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HomeMy WebLinkAboutResolution - 84-36 - Grant Preliminary Approval to Proceed with MIDB=s - Valley Place Offices - 03/27/1984 After some discussion , Member introduced, the following Resolution and moved its adoption : RESOLUTION NO . RESOLUTION GRANTING PRELIMINARY APPROVAL AND DETERMINING TO PROCEED WITH THE REFINANCING OF A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING THE PROPOSAL TO THE MINNESOTA ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY FOR APPROVAL AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Eder_ Prairie, Minnesota (the Municipality ) , as follows : SECTION 1 Recitals and Findings 1 . 1 . This Council has received a proposal that the Municipality issue its commercial development revenue bonds or notes (whether bonds or notes , hereinafter called the "Bonds" ) r. to refund the City ' s outstanding $1 , 200 , 000 Cor,, nercial Develop- ment Revenue Note (Valley Place Offices Associates) , dated November 25 , 1981 (the Original Note) . The Original Note was issued to provide funds to be loaned to Valley Place Offices Associates , a Minnesota partnership (the Borrower) , to construct a commercial office complex of approximately 21 , 000 square feet (the Project) located at 9977-9979 Valley View Road in the Municipality. 1 . 2 . At a public hearing , duly noticed and held on March ,1_1 , 1984 , in accordance with the Act, on the proposal to undertake the refinancing , 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 Municipality is -authorized by the Act to issue its revenue bonds to refund outstanding bonds previously issued pursuant to the Act. (b) The refinancing of the Project would help preserve the tax and employment base of the Municipality and would further the general purposes contemplated and described in Section 474 . 01 of the Act . SECTION 2 Determination to Proceed with the P efinancing and Issuance of the Bonds 2 . 1 . It is desirable for the Municipality to issue the Bonds under the provisions of the Act in the principal amount of $1 , 200 , 000 to refund the Original Note . 2 . 2 . It is hereby determined to grant preliminary approval to and to proceed with the refinancing and the issuance of the Bonds , and this Council hereby declares its present intent to have the Municipality issue the Bonds under the Act to refund the Original Note . Notwithstandinq the 4, foregoing , however , the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the r' 4J °s. Municipality or its City Council to issue or to cause the o J issuance of the Bonds . The Municipality retains the right in LO M its sole discretion to withdraw from participation and , o o 1, accordingly, not issue the Bonds should the Municipality at ATI n any time prior to the issuance thereof determine that it is .U) in the best interest of the Municipality not to issue the � Bondsoor should the parties to the transaction be unable to �-4 reach agreement as to the terms and conditions of any of the � "r Oocuments required for the transaction . All details of the Bonds and the provisions for payment thereof shall be subject o � U to final approval by the Minnesota Energy and Economic ro ° � .°1' Development Authority and may be subject to such further �, .° +' conditions as the Municipality may specify . The Bonds , if >, `C,° ro7 issued , shall riot constitute a charge , lien or encumbrance , o legal or equitable , upon any property of the Municipality , Q tr, Q except the Project , and each Bond , when , as and if issued , ,° ° r,°' `; 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 Minnesota Energy and Economic Development Authority , with attachments , is hereby approved , and the Mayor and City Clerk are authorized to execute said documents in behalf of the Municipality . SECTION 3 3 . 1 . If the Bonds are issued and sold , the Munici- pality 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 unde-- 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 Borrower has agreed and it is hereby determined that anv and all direct and indirect costs incurred by the Municipality in connection with the financing , whether or not the issue is approved by the Energy and Economic Develop- ment Authority , and whether or not the Municipality by resolu- tion authorizes the issuance of the Bonds , shall be paid by the Borrower_ on request. 3 . 3 . 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 21 day of March , 1984 .- i Mayor J Attest: Ciall ty Clerk (SEAL) The motion for the adoption of the foregoing resolution was duly seconded by Member and upon vote being taken thereon, the following voted in favor thereof : and the following voted against the same : whereupon the resolution was declared duly passed and adopted.