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HomeMy WebLinkAboutResolution - 83-173 - Preliminary Approval - MIDB's - Tri-Cor (Welsh) - $1,600,000 - 07/19/1983 -- /7--`-'95 Member introduced the following resolu- tion and moved its adoption : RESOLUTION NO . RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVEL- OPMENT ACT , REFERRING THE PROPOSAL TO THE COMMISSIONER OF ENERGY , PLANNING AND DEVELOP- MENT FOR APPROVAL AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS . 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 hereby 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 possible , emergence of blighted lands and areas of chronic unemployment , and it is the policy of the State to facilitate and encourage action by Local 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 land to provide an adequate tax base to finance these costs. 1 . 4 . Tri-Cor Properties , a Minnesota partnership (the "Company" ) , has advised this City Council that it desires to acquire land located at the northeast inter- section of Schooner Boulevard and West i 8th Street in the City and acquire , construct and install a three- story building thereon (the "Project" ) to be utilized as an office building and related facilities to be owned by the Company and leased to various tenants . 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 ir• opportunities for employment for residents of the City. 1 . 6 . The City 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 in-formation submitted to then 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 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, construction, reconstruction, improve- ment , betterment or extension of capital projects con- sisting 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 induce- ment to the Company to construct its facility in the City. 2 - 2 . The notice of public hearing for the public hearing held on this date was submitted For publication by John. D . Frane , the Finance Director-Clerk of the City , which action was taken in accordance with the authority granted the Finance Director. -Clerk , and which action is hereby ratified by the Council . 3 . 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 other obligations under the provisions of Minnesota Stat- utes , Chapter 474 , to finance the Project of the Company at a cost presently estimated not to exceed $ 1 , 600 , 000 . 4 . The Project is hereby given preliminary approval by the City and the issuance of bonds , notes or other obliga- tions for such purpose and in such amount is hereby approved , subject to approval of the Project by the Commis- sioner of the Department of Energy and Economic Development (the "Commissioner ") and to the mutual agreement of this body , the Company and the initial purchasers of the bonds , notes or other obligations as to the details of the bond issue and provisions for their payment . In all events , it is understood , however , that the ponds , notes or other obliga- tions of the City shall not constitute 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 obligation , including interest thereon , is payable solely from the revenues re- ceived from the Project and property pledged to the payment thereof and shall not constitute a debt of the City . 5 . In accordance with _Minnesota Statutes , Section 474 . 01 , Subdivision 7a , the Mayor is hereby authorized and directed to submit the proposal for the Project to the Com- missioner 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 autho- rized to provide the Commissioner with any preliminary in- formation 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 . 6 . 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 , whether or not the Project is carried to completion and whether or not the bonds , notes or other obligations or the operative documents relating L thereto are executed . 3 - 7 . 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 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 . S . All commitments of the City expressed herein are subject to the condition that within twelve ( 12) 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 , 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 . i yor Attest: 14z - /F' n Director-Clerk 4 _