HomeMy WebLinkAboutResolution - 95-165 - Industrial Development Revenue Bonds - Anagram International - 09/05/1995 Council Member moved the adoption
of the resolution. (�C _ '� 6 5
BE IT RESOLVED by the City Council of the City of Eden Prairie,
Minnesota (the "City") , as follows:
SECTION 1
Recitals and Findings
1.1. This Council has received a proposal that the City
finance a portion or all of the cost of a proposed project under
Minnesota Statutes, Sections 469.152 through 469. 165 (the "Act") ,
on behalf of Anagram International, Inc. , a Minnesota corporation
(the "Borrower") , consisting generally of financing the equipment
to be used in a manufacturing facility for the Borrower, at 7700
Anagram Drive in the City (the "Project") .
1.2. For the purpose of providing revenue-producing
enterprises, the City is authorized by Minnesota Statutes,
Sections 469.152 through 469.165, as amended (the "Act") , to
enter into loan agreements with corporations providing for the
City to loan the proceeds derived from the issuance of revenue
bonds to the corporation to be used to pay the costs of a project
a defined in the Act and providing for the repayment of the loan
by the Corporation.
1.3 . At a public hearing, duly noticed and held on September
5, 1995, in accordance with the Act and Section 147 (f) of the
Internal Revenue Code of 1986, 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. Interested
persons were also given the opportunity to submit written
comments to the Mayor before the time of the hearing. Based on
the public hearing, such written comments (if any) 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 the
provision of necessary manufacturing facilities to the end that
adequate revenue producing enterprises be made available to
residents of the State of Minnesota at reasonable cost, and the
State of Minnesota has encouraged local government units to act
to provide such facilities.
(b) The undertaking of the Project would further the
general purposes contemplated and described in Section 469.152 of
the Act.
(c) This Council has been advised by representatives of the
Borrower that conventional, commercial financing to pay the cost
of the Project is available only at such high costs of borrowing
that the economic feasibility of the Project would be reduced.
(d) This Council has also been advised by representatives
of the Borrower that on the basis of their discussions with
potential buyers of tax-exempt bonds, revenue bonds of the City
(which may be in the form of a revenue note or notes) could be
issued and sold upon favorable rates and terms to finance the
Project.
(e) The City is authorized by the Act to issue its revenue
bonds to finance and refinance capital projects consisting of
properties used and useful in connection with a revenue producing
enterprise engaged in providing manufacturing facilities, such as
that of the Borrower, and the issuance of the bonds by the City
would be a substantial inducement to the Borrower to undertake
the Project.
SECTION 2
Determination To Proceed with the Project and the Financing
2.1. On the basis of the information given the City to date,
it appears that it would be desirable for the City to issue its
revenue bonds in one or more series under the provisions of the
Act to finance the Project in an amount not to exceed $6,000,000.
2.2. It is- hereby determined to proceed with the Project and
the financing and this Council hereby declares its present intent
to have the City 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 City or its 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 by the
Minnesota Department of Trade and Economic Development (the
"Department") and may be subject to such further conditions as
the City may specify. The revenue bonds, if issued, shall not
constitute a charge, lien or encumbrance, legal or equitable,
upon any property of the City, except the revenues specifically
pledged to the payment thereof, and each bond, when, as and if
issued, shall recite in substance that the bond, including
interest thereon, is payable solely from the revenues and
property specifically pledged to the payment thereof, and shall
not constitute a debt of the City within the meaning of any
constitutional, statutory or charter limitation.
2.3. The Application to the Minnesota Department of Trade
and Economic Development (the "Application") , with attachments,
is hereby approved, and the Mayor and City Manager are authorized
to execute said documents on behalf of the City.
2.4. In accordance with Section 469.154, Subdivision 3 of
the Act, the Mayor and City Manager are hereby authorized and
directed to cause the Application to be submitted to the
Department for approval of the Project. The Mayor, City Manager,
City Counsel and other officers, employees and agents of the City
are hereby authorized and directed to provide the Department with
any preliminary information needed for this purpose. The City
Counsel is authorized to initiate and assist in the preparation
of such documents as may be appropriate to the Project, if
approved by the Department.
SECTION 3
General
3. 1. If the Bonds are issued and sold, the City will enter
into a loan agreement or similar agreement satisfying the
requirements of the Act (the "Revenue Agreement") with the
Borrower. The loan payments or other amounts payable by the
Borrower to the City under the Revenue Agreement shall be
sufficient to pay the principal of, and interest and redemption
premium, if any, on, the bonds as and when the same shall become
due and payable.
3 .2. The Borrower has agreed and its hereby determined that
any and all direct and indirect costs incurred by the City in
connection with the Project, whether or not the Project is
carried to completion, and whether or not approved by the
Department, and whether or not the City by resolution authorizes
the issuance of the bonds, will be paid by the Borrower upon
request.
3 .3 . The Mayor and City Manager are directed if the bonds
are issued and sold, thereafter to comply with the provisions of
Section 469.154, Subdivisions 5 and 7 of the Act.
3 .4. This resolution shall become effective immediately upon
its passage.
Council Member seconded the above
resolution and upon vote being taken thereon the following voted
in favor:
and the following voted against the same:
and the following were absent and not voting:
95 - � 65
Adopted by the City Councijyon Prairie, this 5th day of
September, 1995.
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ATTEST:
Ci rcleW
I, John Frane, City Clerk of the City of Eden Prairie,
Minnesota, hereby certify that the above is a true and exact copy
of the resolution dated September 5, 1995, original of which is
on file and of record in my office.
Witness my hand and the official seal of the said City this
5th day of September, 1995.
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Ci erk
(SEAL)