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HomeMy WebLinkAboutResolution - 82-171 - Preliminary Approval to MIDB's - Referring Project to Commission of Energy - 07/20/1982 EXHIBI`^ A RESOLUTION NO . RESOLUTION GIVINS PRELINIIr,ARY APPROVAL TO A PROJECT UNDER THE tv1U1NICIPAL INDUSTRIAL DEVEL- 0PML=tIT AC`I , _.;�;:FERRIN� THE PROPOSAL TO THE CO:'•1M1SS10N'EF OF EtiERGY , PI,;INNING AND DEVELOP- MENT FOR APPROVAL AND AU`:HOR I Z I NG P REPAP I\T I ON OF NECESSARY DOCUIMENTS . BE IT RESOLVED by the City Council ( the "Council " ) of the City of Eden Prairie , Hennepin County , Minnesota ( the "City" ) , as follows : 1 . It is herebv found , determined and declared as follows : 1 . 1 . The welfare of the State of Minnesota (the ." "State " ) requires active promotion , attraction , en- couragement and development of economically sound in- dustry and commerce through governmental acts to pre- vent , so far as passible , emergence of blighted lands and areas of chronic unemployment, and it is the policy of the State to Eacilitate and encourage action by local ai government units to prevent the economic deterioration of such areas to the point where the process can be reversed only by total redevelopment through the use of local , state and federal funds derived from taxation , with the attendant necessity of relocating displaced persons and of duplicating public services in other areas . 1 . 2 . Technological change has caused a shift to a significant degree in the area of opportunity for edu- cated youth to processing , transporting , marketing , service and other industries , and unless existing and related industries are retained and new industries are developed to use the available resources of the City, a large part of the existing investment of the community and of the State as a whole in educational. and public service facilities will be lost , and the movement of talented , educated personnel of mature age to areas where their services may be effectively used and com- pensated and the lessening attraction of persons and businesses from other areas for purposes of industry , commerce and tourism will. deprive the City and the State of the economic and human resources needed as a base for providing governmental services and facilities for the remaining population . "1 1 . 3 . The increase in the amount and cost of govern- mental services requires the need for more intensive development and use of i3nc] to provide an adequate tax base to finance these costs . 1 . 4 . P & L Investment Co . , a Minnesota general partnership ( the "Company" ) , has advised this Citv Coun- cil that it (Desires to acquire land , aca_uire and cop.'- struct a building thereon and acuire and install eauia-- M"21rit therefor ( the " Project " ) to- be utilized as a first class hotel and related facilities . 1 . 5 . The existence of the Project in the City will contribute to more intensive development and use of land to increase the tax base of the City and overlapping taxing authorities and maintain and provide for an in- crease in opportunities for employment for residents of the City . 1 . 6 . The Citv has been advised that conventional, ^• commercial financing to pay the capital cost of the Project is available at such costs of borrowing that the economic feasibility of operating the Project would be significantly reduced , but that with the aid of munici- pal financing and its resulting low borrowing cost the Project is economically more feasible . 1 . 7 . This Council has been advised by a representa- tive of Dougherty , Dawkins , Strand & Yost , Inc . , in Minneapolis , Minnesota , investment bankers and dealers in municipal bonds , that on the basis of information submitted to them and their discussions with representa- tives of the Company and potential buyers of tax-exempt bonds , industrial development revenue bonds , notes or other obligations of the City could be issued and sold upon favorable rates and terms to finance the Project. 1 . 8 . The City is authorized , effective August 1 , 1982 , by Minnesota Statutes , Chapter 474 , to issue its revenue bonds , notes or other obligations to finance -the cost , in whole or in part , of the acquisition , con- struction , reconstruction , improvement , betterment or extension of capital projects consisting of properties used- and useful in connection with a revenue producing enterprise , such as that of the Company ; the issuance of such bonds , notes or other obligations by the City would be a substantial. inducement to the Company to construct its facility in the City . 2 . On the basis of information given the City to date , it appears that .it would be in the best interest of the City to issue its commercial development revenue bonds , notes or - 2 - Other obl. iaations under the ol. ovi. sions of Minnesota Stat- utes , Chapter 474 , to finance -_he Project of the Company at - a cost presently estimated not to exceed $9 , 170 , 000 . 3 . The Project is hereby given or-liminary approval by the City and the issuance of bonds , notes or other obliga- tions for such purpose and in such amount is hereby ap- proved , subject to approval of the Project by the Commis - sioner of Energy , Pianning and DeVelo:%ment and to th'� mutual agreement of this body , the C�,mpany and the initial pur- chasers of the bonds , notes or other obliaations as to the details of the bond issue and provisions for their payment. In all events , it is understood , however , that the bands , notes or other obligations of. the City shall not constitute ,g a charge , lien or encumbrance , legal or equitable , upon any property of the City except its interest in the Project , and each bond , note or other obligation when , as and if issued shall recite in substance that the bond , note or other obli- gation , including interest thereon , is payable solely from the revenues received from the Project and property pledged a. to the payment thereof and shall not constitute a debt of the City . 4 . In accordance with Minnesota Statutes , Section 474 . 01 , Subdivision 7a , the tMaYor is hereby authorized and directed to submit the proposal for the Project to the Com- missioner of Energy , Planning and Development for approval of the Project . The Mayor , the Finance Director-Clerk , the City Attorney and other officers , employees and agents of the City are hereby authorized to provide the Commissioner of Energy , Planning and Development with any preliminary information needed 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 of Energy , Planning and Development . 5 . The Company has agreed to pay directly or through the City any and all costs incurred by the City in connec- tion with the Project , whether or not the Project is ap- proved by the Commissioner of Energy , Planning and Develop- ment , whether or not the Project is carried to completion and whether or not the bonds , notes or other obligations or the operative documents relating thereto are executed . 6 . The adoption of this resolution by the Council does not constitute a guarantee or a firm commitment that the City will issue the bonds , notes or other obligations as requested by the Company . The City retains the right in its sole discretion to withdraw from participation and accord- ingly not issue the bonds , notes or other obligations should the City at any time prior to the issuance thereof determine 3 - f that it is in the best interest of the City not to issue the ' bonds , notes or other obligations 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_ 7 . All commitments of the City expressed herein are subject to the condition that within t'r,Alve ( 12 ) months of the cute of adoption of this resolution_ , the City and the Company shall have agreed to mutually acceptable terms and conditions of the revenue agreement , the bonds , notes or other obligations and of the other instruments and proceed- ings relating thereto and to the issuance and sale of the bonds , notes or other obligations . If the events set forth herein do not take place within the time set forth above, or any extension thereof , and the bonds , notes or other obliga- tions are not sold within such time , this resolution shall expire and be of no further effect . y/ "layor Attest : Fi ce--D` rector-Clerk i . 1 - 4 -