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.
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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:
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