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HomeMy WebLinkAboutResolution - 825 - M.I.D.B. for MTS Approval of Project - 03/12/1974 CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO . 82S 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 NEC- ESSARY DOCUMENTS AND EXPENDITURES IN ANTI- CIPATION OF THE ISSUANCE OF THE BONDS BE IT RESOLVED by the City Council of the City of Eden Prairie, Minnesota, as follow, : It is hereby found, determined, and declared as follows : f 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 chronic unemployment, and the state has encouraged local government units to prevent such economic deterioration; 1. 2 MTS Systems Corporation, a Minnesota corporation (hereinafter the Company) engaged. primarily in the design, engineering, manufacturing, assembling, storing and shipping products of manufacture consisting primarily of electrohydraulic testing, inspection and manufacturing equipment, is considering a project consisting of the construction of an addition to its existing building , located in the City and installation of items of personal property within the enlarged facility. The existing building consist.- of approximately 83, 000 square feet and the new building will consist of approximately 70 , 000 square feet. Final plans and specifications will be made available to the City before the start of construction to confirm the value and space to conform with the City of Eden Prairie Guideline Resolution No. 596; 1. 3. Completion of the proposed project would add significantly to the tax base of. the City and overlapping taxing authorities , increase 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 at such high costs of borrowing that the economic feasibility of operating the ( project would be reduced, 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 Dain , Kalman & Quail , Incorporated, investment bankers and bond dealers of Minneapolis, Minnesota, a letter advising the City that the project is economicall feasible. This Council has also received the final audited financial reports of the Company for the fiscal years ended September 30 , 1972 and September 30, 1973, and the May 9 , 1973 Business Information Report prepared by Dun & Bradstreet, Inc. relating to the Company. The City has been furnished an exhibit prepared by Dain, Kalman & Quail, Incorporated, indicating that the minimum coverage standard contract contained in guideline # 4 of Resolution No. 596 will be met. 1. 6 The City is authorized by Minnesota Statutes , Chapter 474 , to issue its revenue bonds to finance caroital 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 within 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 t:ie project of the Company at a cost presently estimated to require issuance of revenue bonds in the principal sum of approximately $3 , 000 , 000 . 3 3,. The project above referred to is hereby given preliminary approval by the City, subject to approval of the project by the Commissioner 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 under- stood" 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, Subdivision 7 , the Mayor is hereby authorized and di- rected to submit the proposal for the project to the Commis- sioner 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 pro- vide 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 Commissioner. -2- 5. in anticipation of the approval of 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 delivered but otherwise without liability on the part of the City . ADOPTED by the City of Eden Prairie-cm the 12th day of March, 1974. Mayor Attests - "Pi City car SEAL -3-