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HomeMy WebLinkAboutResolution - 79-216 - MIDB Approval for Mc Glynn Bakeries 1,300,000 - i RESOLUTION GIVING PRELIMINARY APPROVAL TO A .,. PROPOSED INDUSTRIAL DEVELOPMENT PROJECT BY McGLYNN BAKERIES, INC. UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT , AUTHORIZING THE SUBMISSION OF AN APPLICATION TO THE COMMISSIONER OF SECURITIES FOR APPROVAL THEREOF AND AUTHORIZING THE PREPARATION OF DOCUMENTS AND MATERIALS ` IN CONNECTION WITH THE PROJECT I Resolved by the City Council of the City of Eden Prairie , f Minnesota , as follows : I I 1 . There has been presented to the City a proposal by Burtc_z J. McGlynn, an individual doing business as B .J .M. Properties (the "Borrower" ) and McGlynn Bakeries , Inc . , a Minnesota corporation (the "Company" ) that the City undertake a project pursuant to the Minnesota Municipal Industriai Development Act , Chapter. 474 , Minnesota Statut,r:s , to provide financing of the cost of acquiring land and constructing additional warehouse and manu.fac-Iniring facilities to be used by the Company in its business in the City (the "Project" ) . Under the proposal , the Borrower will enter into a loan agreement whereby the Borrowe- agrees to complete the Project and the City agrees to issue up to approximately $1 , 300 , 000 Industrial Development Revenue Bonds of the City pursuant to the Act to finance the Project. The Borrower will retain title to the Project and the loan agreement will require the Borrower to pay amounts sufficient to pay the principal. of and interest on the Bond issued. The Project will be leased by the Borrower to the Company and the lease will be assigned to the bondholders or a trustee as security for the Bonds . In addition , the City will assign its interest in any loan agreement or loan agreements to the bondholders or a trustee to secure the Bonds . The Bonds shall be issued in accordance with the Act, and shall provide that the Bonds are payable solely from amounts received by the City pursuant to the loan agreement and any other property pledged to their payment. The Bonds shall not be general obli- gations of the City or be payable .from any other property or funds of the City , and no taxes shall be levied for their payment . 2. . As required by said Chapter 44 , Miannesota Statutes , 47 this Council. conducted a public hearing on U4` 4 er 1) 0 , 1979 on the proposal to undertake and finance the Project, after publication in the official newspaper and a newspaper of general circa-l;.Ition in the City of a notice of the time and place of hearing, skating the general nature of the Project and an estimate of the principal amount of bonds or other obligations to be issued to finance the Project and stating that a draft copy of the proposed Application to the Commissioner of Securities , together with all attachments and exhibits thereto , shall be available for public inspection at the office of the City Clerk, City Hall , Eden Prairie, Minnesota , at all tunes between the hours of c( nn a .m. and `/".30 p.m. each day except Saturdays , Sundays and holidays to and including the day of hearing; and all parties who appeared at the public hearing were given an opportunity to express their views with respect to the proposal . 3 . There has been presented to the City a form of Application to Commissioner of Securities for approval of the Project setting forth the estimated costs of the Project and the increased employment and payrolls to result therefrom. It is hereby found , determined and declared that the purpose of the Project is and the effect thereof will be to promote the public welfare by 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 ; the development of industry to use the available resources of the community , in order to retain the benefit of its existing investment in educational and public service faciltiies , 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 ; 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 gov- ernmental services provided by the City , the County and the School District in which the City is located . 4 . The Project is hereby given preliminary approval by the City, subject to ( i ) approval of the Project by the Minnesota Commissioner of Securities and ( ii) approval of this Council , the Borrower, the Company and the purchaser of the Bonds of the ultimate details of the Project and the terms of the Bonds . 5 . Cronin & Marcotte , Inc. , on behalf of the Borrower and the Company has advised this Council that the Project is economically feasible. In accordance with Section 474 . 01 , Subd. 7a , Minnesota Statutes , the Mayor , City Manager , City Clerk and such other officers and members of the City as may from time to time be designated are hereby authorized and directed to submit the proposal for the Project to the Commissioner of Securities and request her approval thereof , and the Mayor , City Manager , Clerk , members of the Council and other officers , employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary information as she may require . The Borrower, the Company , Cronin & Marcotte, Inc . , Messrs . Faegre & Benson , as bond counsel , the City Attorney and other City officials are also authorized to initiate the preparation of a proposed loan agree- ment, mortgage, and such other documents as may be necessary or appropriate to the Project so that , when and if the proposed Project is approved by the Commissioner and this Council gives its final approval thereto, the Project may be carried forward expeditiously . 6 . The Borrower and the Company have 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; whether or not the Project is carried to completion; and whether or not the Bonds or operative instruments are executed. The Borrower will also agree to indemnify the City, its officers and employees from all liability which the City and any officers and employees may incur in connection with the Project or the issuance and sale of the Bonds . 7 . The adoption of this resolution does not constitute a guarantee or a firm commitment that the City will issue the Bonds as required by the Borrower or the Company. The City retains the right in its sole discretion to withdraw from parti- cipation and accordingly not issue the Bonds should the City at any time prior to the issuance thereof determine that it is in the best interest of the City not to issue the Bonds or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. 8 . The Borrower_ and the Company may enter into on its own behalf such contracts as may be necessary for carrying forward the Project by any means available to them and in the manner they determine without advertisement for bids as may be required for the construction or acquisition of municipal facilities . Wq4 V garLIPenzel Mayor dohnA . Frane Fynance Director/ Clerk i