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HomeMy WebLinkAboutResolution - 81-56 - Preliminary Approval to MIDB's for S & D Properties - 03/17/1981 Resolution #81-56 RESOLUTION GIVING PRELL'�fINARY APPROVAL TO A PROPOSED INDUSTRIAL DEVELOPMENT PROJECT TO BE ACQUIRED , CONSTRUCTED, AND FINANCED UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT , AUTHORIZING THE SUBMISSION OF AN APPLICATION TO THE :`fINNESOTA COMMISSIONER OF SECURITIES FOR APPROVAL THEREOF AND AUTHORIZING THE PREPARATION OF DOCUMENTS AND FIATERIA.LS IN CONNECTION WITH THE PROJECT BE IT RESOLVED , by the City Council of the City of Eden Prairie, Minnesota, as Follows: 1 . It is hereby found, determined and declared as follows: (01) S. & D. Properties Co. , a Minnesota general partnership (the Company) has presented to the City a proposal to acquire Land as the site for, and to construct a new building at the Edenvale Industrial Park in the City to be used for warehousing and offices (the Project) . The Company presently estimates the cost of the Project to be approxi- mately $455,000. (02) The Company proposes that financing for the Project be provided under the Minnesota Municipal Industrial Development Act, Chapter 474, of the Minnesota Statutes (the Act) by the issuance of revenue bonds under the Act (Revenue Bonds) in the approximate amount of $350,000. (03) The existence of the Project would increase the tax base of the City, County and School District in which the City is located, and would provide opportunities for employment for residents of the City and surrounding area. (04) The City has been advised by the Applicant and its agents that conventional commercial financing to pay the capital costs of the Project is available only oa a limited basis and at such hf.gh casts of borrowing that the econom1c, feasibility of operating the Project would be significantly reduced, but that with the aid of financing under the Act, and its resulting low borrowing costs, the Project is econo- mically more feasible. (05) On the basis of discussions with representatives of the Company and ;Miller & Schroeder Municipals, Inc . , as agent for the Company for the private placement of tax-exempt bonds to finance the Project, the Council is advised that industrial development revenue bonds of the City could be issued and sold on a private placement basis upon favor- able rates and terms to finance the Project. (06) The City is authorized by the Act to issue its revenue bonds to finance Projects consisting of property used and useful in connection with a revenue producing enterprise, such as that proposed by the Company, and the issuance of such bonds by the City would be a sub- stantial inducement to the Company to carry out the Project . (07) The purpose of the Project is, and the effect thereof will be, (a) to promote the public welfare for 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; (b) the development of indus- try to use the available resources of the corununity, in order to retain the benefit of its existing investment in educational and public service facilities, by halting the movement of talented, edu- cated personnel of mature age to other areas and thus preserving the economic and human resources needed as a base for providing govern- mental services and facilities; (c) and the more intensive development of land available in the area to provide an adequate tax base to finance increases in the account and cost of governmental services provided by the City, the County and the School District in which the City is located . (08) The Company 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 Securi- ties ; whether or not the Project is carried to completion; and whether or not the bonds or operative instruments are executed. (09) Pursuant to and in compliance with the Act, a public hearing on the proposal was held on March 17, 1981 , (Public Hearing) pursuant to notice of the Public Hearing being published once not less than fif- teen (LS) days nor more than thirty (30) days prior to the date fixed for the Public Hearing, in the official newspaper and a newspaper of general. circulation of the City. - ( 10) At the Public Hearing all parties who appeared were given an opportunity to express their views with respect to the proposed under- taking and financing of the Project. (11) In anticipation of the approval by the Commissioner of Securities and the issuance of the Revenue Bonds to finance the Project, and in order that completion of the Project will not be unduly delayed when approved, the Company states that it may make expenditures and advances toward payment of that portion of the cost of the Project to be financed from the proceeds of the Revenue Bonds as the Company considers necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the Revenue Bonds if and when delivered but otherwise without liability on the part of the City. 2. On the basis of information given to the City by the Company, it appears that it would be in the best interests of the City to issue its Indus- trial Development Revenue Bonds under the provisions of the Act to finance the Project of the Company. t 3. The Project is hereby given preliminary approval by the City, and the issuance of Revenue Bonds for such purpose and in the amount estimated to be necessary to pay the cost of the Project is approved, subject to approval of the Project by the Commissioner of Securities and to the mutual agreement of this body, the Company, and the initial purchasers of the bonds as to the details of 2. the bond issue and provisions for their payment. In all events, it is. under- stood, however, that the bonds of the City shall not constitute a charge, lien or encumbrance, legal or equitable, upon the property of the City except the Project, and each bond, when, as, and 1.f issued, shall recite in substance that the bond, including interest thereon, is payable only from the revenues received from the Project and property pledged to the payment thereof,, and shall not constitute a debt of the City. 4. In accordance with Minn. Stat. § 474.01, Subd. 7, the mayor and the city clerk are hereby authorized and directed to submit the proposal for the Project to the Commissioner of Securities for approval. The mayor, city clerk, city attorney and other officers, employees and agents of the City and bond counsel , are hereby authorized to provide the Commissioner with any preliminary informations she may need for this purpose, and the city attorney is authorized to initiate and assist in the preparation of such documents as may be appro- priate to the Project, if it is approved by the Commissioner of Securities. S. Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived from the Project or otherwise granted to the City for this purpose. The Revenue Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City except the revenue and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holder of the Revenue Bonds shall never have the right to compei any exercise of the taxing power of the City to pay the outstanding principal on the Revenme Bonds or the interest thereon, or to enforce payment thereof against any property of the City. The Revenue Bonds shall recite in substance that the Revenue Bonds , including interest, are pay- able solely from the revenue and proceeds pledged to the payment thereof. The Revenue Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 6. The adoption of this Resolution does not constitute a guarantee or a firm commitment that the City will. issue the bond as requested by the Company. The City retains the right in its sole discretion to withdraw from participation and accordingly not issue the bond should the City at any time prior to the issuance thereof: determine that it is in the best interests of the City not to issue the bond or should the parties to the transactions be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. 7. All commitments of the City expressed herein are subject to the condi- tion that within twelve months of the date of adoption of this Resolution the City and the Company shall have agreed to mutually acceptable terms and condi- tions of the revenue agreement, the Bonds and of the other instruments and proceedings relating to the bonds and their issuance and sale. If the events set forth herein do not take place within the time set forth above, or any extension thereof, and the bonds are not sold within such time, this Resolution shall expire and be of no further effect. J 3. Adopted by the City Council of the City of Eden Prairie, Minnesota, this 11 tb day of March 1981 . J NLAYOR ATTEST: s