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HomeMy WebLinkAboutResolution - 85-77 - MIDB's HBP Limited Partnership - $1,700,.000 - 03/19/1985 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 Eder. 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 or 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 cormnunity 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 . HBP Limited Partnership, a Minnesota limited partnership to be formed ( the "Company" ) , has advised the Council that it desires to undertake a project which consists of a 42 , 000 square foot office and warehouse building ( the "Project" ) , to be located on the west side of Technology Drive two blocks west of Mitchell Road 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 tax 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 feasability 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 $1 , 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 . 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 City is an entitlement issuer within the meaning of Minnesota Laws 1984 , Chapter 582 ( the "Act " ) with a 1985 entitlement allocation of $9 , 239 , 314 , all of which remains available for allocation as of the date hereof . The City, subject to the provisions of paragraph 7 hereof , hereby gives the Project an allocation of $1 , 700 , 000 from its entitlement allocation; provided , however , that if the closing on the issuance and sale of the Bonds has not occurred prior to August 1 , 1985 , such allocation shall be withdrawn unless such deadline is extended by resolution of the City. 7 . 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 Company . The City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the Bonds , or issue the Bonds in an amount less than the amount referred to in Paragraph 2 hereof , should the City at any time prior to the issuance 3 - thereof determine that it is in the best interest of the City not to issue the Bonds , or issue the Bonds in an amount less than the amount referred to in Paragraph 2 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 . 8 . 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 of the issuance and sale of the Bonds shall have occurred by not later than December 31 , 1985 . 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 Fe6t-& r-y- 19 , 1985 . Gary to,, Mayor ATTESTED: SEAL John -D. t`F ane, City Clerk (f d 4 -