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HomeMy WebLinkAboutResolution - 79-105 - Preliminary Approval MIDB'S Sub. Nat'l Bank/Suburban Associates - FZ }}} RESJL'?710i; GIVTN'_' APPROV.kL TO A PROPOSED INDUSTRIAL D ;VELOP'I-E•,T i'ROJECT TO BE ACQUIRED, CONSTRUCTED, AND FINA_ICED UNDER THE AiUNICIPAL II;DI:STRIAL DEVELOP',IENT ACT, AUTHORIZING THE SUB'IISSION OF AN APPLICA'I10-N' 'I'O THE CO'`i:•IISSIO:`ER OF SECURITIES FOF` APPROI'yL THE'R EDF JND AUTHORIZING THE PREPARATION OF DLjCUIIENTS AI•;D :L•,TERIALS IN CONNECTION jdITH THE PROJECT BE IT' P, S"!_1vED, b} the City Council of the City of Eden Prairie, Hinnesota, as = 011ows It iS CiereC': found, determined and declared as rol' o s : 1 . l ) Suburban Associates , a I`linnesota general partnership ( the Company) has presrnted tO the Litt' a proposal t0 acquire- land as the site tor, ant t0 ConStruct and equip a new office facility in the City (the 'Project) . The Cot-_panl , presentiv estimates the cost Of the Project tC be approximately S 1 , 60G,000. 1 . L' ) The Company proposes that f inancing for the Project be provided under I he I•Iinnesota Municipal Industrial Development Act , C_iaDter +' : a , OT the Kinnesota Statutes (the Act ) . 1 . 3) The existence of the Project would increase the tam. base of the City, County anc School District in which the City is located, and would provide opportunities for employment for residents of the City and surrounding area. 1 . 4 ) The City has been advised that conventional commercial financing to pay the capital costs 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 could be significantly reduced, but that with the aid of municipal financing , and its resulting low borrowing costs, the Project is economically More feasible. 1 . 5) Or the basis of discussions with representatives of the Company and the potential underwriter for the sale of tag:—exempt bonds to finance the Project, the Council is advised that industrial development revenue bonds of the City could be issued and sold upon favorable rates and terms to finance the Project. 1 . 6) The City is authorized by the Act to issue its revenue bonds to finance Projects consisting of property used and useful in connection with a revenue producing enterprise, such as that proposed by the Company, and the issuance of such bonds by the City would be a substantial inducement to the Company to carry out the Project . 1 . 7 ) The purpose of the Project is , and the effect thereof will be, (a) to promote the public welfare for the attraction, encouragement and development of economically sound industry and commerce so as to prevent , so far as possible, the emergence of blighted and marginal lands and areas of chronic unemployment; (b) the development of industry to use the available resources l of the community, in order to retain the benefit of its existing investment in educational and public service facilities, by halting the movement of talented, educated personnel of mature age to other areas and thus preserving the economic and human resources needed as a base for providing governmental services and facilities ; (c) 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 the City, the County and the School District in which the City is located. 1 . 8) The Company has agreed to pay directly or through the City any and all costs incurred b%, the Citv in connection with the Project whether or not the Project is approved by the Commissioner of Securities; whether or not the Project is carried to completion; and whether or not the bonds or operative instruments are executed. 2 . On the basis of information given to the City- to date, it appears that zt would be: in the best interests of the City to issue its industrial development revenue bonds under the provisions of the Act to finance the Project of the Company . 3 . The Project is hereby given preliminary approval by the Cit} and the issuance or bonds for such purpose and in the amount estimated to be necessary to pav the cosy of the Proiect is approved , subject to approval of the Project by the Commissioner or Securities and to z:he 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 paymenr.. In all everts, it is understood, however, that the bonds of the City shall not cons t:itute a charge, lien or encumbrance, legal or equitable , upon the 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 only from the revenues r received from the Project and property pledged to the payment thereof, and shall not onstitute a debt of the Citv. In accordance with Minn. Stat . §474.01 , Subd. 7 , the mayor and the city clerk are hereby authorized and directed to submit the proposal for the Project to the Commissioner of Securities for his approval. 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 Commissioner of Securities. I 5. The adoption of this Resolution does not constitute a guarantee or a firm commitment that the City will issue the bond as requested by the Company. The City retains the right in its sole discretion, to withdraw from participation and accordingly not issue the bond should the Cite at ary time prior to the issuance thereof determine that it is in the hest interests of the City not to issue the bond or should the parties to the transactions be unable to reach agreement as to the terms and conditions of any Jf the documents required for the transaction. Adop_ ed by the City Council of the City of Eden Prairie, Minnesota, this 15thday of May 1979. T�o r _,TTEST: Ci CS Clerk Y