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HomeMy WebLinkAboutResolution - 85-137 - Preliminary Approval MIDB's Hagen Systems - $2,500,000 - 06/04/1985 RESOLUTION NO. 85- 137 CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED INDUSTRIAL DEVELOPMENT PROJECT BY RIALTO INVESTMENTS UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AND AUTHORIZING SUBMISSION OF AN APPLICATION TO THE MINNESO`L'A ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY FOR APPROVAL THEREOF BE IT RESOLVED by the City Council of the City of Eden Prairie , Minnesota, as follows : 1. . There has been presented to this Council a pro- posal by Rialto Investments , a Minnesota general partnership (the " Partnership" ) that the City undertake and finance a project pursuant to the Minnesota Municipal Industrial Development Act , Minnesota Statutes , Chapter 474 ( the "Act") generally consisting of the acquisition, construction and equipping of an approximately 40 , 000 square foot computer sales , service and training facility on approximately two and one-11tlit acres of Outlot C , City West Second Addition , between City West Parkway and Loop Road, adjoining Prime Tech Park in the City, to be owned by the Partnership and leased to Hagen Systems , Inc . (the "Project") . The Partnership will enter into a revenue agreement with the City upon such terms and conditions as are necessary to produce income K and revenues sufficient to pay when due the principal of and the interest on up to approximately $ 2 , 500 , 000 Industrial Development Revenue Bonds of the City to be issued pursuant to the Act, to provide monies for the acquisition, construction and installation of the Project ; and the City will pledge its interest in the revenue agreement to secure the bonds . 2 . As required by the Act , this Council conducted a public hearing on Tuesday, June 4 , 1985 on the proposal to undertake and finance the Project after publication in the official newspaper and a newspaper of general circulation in the City of a notice setting forth the time and place of hearing; stating the general nature of the Project and an estimate of the principal amount of bonds or other obligations to be issued to finance the Project ; stating that a draft copy of the proposed Application to the Minnesota Energy and Economic Development Authority, together with all attachments and exhibits thereto , is available for public inspection at the office of the City Clerk , in the City Hall , at all times between the hours of 8 : 00 A.M. and 4 : 30 P .M. each day except Saturdays , Sundays and legal holidays to and including the day of hearing; and stating that all parties who appear at the public hearing shall have an opportunity to express their views with respect to the proposal . The draft application to the Minnesota Energy and Economic Development Authority , together with all attachments and exhibits thereto , was on file and available for public inspection at the place and times set forth in the notice . -3- 3 . It is hereby found, determined and declared that the Project furthers the purposes stated in Section 474 . 01 of the Act in that the purpose of the Project is and the effect thereof will be to promote the public welfare by the attraction, encourage- ment and development of economically sound industry and commerce so as to prevent , so far as possible , the emergence of blighted and marginal lands and areas of chronic unemployment; the reten- tion and development of industry to use the available resources of the community , in order to retain the benefit of its existing .investment in educational and public service facilities; by halting the movement of talented, educated personnel of mature age to other areas and thus preserving the economic and human resources needed as a base for providing governmental services and facilities ; and the more intensive development of land avail- able in the area to provide a more adequate tax base to finance the cost of governmental services in the Municipality , county and school district where the Project is located. In the judgment of the City Council , based upon the representations of. the Partner- ship , the Project as proposed would not be undertaken by the Partnership but for the availdtllity of industrial development bond financing. 4 . The Partnership has entered into preliminary discussions with Piper , Jaffray & Hopwood Incorporated , as placement agent, and the placement agent has reported that the Project and •the sale of bonds therefor are feasible . 5 . The Partnership has agreed to pay any and all costs incurred by the City in connection with the Project whether or not the Project is approved by the Minnesota Energy and Economic Development Authority and whether or not the Project is carried to completion . 6 . The Project is hereby given preliminary approval by the City subject to approval of the Project by the Minnesota Energy and Economic Development Authority and subject to final approval by this Council and by the purchasers of any bonds to be issued as to the ultimate details of the Project and as to the terms of the bonds . 7 . In accordance with Section 474 . 01 , Subd . 7 of the Act., the Mayor , the City Manager , and such other officers and representatives of the City as may from time to time be designated are hereby authorized and directed to submit the proposal for the Project to the Minnesota Energy and Economic Development Authority and request its approval thereof, and the Mayor , the City Manager , and other officers , employees and agents of the City are hereby authorized to provide the Authority with such preliminary information as it may require . The Partnership, Faegre & Benson as bond counsel , the City Manager , the City f Attorney, and other City officials are also authorized to -4- initiate the preparation of a proposed loan agreement and such other documents as may be necessary or appropriate to the Project so that , when and if the proposed Project is approved by the Authority and this Council gives its final approval thereto , the Project may be carried forward expeditiously. 8 . The City is an entitlement issuer within the meaning of Minnesota Laws 1984 , Chapter 582 (the "Allocation Act" ) . This Resolution does not and shall not be deemed to constitute an agreement on the part of -the City to allocate a portion of its entitlement allocation under the Allocation Act to the Project , and this Resolution and the preliminary approval. of the City set forth herein are contingent upon either an allocation of such entitlement allocation by the City or an additional. allocation of bonding authority from the Commissioner of DEED with respect to the Project in an amount equal to or greater than the principal amount of the bonds prior to issuance and sale of the bonds . 9 . The Partnership 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 Minnesota Energy and Economic Development Authority; whether or not the project is carried to completion; and whether or not the bonds or operative instruments are executed. 10 . 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 Partnership. The City retains the right in its sole discretion to withdraw from participation and accordingly not issue the 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 bonds , or to issue the bonds in an amount less than the amount referred to in paragraph 1 hereof, 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 . 11 . If bonds are issued to finance the Project, the revenue agreement shall provide for payment by the Partnership of the City ' s annual administrative fee of one-eighth of one percent of the outstanding principal amount of the bonds , as required by Resolution No . 85-135 of this Council . 1. 2 . All commitments of the City expressed herein are subject to the condition that by December 31. , 1985 the City and the Partnership shall have agreed to mutually acceptable terms and conditions of the revenue agreement, the bends and of the other instruments and proceedings relating to the bonds and their issuance and sale . 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 . -5- 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 the attached extract of minutes of a meeting of the City Council of the City held Tuesday, June 4 , 1985 , is a full , true and correct transcript therefrom insofar as the same relates to an industrial development project to be undertaken pursuant to Chapter 474 , Minnesota Statutes , by the City and Rialto Investments . WITNESS My hand and seal officially as said City Clerk this day of , 1985 . City Clerk (Seal) 1 -6- � \ ADOPTED by the City Council Of the City Of Eden Prairie, Minnesota , this 4th day of June 1985 . ATTEST ---�----- SEAL