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HomeMy WebLinkAboutResolution - 79-19 - Municipal Industrial Development Bonds for Eden Hills Company - RESOLUTION-, NO RESOLUTION REI_:ATING TO A PROJECT UNIDER THE .-IUNICIPAL INDUST?_LAL DEVELOPMENT ACT; GIVING Pf2ELI11INARI APPROVAL TO THE PROJECT; REFEPP.ING THE PI<O 'OSAL TO THE C01111MISSIONFR OF SECURITIES FOR APPROVAL; AND AUTHORIZING EXECUTION OF A MEMORANDUM OF AGR ;1 :1 'NT AND PREPARIATZON OF Ni;CFSSARY DOCUP-1EL,4TS BE IT RESOLVED by the City Council of the City of Eden Prairie , Minnesota (the City) as follows : 1 . 1 The w:�lfare of the State of Minnesota requires active promotion , attraction, encouragement and development of economically sound industry and comr-nerce through governmental acts; the development of industry to use available resources of the community in order to retain the benefit of its existing investment in educational and public :service facilities; and the more intensive development of land available in the area to provide an adequate tax base to finance the increase in the amount and cost of governmental services provided by i_he City, the County and the School District in which the t City is located _ 1 . 2 Eden Hills Company, a Minnesota partnership (the Company) is considering acquisition of approximately 7 acres of land within the City and construction and equipping thereon of an 86 , 532 square foot office and warehouse facility (all such property hereinafter_ referred to as the Project) , to be leased by the Company to various business enterprises . 1. . 3 The existence of the Project would add to the tax base of the City , 1-Iennepin County and the school district in which the City is located and would provide increased oppor- tunities for employment for residents of the City and surrounding area . 1 . 4 This Council has bean advised by a representative of the Company that with the aid of municipal borrowing , and its resulting low borrowing cost , the economic feasibility of undertaking the Project is significantly improved . 1 . 5 This Council has also been advised by a repre- sentative of J"uran & Moody, Inc . , of St. Paul , Minnesota , invest- ment bankers and dealers in municipal bonds , that on the basis of information submitted to them and their discussions with .representatives of the Company and potential buyers of tax-exempt obligations , one or more mortgage revenue notes of the City could be issued and sold upon favorable rates and terms to finance the Project. i 1 . 6 . The City is authorized by Minnesota Statutes , Chapter 474 , as arnc�nded (the "Act) , to issue its revenue bonds or notes to finance capital projects consisting of properties used and useful in connection -w i.th a revenue-producing enter- prise , such as that of the Company , and the issuance of such notes by the City .could be a substantial inducement to the Company to construct the :Project . 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 one or more mortgage revenue notes under the pro- visions of the Act to finance the cost of the Project which is presently estimated to be approximately $1 , 600 , 000 . 3 . The Project is hereby given Preliminary approval by the City and the issuance of notes for such purpose and in an amount up to $1 , 600 , 000 approved , subject to the approval of the Project by the Commissioner of Securities and to the mutual agreement of this Council, the Company and the initial purchasers of the notes as to the details of the notes and provisions for their payment . ;In all events , it is understood , however , that the notes of the City shall not constitute a charge , lien or encumbrance, legal or equitable , upon any property of the City ( except the Project , and any note , when , as and if issued ,, shall recite in substance that the note , ir7cludi_rlg interest thei-eon , is payable solely from the revenues received from the Project and property pledged to the payment thereof , and shall not constitute a debt of the City. The adoration of this Resolution does not constitute a guarantee or a firm commitment that the City will issue the notes as requested by -the Company. The City retains the right in its sole discretion to withdraw from participation, and acco.rdin-_ly not issue the notes , should the City at any time prior_ to issuance thereof determine that it is in the best interest of the City not to issue the notes or should the parties to the transaction be unable to leach agreement as to the terms and conditions of any documents required for the transaction . 4 . The form of Memorandum of Agreement relating to the issuance of the notes to finance the cost of the Project is hereby approved and the Mayor and City Clerk are hereby authorized and directed to execute the Memorandum of Agreement on behalf of the City. 5 . In accordance with Section 474 . 01 , Subdivision 7 of the Act , the Mayor_ is hereby authorized and directed to sub- mit an Application for the Project to the Commissioner of Secu- rities for his approval of the Project . The Mayor ,' City Clerk , i City Attorney and other officers , employees and agents of the City are hereby authorized to provide the Co;runissioner with any pro, liminary information he may need for this purpose , and the City Attorney is al.athorized to initiate and assist in the preparation of such documents as may i)e appropriate to the Project , if it is approved by the Commissioner . / � Mayor Attest: City Clerk u e�.