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HomeMy WebLinkAboutResolution - 80-214 - Relating to Authorization and Issuance of Revenue Bonds for Financing a Project and Authorizing an Application to Commissioner of Securities for Oldre Partnership - 11/04/1980 After all persons who wished to do so had stated their views on the proposal, the Mayor declared the hearing to be closed. After some discussion, Councilmember introduced the following resolution and (after it had been read in full) (after the reading of the resolution was dispensed with by unanimous consent) moved its adoption: RESOLUTION NO. O — :) �v RESOLUTION RELATING TO THE AUTHORIZATION AND ISSUANCE OF REVENUE BONDS OF THE CITY UNDER MINNESOTA STATUTES, CHAPTER 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 blighted 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, wi"th 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 • amount $345, 000, or such lesser amount as may be necessary, to finance costs of acquisition of land within the City and construction and equipping thereon of one or more buildings (the Project) to be owned and operated by Oldre Partnership, a Minnesota gene'ral partnership (the Partnership) , and leased to Combined Financial Services, Inc. and Combined Protective Services, Inc. , Minnesota corporations, for use as office facilities; and to make the proceeds of such sale available to the Partnership. The Partnership will agree to pay 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 completed. The Project is presently estimated to cost approximately $348, 000. . 1.'03. The City has been advised that conventional, commercial financing to pay the capital cost of the Project is available only on a limited basis and at such high costs of borrowing that the scope of the Project or the economic feasibility of operating the Project would be significantly reduced, but that with the aid of municipal financing, 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 October 7, 1980, 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 for 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 public hearing were given an opportunity to express their views with respect to the proposal to undertake 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. • 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 be 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 $345, 000 (the Bonds) . 3. 02. 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 issued 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 cosst,itute 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 best interest of the City not to issue 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. • Jo rane - City Clerk