Number
131496
Version
ORIGINAL
Reference
Sponsor
ALD. PUENTE
Title
Resolution approving the issuance of revenue bonds by the Public Finance Authority for the benefit of Crown Court Prairie Haven, LLC, a Wisconsin limited liability company, to finance the acquisition, rehabilitation and equipping of a 222-unit residential rental facility for seniors of low and moderate income located at 8949 North 97th Street, in the 9th Aldermanic District, City of Milwaukee.
Analysis
The Public Finance Authority is a public body corporate and politic created by the State of Wisconsin pursuant to the provisions of Sections 66.0301, 66.0303 and 66.0304, Wisconsin Statutes, with the authority to issue conduit revenue bonds to finance projects with the approval of the political subdivision in which the project is located. This resolution constitutes City approval of the issuance of conduit revenue bonds by the Public Finance Authority for the Prairie Haven Apartments Project. City approval of the project and the issuance of the bonds shall not give rise to a debt or pecuniary liability or a legal or moral obligation of the City for any reason whatsoever.
Body
Whereas, The Public Finance Authority ("PFA") is a unit of government and body corporate and politic of the State of Wisconsin created pursuant to the provisions of Sections 66.0301, 66.0303 and 66.0304, Wisconsin Statutes, commonly known as the "Joint Exercise of Powers Law" (as amended, the "Act") and an Amended and Restated Joint Exercise of Powers Agreement, dated September 28, 2010 (the "Joint Exercise Agreement"); and the PFA is authorized and empowered under the Act and by the Joint Exercise Agreement to, among other things, issue bonds, notes or other evidences of indebtedness in connection with, and to make loans to assist in the financing of "projects" located inside and outside of the State of Wisconsin; and
Whereas, Crown Court Prairie Haven, LLC, ("Borrower") wishes to finance the acquisition, rehabilitation and equipping of land and buildings located at 8949 North 97th Street in the City of Milwaukee (the "Project"), which land and buildings are or will be owned by the Borrower and will be operated as residential rental housing for seniors of low and moderate income; and
Whereas, The Borrower is requesting the assistance of the PFA in financing the Project through the issuance by the PFA of its bonds to be designated "Multifamily Housing Revenue Bonds (Prairie Haven Apartments Project) Series 2014" in an amount not to exceed $12,000,000 (the "Bonds"); and
Whereas, Section 66.0304(11)(a) of the Act provides that the PFA may not issue bonds to finance a capital improvement project in the State of Wisconsin unless all of the political subdivisions within whose boundaries the project is to be located have approved the financing of the project, and further provides that in cities of the 1st class, such approval may only be given by the governing body of such city, and the PFA has requested such approval from the Common Council; and
Whereas, Pursuant to the Act and the Joint Exercise Agreement, bonds issued by the PFA are limited obligations of the PFA payable solely from funds pledged for their payment in accordance with the related bond indenture and neither the members of the PFA nor the State of Wisconsin or any political subdivision thereof or any political subdivision approving the issuance of the bonds, including the City of Milwaukee, shall be obligated to pay the principal of, premium, if any, or interest thereon or any costs incidental thereto; and
Whereas, The Bonds or a portion thereof will be "private activity bonds" and "qualified 501(c)(3) bonds" for purposes of the Internal Revenue Code of 1986 (the "Code"); and pursuant to Code Section 147(f), prior to their issuance, the Bonds are required to be approved by (i) the PFA as the governmental unit issuing the Bonds; and (ii) the "applicable elected representative" of a governmental unit having jurisdiction over the area in which the Project is located, in each case after a public hearing regarding the financing of the Project and the issuance of the Bonds (commonly known as a "TEFRA Hearing") held following reasonable public notice (commonly known as a "TEFRA Notice"); and
Whereas, City staff will administratively undertake the issuance of a TEFRA Notice, in a form to be approved by the Office of the City Attorney, and then conduct TEFRA Hearing; and
Whereas, Subject to satisfactory completion of the TEFRA Hearing and a report of the proceedings thereto, the Borrower expects to request the Mayor, as the "applicable elected representative" of the City of Milwaukee to approve the Bonds and the financing of the Project for purposes of Code Section 147(f); and
Whereas, The Borrower has agreed to enter into a customary agreement to utilize best efforts to reach a goal of 25 percent SBE participation for construction of the Project; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that:
1. The financing of the Project by the PFA through the issuance of the Bonds is approved for purposes of Section 66.0304(11)(a) of the Act.
2. The conduct of the TEFRA Hearing is approved.
3. The publication of the TEFRA Notice, as described above in a form approved by the Office of the City Attorney, is approved.
4. The Bonds, when and if issued, shall not constitute a debt or pecuniary liability or a legal or moral obligation of the City of Milwaukee for any reason whatsoever.
5. The Small Business Enterprise Agreement is hereby approved and the proper City officials are directed to execute and deliver the agreements on behalf of the City of Milwaukee.
Drafter
DCD:JS:js
02/11/14/B