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HomeMy WebLinkAboutResolution - 80-23 - Giving Preliminary Approval for MIDB, Authorizing Submission of Commission of Securities, and Authorizing Preparation of Necessary Documents for Del Einess, Lance Norderhus and Reynold Anderson for Office Building - y' s Counci lmember , 1Z Cr Uef7 N introduced the following resolution and moved its adoption: RESOLUTION NO . F0 — ,23 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF SAID PROJECT TO THE COMMISSIONER OF SECURITIES , AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH SAID PROJECT WHEREAS , (a) The City Council has received from a partnership composed of Del Einess, Lance Norderhus and Reynold Anderson (the "Obligor") , a proposal that the City finance a project for purposes consistent with the Minnesota Municipal Industrial Development Act, Chapter 474, Minnesota Statutes, said project to consist *of the acquisition of land and construction of a professional office building the City (the "Project") at an aggregate cost presently estimated at $800,000. (b) The City has been advised by the Obligor that conventional , commerical financing to pay the capital cost of undertaking the project is available only at such costs of borrowing that the economic feasibility of undertaking the Project would be reduced, but the Obligor has also advised this Council that with the aid of municipal financing and its resulting low borrowing cost, the Project is economically enhanced; (c) The Project would create additional employment opportunities for residents of the City and enhance the tax base of the City; (d) The full faith and credit of the City would not be pledged or be responsible in connection with such Project; (e) A public hearing on the proposal. has been held as required by law' . NOW THEREFORE , BE IT RESOLVED by the City Council of the City of Eden Prairie, as follows: z�3 (1) The Council hereby approves the proposal of the Obligor tot the City undertake to provide financing for the Project pursuant to the Minnesota Municipal Industrial Development Act (Chapter 474, Minnesota Statutes) by acquisition of the Project to be leased or sold by the City to the Obligor, or by direct loans of the note proceeds to the Obligor, all upon such terms and conditions, with .provisions for revision from time to time as necessary, so as to produce income and revenues suffi- cient to pay, when due, the principal of and interest on notes of the City to be issued pursuant to the aforesaid Chapter 474 to finance said Project. (2) The Project is hereby given preliminary approval by the City, subject to the approval of the Project by the Commissioner of Securities and subject to final approval by this Council and the Obligor and the initial purchaser- of any notes to be issued as to the ultimate details of the Project and such notes . The City hereby undertakes preliminarily to issue its revenue notes in an amount not to exceed $700 ,000 to pay a portion of the cost of the Project. (3) In accordance with Subdivision 7 of Section 474. 01, Minnesota Statutes , the Mayor and Clerk are hereby authorized and directed to submit the proposal for the above described Project to the Commissioner of Securities requesting his approval. (4) No Liability of City. Nothing in this resolution or in t W documents prepared pursuant hereto shall authorize the expenditure ony moneys of the City on the Project other than the revenues thereof or the proceeds of the revenue obligations . The revenue obligations shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City except the Project and the revenues pledged to the payment thereof, nor shall the City be subject to any liability thereon. No holder of any revenue obligations shall ever have the right to compel any exercise of the taxing power of the City to pay any such obligation or the interest thereon, nor to enforce payment thereof against any property of the City except the Project. Each revenue obligation shall recite on its face that the obligation, including interest thereon, is payable solely from the revenues pledged to the payment thereof. No obligations issued hereunder shall constitute indebtedness of the City within the meaning of any constitutional, statutory or charter limitation. (5) The adoption of this Resolution- does not constitute a guarantee or a firm commitment that the City will issue the note as requested by the Obligor. The City retains the right in its sole discretion to withdraw from participation, and accordingly not issue the note, 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 note 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. (6) The Obligor has agreed and it is hereby determined that a. and all direct and indirect costs incurred by the City in connection r t with this Project, whether or not the Project is carried to completion, and whether or not approved by the Commissioner of Securities , and whether r not the City by resolution authorizes the issuance of the note, will e paid by the Obligor upon request. (7) The City will require the Obligor, if the notes are issued and sold, to provide the information necessary 'to comply with the provisions of Minnesota Statutes, Section 474. 01, S division 8. Approved: 4ayo:f Attest: ity C Motion for adoption of the foregoing resolution was duly seconded by Councilmember D.ST'!LQ^^ and upon vote being taken the following voted in favor: o d STYz o gam/ �if vc- y/ R C-'opstTif f C3S TL`2/foc. Tj FCNZtL� • and the following were opposed: , whereupon said resolution was declared and passed and adopted.