Loading...
HomeMy WebLinkAboutResolution - 81-219 - Preliminary Approval - MIDB's Hoyt $4,000,000 - 10/31/1981 RESOLUTION NO. RESOLUTION GIVING PRELIMINARY APPROVAL TO, AND DETERMINING TO PROCEED WI`1'H A PROJECT AND ITS FINANCING UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE COMMISSIONER OF SECURITIES AND REAL ESTATE 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 1 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 and equipping thereon of an office and warehouse building ( the Project ) by Hoyt Investment Company a Minnesota general partnership ( the Borrower) . 1 . 2. At a public hearing , duly noticed and held on October 31 , 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 Project . Based on the public 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 . ( c) The existence of the Project would add to the tax base of the Municipality , Hennepin County and -3- 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 representatives 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 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 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 the 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. On the basis of the information given the Municipality to date , it appears that it would be desirable for the Municipality to issue its revenue bonds under the provisions of the Act to finance the Project in an estimated total amount of $ 4 , 000 , 000 . 2 . 2 . The City hereby gives preliminary approval to, and it is hereby determined to proceed with , the Project and its financing and this Council hereby declares its present intent to�Fiave the Municipality issue its revenue bonds under the Act to finance the Project. Notwithstanding the foregoing , however, the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the Municipality or its City Council to issue or to cause the issuance of such revenue bonds. All details of such revenue bond issue and the provisions for payment thereof shall be subject to final approval of the Project --4- 13'�y�. by the Minnesota Commissioner of Securities and Real Estate 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 statutory limitation . 2. 3 . The Application to the Commissioner of Securities and Real Estate , with attachments , is hereby approved , and the Mayor and City 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 and City Manager and Finance Director/Clerk are hereby authorized and directed to cause the Application to be submitted to the Commissioner of Securities and Real Estate for approval of the Project . The Mayor , City Manager, Finance Director/Clerk, City Attorney and other officers , employees a'nd agents of the Municipality are hereby authorized and directed to provide the Commissioner with any preliminary information needed for this purpose . The City attorney is authorized to initiate and assist in the preparation of documents as may be appropriate to the Project , if 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. 3. 2 . The adoption of this resolution does not constitute a guarantee or a firm commitment that the Municipality will issue the bonds as requested by the Borrower. The i Municipality retains the right in it.s sole discretion to E -5- withdraw from participation , and accordingly not issue the 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 bonds or should be parties to the transaction be unable to reach agreement as to the structuring of the financing or as to the terms and conditions of any of the documents required for the transaction. 3 . 3 . All commitments of the Municipality expressed herein are subject to the condition that within twelve months from 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 sale. 3 . 4 . 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. The Borrower has agreed and it is hereby determined that any and all direct and indirect costs incurred by the Municipality in connection with this Project , whether or not the Project is carried to completion , and whether or not approved by the Commissioner of Securities and Real Estate , and whether or not the Municipality by resolution authorizes the issuance of the bonds , will be paid by the Borrower upon request . 3 . 5 . The Borrower has agreed and it is hereby determined that any and all direct and indirect costs incurred by the Municipality in connection with the Project , whether or not the Project is carried to completion , and whether or not approved by the Commissioner of Securities and Real Estate , and whether or not the Municipality by resolution authorizes the issuance of the bonds , will be paid by the Borrower upon request . 3 . 6. The Municipality will require the Borrower, if the bonds are issued and sold , thereafter to comply with the provisions of Minnesota Statutes , Section 474 . 01 , Subdivision 8 . Adopted this 31st day of O er , 198 Mayor Attest : 'FdnarrC16 Director/Clerk ( SEAL) -6-