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HomeMy WebLinkAboutResolution - 79-106 - Preliminary Approval MIDB'S Kirsch - RESOLUTION NO . �.! i� " 6 RESOLUTION RELATING TO A PROJECT UNDER THE MUNTI C%PAL !NDUSTRI AL DEVELOPMENT ACT : GIVIIN G PRELIMINARY APPROVAL TO THE PROJECT : REFERRING THE PROPOSAL TO THE COMMISSIONER OF SECURITIES FOR APPROVAL: AND AUTHORIZING EXECUTION OF A MEMORANDUM OF AGREEKENT AND PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Eden Prairie , Minnesota ( the City ) 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 ; the development of industry to use available resources of the community in order to retain the benefit of its exist-ing investment in educational and public service facilities ; and the more intensive development of land available in the area to provide an adeeuate 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 located . 1 . 2 Kirsch Company , a Michigan corporation , qualified to do business in Minnesota ( the Company ) , is considering acquisition of approximately 3. 87 acres of land in the Crosstown Industrial Pari{ within the City and construction and equipping thereon of one 39 , 000 square foot building ( all such property hereinafter referred to as the Project ) , to be used by the Company for the warehousing and distribution of drapery hardware and related products . 1 . 3 The existence of the Project would add to the tax base of the City , Hennepin County and the School District in which the City i.s located and would provide increased opportunities for employment for residents of. the City and surrounding area . 1 . 4 This Council has been advised by a representative of the Company that with the aid of municipal borrowing, and its resulting low borrowing cost , the economic feasibility of underta;ring the Project is significantly improved . 1 . 5 This Council has also been advised by a representa- tive of the Company that on the basis of information submitted to it by the Company , The Aetna Casualty and Surety Company has preliminarily committed to purchase revenue bonds of the City upon favorable rates and terms to finance the Project . 1 . 6 The City is authorized by Minnesota Statutes , Chapter 474 , as amended (the Act ) , to issue its revenue bonds or notes to _finance capital projects consisting of properties used and useful in connection with a revenue-producing enter- prise , such as that of the Company , and the issuance of such notes by the City would 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 its revenue bonds under the provisions of the Act to finance the cost of the Project which is presently estimated to be approximately $1 , 200 , 000 . 3 . The Project is hereby given preliminary approval by the City and the issuance of revenue bonds for such purpose and in an amount up to $1 , 200 , 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 revenue bonds as to the details of the revenue bonds and provisions for their payment . 3 . 1 in all events , it is understood , however, that the revenue 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 any revenue bond , when , as and if issued , shall recite in substance that the bond, including interest thereon, is payable solely from the revenues re,:eived from the Project and property pled-ed to the payment thereof, and shall. not constitute a debt of the City . The adoption of this Resolution does not constitute a guarantee or a firm commitment that the City will issue the revenue bonds as requested by the Company . The I City retains the right in its sole discretion to withdraw from participation , and accordingly not issue the revenue bonds , should the City at any time prior to issuance thereof determine that it i is in the best interest of the City not to issue the revenue bonds or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any documents required for the transaction . u . The form of Memorandum of Agreement relating to the issuance of the revenue bonds to finance the cost of the Project is hereby approved and the Mayor or the Finance Director is 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 or the Finance Director is hereby authorized and directed to submit an Application for the Project to the Commissioner of Securities for his approval of the Project . The Mayor, Finance Director, City Clerk, City Attorney and other -2- ,J i 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. 6 . The applicant has agreed to pay directly or through the City any and all costs incurred by the City in connection with the Project whether or not the project is approved by the Commiss.Loner of Securities; whether or not the project is carried ' to completion; and whether or not the bonds or operative instruments are executed . Motion made : Seconded: Ayes : Plays / y Mayor 3 i Attest I ' y Clerk t r' i� I � -3-