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HomeMy WebLinkAboutResolution - 822 - Physical Electronics Industries - M.I.D.B. Project - 02/25/1974 CITY OF EDEN PRAIRIE HENNEPIN COUNTY, 14INNESOTA RESOLUTION NO. 822 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING THE PROPOSAL TO THE DEPARTMENT OF ECONOMIC DEVELOPMENT FOR APPROVAL, AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS AND EXPENDITURES IN ANTICIPATION OF THE ISSUANCE OF' THE BONDS BE IT RESOLVED by the City Council of the City 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 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 Ironic un- employment, 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 production, ware- housing and marketing of analytical instruments for use in industrial applications, is considering a project consisting of the acquisition of land within the City and construction on that land of one or more new buildings and installation therein of certain items of personal property_ The new office and production facility will contain a minimum of 25,000 square feet, final plans ans specifications will be made available to the city before the start of construction to con- firm the value and space to conform with the City of Eden Prairie Guideline Resolution #596. Equipment acquisition and installation will constitute Jess than 5% of the total issue; 1. 3 Completion of the proposed project would add significantly to the tax base of the City and overlapping taxing authorities, in- crease employment in the area, and add to the level of economic activity in the area; 1.4 The City 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; Resoltution No. 822 page 2 1. 5 This Council has received from Piper, Jaffray & Hopwood Incorporated, investment bankers and bond dealers of Minneapolis, Minnesota, a letter advising the City that the project is economically feasible. The final audited financial reports for the fiscal year ending September 30, 1973 will be made available prior to the start of construction. 1.6 The City 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 by the City would be a substantial inducement to the Company to complete the proposed project with in the City. 2. On the basis of information given the City to date, it appears that it would be in the best interest of the City to issue its industrial development revenue bonds under the provisions 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 $490,000. 3. The project above referred to is hereby given preliminary approval by the City, subject to approval of the project by the Ccmmissioner of Economic Development and to the mutual agreement 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 all events, it is understood, however, that the bonds of the City shall not constitute a charge, lien or encumbrance legal or equitable upon any property of the City 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 payment thereof, and shall not constitute a debt of the City. 4. In accordance with Minnesota Statutes, Section 474.01 , Sub- division 7, the Mayor is hereby authorized and directed to submit the proposal for the project to the Commissioner of Economic Development for his approval of the project. The Mayor, City Clerk, City Attorney and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with any preliminary information he 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 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 expendi- tures and advances toward payment of costs of the project as it considers necessary, subject to reimbursement from the proceeds of the revenue bonds when delivered but otherwise without liability on £ the part of the City. Resolution No. 822 page 3 ADOPTED by the City Council of the City of Eden Prairie this 25th day of February, 1974. i Paul R. Redpath, Mayo SEAL ATTEST: r� t. Jo n D. Fra r;�--, Clerrk-