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HomeMy WebLinkAboutResolution - 84-120 - Preliminary Approval of MIDB's - McGlynn's - $1,650,000 - RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED INDUSTRIAL DEVELOPMENT PROJECT BY BURTON J. MCGLYNN UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AND AUTHORIZING SUBMISSION OF AN APPLICATION TO THE MINNESOTA ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY 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 by Burton J . McGlynn (the "Borrower" ) that the City undertake and finance a project pursuant to the Minnesota Municipal Industrial Development Act , Minnesota Statutes , Chapter 474 (the "Act" ) generally consisting of the acquisition and construction of a 32 , 000 square foot addition to an existing facility at 7752 Mitchell Road in the City , to be owned by the Borrower and leased to McGlynn Bakeries , Inc . for use as a warehouse and manufacturing facility (the "Project" ) . Under the proposal , the Borrower 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 $ 1 , 650 , 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 May 15 , 1984 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 fina•zce the Project; stating that a draft copy of the proposed Application to the Minnesota Energy and Economic Development Authority , 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. and 4 : 30 P .M. each day except Saturdays , Sundays and legal 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 to the Minnesota Energy and Economic Development Authority , together with all attachments and exhibits thereto, was on file t and available for public inspection at the place and times set forth in the notice . -3- 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 , encourage- ment 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 reten- tion 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 areas and thus preserving the economic and human resources needed as a base for providing governmental --ervices and facilities ; and the more intensive development of land avail- able in the area to provide a more adequate tax base to finance the cost of governmental services in the Municipality , county and school district where the Project is located . 4 . The Borrower has entered into preliminary dis- cussions with First Southdale National Bank of Edina , as lender , and the lender has reported that the Project and the sale of bonds therefor are feasible . S . The Borrower 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 Minnesota Energy and Economic Development Authority and whether or not the Project is carried to completion . 6 . The Project is hereby given preliminary approval by the City subject to approval of the Project by the Minnesota Energy and Economic Development Authority 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 . 02. , Subd _ 7 of the Act , the Mayo; , the City Manager , and such other officers and representatives of the City as may from time to time be designated are here-by authorized and directed to submit the proposal for the Project to the Minnesota Energy and Economic. Development Authority and request its approval thereof , and the Mayor , the City tanager , and other officers , employees and agents of the City are hereby authorized to provide the Authority with such preliminary information as it may require . The Borrower, Faegre & Benson as bond counsel, the City Manager, the City Attorney , and other 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 -4- Authority and this Council gives its final approval thereto , the Project may be carried forward expeditiously . 8 . The preliminary approval granted hereby shall not operate to give priority to the Project over any other project if any maximum limit is hereafter imposed on the amount of tax exempt industrial development bonds the City may issue in any year . The City Council reserves the right to allocate any such maximum bonding authority in any manner which , in its discretion , the Council deems to be in the best interests of the City and does not intend to use and specifically disclaims using any portion of an allocation that may be available to the City for this Project. 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 applicant 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 . i Y A� �S�