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HomeMy WebLinkAboutResolution - 84-272 - MIDB's - Valley View Associates - $3,000,000 - 10/02/1984 Member introduced the following resolution and moved its adoption: RESOLUTION NO . RESOLUTION DETERMINING TO PROCEED "WITH A PROJECT AND ITS FINANCING UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE MINNESO'T'A ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY FOR APPROVAL AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Eden Prairie , Minnesota ( the City ) as follows: Section 1 . Recitals and Findings. 1 . 1 . This Council has received a proposal that the City finance a portion or all of the cost of a proposed project under Minneosta Statutes , Chapter 474 (the Act ) , consisting of the acquisition of land and construction and equipping of an approximately 62 ,000 square Foot office/warehouse/production facility in the City ( the Project ) by Malley View Associates , a Minnesota partnership ( the Borrower ) . The Project is located at Valley View Road between SChooner Boulevard and Mitchell Street in the City . 1 . 2 . At a public hearing, duly noticed and held on October 2, 1984 , 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 the proposal to undertake and .finance the Project . Based on the public 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 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 City , the County and School District in which the Project is located and would provide increased opportunities for employment for residents of the City and surrounding area. ( d ) This Council has been advvsed by the Borrower 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 or operating the Project would be significantly reduced, but that with the aid of municipal borrowing , and its resulting lower borrowing cost , the Project is economically more feasible . (e ) This Council has also been advised by the Borrower that on the basis of its discussions with potential buyers of tax-exempt bonds , revenue bonds of the City (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 City 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 the bonds by the City would be a substantial inducement to the Borrower to acquire , construct and equip the Project. Section 2. Approvals and Authorizations . 2 . 1 . On the basis of the information given the City to date , it appears that it would be desirable for the City to issue its revenue bonds under the provisions of the Act , in one or more series , to finance the Project in the estimated total amount of $ 3 ,000 ,000 . 2. 2 . The Council hereby determines to proceed with the Project and its financing , and hereby declares its present intent to have the City issue its revenue bonds under the Act to finance the Project , subject to the approval of the Project by the Minnesota Energy and Economic Development Authority. Notwithstanding the foregoing , however , the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the City or this Council to issue or to cause the issuance of such revenue bonds . The City retains the right in its sole discretion to withdraw from participation and , accordingly , not issue the revenue bonds 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 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 the mutual agreement of this Council , the Borrower and the purchase- or purchasers of the revenue bonds and such further conditions as the City may specify , such agreement and specification on the part of the City to be evidenced by a resolution of this Council authorizing the issuance of the revenue bonds on the terms and conditions agreed upon and authorizing the execution of necessary documents . In all events , it is understood that the revenue bonds shall not constitute a charge , lien or encumbrance, legal or equitable , upon any property of the City except the revenues pledged to payment of such revenue bonds , 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 any property pledged to the payment thereof and shall not consitute a debt of the City within the meaning of any constitutional , statutory or charter 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 on behalf of the City . 2 .4 . The Borrower has agreed and it is hereby determined that any and all direct and indirect costs incurred by the City in connection with the Project , whether or not tree Project is carried to completion , and whether or not approved by the Energy and Economic Development Authority , and whether or not the City by resolution authorizes the issuance of the bonds , will be paid by the Borrower upon request . 2. . 5 The City ' s entitlement allocation for the year 1984 , pursuant to the provisions of Chapter 582 , 1984 Laws of Minnesota, is $ , of which all but $547 ,000 has been previously committed by the City . Consequently, nothing herein shall be construed as obligating the City to provide the Project with any portion of its 1984 entitlement allocation . Further , nothing herein shall be construed as obligating the City to provide an entitlement allocation for any year subsequent to 1984 . Additionally, the preliminary approval of the City expressed herein is subject to the condition that within twelve months of the date of adoption of this resolution the City and the Borrower shall have agreed to mutually acceptable terms and conditions of the bonds and of the other instruments and proceedings relating to the bonds and their issuance and sale . If the events set forth hereiri 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 2nd day of October , 1984.. IZ �. Trlayo2- Attest : Clerk 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 .