HomeMy WebLinkAboutResolution - 84-237 - Extend Public Approval TEFRA Hearing - Thomas Hotel Project - $9,170,00 - Member introduced the following resolu-
tion and moved its adoption :
RESOLUTION NO . r}
RESOLUTION EXTENDING PUBLIC APPROVAL PRE-
VIOUSLY GIVEN TO A PROJECT UNDER THE MUNICIPAL
INDUSTRIAL DEVELOPMENT ACT .
BE IT RESOLVED by the City Council ( the "Council" ) of
the City of Eden Prairie , Hennepin County, Minnesota ( the
"City" ) , as follows :
1 . It has been previously found, determined and
declared by the Council 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 t-or the
remaining population.
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 adequaij,e tax
base to finance these costs .
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1 . 4 . Thomas Hotel Company ( the "Company" ) , has
previously advised this City Council that it desires to
acquire land located one-half ( 1/2 ) mile south of the
intersection of Highway 169 and Interstate 494 in the
City , acquire and construct a building thereon and
acquire and install equipment therefor ( the "Project" )
to be utilized as a first class hotel and related
facilities .
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 in 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 The Steinberg Financial Corporation , in Minne-
apolis , Minnesota , mortgage bankers , that on the basis
of information submitted to them and their discussions
with representatives 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 . The notice of public hearing for the public hearing
held on this date was submitted for publication by Carl J.
Jullie, the City Manager of the City, which action was taken
in accordance with the authority granted the City Manager ,
and which action is hereby ratified by the Council.
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3 . On the basis of information given the City to date,
the City reaffirms its earlier decision that it appears that
it would be in the best interest of the City to issue its
commercial development revenue bonds, notes or other obliga-
tions under the provisions of Minnesota Statutes , Chapter
474 , to finance the Project of the Company at a cost
presently estimated not to exceed $9, 170 , 000 .
4 . The City has previously given preliminary approval
to the Project on August 16 , L983 and such approval was
extended on August 7 , 1984 . Section 103 ( k ) of the Internal
Revenue Code of 1954 , as amended, requires "public approval"
o` any project to be financed with industrial development
bonds . Under the Regulations to Section 103 ( k ) , public
approval follows a public hearing and must be within one
year of the date of the issue . As the earlier public
approval given on August 16 , 1983 , it was necessary to hold
a new public hearing and reaffirm the public approval given
earlier .
5 . The Project has received approval by the Minnesota
Energy and Economic Development Authority .
6 . The project is hereby given public approval by the
City.
7 . This resolution is not intended to be a new pre-
liminary approval for the Project but is intended only to
satisfy the requirements under Section 103 (k ) for public
approval of the Project .
8 . The adoption of this resolution by the Council does
not constitute a guarantee or a firm commitment that the
City will issue any 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.
9 . All commitments of the City expressed herein are
subject to the condition that on or before December 31 ,
1984, 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
l instruments and proceedings relating thereto and to the
issuance and sale of the bonds, notes or other obligations
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and the sale of such bonds , notes or other obligations has
been closed by such date . 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 obligations
are not sold within such time, this resolution shall expire
and be of no further effect . _
ayor
Attest:
Finand.e7 Director-Clerk
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