HomeMy WebLinkAboutResolution - 80-133 - Giving Preliminary Approval; to Project Under Municipal Industrial Development Act, Referring Proposal to Commissioner of Securities and Authorizing Preparation of Necessary Documents - Braun, Kaiser Company - r
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Resolution Giving Preliminary Approval To A Project Under The
Municipal Industrial Development Act; Referring The Proposal To The
Commissioner Of Securities For Approval; And Authorizinngg Preparation
Of Necessary Documents. Resolution No. 133
Be it resolved by the City Council of the City of Eden Prairie, Minnesota
(the "City"), as follows:
1. It is hereby found, determined, and declared as follows:
1.1 BRAUN-KAISER COMPANY, a Minnesota General Partnership
("Developer"), has advised this counsel that it desires to
acquire land and develop and construct thereon an industrial
building of approximately 75,000 square feet which is to be
leased to Braun's Fashions, Inc., a Minnesota Corporation
(hereinafter referred to as the "Project").
1.2 Developer has advised that said Project does not include any
property to be sold or affixed to or consumed in the production
of property for sale, and does not include any housing facility
to be rented or used as a permanent residence.
1.3 The welfare of the State requires the active promotion,
attraction, encouragement and development of economically
sound industry and commerce through governmental action for
• the purpose of preventing, so far as possible the emergency of
blighted and marginal lands and areas of Ironic unemployment.
1.4 The existence of the Project in the City will contribute to
more intensive development and use of land, to increase the
tax base of the City and overlapping taxing authorities,
maintain and provide for an increase in opportunities for
employment for residents of the City and further promote the
purposes stated in Minnesota Statutes Section 474.01.
1.5 The City has been advised that conventional, commercial
financing to pay the capital costs of the project is available at
such costs of borrowing that the economic feasibility of
operating the project would be significantly reduced, but that
with the aid of municipal financing, and its resulting low
borrowing cost, the project is economically more feasible.
1.6 This counsel has also been advised by representatives of the
developer, that on the basis of their discussions with potential
buyers of tax exempt bonds, industrial development bonds
(which may be in the form of a single instrument, such as a
Note, or in the form of bonds with varying maturities) of the
City, could be issued and sold upon favorable rates and terms
to finance the project.
1.7 The City is authorized by Minnesota Statutes, Chapter 474, to
issue its Industrial Development Revenue Bonds, to finance
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' capital Projects consisting of properties used and useful in
connection with a revenue producing enterprise, such as that
of the Developer, and the issuance of such bonds by the City,
would be a substantial inducement to the Developer to con-
struct the Project.
' 1.8 This counsel, by a resolution duly adopted on June 17, 1980,
called a public hearing .on said project under Minnesota
Statutes, Chapter 474. That said public hearing, was duly
called, noticed, and held on July 15, 1980, in accordance with
Chapter 474, and all persons were afforded an opportunity to
be heard.
' 2. On the basis of all information given to the City to date, it appears that it
would be in the best interest of the City to issue its Industrial Development
Revenue Bonds under the provisions of Chapter 474 to finance a portion of
' the costs of the Project of the Developer in an amount presently estimated
to be $2,300,000.00.
3. The Project above--referred, is hereby given preliminary approval by the
' City and the issuance of Industrial development Revenue Bonds of the City
(which may be in the form of one or more Industrial Development Revenue
Note or Notes or Industrial Development Revenue Bonds) in such amount is
' hereby approved, subject to the approval of the Project by the Commis-
sioner of Securities and to the mutual agreement of this body, the Developer
and the initial purchasers of the bond as to the details of the bond issue and
provisions for their payment. Messrs. Thompson, Nielsen, Klaverkamp &
' • James, P.A., Minneapolis, Minnesota, are hereby appointed as bond counsel
in connection with said bond issue. In all events, it is understood, however,
that the bonds of the City shall not constitute a charge, lien or encum-
brance, legal or equitable upon any 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 solely from the revenue received
from the Project and property pledged to the payment thereof, and shall not
constitute a debt of the City.
4. In accordance with Minnesota Statutes, Section 474.01, Subdivision 7a, the
' Mayor is hereby authorized and directed to execute and submit the proposal
for the Project to the Commission of Securities for approval of the Project.
The Mayor, City Manager, City Attorney, and other officers, employees and
' agents of the City, are hereby authorized to provide the Commissioner with
any preliminary information needed 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.
' 5. Upon entering into any revenue agreement, the information required by
Minnesota Statute Section 474.01, Subdivision 8, will be submitted to the
Department of Economic Development.
6. The developer 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 tarred to completion and whether or not the bonds or other
' operative instruments are executed.
7. 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
Developer. The City retains the right in its sole discretion to withdraw
from participation and accordingly not issue the bonds should the City at
anytime prior to 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 an agreement as to the terms and conditions of any of the
' documents required in connection with the issuance.
M O
C ANAGER
ATTEST: OZL
(7' CLERK
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(4) 'Item 10 has been satisfied through a City
Improvement Contract authorizing installation
of the roadway and necessary utilities to
U.S. 169/212.
(5) Items 15, 16 and 18 are warranty matters not
subject to release.
The Agreements shall remain in full force and effect as to
all other items and lots not mentioned herein.
ATTEST: _ 4,ez_
May6r o of Eden Prairie
U74�L- lfgang H. Penzel
Ci Cle of Eden Prairie
J Frane
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