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HomeMy WebLinkAboutResolution - 79-172 - Preliminary Approval Anderson Lakes Limited - CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 79-172 R.FSOLUTION RELATING TO THE AUTHORIZATION AND ISSUANCE OF REVENUE BONDS OF THE CITY UI`DER MINNESOTA STATUTES , CHAPTFR 474 , FOR THE PURPOSE OF' FINANCING A PROJECT THEREUNDER ; AND .AUTHORIZING AN APPLICATION BY THE CITY TO THE MINNESOTA COMMISSIONER OF SECURITIES BE IT RESOLVED by the City Council of the City of Eden Prairie , Minnesota , as follows : Section 1 . Recitals . 1 . 01 . The Legislature of. the State of Minnesota in Minnesota Statutes , Chapter 474 , as amended (the Act ) has found and declared that the welfare of: the State requires active promotion , attraction , encouragement and development of economically sound industry and commerce through governmental acts to prevent , so far as possible , emergence of blighter] lands and areas of chronic unemployment ; has authorized municipalities to issue revenue bonds to finance , in whole or in part , the cost of the acquisition , construction , reconstruction , improvement and betterment of projects , including any properties , real or personal , used or useful in connection with a revenue producing enterprise engaged in any business ; and has authorized municipalities to enter into " revenue agreements " , as defined in the Act , with any person , firm , or. public or private corporation or federal or state governmental subdivision or agency ( the Contracting Party ) providing for the payment by the Contracting Party of amounts sufficient to provide for the prompt payment of principal and interest on the revenue bonds . 1 . 02 . It has been proposed that the City issue its revenue bonds , pursuant to the authority of the Act , in an amount not exceeding in the aggregate principal -3- amount $3 , 375 , 000 , or such lesser amount as may hc-, necessary , to Finance costs of acquisition of land within the City and construction thereon of one or more buildings ( the Project) to he owned and operated by Anderson Lakes , Ltd . , a Minnesota qeneral partnership (the Partnership) , and leased to one or more entities engaged in hu:siness for us,e as office facilities ; and to make the proceeds of such sale �availahle to the Partnership. The Partnership will_ agree to nay the City amounts sufficient to pay promptly the principal_ of and interest on the revenue bonds , and will agree to cause the Project to be constructed . `Phe Project is presently estimated to cost. approx.imatel.y $3 , 575 , 000 . 1 . 03 . The City has been advised that r_or.ventionat , commercial financing to pay the capital cost of the Project is ava ilahle only on a limited has is and at such high costs of borrowing that the scope of the Project or the economic feasibility of operating the Project would be significantly reduce- , but that with the aid of municipal. financir.q , and its resulting low borrowing costs , the Project can be constructed as designed and its operation is economically more feasible . Section 2 . Public Hearing. 2. 01 . As required by Section 474 . 01, Subdivision 7b , of the Act , this Council , pursuant to a motion passed on August 2. 1 , 1.979 , called and held a public hearing on the proposal to undertake and finance the Project . Notice of the time and place of the hearing , and stating the general. nature of the Project and an estimate of the principal amount of bonds to be issued to finance the Project , was published at least once not less than Fifteen days nor more than thirty days prior to the date fixed for the hearing , in the official newspaper of the City and a newspaper of general circulation of the City . A draft copy of the proposed application to the Minnesota Commissioner of Securities , together with all. attachments and exhibits thereto , was available Eor public inspection following the publication of such notice at the place and times set Forth in the notice . 2 . 02 . All parties who appeared at the puhlic hearing were given an opportunity to express their views with respect to the proposal to tinder- take and finance the Project . This Council has heard and considered the views expressed at the public hearing and the information submitted to the City by the Partnership . i -4- Section 3 . Approvals and Authorizations . 3. 01 . On the basis of information given the City to date , and the views expressed at the public hearing , it is found and determined that the Project furthers the purposes stated in Section 474 . 01 of the Act, and that it would he in the best interest of the City to issue its industrial development revenue bonds under the provisions of the Act to finance costs of the Project in an amount not to exceed $3, 375 , 000 ( the Bonds ) . 3. b 2. The Project is hereby given preliminary approval by the City and the issuance of the Bonds for such purpose approved . The Bonds shall not be issue.] until the Project has been approved by the Commissioner of Securities , as provided by the Act , and until the City and the Partnership have agreed Upon the details of the Bonds and provisions for their payment . 3 . 03 . If the Bonds are issued and sold , the City will enter into a lease , mortgage , direct or installment sale contract , loan agreement , take or pay or similar agreement , secured or unsecured , satisfying the requirements of the Act (the Revenue Agreement.) with the Partnership . The amounts payable by the Partnership to the City under the Revenue Agreement will be sufficient to pay the principal , interest and redemption premium , if any , on the Bonds as and when the same shall become due and payable . 3 . 04 . The Partnership 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 Commissioner of Securities; whether or not the Project is carried to completion ; and whether or not the Bonds or Revenue Agreement and all other operative instruments are executed . 3. 05 . The adoption of this resolution does not constitute a guarantee or a firm commitment that the City will issue the Bonds as requested by the Partnership. The City retains the right in its sole discretion to withdraw from participation and accordingly not issue the Bonds should the City at any time Prior to the issuance thereof determine that it is in the hest interest of. the City not to i Ssue the Bonds or should the City , Partnership and any other parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction . j `S� 3 . 06 . In accordance with the Act , the Mayor and City Clerk are hereby authorized and directed to submit the proposal for. the Project to the Minnesota Commissioner of Securities for her approval of the Project . The Mayor , City Clerk , City ;attorney and other_ officers , employees and agents of the City , in conjunction with Dorsey , Windhorst , Hannaford , Whitney & Halladay , Bond Counsel_ to the City , are hereby authorized to provide the Commissioner with any preliminary information she may need for this purpose , and the City Attorney is authorized to initiate and assist in the preparation of such do_ curnents as may he appropr iate to the Project . i 3. 07 . The City will comply with , or cause to be complied with , all of the provisions of the Act , including Section 474 . 01 , Subdivision 8 , thereof , in the issuance of the Bonds and the financing of the Project . j Section 4 . Specia.l _Obligations _ In all events , it is understood , however , that the Bonds shall not constitute a charge , lien or encumbrance , legal or equitable , upon any property of the City except the Project , iE it becomes the property of the City , and from the revenues received from the Project and property pledged to the payment thereof , and shall not constitute a debt of the City . Section. 5 . Effective Date . This resolution shall he effective immediately upon its final adoption. . PASSED AND FINALLY ADOPTED by the City Council of the City of Eden Prairie , this 18th day of September , 1979 . Kol fganq H. Penzel , Mayor ATTEST: SEAL :ft John , D. F e, City Clerk —6— Extract of Minutes of Meeting of the City Council of the City of Eden Prairie , Minnesota Pursuant to due call and notice thereof , a regular meet- ing of the City Council of the City of Eden Prairie , Minnesota was duly held at City Hall in said City on Tuesday , the 2nd day of October , 1979 , at 7: 30 o ' clock P .M . The following Councilmembers were present : Edstrom, Osterholt , Pauly , Penzel and Redpath and the following were absent : None . Councilmember Edstrom introduced and read the following written resolution and moved its adoption : RESOLUTION NO . 79-173 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, AUTHORIZING SUBMISSION OF AN APPLICATION TO THE MINNESOTA COMMISSIONER OF SECURITIES FOR APPROVAL THEREOF AND AUTHORIZING EXECUTION OF A MEMORANDUM OF AGREEMENT AND PREPARATION OF NECESSARY DOCUMENTS IN CONNECTION WITH THE PROJECT The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Redpath , and upon vote being taken thereon the following voted in favor thereof : Edstrom, Pauly and Redpat:h the following voted against the same : Osterholt i and the following abstained from voting: Penze 1 whereupon said resolution was declared duly passed and adopted .