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HomeMy WebLinkAboutResolution - 83-205 - Preliminary Approval 0 MIDB's - City West Business Center - $8,844,00 - 08/16/1983 CERTIFICATION OF MINUTES RELATING TO INDUSTRIAL DEVELOPMENT REVENUE BONDS Issuer : City of Eden Prairie, Minnesota Governing Body : City Council Kind , date , time and place of meeting : A meeting , held on 1983 , at o ' clock _.M . , at the City Hall . Members present : Members absent: Documents Attached : Minutes of said meeting (pages ) : MINUTES OF PUBLIC HEARING ON PROPOSED PROJECT 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 COMMISSIONER OF THE DEPARTMENT OF COMMERCE FOR APPROVAL AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS I , the undersigned , being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate , certify that the documents attached hereto , as described above , have been carefully compared with the original records of said corporation in my legal custody , from which they have been transcribed ; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation , and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting , so far as they relate to said obligations; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above , pursuant to call and notice of such meeting given as required by law . WITNESS my hand officially as such recording officer this day of , 1963 . ignature ( SEAL ) / John Frane , City Clerk After some discussion, Member introduced the following Resolution and moved its adoption: 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 COMMISSIONER OF THE DEPARTMENT OF COMMERCE 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 thereon of two office/research and development =acilities ( the Project ) , the first phase of which is the acquisition of said land and the construction of an 83 , 000 square foot building, for use as an office/research and development facility , and the second phase of which is the construction of a 91 , 000 square foot building , for use as an office/research and development facility, by City West Business Center Development Company, a joint venture company to be formed , consisting of Ryan Construction Company of Minnesota, Inc . , a Minnesota corporation, as the principal joint venturer , and one or more other corporations , partnerships or individuals to be named, as additional joint venturers (the Borrower) . The Project would be located at the intersection of Shady Oak Road and City West Parkway in the northeastern area of the City . 1 . 2 . At a public hearing, duly noticed and held on 1983 , 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 said proposal. 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 F 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 and 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 Juran & Moody, Inc. 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 econoirtically more feasible . ( e ) This Council has also been advised by representatives of Juran & Moody, Inc. 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 estimated total amount of $ 8 ,844 , 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 intent. to have 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 . The Municipality retains the right in its sole discretion to withdraw from participation and , accordingly, 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 the Department of Commerce 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 . t 2. 3 . The Application to the Commissioner of the Department of Commerce , with attachments , is hereby approved, and the Mayor 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 , as amended by Minnesota Statutes , Section 16 . 125, and the State of Minnesota , Department of Administrative Reorganization Order No . 123 ( Order No. 123 ) , the Mayor , City Manager and City Clerk are hereby authorized and directed to cause the Application to be submitted to the Commissioner of the Department of Commerce 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 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 . 1 3 r SECTION 3 General 3 . 1 . If the revenue 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 revenue bonds as and when the same shall become due and payable . 3 . 2 . 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 approved by the Commissioner of the Department of Commerce , whether or not the Project is carried to completion and whether or not the Municipality by resolution authorizes the issuance of the revenue bonds, shall be paid by the Borrower on request . 3 . 3 . The Mayor , City Manager and City Clerk are directed, if the revenue bonds are issued and sold , thereafter to comply i with the provisions of Minnesota Statutes, Section 474 . 01, Subdivision 8 , as amended by Section 16 . 125 , and Order No. 1. 23 . 3 . 4 . All commitments of the Municipality expressed herein are subject to the condition that within twelve 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 /, day of �/_ .. 1983 . Mayor i Attest : City Clerk (SEAL) it is presently es;imated that construction •:ill begin on or about _July 1 19 83 , and ►,i 11 be completed on or about Februarw 1 _, 1984 . iJhen completed , there v,ill be approximately 1.50 new jobs created by the project at an annual payroll of approximately $ 3,750,000 based upon currently prevailing wages . The tentative tern of the financing is 30 years , tormenting July 1 , 19 d3 The following exhibits are furnished with this application and are incorporated herein by reference : 1 . An opinion of bond counsel that the proposal constitutes a project under Minnesota Stat . , Chapter 474.02 . 2. A copy of the city council resolution giving preliminary approval for the issuance of its revenue bonds . 3. A comprehensive statement by the municipality indicating how the project satisfies the public purpose of t1innesota Stat. , Chapter 474. 01 . 4. A letter of intent to purchase the bond issue or a letter confirming the feasibility of the project from a financial standpoint. 5 . A statement , signed by the principal representative of the issuing authority, to the effect that upon entering into the revenue agreement , the information required by Minn. Stat. , Ch. 474.01 Subd. 8 will be submitted to the Department of Energy , Planning and Development. 6. A statement, signed by the principal representative of the issuing authority, that the project does not include any property to be sold or affixed to or consumed in the production of property for sale, and does not include any housing facility to be rented or used as a permanent residence. 7 . A statement , signed by the principal representative of the issuing authority , that a public hearing was conducted pursuant to Minn. Stat. 474.01 Subd. 7b. The statement shall include the date, time and place of the meeting and that all interested parties were afforded an opportunity to express their views. 8. A copy of the notice of publication of the public hearing. We , the undersigned , are duly elected representatives of the City of Fden Prairie , Minnesota, and solicit your approval of this project at your earliest convenience -so that we may carry it to a final conclusion. Signed by• / (Pri nc i pa-1) Offi,"rs or Represen , ti v s f Issuing Authority) Mayer ity erk This approval shall not be deemed to be an approval by the Commissioner or the State of the feasibility of the project or the terms of the lease to be executed or the bonds to be issued therefor. Date of Approval Commissioner Minnesota Department of Conrnerce C;'-G -01 This Application must be subii tted to the Commissioner in duplicate . STATE OF f iI 'NESOTA DEPAR!' Nr OF CCr7,1ERCE L . Application For :,pproval of Municipal Industrial Revenue Bond Project Date To. Minnesota Department of Commerce Business Services 480 Cedar Street St. Paul , MN 55101 The governing body of the City of Ede Y. �-' County of � i n Minnesota , hereby applies to the Commissioner of the State of Minnesota , Department of Commerce, for approval of this community ' s proposed municipal Industrial Revenue Sor.d Issue, as required by Section 1 , Subdivision 7 , Chapter 474 , Minnesota Statutes. We have entered into preliminary discussions with: City West Business Center Development Company, a joint venture to to Firm formed, oonsisting of Ryan Construction Company of Minnesota, Inc. and one or more otrier corporations, iers ps or i-EEividuals Address 7401 Metro Boulevard, Suite 500 City Edina State Minnesota an Construction qomipany o ' Minnesota, Inc. is a State of Incorporation Minnesota corporation rsey & utney Attorney Duane Joseph _ Address 2200 First Bank Place East Name of Project City w�-st Business Center Minneapolis, Minnesota 55402 This firm is engaged primarily in (nature of business) : real estate, construction ,_ development and management The funds received from the sale of the Industrial Revenue Bonds will be used to (ge eral nature of project) : aquire land and construct_thereon 2 office/res_arch aji development facilities, the first phase ol VwTuc i is 1e c. nstruc ion of an8J,UUQ sq. rt. orrice/ research and development bui 1 di ng and the second 1:)hage a 91 ,nnn Is � J=nex It will be located in at the intersection of Shady Oak Road-and city west uii ng Parkway in northeastern Eden Prairie, KinFiesota The total bond issue will be approximately $ . 8, 844 , 000 to be applied toward payment of costs now estimated as follows : Cost Item Amount Land Acquisition and Site Development $ 1,498,200 Construction Contracts 5,854,954 Equipment Acquisition and Installation r Architectural and Engineering Fees 181,080 Legal Fees 59,100 Interest during Construction 596,400 Initial Bond Reserve Contingencies 442,000 Bond Discount 212,266 Other COMPREHENSIVE STATEMENT The undersigned , being the duly qualified and acting Mayor of the City of Eden Prairie, Minnesota ( the Municipality ) , certifies that the City Council has been provided by a representative of City West Business Center Development Company, a joint venture company to be formed , consisting of Ryan Construction Company of Minnesota , Inc . , a Minnesota corporation , as the principal joint venturer , and one or more other corporations , partnerships or individuals to be named , as additional joint venturers ( the Borrower ) , with certain information concerning a proposed Project under the Minnesota Municipal Industrial Development Act , Minnesota Statutes , Chapter 474 . On the basis of such information the City Council , by resolution adopted _ , 1983 , has given preliminary approval to the proposed Project and the financing thereof by the issuance of revenue bonds or a revenue note or notes of the Municipality. The following are factors considered by the City Council in determining to give preliminary approval to the Project: 1 . The Borrower informs the City that the Project consists generally of acquisition of certain land in the City and the construction thereon of two office/research and development facilities , the first phase of which consists of the acquisition of said land and the construction of an 83 ,000 square foot building, for use as an office/research and r ; development facility , and the second phase of which consists of the construction of a 91 , 000 square foot building, for use as an office/research and development facility . 2 . Bond Counsel is of the opinion that the Project constitutes a "project" within the meaning of Minnesota Statutes , Section 474. 02, Subdivision la. 3 . Based upon an estimated total cost of the Project of $8 ,844 , 000 , it is the opinion of the City Council that the Project , when completed , will add to the commercial tax base of the Municipality , the County and the School District in which the Project is located . 4 . Representatives of the Borrower estimate that, upon completion of the Project , approximately 150 additional persons will be employed in the operation of the Project, which would provide increased employment opportunity for the residents of the Municipality and surrounding area. 5 . Representatives of the Borrower estimate that the acquisition and construction of the Project will result in an annual payroll of approximately $3 ,750 ,000 based on wage rates currently in effect . The City Council believes that a substantial percentage of that payroll will be spent on housing , food and other goods and services in the Municipality and surrounding area , thus benefiting the local economy . The Municipality will require the Borrower to provide the Minnesota Department of Commerce with the information r r i required by Minnesota Statutes, Section 474 . 01 , subdivision 8 , upon entering into a revenue agreement , as defined in the Act , with the Borrower . The Borrower represents to the City that the Project does not include any property to be sold or affixed to or consumed in the production of property for sale , and does not include any housing facility to be rented or used as a permanent residence . A public hearing on the proposal to undertake and finance the Project was conducted pursuant to Minnesota Statutes , Section 474 . 01 , subdivision 7b, on , 1983, at _ o ' clock __. M. , at the City Hall , at which public hearing all interested parties were afforded an opportunity to 1 express their views . / Mayor (SEAL ) 5, P �