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HomeMy WebLinkAboutResolution - 84-172 - Give Preliminary Approval - MIDB's - Computer Depot - $3,400.,000 - 08/07/1984 Extract of Minutes of Meeting of the City Council of the City of Eden Prairie , Minnesota Pursuant to due call and notice thereof , a xegular meeting of the City Council of the City of Eden Prairie , Minnesota , was duly held at the School Administration Building in said City on Tuesday, the 7th day of August , 1984 , at 7 : 30 o ' clock P .M. The following Counci.lmembers were present : Richard Anderson, George Bentley, Paul Redpath, and George Tangen; and the following were absent : Wolfgang Penzel . Councilmember Bentley introduced and read the following written resolution and moved its adoption : 3 RESOLUTION NO. 84-172 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MINNESOTA MUNICIPAL INDUS- TRIAL DEVELOPMENT ACT , AUTHORIZING SUBMISSION OF AN APPLICATION TO THE MINNESOTA ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY FOR APPROVAL THEREOF AND AUTHORIZING PREPARATION OF NECES- SARY DOCUMENTS IN CONNECTION WITH THE PROJECT The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Tangen, and upon vote being taken thereon the following voted in favor thereof : Anderson, Bentley, Redpath, and Tangen; and the following voted against the same : None; whereupon said resolution was declared duly passed and adopted. -1- RESOLUTION NO. 84 -172 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MINNESOTA MUNICIPAL INDUS- TRIAL DEVELOPMENT ACT, AUTHORIZING SUBMISSION OF AN APPLICP.TION TO THE MINNESOTA ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY FOR APPROVAL THEREOF AND AUTHORIZING PREPARATION OF NECES- SARY DOCUMENTS IN CONNECTION WITH THE PROJECT BE IT RESOLVED by the City Council (this "Council" ) of the City of Eden Prairie, Minnesota (the "City") , as follows : SECTION 1 Recitals and Findings 1 . 1 This Council tailed a public hearing on a proposal presented to it that the City undertake and finance a project pursuant to the Municipal Industrial Development Act, Minnesota Statutes , Chapter 474 , as amended ( the "Act" ) consisting of the acquisition of land located at the northeast corner of High- way 169 and Valley View Road in the City, the construction of an office-service-warehouse building thereon and the purchase of equipment therefor ( the "Project" ) . Under the proposal , Computer Depot , Inc. , a Minnesota corporation (the "Corporation" ) , will t enter into a loan agreement (the "Loan Agreement" ) with the City whereby the City agrees to issue and sell its $3, 400 , 000 Commer- cial Development Revenue Bonds (the "Bonds") to partially finance the Project and to loan the proceeds of such sale to the Corporation which agrees to construct the Project . The Loan Agreement will require the Corporation to pay amounts sufficient to pay the principal of and interest on the Bonds . The Bonds will be secured by a mortgage and other encumbrances on the Project . The Corporation will retain title to and ownership of the Project and will itself occupy the Project . The interest of the City in the Loan Agreement will be assigne3 to the purchasers of the Bonds as additional security for the Donds . The Bonds will be issued and sold in accordance with the Act and will provide that the Bonds are payable solely from amounts received by the City pursuant to the Loan Agreement and other property pledged to their payment . The Bonds will not be a general obligation of the City or be payable from any other property or funds of the City. 1 . 2 At a public hearing, duly called, noticed and held on August 7 , 1984 , in accordance with the Act, all parties desiring to appear were afforded an opportunity to be heard .. Based on such public hearing and on such other facts and circumstances as this Council deems relevant, this Council hereby finds, determines and declares as follows : -2- a . The purpose of the Act as found and determined by the state legislature is to promote the welfare of the state by the active attraction , encouragement and development of economically sound industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment . Factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration of population in the metropolitan areas , the rapidly rising increase in the amount and cost of governmental services re;:�uired to meet the needs of the increased population and the need for development of land use which will provide an adequate tax base to finance these increased costs and access to employment opportunities for such population. b . The welfare of the residents of the state requires the active promotion, attraction , encouragement and development of economically sound industry and commerce through governmental acts ; the encouragement of employment opportunities for citizens of the state and the City; and the development of industry to use available resources of the City, in ordex to retain the benefit of its existing investment in educational and public service facilities . C . The Project would further the foregoing purposes of the Act as contemplated by aria described in Section 474 . 01 of the Act. d . The City is authorized by the Act to issue its commercial development revenue bonds to finance capital projects consisting of properties used or useful in connection with a revenue producing enterprise, such as that of the Project . e . The existence of the Project would add to the tax base of the City and of the county and school district in which the Project is located and would provide increased employment opportunities for residents of the City and the surrounding area . SECTION 2 Preliminary Approval of Pro 'ect 2 . 1 On the basis of information provided to this Council , it appears that it would be in the best interest of the City to issue the Bonds in accordance with the Act, in an amount not to exceed $3 , 400 , 000 , in order to partially finance the cost of the Project. 2 . 2 The Project is hereby given preliminary approval and the .issuance of the Bonds by the City in the foregoing amount is also hereby approved , subject to approval of the Project by the -3- Minnesota Energy and Economic Development Authority ( the "Authority" ) ; the fulfillment of such other conditions as the City may require with respect to the issuance of the Bonds in connection with the Project; and the mutual agreement of this Council , the Corporation and the purchasers of the Bonds as to the structuring of the financing and as to the terms and conditions of any of the documents required for the transaction . 2 . 3 Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any funds of the City on the Project other than the revenues derived therefrom or otherwise granted to the City for this purpose . The Bonds shall not constitute a charge , lien or encumbrance , legal or equitable , upon any property or funds of the City , except the Project and the revenue and proceeds pledged to the payment thereof , nor shall the City be subject to any liability thereon . No holder of the Bonds shall have the right to compel any exercise of the taxing power of -the City to pay the outstanding principal of or interest on the Bonds , or to enforce payment thereof against any property of the City except the Project . Each Bond shall recite on .its face that the principal of and interest on the Bonds is payable solely from the revenue and proceeds pledged to the payment thereof. The Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation . 2 . 4 The form of Application for Approval of Municipal Industrial Revenue Bond Project by the City to the Authority , together with all attachments and exhibits thereto, substantially in the forms presented herewith, are hereby approved , and the Mayor and City Manager are authorized to execute said documents on behalf of the City and, in accordance with Section 474 . 01 , Subdivision 7a of the Act, are hereby authorized and directed to cause said Application to be submitted to the Authority for approval of the Project . The Mayor, City Manager , City Attorney and other officers , employees and agents of the City are hereby authorized and directed to provide the Authority with any preliminary information, the Authority may need for this purpose. 2 . 5 Mackall , Crounse & Moore , acting as bond counsel , is authorized to assist in the preparation and review of all documents relating to the Project; to consult with the City Attorney , the Corporation and the purchasers of the Bonds as to the maturity , interest rate and other terms and provisions of the Bonds and as to the covenants and other provisions of the operative documents; and to submit such documents to this Council for final approval . -4- SECTION 3 General 3 . 1 The Corporation has agreed to pay directly or through the City any and all costs incurred by the City in connection with the Project whether or not the Project is approved by the Authority; whether or not the Project is carried to completion; and whether or not the Bonds or operative instruments are executed. 3 . 2 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 Corporation . The City retains the right in its sole discretion to withdraw from participation and accord- ingly not to issue the Bonds , or issue the Bonds in an amount less than the amount referred to in Section 2 . 1 hereof , 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 issue the Bonds in an amount referred to in Section 2. . 1 hereof, or should the parties to the transaction be unable to reach agreements as to the terms and conditions of any of the documents required for the transaction. 3 . 3 All commitments of the City expressed herein are subject to the condition that the City and the Corporation shall have agreed to mutually acceptable terms and conditions of the Loan Agreement , the Bonds , and of the other instruments and proceedings relating to the Bonds and that the closing of the issuance and sale of the Bonds shall have occurred by no later than December 31 , 1984 . 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. 3 . 4 Pursuant to the Laws of Minnesota 1984 , Chapter 582 (the "Allocation Act" ) , the City , on or prior to September 1 , 1984 , is required to either ( i) return to the Authority its unused 1984 entitlement allocation relating to its authority to issue obligations of the City which are subject to a " federal limitation act , " all as defined and provided for in the Alloca- tion Act (the " 1984 Entitlement Allocation" ) , or (ii) provide the Authority with a deposit in an amount equal to 1% of the portion of its 1984 Entitlement Allocation which the City wishes to retain , together with a letter of intent to issue bonds for such retained portion prior to December 31 , 1984 . The City hereby allocates to the Corporation , out of its 1984 Entitlement Allocation , the amount of $3 , 400 , 000 ; provided, however , this allocation shall be conditioned upon receipt by the City from the Corporation on or before August 27 , 1984 of $34 , 000 , to wit , 1% of the amount of its 1984 Entitlement Allocation allocated to the r Corporation . The City agrees that it will timely use such -5- deposit to retain said portion of its 1984 Entitlement Allocation for the benefit of the Corporation and that the City will make a timely filing of the required intent to issue the Bonds for the Project . The City further agrees that , to the extent the Authority reimburses the City pursuant to the provisions of the Allocation Act for all or. any portion of the 1 % deposit required in connection with reserving an allocation of bonding authority for the Project, the City will return said reimbursement to the Corporation. Adopted by the City Council of the City of Eden Prairie, Minnesota , the 7th day of August, 1984 . wo �ga P zel, Mayor. Attest : J '. -;'% cane , City Clerk y t STATE OF MINNESOTA ) ss . COUNTY OF HENNEPIN ) I , the undersigned, being the duly qualified and acting City Clerk of the City of Eden Prairie, Minnesota, do hereby certify that I have compared the attached extract of minutes of a regular meeting of the City Council of the City held on Tuesday , the 7th day of August, 1984 , with the original thereof on file in my office , and that the attached extract is a full , true and correct transcript of the original insofar as such minutes relate to a resolution giving preliminary approval to the $3 , 400 , 000 Commercial Development Revenue Bonds (Computer Depot, Inc. Project) of the City. WITNESS My hand and seal as said City Clerk this day of August , 1984 . c Frane, City Clerk i� (Seal) -6-