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HomeMy WebLinkAboutResolution - 99-235 - Elim Shores - Project Preliminary Approval Subject to a Public Hearing - 12/21/1999 CITY OF EDEN PRAIRIE HENNEPIN COUNTY,NIINNESOTA RESOLUTION NO. 99-235 RESOLUTION RELATING TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, GIVING THE PROJECT PRELIlVIlNARY APPROVAL SUBJECT TO A PUBLIC HEARING BE IT RESOLVED by the City Council of the City of Eden Prairie,Hennepin County, Minnesota, as follows: Section 1. Policy and Purpose. 1.1. For the purpose of providing revenue-producing enterprises,the City is authorized by Minnesota Statutes, Sections 469.152 through 469.1651, 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 as defined in the Act and providing for the repayment of the loan by the corporation. 1.2. Elim Homes, Inc., a Minnesota nonprofit corporation (referred to herein as the "Company"), has requested that the City issue its revenue bonds (the 'Bonds") in the aggregate principal amount not to exceed$1,000,000 under the provisions of the Act to pay for the costs of financing the construction of a corporate office facility for the Company(the"Project"). The facility to be financed by the Bonds will be located at the southeast corner of the intersection of Office Ridge Circle and Valley View Road in the City. 1.3. The Project would increase the level of economic activity in the City and to the residents of the City and surrounding area. 1.4. The City is advised by representatives of the Company that with the aid of municipal financing,and the resulting lower borrowing cost,the Project would be significantly more feasible. The City is further advised by the Company that approval of municipal financing would be a significant inducement to the undertaking of the Project by the Company. Section 2. Findings. 2.1. Subject to the holding of a public hearing according to law, it appears the issuance of the Bonds will be in the public interest and any competitive nature and impact and effect of the issue upon existing industry and business will not result in an unfair advantage for the proposed project to the substantial detriment of existing enterprises. Section 3. Approval and Authorization. -1- 3.1. Subject to the holding of a public hearing according to law and subject to the mutual agreement of the City, the Company and the initial purchaser of the Bonds as to the details of an indenture, loan agreement and/or other documents necessary to evidence and effect the financing of the Project and the issuance of the Bonds,the issuance of revenue bonds of the City,in one or more series, in an amount not to exceed$1,000,000 is hereby preliminarily approved and authorized to finance the Project. 3.2. Neither this preliminary commitment nor any actions, agreements, or legal matters related hereto or executed in pursuant hereof,shall in any manner or form create an indebtedness of liability of the City. 3.3. The passage of this resolution does not finally commit the City to issue the Bonds nor, if applicable, establish priority for purposes of staying within the limitations established by federal law for the amount of private activity bonds that may be issued by the City of Eden Prairie or the State of Minnesota. Section 4. Public Hearin. 4.1. Since a public hearing, after notice according to law, is required for final approval of the issuance of the Bonds, a public hearing on the issuance of the Bonds shall be held at the City Hall, 8080 Mitchell Road,Eden Prairie,Minnesota, on a date to be determined by the City Clerk and the City Clerk is hereby instructed to give notice of such public hearing according to law at least 14 days prior to the public hearing. 4.2. The form of public notice attached to this Resolution is hereby approved. Section 5. City Costs and Other Matters. 5.1 The Company 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 Minnesota Department of Trade and Economic Development;whether or not the Project is carried to completion; and whether or not the Bonds or operative instruments are executed. 5.2 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 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 the amount referred to in Section 1 hereof, 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 an amount less than referred to in Section 1 hereof, 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. 5.3 All commitments of the City expressed herein are subject to the condition that the City 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 -2- the closing of the issuance and sale of the Bonds shall have occurred by no later than December 31, 2000. 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 Eden Prairie,this 21st day of December, 1999. jJeanL. Harris,&ayor ATTEST: Kathleen Porta, City Clerk -3- NOTICE OF PUBLIC HEARING ON THE ISSUANCE BY THE CITY OF EDEN PRAIRIE, MR,NESOTA OF ITS REVENUE BONDS TO LOAN THE PROCEEDS OF THE REVENUE BONDS TO ELM HOMES,INC. TO FINANCE THE CONSTRUCTION OF A CORPORATE OFFICE FACILITY NOTICE IS HEREBY GIVEN that the City of Eden Prairie,Minnesota(the"City")will conduct a public hearing on January 18, 2000 at 7:00 p.m. at 8080 Mitchell Road, Eden Prairie, Mimnesota,for the purpose of receiving any and all comments,reports or other information from the public and any interested persons or parties on the proposed issuance by the City of its revenue bonds for the purpose of financing approximately$1,000,000 of construction of a corporate office facility for the benefit of Elim Homes, Inc., a Minnesota nonprofit corporation (the 'Borrower") under the Minnesota Municipal Industrial Development Act,Minnesota Statutes, Sections 469.152 through 469.1651 (the"Act"). The proceeds of the revenue bonds will be loaned to the Borrower to finance approximately$1,000,000 of construction of a corporate office facility. The Project will be owned by, operated and managed by the Borrower. The Project will be located at the southeast corner of the intersection of Office Ridge Circle and Valley View Road, Eden Prairie,Minnesota. The Project will be used as an office facility. The purpose of the public hearing will be to receive information on a proposal that the City issue its Revenue Bonds under the Act in order to loan the proceeds to the Borrower. The maximum principal amount of the total of the Bonds will be $1,000,000 with the proposed issue presently expected to be$1,000,000. The Bonds will not be general obligations of the City,nor shall they be payable in any manner by taxation. The Revenue Bonds will be payable solely from the revenues of the Project pledged to the payment thereof, from investment proceeds and from other revenues of the Borrower, except that the Bonds may be secured by other encumbrances on the Project. The public hearing will be conducted by the Mayor of the City or some other person delegated to conduct the hearing by the Mayor. All persons interested may appear and be heard at the time and place set forth above or may file written comments with the Mayor of the City prior to the date of the hearing. The City is expected to meet and act on the final approval to issue Bonds promptly upon completion of the hearing. A copy of the Application of the City for approval of the Project, together with all attachments and exhibits thereto is available for public inspection at City Hall, 8080 Mitchell Road, Eden Prairie, Minnesota from the date of this notice to the date of the public hearing hereinabove identified, during normal business hours. C OF EDEN P SOTA ean L.Harris,Mayor -5-