HomeMy WebLinkAboutResolution - 84-329 - Preliminary Approval MIDB's Technology Park III - BND/bkhl 7 r
RESOLUTION NO .
RESOLUTION GIVING PRELIMINARY APPROVAL TO A
PROJECT UNDER THE MINNESOTA MUNICIPAL INDUS-
TRIAL DEVELOPMENT ACT , REFERRING THE PROPOSAL
TO THE MINNESOTA ENERGY AND ECONOMIC DEVELOP-
MENT AUTHORITY FOR APPROVAL AND AUTHORIZING
PREPARATION OF NECESSARY DOCUMENTS .
BE IT RESOLVED by the City Council ( the "Council" ) of
the City of Eden Prairie , Minnesota ( the "City" ) , as fol-
lows :
1 . It is hereby found, determined and declared as
follows :
1 . 1 . The welfare of the State of Minnesota ( the
" State" ) requires active promotion, attraction , encour-
agement 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 it is the policy of the
State to facilitate and encourage action by local gov-
ernment units to prevent the economic deterioration of
such areas to the point where the process can be re-
versed 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 n 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 for 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 adequate tax
base to finance these costs .
1. . 4 . BKH Limited Partnership, a Minnesota limited
partnership ( the "Company" ) , has advised the Council
that it desires to undertake a project which consists of
a 55 , 000 square foot office services building , also in-
cluding warehouse facilities ( the "Project " ) , to be
located at 9800 West 76th Street in the City .
1 . 5 . The existence of the Project in the City will
contribute to more intensive development and use of
land , thereby increasing the tar, base and employment
opportunities in the City .
1 . 6 . The City has been advised by the Company that
conventional , commercial financing to pay the capital
cost of the Project is available at such costs of bor-
rowing that the Project would not be economically feasi-
ble and would not be undertaken but for the availability
of industrial development bond financing therefor .
1 . 7 . This Council has been advised by Dougherty ,
Dawkins , Strand & Yost Incorporated of the financial
f easability of the Project , as so undertaken with the
assistance of the City , or of its intention to purchase
commercial or industrial revenue obligations of the City
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, including the Project ,
and the issuance of such obligations by the City would
be a substantial inducement to the Company to construct
its facility in the City .
1 . 9 . The City has been advised by O ' Connor &
Hannan, Minneapolis , Minnesota , who shall act as bond
counsel to the City with respect to the Project , that
the Project constitutes a "project " within the meaning
of Minnesota Statutes , Chapter 474 .
2 . On the basis of information given the City to date ,
it appears that it would be in the best interest of the City
to issue its obligations ( the "Bonds " ) under the provisions
of Minnesota Statutes , Chapter 474 , to finance the Project
in an amount presently estimated not to exceed $2 , 700 , 000 .
2 -
3 . The Project and the related financing thereof by
the City are hereby given preliminary approval , and the
issuance of the Bonds for such purpose and in such estimated
amount is hereby approved, subject to approval of the Proj -
ect by the Minnesota Energy and Economic Development Author-
ity ( the "Authority" ) and to the mutual agreement of the
Council , the Company and the initial purchasers of the Bonds
as to the details and provision for payment of the Bonds .
in all events , it is understood , however , that the Bonds
shall not constitute a debt of the City or a charge , lien or
encumbrance , legal or equitable , upon any property of the
City except its interest in the Project, and each of the
Bonds when, as and if issued shall recite in substance that
it is payable solely from the revenues received from the
Project and property pledged to the payment thereof .
4 . In accordance with Minnesota Statutes , Section
474 . 01 , Subdivision 7a , the Mayor is hereby authorized and
directed to submit the proposal for the Project to the Au-
thority for approval . The Mayor and other officers , em-
ployees and agents of the City are hereby authorized to
provide the Authority with any preliminary information
needed for this purpose and are further authorized to initi-
ate and assist in the preparation of such documents as may
be appropriate to the Project and the financing thereof .
t 5 . The Company has agreed to pay directly or through
the City any and all costs incurred by the City in connec-
tion 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 in-
struments are executed.
6 . 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 participa-
tion and accordingly not to issue the Bonds , or issue the
Bonds in an amount less than the amount referred to in Para-
graph 2 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.
7 . All commitments of the City expressed herein are
subject to the condition that the City and the Company 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
- 3 -
of the issuance and sale of the Bonds shall have occurred by
no later than December 31 , 1984 . Additionally, this resolu-
tion and the preliminary approval of the City set forth
herein are contingent upon receipt by the City of an allo-
cation of bonding authority from the Commissioner of the
Minnesota Energy and Economic Development Authority with
respect to the Project in an amount equal to or greater than
the principal amount of the Bonds prior to closing on the
issuance and sale of the Bonds and in any event prior to
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 .
Adopted by the Eden Prairie City Council on December 20 ,
1984 .
l,Jo gang P nzel , Mayon
SEAL
ATTESTED :
John D. -_Fwane, City Clerk
4 -
ly =� -y_ `~ ^nst:-�Icpian will 3egin cn 'cr a.6cut April 15
,.r��s2. S t 11/ 21. 1.. t
and 'pi i ' re G=..;,y i et-ad vi v- a:out October 15 ?485 'Khefl C=!, 1 a tad, z2Zea -
»e I naL`?_� 200 le-4 -o$s :ate my the :-c;; v". as;rual �ayrcT 1 r„- ,orcx
3 . 6 0 0 , 0 0 0 > ''.3s2G laa .. .:SSr'�rtL cr + i ; ;iC war , � :s app 1 i Cam ? a) 7 11er ' ara
_ bu per.
.' IIy ov1..d �• vdv 1Cac" ZY S�ress .
..i• '
ar"• -e :a.�c'�c i s 30 ynar-, r- , .Ie.^.0 a December 8 4
T•
'.� Q'rs'Rr= ."i iv i aRR I��'QTi :lTGd era iTZCcrOT•aw,=.d ^e.r"aZa
-R C ".. - �. �,.•.� a n {eC. IrrCar !AZ nT1 .
c? Ricn �� '"'Cr,ccrd �unse I ...a:. G.e :7r::�asa; c_ns�� W d..5 .r-r„ _ :. .. �..
Z_ C=Cy c :ne c i ty C:UnaZ ? r-zc lu t an giv i ng ;, 1 ; 'i -ary acar ry r sauanCa
=-� r.eveeus :cnaz. _
we. .•t .^i+M.MIpT i+e.-!.e`3♦1�t�rwnrs3 uG �w.. �vAC�(���.1pY`.giNo• 3Gi�. 1
13=_M o. inter t.: �ttr..�t ase :fie acnd issue cr a i e=ar =n I r—n Ing a :as -
i aT tn e Ft a ;i ctartci a I S varTcaa;ra
v. .-q J�a:L��iTv3rTt sip::G:i ��'� •.:� r'i TZC i0a 7 nsacr�..santat i v� v i ':;TB I Sal.i 1 nC wiCia`i+�f r: ar`e
a uII CST .--'I rsrlLe aC_T?".:IIE..� aSG �ipdncRyE? .at. ss} r.01� Suoc. w; y
�C�1� ICE:Lit err •�1u 4.�.Cr�Z.v
S,r.=ZuTTwt S anew aical "'�..,rJT"��2.''Itat;VR Ci w$ i5ail?YiC aii—...�1G.'"••`� +'taV
. a :.: :T,; - t1aas 1o=• include 'uny `z taa SDI i G cr a, l Xeoa w: ar c=ris :meo_' in
'? a i pr7pe ty =- 7sale,
andf�p..=es ria,v i nc i ude an, hcuS i:TC '�' 1 r/
t.
..S—,azi�rM .�C�ps =ed937 .=e a awrzrmlf;al?•1•r%mr--sau- aLi ve ar ' to q�ss�ujrc� Ja�ssj=c.-I
a pe z 1 7 C hea Yi n was �MT�Wi`���L Pu s Man "—► M 1 nn. S taz. 5 4 7 4.a—T ., •utd• J : . +
`Te szz3iz7 n—c sTa T"1" nc''1::v'e t!"m , t"Mle and P T&C2 Cf Lie r'ne-It i nct anti a i i
r:c _sc .m i as .'' ar,"erdea an apocratn i toy c a,:aress .�it v i S .
::-a 1 as ar Iicti :e s) :s ;=z T i sltee wh i c:n i rd i+'..:tom =a da_a( s) :4 Pub i i Cai..-cn end tie
nz' qs;ama''-� s) i n snit'iC."T the rm:i s) wer-% ;ub 1 i sned .
a• �"cV'Qe id1t ' c�Tpl i :lTC� OT r�SRlGy1ZTe.Rt ?ra?3r?:Tc- Q1 e-_=ncm1ca11y d?saGVan-
Zaed cr uneaaToyeea rrra,•d,cL'a1s. ( Sea .Mn. Laws 1SE-2, 7-29, _ 2- )
:ne-4, a3—_ QIl e ie':w ^r?re.'TC.:%i Yes Qi .Eden Prairie , �t`rT1re51..L.a
r1.,r an, 7 r'V a. :S pry ec M. a- Cyr ear I i est cznve,, ,erca Sri rnai,'. •aFE I-..ay Carry 1
Ivesa." is:st: i ric rut-iori tv, _vice ar qr,=,rz 14avar l s
lame an :`rs 121_etLz •;':E Tait C- t`te sia ra_•sre ^anx Ycu . )
Wolfgang PenZel.
:iG.rYC • i , 1ai::l -
S r. T'T n c �.� T ww. a 4 i.. r f!*� r a" C• 9 n4.
�1�`. I fldt ,i� v.La._.:TTI? w �e GS:' G.I�i. v✓ 1 �V :ale .�Ui:. Ca .. � yr /e •I.r.•L.. Qir •...e
' QT �.`.e rr^,;?�'C r.`.P '•a. ns I "1e ra-ve..-ue acrienen tee' .'�.::T cr ::1e :.cnas�� y ��1 1 �. 1 1 �. �• r\ y 1
Ja to aT Ae=rnv a L
ri? S i CXC i.1 =S Z e SL�:Mi ~a:-2 1:Z 0UPP1 ,:Ce tiM
S� ► o �;?' t'!�jYN i ra
'�I.;�NEC�� =?�E?C•� �1�#C =CCNCMrC �E'!_' �P'�cxl� �U'i'=�r~c��"r
r.gQitCam`an
=cr �� rJL 31 cr SnZC i P�, i :::GUS �I Ra,ienua 3cnc
M41anesCta. Ene-=v nd :ccnetalG December 20 , 1984•
Ceva 1 cF:�en: .emu c^.er��y
Cady- � tit. 100 'Hanover 31dc.
?
=Z i.01.dam t�1 � ,y" RIYe.SC:.�. ..
_Va---r;na `ccay C Eden Prairie Czurrty :^ Hennepin , '�•ft'1't25VCa,
~y �� i ' 2 �,rtnesaca :..le-r y anc cc.:::ccn, c. uevelaprzizu'lt :v e~ c ti %-61,6;*
esct a ,cr r privai cr z-4,4;y c urs k-Cy' S ¢r-Z;:csed Mun4C.i;aI :ncusw,;a i Aevenue cerid iSSua as
=: y M� =- "a 547w.01, Sued. 7a_
�t/p �.-1 t.��d/� 11 b�1 .I1•�I ,W I IIG.� ej 1'.� r�.•J+�•i5 cns
=;ro^ BKH Limited Partnership , a Minnesota limited partnership
.AdG±=S:: 8300 Grand Avenue South, Blcomington, Minnesota 55420
Bloomington `` Minnesota t3tc t.�Cc�Cr°a;.;cn
Steven B . Hoyt
9300 Gratd=Vdnue South, Bloomington , Minnesota. 55420
'lame Technology Park III
.' �`".: t5 =it�a�EC T'ra3'Z1 f it7 (Rd'C:dT'A dT bEt$�t7ESi � RPil Z_ deyf.-lonment
Minds V/ea W':e Saia Of ::e rndus-�-1 V ;eve.nua 3cnCs wi i i le usa�
accxuisition or land and accuisition and construction of
otrice/warehouse facility
ca «C::: i"; 9800 west 76th Street , Eden Prairie , Minnesc•ca 55344
�.-Cc. : =Ci1C 'S�JE >ri i 1 �E '.SJCrazTa��. iy S 2 ,_ 700 , 000c'S :.:00e3"1.
539 , 000
r'u ic:.,ant c S, Cn 'F--1 inG5C.: 11 ace cr7 -
11y1.e er l nri i rmcGam-
_.,vii , :va 1 , i C a • , �.�.71/ 13 1..r L C Cr
230 , 000
-.;a ?nn 1 nno
+ar
_
,Z
MAYOR ' S STATEMENT CONCERNING A PROPOSED PROJECT
UNDER MINNESOTA STATUTES , CHAPTER 474
The undersigned, being the duly qualified and acting
Mayor of the City of Eden Prairie, Minnesota ( the "City" ) ,
hereby certifies that the City Council of the City ( the
"Council" ) has been provided by BKH Limited Partnership, a
Minnesota limited partnership ( the "Company" ) , with certain
information concerning a proposed Project under the Minne-
sota Municipal Industrial Development Act , Minnesota Stat-
utes , Chapter 474 . On the basis of such information, the
Council , by resolution adopted on December 20 , 1984 ( the
"Preliminary Resolution" ) , has given preliminary approval to
the proposed Project and the financing thereof by the issu-
ance of revenue obligations of the City . The following are
factors considered by the Council in determining to give
preliminary approval to the Project :
1 . The Project consists of a 55 , 000 square foot
office services building, also including warehouse
facilities , to be located at 9800 West 76th Street in
the City .
2 . O' Connor & Hannan , as bond counsel , is of the
opinion that the Project constitutes a "project " within
the meaning of Minnesota Statutes , Section 474 . 02 , Sub-
division la.
3 . Based on an estimated total cost of acquisi-
tion, construction and installation of approximately
$3 , 200 , 000 , it is the opinion of the Council that the
Project , when completed , will add significantly to the
commercial and industrial tax base of the City and will
thereby benefit the County , the School Districts and
other taxing jurisdictions in which the Project is lo-
cated.
4 . Representatives of the Company estimate that
as a result of the acquisition, construction and instal-
lation of the Project a total of 200 new jobs in the
City will be created .
5 . Representatives of the Company estimate that
the acquisition , construction and installation of the
Project wi?.1 result in an additional payroll of approxi-
mately $3, 600 , 000 , based on currently prevailing
wages. The Council believes that a substantial percen-
tage of that additional payroll will be spent on hous-
ing , food and other goods and services in the City , thus
benefiting the local housing industry and local mer-
chants .
6 . Nothing has come to the attention of the Coun-
'y cil to indicate that the proposed financing of the Proj -
ect by the City would adversely and unfairly affect any
other business enterprise located in the City .
7 . The City will comply with the requirements of
Minnesota Statutes , Section 474 . 01 , Subdivision 8 based
upon information supplied to the City by the Company .
S . Based on representations by the Company , the
Project does not include any property to be sold or
affixed to or consumed in the production of property for
sale and does not include any housing facility to be
rented or used as a permanent residence .
9 . A public hearing was conducted, in connection
with the Council ' s consideration of the Project , on
December 20 , 1984 , at the School Administration Build-
ing , 8100 School Road, at a meeting of the Council which
began at approximately 7 : 30 p.m. , C . T. , at which all
interested parties were afforded an opportunity to ex-
press their views .
y o r
Eden Prairie , Minnesota
Dated : December 20 , 1984 .
2 -
December 20 , 1984
Minnesota Energy and Economic
Development Authority
100 Hanover Building
480 Cedar Street
St . Paul , Minnesota 55101
Re : Proposed $2 , 700 , 000 City of Eden Prairie , Minne-
sota , Commercial Development Revenue Bonds ( Tech-
nology III Project ) for BKH Partnership , a Minne-
sota Limited Partnership
Dear Sir or Madam:
Based upon a preliminary review of certain facts and
circumstances presented to us concerning the project to be
financed by the above-mentioned proposed bond issue , it is
our view that such project qualifies us a project within the
meaning of Minnesota Statutes , Section 474 . 02 , Subdivision
la .
Very truly yours ,
Wood Kidner
PLAN FOR COMPLIANCE WITH EMPLOYMENT PREFERENCE
} OF UNEMPLOYED OR ECONOMICALLY DISADVANTAGED INDIVIDUALS
WHEREAS, the City of Eden Prairie , Minnesota ( the
"City" ) is authorized by Minnesota Statutes , Chapter 474
( the "Act " ) , to issue its commercial or industrial develop-
ment revenue bonds to finance capital projects consisting of
properties used and useful in connection with a revenue
producing enterprise .
WHEREAS , a proposal has been presented by BKH Limited
Partnership, a Minnesota limited partnership ( the " Corr:-
pany" ) , to the City Council of Eden Prairie , Minnesota, that
the City , acting pursuant to and in accordance with the Act ,
issue its obligations in the estimated amount of $ 2 , 700 , 000
( the "Bonds" ) to finance a project consisting of a 55 , 000
square foot office services building , also including ware-
house facilities ( the "Project " ) .
WHEREAS, the welfare of. the City and the State of Minne-
sota requires that , whenever feasible , employment opportuni-
ties made available as a result of the act should be offered
to individuals who are unemployed or who are economically
disadvantaged as defined in the Federal Job Training Part-
nership Act of 1982 , Statutes at Large , Volume 96 , Page
1322 .
WHEREAS , as a condition to the City ' s issuance of the
Bonds , the Company agrees , to the extent feasible and to the
extent riot in violation of the Company ' s legally binding
obligations , as follows :
1 . Employment opportunities resulting from the Project
should be first offered to qualified individuals
who are unemployed or who are economically dis-
advantaged as defined in the Federal Job Training
Partnership Act of 1982 , Statutes at Large , Volume
96 , Page 1322 .
2 . The Company agrees to take reasonable steps to
target employment opportunities resulting from the
Project to qualified individuals who are unemployed
or economically disadvantaged.
3 . The Company agrees to use the Minnesota Department
of Economic Security Job Service ( "Department " )
offices as the Company ' s first source of employment
recruitment , referral and placement and shall rec-
ommend to any tenants of the Project that they also
use the Department as a first source on a similar
basis .
4 . The Company agrees that not later than July 1 , 1985
and on each July 1 For the succeeding three years ,
it shall file on its own behalf and on behalf of
the City , an employment report to the Commissioner
of the Minnesota Energy and Economic Development
Authority on forms provided by the Commissioner ' s
office with a copy to the City .
BKH LIMITED PARTNERSHIP, a
Minnesota limited partnership
By TECHNOLOGY PARK ASSOCIATES ,
a Minnesota General Part-
nership, Its General
Partner
By
teve Hoyt ,
Its General Partner
Dated: December 20 , 1984 .
-- 2 -
i
DOUGHERTY, DAWKINS, STRAND & YOST
INCORPORATED
December 3 , 1984
Honorable Mayor and City Council
City of Eden Prairie
8950 Eden Prairie Road
Eden Prairie, Minnesota 55344
RE : $2 , 700 , 000 City of Eden Prairie, Minnesota
Industrial Development Revenue Bond
(Technology Park III - BKH Limited Partnership Project )
Gentlemen:
At the request of Bruce Hoyt and BKH Limited Partnership
(Applicant ) , we have evaluated the economic feasibility of an
application that the City of Eden Prairie issue one or more of
its revenue obligations under the provisions of the Minnesota
Municipal Industrial Development Act to provide funds for
financing of a 55 , 006 square foot office service building to be
leased to various tenants .
Based on the background and financial status of the Applicant we
conclude that the project is economically feasible and that the
revenue obligations of the City can be successfully issued and
sold in an amount not to exceed the amount of the application .
We believe that the Applicant has the financial and management
capability to fulfill the obligations to be imposed by this tran-
saction . We propose to act as underwriter for the City and the
Applicant in arranging for the placement of the obligations sub-
ject to approval of the project by the City and the Minnesota
Department of Energy, Planning and Development, and subject to
final agreement by and among the City, the Applicant and the
purchasers as to the terms and conditions of the issuance and
sale .
We understand a copy of this letter will be forwarded by the City
to the State of Minnesota to serve as the Letter of Intent
required by the State .
Very truly yours ,
Dougherty, Dawkins , Strand & Yost
Incorporated
By T
(-L
Richard B . Riley
Senior Vice President �-
RBR/kea INVESTMENT BANKERS
700 LUMBER EXCHANGE BUILDING D MINNE:APOLIS, MINNESOTA 55401 0 612/341-6000
6