HomeMy WebLinkAboutResolution - 785 - Preliminary Plat Approval to a Project Under Municipal Industrial Development Act - 11/27/1973 No. 785
RESOLUTION GIVIN7G PI:i-LIt-!IN_\RY APPROVAL
TO A PROJECT UNDER THE MUNICIPe,,L INDUSTRIAL
DEVELOPMENT ACT, REFERRING THE PROPOSAL
TO THE DEPARTMENT OF ECON01HIC DEVELOPMENT
FO.t APPROVAL, AU' I1ORILING IU"PARATION OF
NECESSARY DOCUMENTS AND EXPENDITURES IN
ANTICIPATION OF THE I SSUAN E' OF THE BONDS
BE IT RESOLVED by the Villa,:;e Council of the Village
of Eden Prairie, Minnesota , as follows :
It is hereby found, determined, and declared as
follows :
1 . 1 The welfare of the State of Minnesota requires
active promo tion, .attraction, encouragement and development
of economically sound industry and commerce through govern-
mental acts to prevent so far as possible emergence of
blighted lands and areas of cronic unemployment, and the
state has encouraged local government units to prevent such
economic deterioration;
1 . 2 Physical Electronics Industries, Inc . , a Minnesota
corporation (hereinafter the Company) engaged primarily in the pro-
duction, warehousing and marketing of analytical instruments for
use in industrial applications , is considering a project consisting
of the acquisition of land within the Village and construction on
that land of one or more new buildings and installation therein
of certain items of personal. property. The new office and pro-
duction facility will contain a minimum of 25,000 square feet,
final. plans and specifications will be made available to the village
before the start of construction to confirm the value and space
to conform with the Village of Eden Prairie Guideline Resolution
#596. Equipment acqusition and installation will constitute less
than 5% of the total issue;
1 . 3 Completion of the proposed project would add signif-
icantly to the tax base of the Village and overlapping taxing author-
ities, increase employment in the area, and add to the level of
economic activity in the area ;
1. 4 The Village has been advised by representatives of
the 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 questionable, or the scope of
the project to be undertaken at this time substantially curtailed,
but the Company has also advised this Council that with the aid of
municipal financing, and its resulting low borrowing cost, the
project as proposed, is economically feasible;
1 . 5 This Council has received from Piper, Jaffra_y &
Hopwood Incorporated, investment bankers and bond dealers of Mlinne-
apolis, Minnesota , a letter advising the Village that the prniect
is economically feasible . The. final audited .financial reports
for the fiscal year ending September 30, 1973 will be made avail-
able prior to the start of construction.
1 . 6 The Village is authorized by Minnesota Statutes ,
Chapter 474, 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 Company, and the
issuance of such bonds LLy the Village would be a substantial induce-
ment to the Company to complete the proposed project within the
Village.
2 . On the basis of information given the Village to date,
it appears that iw tould be in the best interest of the Village to
issue its industrial development revenue bonds under the provi-
sions of Chapter 474 to finance the project of the Company at a cost
presently estimated to require issuance of revenue bonds in the
principal sum of approximately $940,000,
3 . The project above referred to is hereby given pre-
liminary approval by the Village, subject to approval of the project
by the Commissioner of Economic Development and to the mutual agree-
ment of this body, the Company and the initial purchasers of the
bonds as to the details of the bond issue and provisions for their
payment. In �11 events, it is understood, however, that the bonds
of the `.'illage shall not constitute a charge, lien or encumbrance
legal or equitable upon any property of the Village 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
rentals received from the project and property pledged to the pay-
ment thereof , and shall not constitute a debt of the Village.
4 . in accordance with Minnesota Statutes, Section 474.01,
Subdivision 7 , the Mayor is hereby authorized and directed to sub-
mit the proposal for the project to the Commissioner of Economic
Development for his approval of the project. The Mayor, Village
Clerk, Village Attorney, and other officers, employees and agents of
the Village are hereby authorized to provide the Commissioner with
any preliminary information he may meed for this purpose, and the
Village Attorney is authorized to initiate and assist in the prepara-
tion of such documents as may be appropriate to the project , if it is
approved by the Commissioners .
5. In anticipation of the approval by the Commissioner
of Economic Development and the issuance of revenue bonds to finance
the project, and in order that completion of the project will not
be unduly delayed when approved, the Company is hereby authorized to
make such expenditures and advances toward payment of costs of the
project as it considers necessary, subject to reimbursement from the
proceeds of the revenue bonds when delive,rjed but otherwise without
liability on the part of the Village. / /7
Approved by the Eden Prai ri e V i 11 age,. Counc '1�on N�Wien�er 27.-,, "73.
Mayo r
Attest
Vi1Lage C1�:rk
J