project and
the issuance of the Bonds.
Section 3. Preliminary Approval.
The City hereby confirms the preliminary approval to the issuance of the Bonds on
September 2, 2008, subject to final approval following the preparation of bond documents, and
subject to final determination by this City Council that the financing of the Project and the
issuance of the Bonds are in the best interest of the City.
Section 4. Submission of Allocation Application.
Under the Code, the City must receive an allocation of the bonding authority of the State
of Montana for the Bonds. An application for such an allocation must be made by the City to the
Department of Administration of the State of Montana. The City Council hereby confirms the
submission of an application for allocation of bonding authority pursuant to the Code. The
Mayor of the City, the City Manager, and Kennedy & Graven, Chartered, P.C., acting as bond
counsel to the City with respect to the Project and the Bonds, shall tale all actions, in cooperation
with the Borrower, as are necessary to submit an application for an allocation of bonding
authority to the Department of Administration of the State of Montana.
Section 5. Effective Date. This Resolution shall be in full force and effect from and
after its passage.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE
CITY OF KALISPELL THIS 6TH DAY OF OCTOBER, 2oos.
ATTEST:
Theresa White
City Clerk
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dime -la B. Kennedy
Mayor
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