HomeMy WebLinkAboutResolution - 95-179 - Release of Developer's Agreement - Hartford Real Estate - 10/03/1995 RELEASE OF DEVELOPER'S AGREEMENT
BETWEEN HARTFORD REAL ESTATE COMPANY
AND THE CITY OF EDEN PRAIRIE
RESOLUTION NO. 9 5 - 1 7 9
Whereas, the City and Hartford Real Estate Company ("Hartford") entered into a
Developer's Agreement dated July 3, 1979, and filed August 28, 1979 in the office of the
Registrar of Titles in and for Hennepin County, Minnesota as Document No. 1345096
("Developer's Agreement") and
Whereas, among the properties subject to the Developer's Agreement is the following
described property ("Release Property").
Lot 2, Block 1 and Lots 1, 2 and 3, Block 2, Prairie Lakes
Business Park, and
Whereas, Ryan Construction Company of Minnesota, Inc. ("Ryan") is a successor in
interest to Hartford and is the current fee owner of the Release Property and,
Whereas, the obligations of Developer under the Developer's Agreement with respect to
the Release Property have now been superseded, amended, released or otherwise terminated
pursuant to Developer Agreements between the City of Eden Prairie and Ryan Construction
Company of Minnesota, Inc. dated November 1, 1994 and September 5, 1995 and that the parties
have therefore agreed that the Release Property is no longer subject to the terms of the
Developer's Agreement.
NOW, THEREFORE, in consideration of the foregoing and other valuable consideration
given to the City, the receipt and sufficiency of which is hereby acknowledged, the City hereby
releases the Release Property from the Developer's Agreement.
CITY OF EDEN PRAIRIE
IE
fiBy
is Mayor
And By
Its ity Man
currently employs 245 people and it is expected that approximately
47 additional persons will be employed following completion of the
Project;
(f) The City has been advised by representatives of
Company 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 economic feasibility of
operating the Project would be significantly reduced;
(g) A public hearing on the Project was held on
September 19, 1995, after notice was published and materials made
available for public inspection at the City Hall, all as required
by Section 469 .154, Subdivision 4, of the Act, at which public
hearing all those appearing who desired to speak were heard and
written comments were accepted; and
(h) No public official of the City has either a
direct or indirect financial interest in the Project nor will any
public official either directly or indirectly benefit 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 the
proposal of Company that the City undertake the Project pursuant to
the Act, consisting of the acquisition and construction of
facilities within the City pursuant to Company' s specifications
suitable for the operations described above and to a revenue
agreement between the City and Company upon such terms and
conditions with provisions for revision from time to time as
necessary, so as to produce income and revenues sufficient to pay,
when due, the principal of and interest on the Bonds in the total
principal amount of approximately $3, 000, 000 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
Bonds; and the City hereby undertakes preliminarily to issue its
Bonds 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 more revenue producing enterprises engaged in any business
within the meaning of Subdivision 2 (a) of Section 469 .153 of the
Act; that the Project furthers the purposes stated in Section
469 .152; 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
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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 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 Minnesota
Department of Trade and Economic Development ("DTED") , and subject
to final approval by this Council, Company, and the purchaser of
the Bonds as to the ultimate details of the financing of the
Project.
4 . The Mayor is hereby authorized and directed to submit the
proposal for the Project to DTED requesting its approval, and other
officers, employees and agents of the City are hereby authorized to
provide DTED with such preliminary information as it may require.
5 . Owner and Company have agreed and it is hereby determined
that any and all costs incurred by the City in connection with the
financing of the Project whether or not the Project is carried to
completion and whether or not approved by the DTED will be paid by
Company or Owner.
6. Briggs and Morgan, Professional Association, acting as
bond counsel, and Norwest Bank Minnesota, National Association, as
placement agent, are authorized to assist in the preparation and
review of necessary documents relating to the Project, to consult
with the City Attorney, Company, Owner and the purchaser of the
Bonds as to the maturities, interest rates and other terms and
provisions of the Bonds 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 prepared
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
Bonds 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 Bonds
shall never have the right to compel any exercise of the taxing
power of the City to pay the outstanding principal on the Bonds or
the interest thereon, or to enforce payment thereof against any
property of the City. The Bonds shall recite in substance that the
Bonds including interest thereon, are payable solely from the
revenue and proceeds pledged to the payment thereof. The Bonds
shall not constitute a debt of the City within the meaning of any
constitutional or statutory limitation.
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8 . In anticipation of the approval by DTED and the issuance
of the Bonds to finance all or a portion of the Project, and in
order that completion of the Project will not be unduly delayed
when approved, Company and Owner are hereby authorized to make such
expenditures and advances toward payment of that portion of the
costs of the Project as Company and Owner consider necessary,
including the use of interim, short-term financing, subject to
reimbursement from the proceeds of the Bonds if and when delivered
but otherwise without liability on the part of the City.
9 . 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 Owner and Company. The City retains the right
in its sole discretion to withdraw from participation and
accordingly not to issue the Bonds, or issue the Bonds in an amount
less ' than $3, 000, 000 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 issue the Bonds in the amount of
$3, 000, 000, or should the parties to the transaction be unable to
reach agreements as to the terms and conditions of any of the
documents required for the transaction.
10 . All commitments of the City expressed herein are subject
to the condition that the City, the Owner and the Company shall
have agreed to mutually acceptable terms and conditions of the loan
agreement, the Bonds, and of the other instruments and proceedings
relating to the Bonds and that the closing of the issuance and sale
of the Bonds shall have occurred by no later than December 31,
1996 . 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.
Adopted by the City Council of the City of Eden Prairie,
Minnesota, this 3rd day of Oct o 1995 .
Mayor
Attest:
i ff Clerk
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