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HomeMy WebLinkAboutCity Council - 10/31/1981SPECIAL EDEN PRAIRIE CITY COUNCIL MEETING CURDAY, OCTOBER 31, 1981 COUNCIL MEMBERS: 10:00 AM, CITY HALL Mayor Wolfgang Penzel, George Bentley, Dean Edstrom, Paul Redpath and George Tangen COUNCIL STAFF: City Manager Carl Jullie and Finance Director John Frane I. ROLL CALL APPROVAL OF AGENDA AND OTHER ITEMS OF BUSINESS PUBLIC HEARINGS A. Request for Municipal Industrial Development Bonds in the amount of $378,000.00 for Spencer Dean, Sr. (Resolution No. 81-215) B. Request for Municipal Industrial Development Bonds in the amount of $250,000.00 for Kinder-Care (Resolution No. 81-216) C. Request for Municipal Industrial Development Bonds in the , amount of $360,000.00 for Little Red (Resolution No. 81-217) D. • Request for Municipal Industrial Development Bonds in the amount of $3,500,000.00 for Eden Prairie Project 100 (Resolution 81-218) E. Request for Municipal Industrial Development Bonds in the amount of $4,000,000.00 for Hoyt (Resolution No. 81-219) IV. SCHEDULE FOR CODIFICATION REVIEW V. NEW BUSINESS VI. ADJOURNMENT. JOHN O. FRAME Page 2355 Page 2356 Page 2357 Page 2358 Page 2359 TO: Mayor & Council FROM: John Frane DATE: 10-29-81 RE: Preliminary approval of MIDB's for Spencer Dean Sr. - $378,000. Mr. Dean proposes to construct a 4500 square foot office building in the Lake Ridge Office Park, which will house the companies he owns. The total cost of the project is estimated to be $420,000; there will be 23 employees. A first and second I.D.R. bond mortgage will be issued on this project. The property is zoned office which is correct for the intended use. Resolution #81-215 is enclosed for your consideration. 24S.S• CITY OF EDEN PRAIRIE, MINNESOTA Application for Industrial Development Bond Project Financing 1. APPLICANT; Spencer Dean, Sr. a. Business Name - N/A b. Business Address - Communications Marketing, Inc. Financial Communications, Inc. 5100 Edina Industrial Boulevard (address same) Edina, MN 55435 Dean Enterprises, Inc. (address same . . c. Business Form (corporation, partnership, sole proprietor- ship, etc.) - Corporation d. State ot Incorporation organization Minnesota e.. AuiEdrized Representative f. Phone - 835-5888 Spencer i Dean, Sr. 2. NAME(S) AND ADDRESSES OF MAJOR STOCKHOLDERS OR PRINCIPALS: Communications Marketing. Inc. Financial Communications, Inc. a. Spencer M. Dean (address same) Spencer M. Dean (address same) b. Eldon Roesler ,W. 219 East Wisconsin Avenue Nashotah, Wisconsin 53058 Dean Enterprises, Inc. Spencer M. Dean (address same) 3. GIVE BRIEF DESCRIPTION OF NATURE OF BUSINESS, PRINCIPAL PRODUCTS, ETC: Publishers Agri-Business and financial magazines 4. DESCRIPTION OF PROJECT a. Location and intended use: Lake Ridge Office Park, Bryant Lake Center, Eden Praire, MN intended use: Corporate Headquarters for Communications Marketing, Inc. b. Present ownership of project site: Mr. Wallace H. Hugtad c. Names and address of architect, engineer, and general contractor: Architect: Waters, Cluts & O'Brien' 7470 Market Place Drive • Eden Prairie, MN 55344 Engineer: Sathre-Berquist 935 EastWayzataBoulevard Wayzata, MN 55391 General Contractor: Ryan Development, Inc. 5. ESTIMATED PROJECT COST FOR: 7470 Market Place Drive Eden Prairie, MN 55344 .1 Land $ 12,600.00 Constnuction Contracts Architectural & Engineering Legal Contingencies $ 379,260.00 incluced $ 18,480.00 3,780.00 Loan Fees Total 5,880.00 420,000.00 *Heating and air conditioning units are forced-air, roof mounted, gas fired, HVAC units (3 per building). -2- 23S-S BOND ISSUE - a. Amount of proposed bond issue - $378,000.00 b. Proposed date of sale of bond - February 1, 1982 c. Length of bond issue and proposed maturities - Fifteen years based upon.a thirty-year amortization schedule. d. Proposed original purchaser of bOnds - First Federal • Savings and Loan of Grand Rapids, Minnesota. ($315,000.00 first mortgage bond). Ryan Development, Inc. ($63,000.00 second mortgage bond)... e. Name and address of suggested trustee - N/A ' f. Copy of any agreement between Applicant and original purchaser - N /A • r-* g. Describe any interim financing sought or available - Construction financing to be provided by First National Bank of Minneapolis. h. Describe nature and amount of any permanent financing in addition to bond financing - Will be in the form of equity contribution. 7. BUSINESS PROFILE - a. Are you located in the City of Eden Prairie? no b. Number of employees in Eden Prairie? i. Before this project: ii. After this project? 23 C. ,Approximate annual sales - $1,500,000 d. Length of time in business 13 years ••• in Eden Prairie NONE ONE. e. Do you have plants in other locations? If so, where? No f. Are you engaged in international trade? Yes 8. OTHER INDUSTRIAL DEVELOPMENT PROJECT (5) a. List the name Cs) and location(s) of other industrial development project(s) in which the Applic*ht is the owner or a 'substantial user" of the ficili4es .or a, "releated person" within the meaning of Section 1 03 (b)(8) of the Internal Revenue Code. . • None. -4- -5- 235 s b. List all cities in which the Applicant has requested industrial revenue development financing. None. O. 11••n• c. Detail the status of any'request the Applicant has before any other city for industrial development revenue financing. None d. List any city in which the Applicant has been refused . industrial development revenue financing. None. e. List any city (and the project name) where the Applicant has acquired preliminary approval to proceed but in which final approval authorizing the financing has been denied. None *MOO f. If Applicant has been denied industrial development revenue financing in any other city as identified . in (d)or (e), specify the reason(s) for ihe.depial and the name(s) of appropriate city officials who —have knowledge of the transaction. None. 9. .NAMES AND ADDRESS OF: a: Underwriter (If public offering) N/A b. Private Placement Purchaser (If private placement) First Federal Savings and Loan Association of Grand Rapids, Minnesota. - i. If lender will not commit until City has , passed its preliminary resolution approving the project, submit a letter from proposed • lender that it has an interest in the offering subject to appropriate City approval and approval of the Commissioner of Securities. 2SS b. Bond Counsel - \ • , c. 'Corporate Counsel - Speeter, Johnson, Bauman and Olson - Minneapolis, Minnesota d. Accountant - Robert Hanson and Son - Bloomington, Minnesota OMR 10. MAT IS YOUR TARGET DATE FOR: Construction start - .October 21, 1981 b. Construction completion - February 1, 1982 : FOR FURTHER INFORYATION CONTACT: The undersigned Applicant understands that the approval or disapproval by the City of Eden Prairie for Industrial . Development bond financing does not expressly or impliedly constitute any approval, variance, or waiver of any provision or requirement relating to any zoning, building, or other rule or ordinance of the City of Eden Prairie, or any-other law applicable to the property included in this proIct, a. Property is zoned - On6 11. ZONING - TO HE COgPLETEB BY THE CITY PLANNING DEPARTMENT intended use. b. Present zoning F.$) (is not) correct for the intended Use. c. Zoning application.received on • for • which is come= for the d. Variances required:- City Planner -8- After all persons who wished to do so had stated their views on the proposal, the Mayor declared the hearing to be closed. After some discussion, Councilmember introduced the following resolution and (after it had been read in full) (after the reading of the resolution was dispensed with by unanimous consent) moved its adoption: RESOLUTION NO. RESOLUTION RELATING RELATING TO THE AUTHORIZA- TION AND ISSUANCE OF REVENUE BONDS OF THE CITY UNDER MINNESOTA STATUTES, CHAPTER 474, FOR THE PURPOSE OF FINANC- ING A PROJECT THEREUNDER; GIVING PRE- LIMINARY APPROVAL TO THE PROJECT AND AUTHORIZING AN APPLICATION BY THE CITY TO THE MINNESOTA COMMISSIONER OF SECUR- ITIES AND REAL ESTATE BE IT RESOLVED by the City Council (the Council) of the City of Eden Prairie, Hennepin County, Minnesota (the City), as follows: Section 1. Recitals. 1.01. The Legislature of the State of Minnesota in Minnesota Statutes, Chapter 474, as amended (the Act), has found and declared that the welfare of the State requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental acts to prevent, so far as possible, emergence of blighted lands and areas of chronic unemployment; has authorized municipalities to issue revenue bonds to finance, in whole or in part, the cost of the acquisition, construction, reconstruction, improvement and betterment of projects, including any properties, real or personal, used or useful in connection with a revenue producing enterprise engaged in any business; and has authorized municipalities to enter into "revenue agreementsTM, as defined in the Act, with any person, firm, or public or private corporation or federal or state governmental subdivision or agency (the Contracting Party) providing for the payment by the Contracting Party of amounts sufficient to provide for the prompt payment of principal of and interest on the revenue bonds. 1.02. It has been proposed that the City issue its revenue bonds, pursuant to the authority granted by the Act, in an aggregate principal amount not to exceed $378,000, or such lesser amount as may be necessary, to finance costs of acquisition of land within the City and construction and equipping thereon of one or more buildings (the Project) to be owned by Spencer Dean, Sr. (the Applicant) and to be leased by the Applicant to Communications Marketing, Inc., a Minnesota corporation (the Lessee), to be used as corporate headquarters for the Lessee; and to make the proceeds of such sale available to the Applicant. The Applicant will agree to pay she City amounts sufficient to pay promptly the principal of and interest on the revenue bonds, and will agree to cause the Project to be completed. The Project is presently estimated to cost approximately $420,000. 1.03. The City has been advised that conventional, commercial financing to pay the capital cost of the Project is available only on a limited basis and at such high costs of borrowing that the scope of the Project or the economic feasibility of operating the Project would be significantly reduced, but that with the aid of municipal financing, and its resulting low borrowing costs, the Project can be constructed as designed and its operation economically made more feasible. Section 2. Public Hearing. 2.01. As required by Section 474.01, Subdivision 7b, of the Act, this Council, pursuant to a motion passed on , 1981, called and held a public hearing on the proposal to undertake and finance the Project. Notice of the time and place of the hearing, and stating the general nature of the Project and an estimate of the principal amount of bonds to be issued to finance the Project, was published at least once not less than fifteen (15) days nor more than thirty (30) days prior to the date fixed for the hearing, in the official newspaper of the City and a newspaper of general circulation of the City. A draft copy of the proposed application to the Minnesota Commissioner of Securities and Real Estate, together with all attachments and exhibits thereto, was available for public inspection following the publication of such notice at the place and times set forth in the notice. 2.02. All parties who appeared at the public hearing were given an opportunity to express their views -2- 23 %21- with respect to the proposal to undertake and finance the Project. This Council has heard and considered the views expressed at the public hearing and the information submitted to the City by the Applicant. Section 3. Approvals and Authorizations. 3.01. On the basis of information given the City to date, and the views expressed at the public hearing, it is found and determined that the Project furthers the purposes stated in Section 474.01 of the Act., and that it would be in the best interest of the City to issue its industrial development revenue bonds under the provisions of the Act to finance costs of the Project in an amount not to exceed $378,000 (the Bonds). 3.02. The Project is hereby given Preliminary approval by the City and the issuance of the Bonds for such purpose approved. The Bonds shall not be issued until the Project has been approved by the Commissioner of Securities and Real Estate, as provided by the Act, and until the City and the Applicant have agreed upon the details of the Bonds and provisions for their payment. 3.03. If the Bonds are issued and sold, the City will enter into a lease, mortgage, direct or installment sale contract, loan agreement, take or pay or similar agreement, secured or unsecured, satisfying the requirements of the Act (the Revenue Agreement) with the Applicant. The amounts payable by the Applicant to the City under the Revenue Agreement will be sufficient to pay the principal, interest and redemption premium, if any, on the Bonds as and when the same shall become due and payable. 3.04. The Applicant has agreed to pay directly or through the City any and all costs incurred by the City in connection with the Project whether or not the Project is approved by the Commissioner of Securities and Real Estate; whether or not the Project is carried to completion; and whether or not the Bonds or Revenue Agreement and all other operative instruments are executed. 3.05. The adoption of this resolution does not constitute a guarantee or a firm commitment that the City will issue the Bonds as requested by the Applicant. 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 interest of the City not -3- to issue the Bonds or should the City, the Applicant and any other parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. 3.06. In accordance with the Act, the Mayor and City Clerk are hereby authorized and directed to submit the proposal for the Project to the Minnesota Commissioner of Securities and Real Estate for her approval of the Project. The Mayor, City Clerk, City Attorney and other officers, employees and agents of the City, in conjunction with Dorsey, Windhorst, Bannaford, Whitney & Holladay, Bond Counsel to the City, are hereby authorized to provide the Commissioner with any preliminary information she may need for this purpose, and the City Attorney is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project. 3.07. The City will cause the Applicant to comply with all of the provisions of the Act, including Section 474.01, Subdivision 8, thereof, in the issuance of the Bonds and the financing of the Project. 3.08. All commitments of the City expressed herein are subject to the condition that within twelve months of the date of adoption of this resolution, the City and the Applicant shall have agreed to mutually acceptable terms and conditions of the Revenue Agreement, the Bonds and of the other instruments and proceedings relating to the Bonds and their issuance and sale. If the events set forth herein do not take place within the time set forth above, or any extension thereof, and the Bonds are not sold within such time, this resolution shall expire and be of no further effect. Section 4. Special Obligations. In all events, it is understood, however, that the Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the Project, if it becomes the property of the City, and from the revenues received from the Project and property pledged to the payment thereof, and shall not constitute a debt of the City. Section 5. Effective Date. This resolution shall be effective immediately . upon its final adoption. -4- 23%L 21T PASSED AND FINALLY ADOPTED by the City Council of the City of Eden Prairie, this day of 1981. (SEAL) Mayor City Clerk The motion for the adoption of the foregoing resolution was seconded by Councilmember and, upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and finally adopted. ' -5- TO: Mayor & Council FROM: John Frane DATE: 10-29-81 RE: Preliminary approval of MIDB's for Kinder-Care $250,000. Carl Westin and Harold Hesse intend to construct a 4900 square foot building on a site to the east of Chester's Restaurant, at a cost of $320,000. They intend to lease 100% of the facility to Kinder- Care, Inc. which will operate a day care center with five employees. The property is zoned office which is correct for the intended use. Resolution 81-216 is enclosed for your consideration. Harold F. 'Hesse 1425 Bluff. Creek Dr. Chaska, MN '55318 b. C. CITY OF EDEN PRAIRIE, MINNESOTA Application for Industrial Development Bond Project Financing 1. APPLICANT: a. Business Name - Carl 0. Westin and Harold F. Hesse b. Business Address - 5265 Howard Pt. Road Excelsior, MN 55331 c. Business Form (corporation, partnership sole proprietor ship, etc.) - Partnership to he formed . d. State of Incorporation or organization - Minnesota Authorized Representative - Carl 0. Westin f. Phone - ~ - " 2. NAME(S) AND ADDRESSES OF MAJOR STOCKHOLDE R S O R P R I N C I P A L S : a. Carl 0. Westin 5265 Howard Pt. Road Excelsior, MN 55331 -2- 233(,8 3. GIVE BRIEF DESCRIPTION OF NATURE OF BUSINESS, PRINCIPAL PRODUCTS, ETC: Real estate developers 4. DESCRIPTION OF PROJECT a. Location and intended use: N.W. corner of 5 & Mitchell Road. This project will consist of the construction of a Kinder-Care Learning Center b. Present ownership of project site: The land is currently owned by the developer. C. Names and address of architect, engineer, and general contractor: General Contractor will be Construction 70. 1430 W. County Road C, St. Paul, Minnesota 5. ESTIMATED PROJECT COST FOR: Land Construction Contracts Equipment Acquisition and installation* Architectural and Engineering Legal Interest during Construction Bond Reserve Contingencies Loan Fees Other Total 250,000.00 *Beating and air conditioning should be included as building costs. Indicate the kind of equipment to be acquired here. -0- 225,000.00 10,000.00 5,000.00 10,000.00 -3- .23SL C G. BOND ISSUE - a. Amount of proposed bond issue - $250,000.00 b. Proposed date of sale of bond - October 15, 1981 C. Length of bond issue and proposed maturities - 20 years d. Proposed original purchaser of bonds - financial institution Name and address of suggested trustee - none f. Copy of any agreement between Applicant and original purehaser none g. Describe any interim financing sought or available - tax exempt construction, loan IL Describe nature and amount of any permanent financing in addition to bond financing - None . BUSINESS PROFILE OF APPLICANT. a. Are you located in the City of Eden Prairie? No .b. Number of employees in Eden Prairie? None i. Before this project: None ii. After this Project? five (5) c. Approximate annual sales - $175,000.00 d. Length of time in business ten_ysars in Eden Prairie none e. Do you have plants in othcr locations? If so, where? There are 750 Kinder -Care Learning Centers in 35 states f. Are you engaged in international trade? no . 8. OTHER INDusTn 1AL DEVELOPMENT PROJECT ( S): a. List the name(s) and location(s) of other industrial development project(s) in which the Applicant is the owner or a "substantial user" of the facilities or a "rebated person" within the meaning of Section 103(b)(0) of the Internal Revenue Code. None -4 - b. List all cities in whiCh the Applicant has requested industrial revenue development financing. None c. Detail the status of any request the Applicant has before any other city for industrial development revenue financing. None d. List any city in which the Applicant has been refused 'industrial develepment revenue financing. None e. List any city (and the project name) where the Applicant • has acquired preliminary approval to proceed but in which final approval authorizing the financing has been denied. None -5- f. If Applicant has been denied industrial development revenue financing in any other city as identified in (d) or (e), specify the reason(s) for the denial and the name(s) of appropriate city officials who have knowledge of the transaction. None 9. NAMES AND ADDRESS OF: a. Underwriter (If public offering) b. Private Placement Purchaser (If private placement ) First Corporate Services, Inc. 822 Marquette Ave., Suite 206 Minneapolis, MN 55402 j. If lender will not commit until City has passed its preliminary resolution approving the project, submit a letter from proposed lender that it has an interest in the offering subject to appropriate City approval and approval of the Commissioner of Securities. -6- b. Bond Counsel e. Corporate Counsel - d. Accountant - Briggs & Morgan 2200 First National Bank Building St. Paul, MN 55101 10. VHAT IS YOUR TARGET DATE FOR: a. Construction start - November 1, 1981 b. Construction completion - March 1, 1982 FOR FURTHER INFORMATION CONTACT: The undersigned Applicant understands that t h e a p p r o v a l o r disapproval by the City of Eden Prairie for I n d u s t r i a l Development bond financing does not express l y or impliedly constitute any approval, variance, or waive r o f a n y p r o v i s i o n or requirement relating to any zoning, buildin g , o r o t h e r r u l e or ordinance of the City of Eden Prairie, o r a n y o t h e r l a w applicable to the property included in this p r o j e c t . Applicant 11. ZONING - TO nr COMPLETED BY THE CITY PLANNING DEPARTMENT a. Property is zoned - off v,e, b. Present zoning is not) correct for the intended use. C. Zoning application received on for which is correct for the intended use. d. Variances required - City Planner -8 - 2L N RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO THE MINNESOTA • MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AUTHORIZING THE SUBMISSION OF AN APPLICAT I O N FOR APPROVAL OF SAID PROJECT TO THE COMMISSIONER OF SECURITIES OF THE STATE OF MINNESOTA AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH SAID PROJECT WHEREAS, (a) The purpose of Chapter 474, Minnesota Statutes, known as the Minnesota Municipal Indus t r i a l Development Act (the "Act") as found and deter m i n e d b y t h e legislature is to promote the welfare of the sta t e b y t h e active attraction and encouragement and developm e n t o f e c o n o m i - cally sound industry and comnerce to prevent so f a r a s p o s s i b l e the emergence of blighted and marginal lands and a r e a s o f chronic unemployment; (b) Factors necessitating the active promotion and development of economically sound industry a n d c o m m e r c e a r e the increasing concentration of population in t h e m e t r o p o l i t a n areas and the rapidly rising increase in the am o u n t a n d c o s t o f governmental services required to meet the need s o f t h e increased population and the need for developme n t o f l a n d u s e which will provide an adequate tax base to fina n c e t h e s e increased costs and access to employment opport u n i t i e s f o r s u c h population; (c) The City Council of the City of Eden Prairie ("the City") has received from Carl Wes t i n a n d H a r o l d F. Hesse, who intend to form a Minnesota genera l p a r t n e r s h i p (the "Company") a proposal that the City under t a k e t o f i n a n c e a Project hereinafter described, through the issu a n c e o f r e v e n u e bonds in the form of a single debt instrument ( " t h e N o t e " ) pursuant to the Act; (d) The City desires to facilitate the selec- tive development of the community, retain and i m p r o v e t h e t a x base and help to provide the range of services a n d e m p l o y m e n t opportunities required by the population; and t h e P r o j e c t w i l l assist the City in achieving those objectives. The Pr o j e c t will help to increase assessed valuation of the City a n d surrounding areas and help maintain a positive relatio n s h i p between assessed valuation and debt and enhance the im a g e a n d reputation of the community; (e) The Project to be financed by the Note is a Kinder-Care child learning and day-care facility to be l o c a t e d in the City and leased to Kinder-Care Learning Centers , I n c . and consists of the construction of buildings and impr o v e m e n t s on land located in the City and the installation of eq u i p m e n t therein, and will result in the employment of addition a l persons to work within the new facilities; (0 The City has been advised by representa- tives of Company that conventional, commercial financ i n g t o p a y the capital cost of the Project is available only on a l i m i t e d basis and at such high costs of borrowing that the ec o n o m i c feasibility of operating the Project would be signifi c a n t l y reduced, but Company has also advised this Council th a t w i t h the aid of municipal financing, and its resulting low b o r - rowing cost, the Project is economically more feasible; (g) A public hearing on the Project was held on October 31, 1981, after notice was published, and mater i a l s made available for public inspection at the City Hall, a l l a s required by Minnesota Statutes, Section 474.01, Subdivi s i o n 7 b at which public hearing all those appearing who so desi r e d t o speak were heard; (h) No public official of the City has either a direct or indirect financial interest in the Project no r w i l l any public official either directly or indirectly benef i t financially from the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota, as follows: 1. The Council hereby gives preliminary approval to t h e proposal of Company that the City undertake the Projec t pursuant to the Minnesota Municipal Industrial Develop m e n t A c t (Chapter 474, Minnesota Statutes), consisting of the a c q u i - sition, construction and equipping of facilities withi n t h e City pursuant to Company's specifications suitable for t h e operations described above and to a revenue agreement b e t w e e n the City and Company upon such terms and conditions wi t h provisions for revision from time to time as necessary , s o a s 2‘.;GT to produce income and revenues sufficient to pay, when due, the principal of and interest on the Note in the total principal amount of approximately $20, 001) to be issued pursuant to the Act to finance the acquisition, construction and equipping of the Project; and said agreement may also provide for the entire interest of Company therein to be mortgaged to the purchaser of the Revenue Bonds; and the City hereby undertakes preliminarily to issue its Note in accordance with such terms and conditions; 2. On the basis of information available to this Council it appears, and the Council hereby finds, that the Project constitutes properties, real and personal, used or useful in connection with one or mora revenue producing enterprises engaged in any business within the meaning of Subdivision la of Section 474.02 of the Act; that the Project furthers the purposes stated in Section 474.01, Minnesota Statutes; that the availability of the financing under the Act and willingness of the City to furnish such financing will be a substantial inducement to Company to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the development of economically sound industry and commerce, to assist in the prevention of the emergence of blighted and marginal land, to help prevent chronic unemployment, to help the City retain and improve the tax base and to provide the range of service and employment opportunities required by the population, to help prevent the movement of talented and educated persons out of the state and to areas within the State where their services may not be as effectively used, to promote more intensive development and use of land within and adjacent to the City and eventually to increase the tax base of the community; 3. The Project is hereby given preliminary approval by the City subject to the approval of the Project by the Com- missioner of Securities and Real Estate, and subject to final approval by this Council, Company, and the purchaser of the Note as to the ultimate details of the financing of the - Project; 4. In accordance with Subdivision 7a of Section 474.01 Minnesota Statutes, the Mayor of the City is hereby authorized and directed to submit the proposal for the Project to the Commissioner of Securities and Real Estate, requesting her approval, and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary information as she may require; 235G,K 5. Company has agreed and it is hereby determined that any and all costs incurred by the City in connection with the financing of the Project will be paid by the Company. Such costs will be paid regardless of whether the Project is carried to completion, the Note or revenue agreements or any other operative documents are executed, and whether or not the Project is approved by the Commissioner of Securities and Real Estate; 6. Briggs and Morgan, Professional Association, acting as bond counsel, and First Corporate Services, Inc., investment bankers, are authorized to assist in the preparation and review of necessary documents relating to the Project, to consult with the City Attorney, Company and the purchaser of the Note as to the maturities, interest rates and other terms and provisions of the Note and as to the covenants and other provisions of the necessary documents and to submit such documents to the Council for final approval; 7. Nothing in this resolution or in the documents pre- pared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived from the Project or otherwise granted to the City for this purpose. The Note shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City except the revenue and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holder of the Note shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Note or the interest thereon, or to enforce payment thereof against any property of the City. The Note shall recite in substance that the Note including interest thereon, is payable solely from the revenue and proceeds pledged to the payment thereof. The Note shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation; 8. The adoption of this Resolution does not constitute a guaranty or a firm commitment that the City will issue the Note as requested by the Company. The City retains the right in its sole discretion to abstain from participation and accordingly not issue the Note should the City at any time prior to the issuance of the Note make a determination that it is not in the best interest of the City to issue the Note or should the parties to the transaction he unable to reach agreement as to the terms and conditions of any of the documents required to the transaction; 2 3s-6L 9. All commitments of the City expressed herein are subject to the condition that within 12 months of the date of adoption of this Resolution the City and the Company shall have agreed to mutually acceptable terms and conditions of the revenue agreement, the Note and other instruments and proceedings relating to the Note and its issuance and sale. If the events set forth herein do not take place within the time set forth above, or any extension thereof, and the Note is not sold within such time, this Resolution shall expire and be of • no further effect. Adopted by the City Council of the City of Eden Prairie, Minnesota, this 31st day cf October, 1981. Mayor Attest: City Clerk STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF EDEN PRAIRIE I, the undersigned, being the duly qualified and acting Clerk of the City of Eden Prairie, Minnesota, DO HERE B Y CERTIFY that I have compared the attached and foregoing ext r a c t of minutes with the original thereof on file in my office, a n d that the same is a full, true and complete transcript of th e minutes of a meeting of the City Council of said City duly called and held on the date therein indicated, insofar as s u c h minutes relate to a resolution giving preliminary approval t o a commercial facilities development project. WITNESS my hand and the seal of said City this day of , 1981. City Clerk (SEAL) 2W, 0 TO: Mayor & Council FROM: John Frane DATE: 10-29-81 RE: Preliminary approval MIDB's - Haakon Nyhammer (Little Red Store) - $360,000. Mr. Nyhammer proposes to construct a 4000 square foot facility to the south of the present store. The project would be owned and occupied by the Nyhammers and would employ 11 persons. The prop- erty is zoned C-Commercial which is correct for the intended use. Resolution 81-217 is enclosed for your consideration. C. -1- 23s1 CITY OF EDEN PRAIRIE, MINNESOTA Application for • Industrial Development Bond Project Financing 1. APPLICANT: a. Business Name - Eden Prairie Grocery •n• b. Business Address - 7447 Eden Prairie Road Eden Prairie, Minnesota c. Business Form (corporation, partnership, sole proprietor- ship, etc.) - sole proprietorship d. State of Incorporation or organization - e. Authorized Representative - Haakon J. Nyhammer f. Phone - 937-8892 2. NAME(S) AND ADDRESSES OF MAJOR STOCKHOLDERS OR PRINCIPALS: ' a. Haakon J. Nyhamrmr b. •••• -2- 2AAB GIVE BRIEF DESCRIPTION OF NATURE OF BUSINESS, PRINCIPAL PRODUCTS, ETC: Retail grocery Store and gasoline 4. DESCRIPTION OF PROJECT a. Location and intended use: 7447 Eden Prairie Road 'Retail grocery store b. Present ownership of project site: Applicant c. Names and address of architect, engineer, and general contractor: Mattson Builders Cokato, Minnesota 5. ESTIMATED PROJECT COST FOR: Land (Site prep & grading) $ 23,000 Construction Contracts 200,000 Equipment Acquisition and installation* 83,000 Architectural and Engineering 4,000 Legal 15,000 Interest during Construction Bond Reserve Contingencies 35,000 Loan Fees Other Total $ 360,000 'Heating and air conditioning should be included as building costs. Indicate the kind of equipment to be acquired here. 6. BOND ISSUE - a. Amount of proposed bond issue - $360,000 b. Proposed date of sale of bond - December, 1981 C. Length of bond issue and proposed maturities - 20 years d. Proposed original purchaser of bonds - None at this time e. Name and address of suggested trustee - N/A 1. Copy of any agreement between Applicant and original purchaser - N/A g. Describe any interim financing sought or available - Interim financing will be sought as part of bond issue b. Describe nature and amount of any permanent financing in addition to bond financing - None_anticip-ated7, 7. BUSINESS PROFILE - a. Are you located in the City of Eden Prairie? y es b. Number of employees in Eden Prairie? i. Before this project: 8 -3- 231 C- ii. After this project? 11 C. Approximate annual sales - $472,000 d. Length of time in business 15 yaarg in Eden Prairie ' 10 years e. Do you have plants in other locations? If so, where? No. 1. Are you engaged in international trade? No. S. OTHER INDUSTRIAL DEVELOPMENT PROJECT(S): a. List the name(s) and location(s) of other industrial development project(s) in which the Applicant is the owner or 's. "substantial user" of the facilities or a "releated person" within the meaning of Section 103(b)(6) of the Internal Revenue Code. None b. List all cities in which the Applicant has requested industrial revenue development financing. None c. Detail the status of any request the Applicant has before any other city for industrial development revenue financing. None d. List any city in which the Applicant has been refused industrial development revenue financing. None e. List any city (and the project name) where the Applicant has acquired preliminary approval to proceed but in which final approval authorizing the financing has been denied. None -5- 23s7C X. If Applicant has been denied industrial development revenue financing in any other city as identified in (d) or (e), specify the reason(s) for the denial and the name(s) of appropriate city officials who have knowledge of the transaction. None 9. NAMES AND ADDRESS OF: a. Underwriter (If public offering) N/A b. Private Placement Purchaser (If private placement) Not determined at this time i. If lender will not commit until City has passed its preliminary resolution approving the project, submit a letter from proposed lender that it has an interest in the offering subject to appropriate City approval and approval of the Commissioner of Securities. BY • bate -7- b. Bond Counsel c. Corporate Counsel d. Accountant — Michael E. Reeslund Dorsey, Whinhorst, Hannaford, Whitney & Halladay 2200 First Bank Place East Minneapolis, Minnesota 55402 Mr. Glenn Purdue Lefevere, Lefler, Pearson, O'Brian & Drawz 1100 First National BAnk.Building Minneapolis, Minnesota 55402 Mr. Robert Gastler Hancock Nelson Hampden Avenue St. Paul, Minnesota 10. WHAT IS YOUR TARGET DATE FOR: a. Construction start — Soon as possible b. Construction completion — 4 months after start FOR FURTHER INFORMATION CONTACT: The undersigned Applicant understands that the a p p r o v a l o r disapproval by the City of Eden Prairie for I n d u s t r i a l Development bond financing does not expressly o r i m p l i e d l y constitute any approval, variance, or waiver o f a n y p r o v i s i o n or requirement relating to any zoning, buildi n g , o r o t h e r r u l e or ordinance of the City of Eden Prairie, or a n y o t h e r l a w applicable to the property included in this pr o j e c t . it 11. ZONING - TO BE COMPLETED BY THE CITY PLANNING DEPARTMENT a. Property is zoned - 0-Conin&Q,A b. Present zoning T‘....S) (is not) correct for the intended use. c. Zoning application received on for which is correct for the intended use. d. Variances required - City Planner After all persons who wished to do so had stated their views on the proposal, the Mayor declared the hearing to be closed. After some discussion, Councilmember introduced the following resolution and (after it had been read in full) (after the reading of the resolution was dispensed with by unanimous consent) moved its adoption: RESOLUTION NO. , • • RESOLUTION RELATING TO4THEAAUTHORIZATION AND ISSUANCE OF REVENUE BONDS OF THE CITY UNDER MINNESOTA STATUTES, CHAPTER 474, FOR THE PURPOSE OF FINANCING A PROJECT THEREUNDER; AND AUTHORIZING AN APPLICATION BY THE CITY TO THE MINNESOTA COMMISSIONER OF SECURITIES BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota, as follows: Section 1. Recitals. 1.01. The Legislature of the State of Minnesota in Minnesota Statutes, Chapter 474, as amended (the Act), has found and declared that the welfare of the State requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental acts to prevent, so far as possible, emergence of blighted lands and areas of chronic unemployment; has authorized municipalities to issue revenue bonds to finance, in whole or in part, the cost of the acquisition, construction, reconstruction, improvement and betterment of projects, including any properties, real or personal, used or useful in connection with a revenue producing enterprise engaged in any business; and has authorized municipalities to enter into "revenue agreements", as defined in the Act, with any person, firm, or public or private corporation or federal or state governmental subdivision or agency (the Contracting Party) providing for the payment by the Contracting Party of amounts sufficient to provide for the prompt payment of principal and interest on the revenue bonds. -3- 1.02. It has been proposed that the City issue its revenue bonds, pursuant to the authority of the Act, in an amount not exceeding in the aggregate principal amount $360,000, or such lesser amount as may be necessary, to finance costs of acquisition, construction and equipping of a retail grocery store and related facilities on land located in the City (the Project) to be owned and operated by Haakon J. Nyhammer, an individual residing in the State of Minnesota (the Borrower); and to make the proceeds of such sale available to the Borrower. The Borrower will agree to pay the City amounts sufficient to pay promptly the principal of and interest on the revenue bonds, and will agree to cause the Project to be completed. The Project is presently estimated to cost approximately $360,000. 1.03. The City has been advised that conventional, commercial financing to pay the capital cost of the Project is available only on a limited basis and at such high costs of borrowing that the scope of the Project or the economic feasibility of operating the Project would be significantly reduced, but that with the aid of municipal financing, and its resulting low borrowing costs, the Project can be constructed as designed and its operation is economically more feasible. Section 2. Public Hearing. 2.01. As required by Section 474.01, Subdivision 7b, of the Act, this Council called and held a public hearing on the proposal to undertake and finance the Project. Notice of the time and place of the hearing, and stating the general nature of the Project and an estimate of the principal amount of bonds to be issued to finance the Project, was published at least once not less than fifteen days nor more than thirty days prior to the date fixed for the hearing, in the official newspaper of the City and a newspaper of general circulation of the City. A draft copy of the proposed application to the Minnesota Commissioner of Securities, together with all attachments and exhibits thereto, was available for public inspection following the publication of such notice at the place and times set forth in the notice. 2.02. All parties who appeared at the public hearing were given an opportunity to express their views with respect to the proposal to undertake and finance the Project. This Council has heard and considered the views expressed at the public hearing and the information submitted to the City by the Borrower. -4- 231T Section 3. Aurovals and Authorizations. 3.01. On the basis of information given the City to date, and the views expressed at the public hearing, it is found and determined that the Project furthers the purposes stated in Section 474.01 of the Act, and that it would be in the best interest of the City to issue its industrial development revenue bonds under the provisions of the Act to finance costs of the Project in an amount not to exceed $360,000 (the Bonds). 3.02. The Project is hereby given preliminary approval by the City and the issuance of the Bonds for such purpose approved. The Bonds shall not be issued until the Project has been approved by the Commissioner of Securities, as provided by the Act, and until the City and the Borrower have agreed upon the details of the Bonds and provisions for their payment. 3.03. If the Bonds are issued and sold, the City will enter into a lease, mortgage, direct or installment sale contract, loan agreement, take or pay or similar agreement, secured or unsecured, satisfying the requirements of the Act (the Revenue Agreement) with the Borrower. The amounts payable by the Borrower to the City under the Revenue Agreement will be sufficient to pay the principal, interest and redemption premium, if any, on the Bonds as and when the same shall become due and payable. 3.04. The Borrower has agreed to pay directly or through the City any and all costs incurred by the City in connection with the Project whether or not the Project is approved by the Commissioner of Securities; whether or not the Project is carried to completion; and whether or not the Bonds or Revenue Agreement and all other operative instruments are executed. 3.05. The adoption of this resolution does not constitute a guarantee or a firm commitment that the City will issue the Bonds as requested by the Borrower. 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 interest of the City not to issue the Bonds or should the City, Borrower and any other parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. -5- 23S1K 3.06. In accordance with the Act, the Mayor, City Manager and City Clerk are hereby authorized and directed to submit the proposal for the Project to the Minnesota Commissioner of Securities for her approval of the Project. The Mayor, City Manager, City Clerk, City Attorney and other officers, employees and agents of the City, in conjunction with Dorsey, Windhorst, Hannaford, Whitney & Halladay, Bond Counsel to the City, are hereby authorized to provide the Commissioner with any preliminary information she may need for this purpose, and the City Attorney is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project. 3.07. The City will cause the Borrower to comply with all of the provisions of the Act, including Section 474.01, Subdivision 8, thereof, in the issuance of the Bonds and the financing of the Project. 3.08. All commitments of the City expressed herein are subject to the condition that within twelve months of the date of adoption of this Resolution the City and the Borrower shall have agreed to mutually acceptable terms and conditions of the Revenue Agreement, the Bonds and of the other instruments and proceedings relating to the Bonds and their issuance and sale. If the events set forth herein do not take place within the time set forth above, or any extension thereof, and the Bonds are not sold within such time, this Resolution shall expire and be of no further effect. Section 4. Special Obligations. In all events, it is understood, however, that the Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the Project, if it becomes the property of the City, and from the revenues received from the Project and property pledged to the payment thereof, and shall not constitute a debt of the City. Section 5. Effective Date. This resolution shall be effective immediately upon its final adoption. PASSED AND FINALLY ADOPTED by the City Council of the City of Eden Prairie, this 31st day of October, 1981. Mayor Attest: City Clerk -6- ,23s1 L -7- .23s9 M The motion for the adoption of the foregoing resolution was seconded by Councilmember and, upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon said resolution was declared duly passed and finally adopted and was signed by the Mayor which was attested by the City Clerk. TO: Mayor & Council FROM: John Frane DATE: 10-29-81 RE: Preliminary approval of MIDB's - Eden Prairie Project 100 - $3,500,000. Joseph Whitney and Ken Barthel propose to construct a 100,000 square foot facility to the west of C.P.T. which would be leased to Barthel Homes, a manufacturer of prebuilt homes. Barthel Homes would employ approximately 50 persons. The proponents have requested rezoning on the parcel from Rural to 1-2 which will be correct for the use intended. Resolution 81-218 is attached for your consideration. —1— q2c 09 CITY OF EDEN PRAIRIE, MINNESOTA Application for Industrial Development Bond Project Financing • 1. APPLICANT: a. Busines .Name B.T. Partnership 'b. Business Address — 1614 Harmon Place Suite 300 Mpls., MN 55403 c. Business Form (corporation, partnership, sole p r o p r i e t o r - ship, etc.) — Partnership d. State of Incorporation or organization Minnesota e. Authorized Representative Joseph H. Whitney or Ken A. Barthel f. Phone — Whitney 333-3455 Barthel 428-4381 2. NAME(S) AND ADDRESSES OF MAJOR STOCKBOLDERS OR P R I N C I P A L S : it. Joseph H. Whitney b. Ken A. Barthel D.B.A. Tipton Corporation 1614 Harmon Place Mpls., MN 55403 D.B.A. Barthel Homes Inc. 21370 John Millass Dr. Rogers, MN 55374 Z. GIVE BRIEF DESCRIPTION OF NATURE OF BUSINESS , P R I N C I P A L PRODUCTS, ETC: Manufacturing and sale of prebuilt homes. 4. . DESCRIPTION OF PROJECT cuelr a. Location and intended use: Adjacent to and di r e c t l y . e a r r o f C.P.T. new facility, Legal attached. b. Present ownership of project site: M.S.R. Properties c. Names and address of architect, engineer, and gen e r a l contractor: Selection subject to financing of project. 5. .ESTIMATED PROJECT COST FOR: Land Building Equipment Other . $ 600 000 $P,630,000 $ -0- $ 340,000 Total $3,570,000 -2- .usrb 6. BOND ISSUE - a. Amount of proposed bond issue - $3,500,000 b. Proposed date of sale of bond - December 1981 - April 1981 c. Length of bond issue and proposed maturit i e s - 25 years with 10 year call. d. Proposed original purchaser of bonds Juran & Moody, Inc. e. Name and address of suggested trustee To be selected f. Copy of any agreement between App l i c a n t a n d o r i g i n a l pure.haser - None g. Describe any interim financing sought or a v a i l a b l e - Bank, interim credit line. h. Describe nature and amount of any permanen t f i n a n c i n g in addition to bond financing - None 7. BUSINESS PROFILE OF APPLICANT. a. Are you located in the City of Eden Prairi e ? Not • b. Number of employees in Eden Prairie? j. Before this project: None -3- 237 ii. After this project? 50 c. Approximate annual sales — $4 - 5,000,000 d. Length of time in business 10 years in Eden Prairie Not._ e. Do you have plants in other locations? If so, where? NO f. Are you engaged in international trade? NO . 8. OTHER INDUSTRIAL DEVELOPMENT PROJECT(S): a. List the name(s) and location(s) of other industrial . development project(s) in which the Applicant is the .owner or a "substantial user" of the facilities or a "releated person" within the meaning of Section 103(b)(6) of the Internal Revenue Code. None 12<-2,n ' -5- 7AcW. b. List all cities in which the Applica n t h a s r e q u e s t e d industrial revenue development financ i n g . NONE c. Detail the status of any request the A p p l i c a n t h a s b e f o r e any other city for industrial develo p m e n t r e v e n u e f i n a n c i n g . NONE d. List any city in which the Applicant h a s b e e n r e f u s e d industrial development revenue financ i n g . NONE e. List any city (and the project name) w h e r e t h e A p p l i c a n t has acquired preliminary approval to p r o c e e d b u t i n w h i c h final approval authorizing the financ i n g h a s b e e n d e n i e d . NONE — f. If Applicant has been denied i n d u s t r i a l d e v e l o p m e n t revenue financing in any oth e r c i t y a s i d e n t i f i e d in (d) or (e), specify the r e a s o n ( s ) f o r t h e d e n i a l and the name(s) of appropriat e c i t y o f f i c i a l s w h o have knowledge of the transac t i o n . None 9. NAMES AND ADDRESS OF: a. Underwriter (If public offeri n g ) Juran & Moody, Inc. b. Private Placement Purchaser ( I f p r i v a t e p l a c e m e n t ) Juran & Moody, Inc. f. If lender will not commit unt i l C i t y h a s ' passed its preliminary res o l u t i o n a p p r o v i n g the project, submit a letter f r o m p r o p o s e d lender that it has an interes t i n t h e offering subject to appropria t e C i t y approval and approval of the C o m m i s s i o n e r of Securities. 70fr6//c7 47/. Date Tipton Corporation Applicant o bate Applicant By b. Bond Counsel Dorsey, Windhorst, Hannaford, Whitney, Hal laday c. Corporate Counsel - John Gries, Attorney d. Accountant - To be selected. • 10. WHAT IS YOUR TARGET DATE FOR: a. Construction start - April 1, 1982 b. Construction completion - December 1,• 1982 FOR FURTHER INFORMATION CONTACT: The undersigned Applicant understands that the approval or disapproval by the City of Eden Prairie for Industrial Development bond financing does not expressly or impliedly• constitute any approval, variance, or waiver of any provision or requirement relating to any zoning, building, or other rule or ordinance of the City of Eden Prairie, or any other law applicable to the property included in this project. Barthel Hines, Inc. -7- 231 6 11. ZONING - TO BE COMPLETED BY THE CITY PLANNING DEPARTMENT a. Property is zoned - b. Present zoning (is) use. ) correct for the intended c. Zoning application received on for which is corrqct for the intended use. d. Variances required - City Planner -8- RESOLUTION NO. RESOLUTION GRANTING PRELIMINARY APPROVAL AND DETERMINING TO PROCEED WITH A PROJECT AND ITS FINANCING UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE COMMISSIONER OF SECURITIES FOR APPROVAL; AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota (the Municipality), as follows: SECTION 1 Recitals and Findings 1.1. This Council has received a proposal that the Municipality finance a portion or all of the cost of a proposed project under Minnesota Statutes, Chapter 474 (the Act), consisting of the acquisition of land and the construction thereon of a 100,000 square foot warehouse, manufacturing and office facility (the Project) by a joint venture company to be formed, consisting of Tipton Corp., a Minnesota corporation, and Barthel Homes, Inc., a Minnesota corporation, as the principal joint venturers, and one or more additional joint venturers to be named •(the Borrower). 1.2. At a public hearing, duly noticed and held on October 31, 1981, in accordance with the Act, on the proposal to undertake and finance the Project, all parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal to undertake and finance the Project. Based on such hearing and such other facts and circumstances as this Council deems relevant, this Council hereby finds, determines and declares as follows: (a) The welfare of the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental acts to prevent, so far as possible, emergence of blighted lands and areas of chronic unemployment, and the state of Minnesota has encouraged local government units to act to prevent such economic deterioration. (b) The Project would further the general purposes contemplated and described in Section 474.01 of the Act. .13511 (c) The existence of the Project would add to the tax base of the Municipality, the County and School District in which the Project is located and would provide increased opportunities for employment for residents of the Municipality and surrounding area. (d) This Council has been advised by representa- tives of the Borrower that conventional, commercial financing to pay the cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced, but that with the aid of municipal borrowing, and its resulting lower borrowing cost, the Project is economically more feasible. (e) This Council has also been advised by the Borrower that on the basis of their discussions with potential buyers of tax-exempt bonds, revenue bonds of the Municipality (which may be in the form of a commercial development revenue note or notes) could be issued and sold upon favorable rates and terms to finance the Project. (0 The Municipality is authorized by the Act to issue its revenue bonds to finance capital projects consisting of properties used and useful in connection with a revenue producing enterprise, such as that of the Borrower, and the issuance of such bonds by the Municipality would be a substantial inducement to the Borrower to acquire and construct the Project. SECTION 2 Determination to Proceed with the Project and its Financin9 2.1. It is desirable for the Municipality to issue its revenue bonds under the provisions of the Act to finance the Project in an amount of $3,500,000. I` v lk 01 2.2. It is hereby determined to grant preliminary r approval to and to proceed with the Project and its .‹ financing) and this Council hereby declares its present if ---rfiCent to have the Municipality issue its revenue bonds 0 under the Act to finance the Project. Notwithstanding the foregoing, however, the adoption of this resolution does not constitute a guarantee or a firm commitment that the Municipality will issue the revenue bonds as requested by the Borrower. The Municipality retains the right in its sole discretion to withdraw from participation and accord- ingly not issue the revenue bonds should the Municipality .23(20-- at any time prior to the issuance thereof determine that it is in the best interest of the Municipality not to issue the revenue bonds or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. All details of such revenue bond issue and the provisions for payment thereof shall be subject to final approval of the Project by the Minnesota Commissioner of Securities and may be subject to such further conditions as the Municipality may specify. The revenue bonds, if issued, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the Municipality, except the Project, and each bond, when, as and if issued, shall recite in substance that the bond, including interest thereon, is payable solely from the revenues received from the Project and property pledged to the payment thereof, and shall not constitute a debt of the Municipality within the meaning of any constitutional or statuatory limitation. 2.3. The Application to the Commissioner of Securities, with attachments, is hereby approved, and the Mayor, City Manager and City Clerk are authorized to execute satd documents in behalf of the Municipality. 2.4. In accordance with Section 474.10, Subdivision 7a of the Act, the Mayor, City Manager and City Clerk are hereby authorized and directed to cause the Application to be submitted to the Commissioner of Securities for approval of the Project. The Mayor, City Manager, City Clerk, City Attorney and other officers, employees and agents of the Municipality are hereby authorized and directed to provide the Commissioner with any preliminary information the Commissioner may need for this purpose, and the City Attorney is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project, if it is approved by the Commissioner. SECTION 3 General 3.1. If the bonds are issued and sold, the Municipality will enter into a lease, sale or loan agreement or similar agreement satisfying the requirements of the Act (the Revenue Agreement) with the Borrower. The lease rentals, installment sale payments, loan payments or other amounts payable by the Borrower to the Municipality under the Revenue Agreement shall be sufficient to pay the principal, interest and redemption premium, if any, on the bonds as and when the same shall become due and payable. 23sx K 3.2. The Borrower has agreed to pay directl y o r t h r o u g h the Municipality any and all costs incurred b y t h e Municipality in connection with the Project w h e t h e r o r n o t the Project is approved by the Commissioner o f S e c u r i t i e s ; whether or not the Project is carried to com p l e t i o n ; a n d whether or not the revenue bonds or operativ e i n s t r u m e n t s are executed. 3.3. The Mayor, City Manager and City Clerk a r e d i r e c t e d , if the bonds are issued and sold, thereafter t o c o m p l y with the provisions of Minnesota Statutes, S e c t i o n 4 7 4 . 0 1 , Subdivision 8. 3.4. All commitments of the Municipality ex p r e s s e d h e r e i n are subject to the condition that within 12 m o n t h s o f t h e date of adoption of this resolution the Mun i c i p a l i t y a n d the Borrower shall have agreed to mutually a c c e p t a b l e terms and conditions of the revenue Agreeme n t , t h e b o n d s and of the other instruments and proceeding s r e l a t i n g t o the bonds and their issuance and sale. If t h e e v e n t s s e t forth herein do not take place within the t i m e s e t f o r t h above, or any extension thereof, and the bond s a r e n o t sold within such time, this resolution shal l e x p i r e a n d b e of no further effect. Adopted this day of October, 1981. Mayor Attest: City Clerk (SEAL) The motion for the adoption of the foregoing resolution was duly seconded by Member and upon vote being taken thereon, the foll o w i n g v o t e d i n favor thereof: and the following voted against the same: whereupon the resolution was declared duly pa s s e d a n d adopted. 28SZL •• gnyril ''''•Ut Part Of th• Went 1/:` or s:,rtaear... 'Pt or ',•••*. • nn •1 16, Township . W" r d de:;c 1 i • ro. corhoc Wto:t ttc•aNt 10...!c• :',uth 11 1,-e th. E.irt I joy , Vow. int _Ve •t 1,r . :Ito 'Aetna , point of 0t....,IhrIng of thc trite!. or 'an.1 I. 0.,.oribod; ..ronco Wonterly Oc"lec%iug to the right ut an an,,le "" 0 n lemr..4.3 minuteu 12 :lecon&;, dintan•, or 231.31 feet; westerly on a tangental curve to the left 0.1..4i ratiu,.. or 5829.58 ..eet a distance of 1097.139 feet, MOFV or lens, to the lint. or • West of 3ort'new..: 1/4; thnce Vouth a!ong ,;4 4 .! CO' Went 1/2 of Northeast l/4 to a point tiiere;a ff.t•t Nor0! of tie Sont ,!went co-ner of said West 0 %,..r. .•,4t :/4• Xan:erly parallel w:th %h• !.:out.1 ...Inv of Wc t :/P 0' • "' -ov.%lenst 1/4, a dintarce or feet; ta-n ,” Nor ..h para22.0. • h We ..;:t 1 •• or ,., wout, A 0° .1.7.%,15 feet; ...,•erre !.!ort'ne;.nter_y to a no:ut :n thc 'oh% line •f • went 1/r of .ae ih e'.;tn“t :0 r ,o, North of .th.e foutoas.t corner or na1d .7/'.? of Nort n o.ov, North along %he Sast line of said Wen.. lip or No ?..,!,..:,u ; "e ac•.o.v.1 cr begnninr. First Party property Legal Description Steven Bruce and Bradley Hoyt intend to construct a 130,000 square foot office warehouse facility on Lot 2 Block 2 Le Parc Addition. The building will be 50% leased to companies owned by the Hoyts. The estimated cost of the project is $4,855,000 and would employ about 260 persons. The property is zoned 1-2 which is correct for the intended use. Resolution 81-219 is attached for your consider- ation. TO: Mayor & Council FROM: John Frane DATE: 10-29-81 RE: MIDB's for Hoyt Investment - $4,000,000. C . Bradley S. Hoyt, 150 West 88th Street, Bloomington, MN 55420 -1- 23sq4 CITY OF EDEN PRAIRIE, MINNESOTA Application for Industrial Development Bond Project Financing 1. APPLICANT: - a. Business Name - HOYT INVESTMENT COMPANY b. Business Address - 150 West 88th Street, Bloomington, Minnesota c. Business Form (corporation, partnership, sole proprietor- ship, etc.) - Partnership d. State of Incorporation or organization - Minnesota e. Authorized Representative - Steven B. Hoyt Bruce K. Hoyt Bradley A. Hoyt Gayle J. Hoyt f. Phone - (612) 884-4338 • 2. NAME(S) AND ADDRESSES OF MAJORSTOCKHOLDERS OR PRINCIPALS: Steven D. Hoyt, 10601 Niblick Lane, Eden Prairie, MN 55343 a. b Bruce K. Hoyt, 9133 Forest Hills Circle. Bloomington, MN 55437. 3. GIVE BRIEF DESCRIPTION OF NATURE OF BUSINESS, PRINCIPAL PRODUCTS, ETC: Hoyt Construction Inc., general contractor. Vinyl Therm Inc., window manufacturer and plastics extruder. Hoyt Investment Company, office/warehouse developer. 9. DESCRIPTION OF PROJECT Multi-tenant office warehouse building comprising 130,000 square. feet of net rentable area, more or less. a. Location and intended use: Lot 2, Block 2, Le Parc. b. Present ownership of project site: Bruce Hoyt, Contract Vendee; Galaxy Developers Inc., Contract Vendor. c. Names and address of architect, engineer, and general contractor: Architect: The Design Partnership, Ltd., 15 So. 5th St., Minneapolis. General Contractor: Hoty Construction Inc. Engineer: Osmera and Associates, Minneapolis 5. ESTIMATED PROJECT COST FOR: Land $. 600,000 Construction Contracts Equipment Acquisition and installation* -0- Architectural and Engineering Legal Interest during Construction Bond Reserve Total $ 9,855,000 *Heating and air conditioning should be included as building costs. Indicate the kind of equipment to be acquired here. -2- 30,000 Contingencies Loan Fees Other ')5,(1 00 isnn,nn0 7631, nn0 cn .nnn 120 000 23510 BOYD ISSUE - a. Amount of proposed bond issue - $4,000,000 b. Proposed date of sale of bond - March 1, 1982 c. Length of bond issue and proposed maturities - 25 years - monthly principal and interest amirtization d. Proposed original purchaser of bonds - unknown e. Name and address of suggested trustee - unknown f. Copy of any agreement between Applicant and original purchaser - None g. Describe any interim financing sought or available - None • h. Describe nature and amount of any permanent financing in addition to bond financing - None 7. BUSINESS PROFILE OF APPLICANT. a. Are you located in the City of Eden Prairie? No. .1). Number of employees in Eden Prairie? None. i. Before this project: None. -3- )3S4 ii. After this project? 260 (including tenants) c. Approximate annual sales - $40,000,000 (including all tenants) d. Length of time in business Hoyt Construction Inc. - 30years; Vinyl Therm, Inc., 5 years; Hoyt Investment Company, 7 years. in Eden Prairie None. e. Do you have plants in other locations? If so, where? None. f. Are you engaged in international trade? Currently establishing international trade representative for Vinyl Therm, Inc. . 8. OTHER INDUSTRIAL DEVELOPMENT PROJECT(S): a. List the name(s) and location(s) of other industrial development project(s) in which the Applicant is the owner or a "substantial user" of the facilities or a "releated person" within the meaning of Section 103(b)(6) of the Internal Revenue Code. We have applied for IDB approval for 1321 East 79th Street, in Bloomington, Minnesota. We do not, at this time, anticipate utilizing IDB financing for that project. -4- 259D b. List all cities in which the Applicant has requested industrial revenue development financing. Bloomington. c. Detail the status of an; request the Applicant has before any other city for industrial development revenue financing. See a. above. d. List any city in which the Applicant has been refused industrial development revenue financing. None. , e. List any city (and the project name) where the Applicant has acquired preliminary approval to proceed but in which final approval authorizing the financing has been denied. None. f. If Applicant has been denied industrial development revenue financing in any other city as identified in (d) or (c), specify the reason(s) for the denial and the name(s) of appropriate city officials who have knowledge of the transaction. None. 9. NAMES AND ADDRESS OF: a. Underwriter (If public offering) Northland Mortgage Company and Juran & Moody Inc. 6600 France Ave. So. Edina, Minnesota 55435 b. Private Placement Purchaser (If private placement) Not known i. If lender will not commit until City has ' passed its preliminary resolution approving the project, submit a letter from proposed lender that it has an interest in the offering subject to appropriate City approval and approval of the Commissioner of Securities. b. Bond Counsel - Verlane L. Endorf 2200 First Bank Place East, Minneapolis, MN 55402 c. Corporate Counsel - Steven P. Hoyt, 150 West 88th Street, Minneapolis, MN 55420 d. Accountant - Lawrence Carlson, CPA, 402 Main Street, Anoka, MN 10. WHAT IS YOUR TARGET DATE FOR: a. Construction start - March 1, 1982 b. Construction completion - November 1, 1982 . FOR FURTHER INFORMATION CONTACT: STEVEN B. HOYT The undersigned Applicant understands that the approval or disapproval by the City of Eden Prairie for Industrial Development bond financing does not expressly or impliedly constitute any approval, variance, or waiver of any provision or requirement relating to any zoning, building, or other rule or ordinance of the City of Eden Prairie, or any other law applicable to the property included in this project. HOYT INVESTMENT COMPANY 11. ZONING - TO DE COMPLETED BY THE CITY PLANNING DEPARTMENT a. Property is zoned - b. Present zoning as (is not) correct for the intended use. C. Zoning application received on which is correct for the intended use d. Variances required - City Planner for RESOLUTION NO. RESOLUTION GIVING PRELIMINARY APPROVAL TO, AND DETERMINING TO PROCEED WITH A PROJECT AND ITS FINANCING UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE COMMISSIONER OF SECURITIES AND REAL ESTATE FOR APPROVAL; AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota (the Municipality), as follows: SECTION 1 Recitals and Findings 1.1. This Council has received a proposal that the Municipality finance a portion or all of the cost of a proposed project under Minnesota Statutes, Chapter 474 (the Act), consisting of the acquisition of land and the construction and equipping thereon of an office and warehouse building (the Project) by Hoyt Investment Company a Minnesota general partnership (the Borrower). 1.2. At a public hearing, duly noticed and held on October 31, 1981, in accordance with the Act, on the proposal to undertake and finance the Project, all parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal to undertake and finance the Project. Based on the public hearing and such other facts and circumstances as this Council deems relevant, this Council hereby finds, determines and declares as follows: (a) The welfare of the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental acts to prevent, so far as possible, emergence of blighted lands and areas of chronic unemployment, and the State of Minnesota has encouraged local government units to act to prevent such economic deterioration. (b) The Project would further the general purposes contemplated and described in Section 474.01 of the Act. (c) The existence of the Project would add to the tax base of the Municipality, Hennepin County and -3- 23s-Cr. School District in which the Project is located and would provide increased opportunities for employment for residents of the Municipality and surrounding area. (d) This Council has been advised by representatives of the Borrower that conventional, commercial financing to pay the cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced, but that with the aid of municipal borrowing, and its resultirg lower borrowing cost, the project is economically more feasible. (e) This Council has also been advised by the Borrower that on the basis of their discussions with potential buyers of tax-exempt bonds, revenue bonds of the Municipality (which may be in the form of a commercial development revenue note or notes) could be issued and sold upon favorable rates and terms to finance the Project. (f) The Municipality is authorized by the Act to issue its revenue bonds to finance capital projects consisting of properties used and useful in connection with a revenue producing enterprise, such as that of the Borrower, and the issuance of the bonds by the Municipality would be a substantial inducement to the Borrower to acquire and construct the Project. SECTION 2 Determination to Proceed with the Project and its Financing 2.1. On the basis of the information given the Municipality to date, it appears that it would be desirable for the Municipality to issue its revenue bonds under the provisions of the Act to finance the Project in an estimated total amount of $4,000,000. S AC orlr 2.2. The City hereby gives preliminary approval to, and it is hereby determined to proceed with, the project and its financingland this Council hereby declares its present intent to have the Municipality issue its revenue bonds under the Act to finance the Project. Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the Municipality or its City Council to issue or to cause the issuance of such revenue bonds. All details of such revenue bond issue and the provisions for payment thereof shall be subject to final approval of the Project -4- 23T by the Minnesota Commissioner of Securities and Real Estate and may be subject to such further conditions as the Municipality may specify. The revenue bonds, if issued, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the Municipality, except the Project, and each bond, when, as and if issued, shall recite in substance that the bond, including interest thereon, is payable solely from the revenues received from the Project and property pledged to the payment thereof, and shall not constitute a debt of the Municipality within the meaning of any constitutional or statutory limitation. 2.3. The Application to the Commissioner of Securities and Real Estate, with attachments, is hereby approved, and the Mayor and City are authorized to execute said documents in behalf of the Municipality. 2.4. In accordance with Section 474.10, Subdivision 7a of the Act, the Mayor and City Manager and Finance Director/Clerk are hereby authorized and directed to cause the Application to be submitted to the Commissioner of Securities and Real Estate for approval of the Project. The Mayor, City Manager, Finance Director/Clerk, City Attorney and other officers, employees and agents of the Municipality are hereby authorized and directed to provide the Commissioner with any preliminary information needed for this purpose. The City Attorney is authorized to initiate and assist in the preparation of documents as may be appropriate to the Project, if approved by the Commissioner. SECTION 3 General 3.1. If the bonds are issued and sold, the Municipality will enter into a lease, sale or loan agreement or similar agreement satisfying the requirements of the Act (the Revenue Agreement) with the Borrower. The lease rentals, installment sale payments, loan payments or other amounts payable by the Borrower to the Municipality under the Revenue Agreement shall be sufficient to pay the principal, interest and redemption premium, if any, on the bonds as and when the same shall become due and payable. 3.2. The adoption of this resolution does not constitute a guarantee or a firm commitment that the Municipality will issue the bonds as requested by the Borrower. The Municipality retains the right in its sole discretion to -5- i•Irea {.) MEMORANDUM TO: Mayor and City Council FROM: City Manager Carl Jullie SUBJECT: Review of City Code DATE: October 30, 1981 The following is a suggested schedule for review of the City Code: November 12: Chapter 1. General Provisions and Definitions Applicable to Entire City Code Including Penalty for Violation Chapter 2. Administration and General Government November 17: Chapter 3. Municipal and Public Utilities - Rules and Regulations, Rates, Charges and Collections Chapter 4. Beer, Wine and Liquor Licensing and Regulation Chapter 5. Other Business Regulation and Licensing December 1 and December 8: Chapter 6. Streets and Sidewalks Generally Chapter 7. Traffic Regulations Chapter 8. Parking Regulations Chapter 9. Public Protection, Crimes and Offenses January 5, January 12 and January 19: • Chapter 10. Construction Permits and Regulations Chapter 11. Zoning Regulations Chapter 12. Subdivision Regulations Chapter IL Shoreland Management Public Hearing on February 17 for Chapter 11. Suggest special meetings go from 6:00 - 9:00 PM. CJJ:jp