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HomeMy WebLinkAboutResolution - 81-123 - MIDB's - Preliminary Approval - Valley Place Office Associates - $2,300,000.00 - 07/07/1981 RESOLUTION NO. RESOLUTION GIVING PRELIMINARY APPROVAL TO A PRO- JECT AND ITS FINANCING , AND DETERMINING TO PROCEED WITH A PROJECT AND ITS FINANCING , UNDER THE MUNIC- IPAL INDUSTRIAL DEVELOPMENT ACT ; REFERRING THE PROPOSAL TO THE COMMISSIONER OF SECURITIES AND REAL ESTATE FOR APPROVAL ; AND AUTHORIZING PREPAR- ATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Eden Prairie , Minnesota (the City) , as follows : Section 1 . Recitals and Findings . 1 . 1 . This Council has received a proposal that the City finance a proposed project under Minnesota Statutes , Chapter 474 (the Act) , consisting of the improvement of land in the City and the improvement, betterment , construction and equip- ping of an office complex thereon , including renovation and con- version of an existing building to an office building , construct- ing and equipping four sets of two ccnnected new buildings each, and including related improvements (the Project) , to be owned by Vallev Place Offices Associates , a Minnesota partnership (the Borrower) and leased by the Borrower , as lessor , to var4_ous tenants . 1 . 2 . At a public hearing , duly noticed. and held on 7 , 1981 , in accordance with the Act , on the proposal to undertake and finance the Project , all parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal to undertake and finance the Pro- ject . Based on such hearing and such other facts and circum- stances as this Council deems relevant , this Council hereby finds , determines and declares as follows : (a) The welfare of the State of Minnesota requires active promotion, attraction , encouragement and devel- opment of economically sound industry and commerce through governmental acts to prevent , so far as possible , emergence of blighted lands and areas of chronic un- employment , and the State has encouraged local govern- ment units to act to prevent such economic deterioration . (b) The Project furthers the purposes stated in Section_ 474 . 01 of the Act . (c) The existence of the Project would add to the tax base of the City , Hennepin County and the School District in which the Prc-;act is located and would provide increased opportunities for employment for residents of the City and surrounding area . (d) This Council has been advised by The Towle Company, that conventional , commercial financing to pay costs of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced , but that with the aid of municipal' borrowing , and its resulting lower borrowing cost , the Project is economically more feas- ible . (e) This Council has also been advised by The Towle Company that on the basis of their discussions with potential buyers of tax-exempt bonds , revenue bonds of the City could be issued and sold upon favorable rates and terms to finance the Project . (f) The Citv is authorized by the Act to issue its revenue bonds to finance capital projects con- sisting of properties used and useful in connection with a revenue producing enterprise , such as that of the Borrower , and the Borrower represents to the City that issuance of such bonds by the Citv would be a substantial inducement to the Borrower to im- prove , better , construct and equip the Project . Section 2 . Approval of Project. 2 . 1 . On the basis of information given the City to Gate , it appears that it would be in the best interest of the City to issue its revenue bonds under the provisions of. the Act to finance costs of the Project in an estimated principal amount of $ 2 , 300 , 000 . 2 . 2 . It is hereby determined to proceed with the Pro- ject and its financing and the Project is hereby given preliminary approval by the City and the issuance of revenue bonds of the City (which may be in the form of an industrial development or commercial development revenue note or notes) in an approximate principal amount of $2 , 300 , 000 is hereby approved , subject to the approval of the Project by the Commissioner of Securities and Real Estate , and the mutual agreement of this Council and the Borrower as to the details of the bond issue and provisions for their payment . In all events , it is understood , however , that the bonds of the City shall not constitute a charge , lien or encumbrance , legal or equitable , upon any property of the City , except the revenues pledged to the payment thereof , and each bond , when , as and if issued, shall recite in substance that the bond , including interest thereon , is payable solely from the revenues and property pledged to the payment thereof , and shall not constitute a debt of the City . 2 . 3 . The form of the Application to the Commissioner of Securities and Real Estate , . with attachments, is hereby approved, and the Mayor and City Manager are authorized to execute said documents on behalf of the City. -2- 2 . 4 . In accordance with Section: 474 . 01 , Subdivision 7a of the Act , the Mayor and City Manager are hereby authorized and directed to Cause said Application to be submitted to the Commissioner of Securities and Real Estate for approval of the Project . The Mayor , City Manager , City Attorney and other offi- cers, employees and agents of the City are hereby authorized and directed to provide the Commissioner with any preliminary information the Commissioner may need for this purpose , and the City Attorney is authorized to initiate and assist in the pre- paration of such documents as may be appropriate to the Project, if it is approved by the Commissioner . Section 3 . General . 3 . 1 . The Borrower has agreed to pay directly or through the City any and all cost incurred by the --ity in connection with the Project whether or not the Project is approved by the Commis- sioner of Securities and Real Estate ; whether or not the Project is carried to completion ; and whether or not the bonds or operative instruments are executed . 3 . 2 . The adoption of this Resolution does not consti- tute a guarantee or a firm commitment that the City will issue the bonds as requested by the Borrower . 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 parties to the transactions be unable to reach agreement as to the terms and conditions of any of the documents required for the transac- tion . 3 . 3 . All commitments of the City expressed herein are subject to the condition that within twelve months of the date of adoption of this Resolution the City and the Borrower shall have agreed to mutually acceptable terms and conditions 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 force and effect. 3 . 4 . The City will require the Borrower , if the bonds are issued and sold, to provide the information necessary" to com- ply with the provisions of Minnesota Statutes ,_._, Section 474 . 01 , Subdivision 8 . Mayor Attest: ity Clerk U -3-