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HomeMy WebLinkAboutResolution - 83-171 - Preliminary Approval - MIDB's - Cotton and Hagen - 07/19/1983 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED INDUSTRIAL DEVELOPMENT PROJECT BY A MINNESOTA GENERAL, PARTNERSHIP TO BE FORMED BY R.M. COTTON AND RUSS HAGEN, AS GENERAL PARTNERS , UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AND AUTHORIZING SUBMISSION OF AN APPLICATION TO THE COMMISSIONER OF ENERGY, PLANNING AND DEVELOPMENT FOR APPROVAL THEREOF BE IT RESOLVED by the City Council of the City of Eden Prairie , Minnesota , as follows : 1 . There has been presented -to this Council a pro- posal that. the City undertake and finance a project by a Minnesota general partnership to be formed by R.M. Cotton and Russ Hagen , as general. partneâ–º s , (the "Company" ) pursuant to the Minnesota Municipal Industrial Development Act , Minnesota Statutes , Chapter 474 (the "Act" ) , generally consisting of the acquisition and construction of an office-warehouse facility to he owned by the Company and leased to R. M. Cotton Co. and Data Recognition Corporation , and to be used by said tenants in their respective businesses (the "Project" ) . Under the proposal , the Company will enter into a revenue agreement with the City upon such terms and conditions as are necessary to produce income and revenues sufficient to pay when due the principal of and the interest on up to approximately $500 , 000 Industrial Development Revenue Bonds of the City to be issued pursuant to the Act , to provide monies for the acquisition , construction and installation of the Project ; and the City will. pledge its interest in the revenue agreement to secure the bonds . 2 . As required by the Act , this Council conducted a public hearing on July 19, 1983 , 1983 , on the proposal to undertake and finance the Project after publication in the official newspaper and a newspaper of general circulation in the City of a notice setting forth the time and place of hearing ; stating the general nature of the Project and an estimate of the principal amount of bonds or other obligations to be issued to finance the Project; stating that a draft copy of the proposed Application to the Commissioner of Energy , Planning and Develop- ment , together with all attachments and exhibits thereto , is available for public inspection at the office of the City Clerk, in the City Hall , at all times between the hours of 8: 00 A. M. to 4 : 30 P. M. each day except Saturdays , Sundays and holidays to and including the day of hearing; and stating that all parties who appear at the public hearing shall have an opportunity to express their views with respect to the proposal. The draft application 1 -3- to the Commissioner of Energy, Planning and Development , together with all attachments and exhibits thereto , was on file and available for public inspection at the place and times set forth in the notice . 3 . It is hereby found , determined and declared that the Project furthers the purposes stated in Section 474 . 01 of the Act in that the purpose of the Project is and the effect thereof will be to promote the public welfare by the attraction , encouragement and development of economically sound industry and commerce so as to prevent , so far as possible , the emergence of blighted and marginal lands and areas of chronic unemployment ; the retention and development of industry to use the available resources of the community, in order to retain the benefit of its existing investment in educational and public service facilities ; by halting the movement of talented , educated personnel of mature age to other a;-eas and thus preserving the economic and human resources needed as a base for providing governmental services and facilities; and the more intensive development of land avail- able in the area to provide a iw )rf- adequate tax base to finance the cost of governmental services in the Municipality , county and school district where the Project is located. 4 . The Company has entered into preliminary dis-- cussions with Rothschild Financial Corporation, as financial consultant , and the financial consultant has reported that the Project and the sale of bonds therefor are feasible . 5 . The Company has agreed to pay any and all costs incurred by the City in connection with the Project whether or not the Project is approved by the Commissioner of Energy , Planning and Development and whether or not the Project is carried to completion or the bonds are issued . 6 . The Project is hereby given preliminary approval by the City subject to approval of the Project by the Commissioner of Energy , Planning and Development and subject to final approval by this Council and by the purchasers of any bonds to be issued as to the ultimate details of the Project and as to the terms of the bonds . 7 . In accordance with Section 474 . 01 , Subd . 7 , of the Act , the Mayor , the City Manager and such other officers and representatives of the City as may from time to time be designated are hereby authorized and directed to submit the proposal for the Project to the Commissioner of Energy , Planning and Development and request his approval thereof , and the Mayor , the City Manager and other officers , employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary information as he may .require . The Company, Faegre & Benson , as bond counsel , the City Manager , the City Attorney , and other -4- City officials are also authorized to initiate the preparation of a proposed loan agreement and such other documents as may be necessary or appropriate to the Project so that, when and if the proposed Project is approved by the Commissioner and this Council gives its final approval thereto, the Project may be carried forward expeditiously. 8 . The adoption of this resolution does not constitute a guarantee or a firm commitment that the City will issue the bonds as requested by the Company . 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 transaction be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. 9 . 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 Company 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 19th day of July, 1983, Mayer ATTEST: i F/i,/ rice ector/Clerk v -5-