HomeMy WebLinkAboutResolution - 81-218 - Preliminary Approval - MIDB's - Eden Prairie Project 100 - 10/31/1981 RESOLUTION NO.
RESOLUTION GRANTING PRELIMINARY APPROVAL AND
DETERMINING TO PROCEED WITH A PROJECT .AND ITS
FINANCING UNDER THE MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE
COM14ISSIONER OF SECURITIES FOR APPROVAL; AND
AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS
BE IT RESOLVED by the City Council of the City of
Eden Prairie, Minnesota (the Municipality) , as follows :
SECTION I
Recitals and Findings
1 . 1 . This Council has received a proposal that the
Municipality finance a portion or all of the cost of a
proposed project under Minnesota Statutes , Chapter 474
( the Act) , consisting of the acquisition of land and the
construction thereon of a 100 , 000 square foot warehouse,
manufacturing and office facility (the Project) by a joint
venture company to be formed, consisting of Tipton Corp. ,
a Minnesota corporation, and Barthel Homes, Inc. , a
Minnesota corporation, as the principal joint venturers,
and one or more additional joint venturers to be named
(tb..e Borrower) .
1 . 2 . At a public hearing, duly noticed and held on
October 31, 1961, 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 Project. Based on such hearing
and such other facts and circumstances 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
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, and the State of Minnesota has encouraged
local government units to act to prevent such economic
deterioration.
(b) The Project would further the general
purposes contemplated and described in Section 474 .01 of
the Act.
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(c) The existence of the Project would add to
the tax base of the Municipality, the County and School
District in which the Project is located and would provide
increased opportunities for employment for residents of
the Municipality and surrounding area.
(d) This Council has been advised by representa-
tives of the Borrower that conventional, commercial
financing to pay -the cost of the Project is available only
on a limited basis and at such high casts 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
cast, the Project is economically more feasible.
(e) This Council has also been advised by the
Borrower that on the basis of their discussions with
potential buyers of tax-exempt bonds, revenue bonds of the
Municipality (which may be in the form of a commercial
development revenue note or notes) could be issued and
sold upon favorable rates and terms to finance the Project.
( f) The Municipality :is authorized by the Act to
issue its revenue bonds to finance capital projects
consisting of properties used and useful in connection
with a revenue producing enterprise, such as that of the
Borrower, and the issuance of such bonds by the
Municipality would be a substantial inducement to the
Borrower to acquire and construct the Project.
SECTION 2
Determination to Proceed with
the Project and its Financing
2 . 1 . It is desirable for the Municipality to issue its
revenue bonds under the provisions of the Act to finance
the Project in an amount of $3 ,500 ,000.
2 . 2 . It is hereby determined to grant preliminary
approval to and to proceed with the Project and its
financing and this Council hereby declares its present
infent to have the Municipality issue its revenue bonds
0. under the Act to finance the Project . Notwithstanding the
foregoing, however, the adoption of this resolution does
t - not constitute a guarantee or a firm commitment that the
Municipality will issue the revenue bonds as requested by
the Borrower. The Municipality retains the right in its
sole discretion to withdraw from participation and accord-
ingly not issue the revenue bonds should the Municipality
at any time prior to the issuance thereof determine that
it is in the best interest of the Municipality not to
issue the revenue bonds or should the parties to the
transaction be unable to reach agreement as to the terms
and conditions of any of the documents required for the
transaction. All details of such revenue bond issue and
the provisions for payment thereof shall be subject to
final approval of the Project by the Minnesota
Commissioner of Securities and may be subject to such
further conditions as the Municipality may specify. The
revenue bonds, if issued, shall not constitute a charge,
lien or encumbrance, legal or equitable, upon any property
of the Municipality, except the Project, and each bond,
when, as and if issued, shall recite in substance that the
bond, including interest thereon, is payable solely from
the revenues received from the Project and property
pledged to the payment thereof, and shall not constitute a
debt of the Municipality within the meaning of any
constitutional or statuatory limitation.
2 . 3 . The Application to the Commissioner of Securities ,
with attachments, is hereby approved, and the Mayor, City
Manager and City Clerk are authorized to execute said
documents in behalf of the Municipality.
2 . 4 . In accordance with Section 474 . 10 , Subdivision 7a of
the Act, the Mayor, City Manager and City Clerk are hereby
authorized and directed to cause the Application to be
submitted to the Commissioner of Securities for approval
of the Project. The Mayor, City Manager, City Clerk, City
Attorney and other officers, employees and agents of the
Municipality 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
preparation of such documents as may be appropriate to the
Project, if it is approved by the Commissioner.
SECTION 3
General
3 . 1 . If the bonds are issued and sold, the Municipality
will enter into a lease, sale or loan agreement or similar
agreement satisfying the requirements of the Act (the
Revenue Agreement) with the Borrower. The lease rentals,
installment sale payments, loan payments or other amounts
payable by the Borrower to the Municipality under the
Revenue Agreement shall 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.
a
3 . 2 . The Borrower has agreed to pay directly or through
the Municipality any and all costs incurred by the
Municipality 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 revenue bonds or operative instruments
are executed.
3 . 3 . The Mayor, City Manager and City Clerk are directed,
if the bonds are issued and sold, thereafter to comply
with the provisions of Minnesota Statutes , Section 474 .01 ,
Subdivision. 8 .
3 .4 . All commitments of the Municipality expressed herein
are subject to the condition that within 12 months of the
date of adoption of this resolution the Municipality 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 effect.
Adopted this a%,j. day of
d Mayor
Attest:
Cit Cl erk
(SEAL)
The motion for the adoption of the foregoing
resolution was duly seconded by Member
and upon vote being taken thereon, the following voted in
favor thereof:
and the following voted against the same:
M Q,
whereupon the resolution was declared duly passed and
f
adopted.
DEFECTIVE
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First Party property Legal Description