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HomeMy WebLinkAboutResolution - 85-228 - Preliminary Approval MIDB's Eden Square Shopping Center - $6,200,000 - 11/15/1985 CI'i'Y OL" L'OGN PR?kIML RESOLUTION NO. .�" aESOLUTION (:31VING PRELIMINARY APPROVAL TO A 131WJksC F UN i-)ER THE, iVlU11I ;iPAL IN DUSTRIr'L DEVELOPMENT AA-1,, REFE11.li.ING '111E PROPOSAL A-) THE v1iNNl;SOTA DEPAK' MI-I'NT OE BNERGY AND ECONON1IC DEVEuOPMENT FOR APPROVAL, AL4D AUTHORIZING PaEPARA`1'ION Or NECESSARY llOCUMENTS WHEIRE "iS, the welfare of the State of ivlinnesota (the "State") requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental acts to prevent, so fur as possible, emergence of plighted 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 econornic deterioration of such areas to the point where the process can be reversed only by total redevelopment tiuouoh the use of local, state and federal funds derived from taxation, ►dith the attendant necessity of relocating displaced persons and of duplicating public services in other areas; and WHEREAS, technological change has caused a shift to a significant degree in the area of opportunity for educated youth to processing, trarLsporting, 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 of Eden Prairie (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 compensated 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; and WHEREAS, the increase in the amount and cost of governmental. services requires the need for more intensive development and use of land to provide an adegaate tax base to firranee .tttese costs; and IV11EitE,AS, 1 1_ r` a IVlinnesota general partnership to be formed in which Robert M. Larsen will be a general partner (the "Developer"), has advised this City Council that it desires to acquire land and construct thereon a 90,000 square foot, retail shopping facility (the "Project") in the City; and WH,vAEAS, the existence of the Project in the City will contribute to more intensive development acid use of land to increase the tax base of the City and overlapping taxing authorities and maintain and provide for an increase in opportunities for employment for residents of the City, including economically disadvantaged or unemployed individuals; and a 1 WlfLiZLAS, the City has been advised that conventional, conninercial financing to pay the capital costs of the Project is available at such costs of borrowing that the Project would not be economically feasible without the availability of industrial develcpmerit bond financing; and WHL-'ll EAS, this Council has been advised by the Developer that on the basis of information submitted to thein and their discussions with representatives of area financial institutions and potential buyers of tax-exempt bonds, industrial development revenue bonds of the city could be issued and sold upon favorable riites and terns to finance the Project; and WHEREAS, 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 industrial development revenue bonds under the provisions of Chapter 474, in an amount presently estimated not to exceed $6,200,000 to finance in part the cost of the Project currently estimated to be $6,465,000. NOW, 'I'HEREFORE, BE IT RESOLVED THAT: 1. he Project are hereby given preliminary approval by the City and the issuance of the revenue bonds for such purposes and in such amounts approved, subject to (a) approval of the Project by the Minnesota Departient of Energy and Economic Development, (b) allocation to the City of authority to issue private activity bonds pursuant to Minnesota Statutes, Section 474.19, and (c) subject to the inutual agreement of this body, the Developer and the initial purchaser of the bonds as to the details of the bonds and provisions for their payment. In all events, it is understood, however, that the bonds of the City shall not constitute a charge, lien or encumbrance legal or equitable upon any property of the City except the Project, and the bonds, when, as, and if issued, shall recite in substance that the bonds, including interest thereon, are payable solely from the revenues received from the Project and property pledged to the payment thereof, and shall riot constitute a debt of the City. 'Phe City hereby authorizes and directs the staff of the City to seek an allocation pursuant to Minnesota Statutes, Section 474.18, Subdivision 4, to issue such bonds. Such allocation is subject to the agreement of :he parties referred to above as to the terms of the bonds. 2. It is hereby found and determined that the Project would not be undertaken but for the availability of industrial development bond financing. 3. In accordance with Minnesota Statutes, Section 474.01, Subdivision 7a and Section 474.16, the Mayor of the City is hereby authorized and directed to submit a proposal for the Project to the ;Minnesota Department of Energy and Economic Development. The Mayor and other officers, employees and agents of the City are hereby authorized to provide the Minnesota Department of Energy and Lconornic Development with any preliminary information needed for this purpose, and the City Attorney is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project, if it is approved. 4. The law firm of Holines & Graven, Chartered, is authorized to act as Bond Counsel and to assist in the preparation and review of necessary documents �r relating to the Project and bonds issued in connection therewith. 'I`he Mayor, City 2 attorney, and other officers, employees and agents of the City are hereby authorized to assist Bond Counsel in the preparation of such documents. 5. In accordance with Ndinnesota Statutes, Section 474.01, Subdivision 11, the City Clerk and other officers, employees and agents of the City are hereby authorized and directed to encourage the Developer to provide employment opportunities to economically disadvantaged or unemployed individuals. Such individuals may be identified by su(--h mechanisms as it-re available to the City, including a first source agreement in which the Developer agree to use a designated State employment office as a first source for employment recruitment, referral, and placement. 6. The Developer has agreed to pay directly or through the City any and all costs incurred by the City in ccnnection with the Project whether or not the Project is approved or an allocation is granted by the _Minnesota Department of Energy and Economic Development; whether or not the Project is carried to completion; and whether or not the bonds or operative instruments are executed. 7. Ail commitments of the City expressed herein are subject to the condition that by December 31, 1985 the City and the Developer shall have agreed to mutually acceptable terns and conditions of the Revenue Agreement, the bonds 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. 8. 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 Developer. 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 arriount referred to above, should the City at any time prior to 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 above, 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. Additionally, the City is an entitlement issuer within the meaning of Minnesota Laws 1984, Chapter 582 ;the "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 Act to the Project, and this resolution and the preliminary approval of the City set forth herein are contingent upon either an allocation or such entitlement allocation by the City of 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. ArB18-P T-EE-try- .11- 11-�-;?,„- =TT ary� Peterson , Mayor ATTEST: Jo— ne , City C1 erk 3 SEAL CITY OF EDEN PRAIRIE RESOLUTION NO. 8.5-228 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PAWECT UNDER THE MUNICIPAL IND USTAIAL DEVELOPMENT ACT, REIFERRING THE PROPOSAL TO Tlil- 1vUNNLSOTA DEPAli.'1'MEN`i' OF ENERGY AND ECONOMIC DEVELOPMENT FOR APPROVAL, AND AUTHORIZING PREPARATION OF NL:CESSARY DoCUM ENfS WHEREAS, the welfare of the State of Minnesota (the "State") requires active promotion, attraction, encouragernent and development of eeonoinically sound industry and commerce through governmental acts to prevent, so far as possible, emergence of blighted lands and areas of chronic unernployrne nt, 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; and WHEREAS, technological change has caused a shift to a significant degree in the area of opportunity for educated 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 of Eden Prairie (tire "City"), a large part of the existing investment of the cornrnunity 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 inay be effectively used and compensated 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; and WHEREAS, the increase in the amount and cost of governmental services requires the need for more intensive development arid use of land to provicje an adequate tax base to finance these costs; and WIiERHAS, Eden Square Stropping Center, a Minnesota general partnership to be formed in which Robert M. Larsen will be a general partner (the "Developer"), has advised this City Council that it desires to acquire land and construct thereon a 90,000 square foot, retail shopping facility (the "Project") in the City; and WHEREAS, 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 increase in opportunities for employment for residents of the City, including economically disadvantaged or unemployed individuals; and l �vfir.lt(J��S, the City has been advised that conventional, commercial X.nancing to pay the capital costs of the Project is available at such costs of borrowing that the Project would not be economically feasible without the availability of industrial development bored financing; arid W Il E-REAS, this Council has been advised by the Developer that on the basis of information submitted to there arid their discussions with representatives of area financial institutions and potential buyers of tax-exempt bonds, industrial development revenue bonds of the city could be issued and sold upon favorable rates arid terms to finance the Project; and W11F,Rl1-'AS, 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 industrial development revenue bonds under the provisions of Chapter 474, in an amount presently estimated riot to exceed $6,200,000 to finance in part the cost of the Project currently estimated to be $6,465,000. NOW, 'I'llLR.EFUKE, BE IT RESOLVED T1IAT: 1. The Project are hereby given preliminary approval by the City and tire issuance of the revenue bonds for such purposes and in such amounts approved, subject to (a) approval of the Project by the Minnesota Department of Energy and Economic Development, (b) allocation to the City of authority to issue private activity bonds pursuant to Minnesota Statutes, Section 474.19, and (c) subject to the mutual agreement of this body, the Developer and the initial purchaser of the bonds as to the details of the bonds and provisions for• their• payment. In all events, it is understood, however, that the bonds of the City shall riot constitute a charge, lien or encumbrance legal or equitable upon any property of the City except the Project, and tale bonds, when, as, and if issued, shall recite in substance that the bonds, including interest thereon, are payable solely from the revenues received from tire Project and property pledged to the payment thereof, and shall not constitute a debt of the City. The City hereby authorizes and directs the staff of the City to seek an allocation pursuant to Minnesota Statutes, Section 474.18, Subdivision 4, to issue such bonds. Such allocation is subject to the agreement of the parties referred to above as to the teems of the bands. 2. It is hereby found and determined that the Project would not be undertaken but for the availability of industrial development bond financing. 3. In accordance with Minnesota Statutes, Section 474.01, Subdivision 7a and Section 474.1.6, the NIayor of the City is hereby authorized and directed to submit a proposal for the Project to the Minnesota Department of Energy and Economic Developrn-nt. The Mayor and other officers, employees and agents of the City are hereby authorized to provide the Minnesota Department of Energy and Economic Development with any preliminary information needed for this purpose, and the City Attorney is authorized to initiate arid assist in the preparation of such documents as may be appropriate to the Project, if it .is approved. 4. The law fir.rn of llolrnes & Graven, Chartered, is authorized to act as Bond Counsel arid to assist in the preparation arid review of necessary documents relating to the Project and bonds issued in connection therewith. The NIayor, City 2 Attorney, and other officers, einpl.oyees and agents of the City are hereby authorized to assist Bond Counsel in the preparation of such documents. 5. In accordance with Minnesota Statutes, Section 474.01, Subdivision 11, the City Clerk and other officers, employees and agents of the City are hereby authorized and directed to encourage the Developer to provide employment opportunities to economically disadvantaged or unemployed individuals. Such individuals may be identified by such mechanisms as are availaible to the City, including a first source agreement in which the Developer agree to use a designated State employ►bent office as a first source for employment recruitment, referral, and placement. 6. The Developer has 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 or an allocation is granted by the Minnesota Department of Energy and Economic Development; whether or not the Project is carried to completion; and whether or not the bonds or operative instruments are executed. 7. All co►nmitrrrents of the City expressed herein are subject to the condition that by December 3.1, 1985 the City and the Developer shall have agreed to mutually acceptable terns and conditions of the Revenue Agreement, the bonds and of the other instruments and proceedings relating to the bonds and their issuance and sale. If the events set forth herein do riot 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. 8. The adoption of this resolution does not constitute a guarantee or a firin commitment that the City will issue the bonds as requested by the Developer. The City retains the right in its sole disc;etion to withdraw from participation and accordingly not to issue the bonds, or issue the bonds in all amount less than the amount referred to above, should the City at any time prior to 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 above, or- should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the docurrnents required for the transaction. Additionally, the City is an entitlement issuer within the meaning of Minnesota Laws 1984, Chapter 582 (tile "Act"); this resolution does riot and shall not be deemed to constitute all agreement on the part of the City to allocate a portion of its entitlement allocation under the Act to the Project, and this resolution and the preliminary approval of the City set forth herein are contingent upon either an allocation or such entitlement allocation by the City of all additional allocation of bonding authority from the Coin►nissi oner of DEED with respect to the Project in an amount equal to or greater tliait the principal amount of the bonds prior to issuance and sale of the bonds. s 3 14 zWopted by the Eden Prairie City Council the day of Gary Pet&s6n Mayor Attest: John Frane City Clerk 4