HomeMy WebLinkAboutResolution - 81-216 - Preliminary Approval - MIDB's - Kinder Care - $250,000 - 10/31/1981 } RESOLUTION R1,C:.TINU A PROPUSALi FOR A
CO1MM ERCIAL FACI1,I`J.1IHS DI-WELUf'C EMIT PROJF_'CT
GIV._U-TG PRELIMINARY APPRU'VAL, TO THE PROJECT
PURSUANT TO THE MINNESOTA
MUNICIPAL INDUSTRlik)1, 17F VIsLUPPI:aL1`.P AC;T
AU` TIORIZING THE SUBMISSION OF AZT APPLICATION
FOR APPROVAL OIL SAIi) PROJECT TO THE
COMMISSIONER 0& SECURITIES
OF THE STATE OF MINOESOTA
AND AUTHORIZING THE PREPARATION OF
NECESSARY D0CUML'L\1 CS AND MAT,ERIAl'iS
IN CONNECTION WITH SAID PROJECT
WHERI AS,
( a) The purpose of Chapter 474, Minnesota
Statutes, known as the Minnesota Municipal Industrial
Development Act ( the "Act" ) as found and d-etermined by the
legislature is to promote t*ne welfare of the state by the
active attraction and encouragement and development of economi-
cally sound industry and cormnerce to prevent so far as possible
the emerge ace of blighted and marginal lands acid areas of
chronic unemployment;
(b) Factors necessitating the active promotion
and development of economically sound industry and coincnerce are
the increasing concentration of populatton in the metropolitan
areas and the rapidly rising increase in the amount and cost of
governmental services required to inee:t the needs of the
increased population and the need for development of land use
which will provide an adequate tax base to finance these
increased costs and access to employment opportunities for such
population;
(c) The City Council of the City of Eder_
Prairie ( "the City" ) has received from Carl Westin aria Harold
F. Hesse, who intend to form a Minnesota general partnership
(the "Company" ) a proposal that the City undertake to -fi_naiice a
Project hereinafter described., through the issuance of revenue
bonds in the form of a single debt instrument ( "the Note" )
pursuant to the Act;
(d) The City desires to facilitate the selec-
tive developmeen t of the community, retain and improve the tax
base and help to provide the ranee of services and erciployment
oppc.)rtunities required by the population; and the Project will
assist the City in achievin- those- objectives . The Project
will ht�l,p to increase assessed valuation of the City and
su.rrouricl.in3 arc-gas and help nlainta.in a positive relationship
between assessecl valuation and debt and enhance tree image and
reputation of the cornMtinity;
(e) Thu Project to be financed by the ;vote is a
Kinder-Care child lr.�zrning and day-care facility to be located
in the City and leased to Kinder-Care Learning Centers, Inc .
and consists of the construction of buildings and improvements
orl land located in the City and tale installation or equipment
therein, and will result in the e;nployinent of additional
persons to work within the facilities;
(f) The City has been advised by representa-
tives of Company that conventional, coruriie.rcial ficianciny to pay
the capital cost of the Project is available only on a limited
basis and at such high costs of borrowing that the econotaic
feasibility of operating the Project would be significantly
reduced, but Company has also advised this Council that with
the aid of municipal financing, and its resulting low bor-
rowing cost, the Project is economically more feasible;
(g) A public nearing on the Project was held on
October 31 , 1931 , aftec notice was published, and materials
made available for public inspection at the City Hall, all as
required by Minnesota Statutes , Section 474 .01 , Subdivision 7b
at which public hearing all those appearing who so desired to
speak were heard;
(h) No public official of the City has either a
direct or indirect financial interest: in the Project nor will
any public official either directly or indirectly benefit
financially from the Project.
NOW, T[IERF ORE, BE IT RCOWED by the City Council of the
City of Eden Prairie, Minnesota, as follows:
I . T:he Council hereby gives preliminary approval to the
proposal of Company that 'the City, undertake the Project
pursuant to the Mi_nnesota Municipal Industrial Development Act
(Chapter 474, Minnesota Statutes ) , consisting of the acqui-
sition, construction and equiLpping of facilities within 'tile
City pursuant to Company' s speci-f-icatioas suitable for the
operations described above and to a .revenue agreement between
the City and Company upon such terms and conditions with
provisions for revision froia time to time as necessary, so as
i
to produce. Lncome. and reveriuc.s s._if fieient to pay, when due, the
p.ri_ncip it of and interest on the Note in the total princi.LDal
amot211t of approximately $2`:)0, Ou0 to be, issued pursuant to the
Act to finance the acquisition, eoristruetion and equipping of
the Project; and said agree-iterit m.ay also provide for the entire
interest of Company therein to be ,nortcja fed to the purchaser of
the Revenue Bonds; and the City Hereby underta'res prelimi_nzrily
to issue its Note in accordance with such terms and conditions;
2 . On the basis of information available to this Council
it appears, and the Council- hereby finds, that the Project
constitutes properties, real and personal, used or useful in
connection with one or more rravenue producing enterprises
enUagt7d in any business within the meaning c-,f: Subdivisicati la of
Section 474 .02 of the Act; that the Project furthers the.
purposes stated in Section 474 . 01. , Minnesota Statutes; that the
availability of the financing under tine Act and willingness of
the City to furnish such Financing will be a substantial
inducement to Company to undertake the Project, and that the
effect or the Project , if undertaken, will be to encourage the
development of- economically sound industry and commerce, to
assist in the prevention of the emergence of blighted and
marginal_ land, to help pre-vent chronic unemployment, to help
the city retain and improve the tax base and to provide the
range oz service and employment opportunities required by the
pol_)ul ation, tc help prevent the movetnetit of talented and
educated persons out of the state and to areas within the State
where their services ITlay not be as effectively used, to promote
more intensive leveloprient and use of land within and adjacent
to the City acid eventually to increase the tax base of tiie
cornrnunity;
3 . The Project is hereby given preliminary approval by
tha City subject to the approval of the Project by the Com-
missioner. of Securities and Real Estate, and subject to final
approval by this Council, Company_, and the purchaser of -the
Note as to -the ultimate details of the financing of the
Project;
4. In accordance with Subdivision 7a of Section 474 .01
Minnesota Statutes, the Mayor of the City is hereby authorized
and directed to submit the proposal for the Project to the
Commissioner of Securities and Real Estate, requesting her
approval, and other officers, employees and agents of the City
are hereby authorized to provide the Commissioner with such
preliminary information as she may require;
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5 . Company has agreed and it is hereby deL-ermined teat
any and all costs i-ncurr--e.�1 by the- City in connection with the
financing of the Project will he paid by the Company . Such
costs will be paid regardless of einether the Project is carr:iec-i
to completion, the Note or revenue agreements or any other
operative docuients are executed, and whether or not the
Project is aPproved by the Commissioner of Securities and Real
Estate;
6 . Briggs and Morgan, Professional Association, acting as
bond counsel, and First Corporate Services, Inc . , investment
bankers , are authorized to assist in the preparation and .review
of necessary documents relating to the Project, to consult with
the City Attorney, Company and the purchaser of the Note as to
the mat,_;?7ities, interest rates and other terms and provisions
of the- Note and as to the covenants and o 'ner provisions of the
necessary documents and -to submit such documents to the Council
for final approval ;
7 . Nothing in -this resolution or in the documents pre-
pared pursuant hereto shall authorise the expenditure of any
municipal funds on the Project otizer Mhan the revenues derived
from the Project or otherwise granted to the City for this,
purpose. The Note 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 Note shall never have the right to
compel any exercise of the taxing power of the City to pay the
outstanding principal on the Note or the interest. thereon, or
to en Corce payment thereof against any property of. the City.
The Note shall recite in substance that the Note including
interest thereon, is payable solely from the revenue and
proceeds pledged to the payment thereof. The Note shall not
constitute a debt of the City within the meaning of any
constitutional or statutory limitation;
8. The adoption of this Resolution does not constitute a
guaranty or a firm comaitrnent that the City will issue the Note
as requested by the Company. The City retains the right in its
sole discretion to abstain froin participation and accordingly
not issue the Note should the City at any time prior to the
issuance of the Note jnake a determination that it is not in the
best interest of the City to issue the Note or should the
parties to the transaction be unable to reach agreement as to
the terms and conditions of any of the documents required to
the transaction;
rr 9. All commitments of the City expressed herein are
subject. to the condition that within 1.2 montlis of tfie date of
acloptiorj of 1-nis Resoi.r_ltion the City and the Company shall have
agreed to ,nutually acceptable te-r,as and conditions of the
revenue agreement, the Note and other instruments aril
proceedings rel_atin(j to the igote and its issuance and sale. if
the events set for tli herc3iri do riot take place within the t1me
set :forth above, or any extension thereof, and the Note is not
sold within such time, this Resolution shall expire, and be of
no further effect.
Adopted by the City Council of the City of Eden Prairie,
Minnesota, this 31st day of October, 198_
i Mayor
Attest :,-,
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