HomeMy Public PortalAbout1982-011C? / 6f � � � e mil, /1 et.
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RESOLUTION RECITING A PROPOSAL FOR A
COMMERCIAL FACILITIES DEVELOPMENT PROJECT
GIVING PRELIMINARY APPROVAL TO THE PROJECT
PURSUANT TO THE MINNESOTA
MUNICIPAL INDUSTRIAL DEVELOPMENT ACT
AUTHORIZING THE SUBMISSION OF AN APPLICATION
FOR APPROVAL OF SAID PROJECT TO THE
COMMISSIONER OF ENERGY, PLANNING AND
DEVELOPMENT OF THE STATE OF MINNESOTA
AND AUTHORIZING THE PREPARATION OF
NECESSARY DOCUMENTS AND MATERIALS
IN CONNECTION WITH SAID PROJECT
WHEREAS,
(a) The purpose of Chapter 474, Minnesota
Statutes, known as the Minnesota Municipal Industrial
Development Act (the "Act") as found and determined by the
legislature is to promote the welfare of the state by the
active attraction and encouragement and development of economi-
cally sound industry and commerce to prevent so far as possible
the emergence of blighted and marginal lands and areas of
chronic unemployment;
(b) Factors necessitating the active promotion
and development of economically sound industry and commerce are
the increasing concentration of population in the metropolitan
areas and the rapidly rising increase in the amount and cost of
governmental services required to meet the needs of the
increased population and the need for development of land use
which will provide an adequate tax base to finance these
increased costs and access to employment opportunities for such
population;
(c) The City Council of the City of Medina (the
"City") has received from The West Creek Building, a general
partnership organized under the laws of the State of Minnesota
(the "Company") a proposal that the City assist in financing a
Project hereinafter described, through the issuance of a
Revenue Bond or Bonds or a Revenue Note or Notes hereinafter
referred to in this resolution as "Revenue Bonds" pursuant to
the Act;
(d) The City desires to .facilitate the selec-
tive development of the community, retain and improve the tax
base and help to provide the range of services and employment
opportunities required by the population; and the Project will
assist the City in achieving those objectives. The Project
will help to increase assessed valuation of the City and
surrounding area and help maintain a positive relationship
between assessed valuation and debt and enhance the image and
reputation of the community;
(e) The Project to be financed by the Revenue
Bonds is an office/warehouse facility to be located in the City
and leased to Gyperete Corp. and Acoustical Floors, Inc. and
consists of the construction of buildings and improvements and
the installation of equipment therein, and will result in the
employment of additional persons to work within the new
facilities;
(f) The City has been advised by representa-
tives of Company that conventional, commercial financing to pay
the capital cost of the Project is available only on a limited
basis and at such high costs of borrowing that the economic
feasibility of operating the Project would be significantly
reduced, but Company has also advised this Council that with
the aid of municipal financing, and its resulting low borrowing
cost, the Project is economically more feasible;
(g) ,Pursuant to a resolution of the City
Council adopted on Jr i ,6 _ , 1982, a public hearing on the
Project was held on/ r6, �� /% , 1982, after notice was
published, and materials made available for public inspection
at City Hall, all as required by Minnesota Statutes, Section
474.01, Subdivision 7b at which public hearing all those
appearing who so desired to speak were heard;
(h) No public official of the City has either a
direct or indirect financial interest in the Project nor will
any public official either directly or indirectly benefit
financially from the Project.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Medina, Minnesota, as follows:
1. The Council hereby gives preliminary approval to the
proposal of Company that the City undertake the Project
pursuant to the Minnesota municipal Industrial Development Act
(Chapter 474, Minnesota Statutes), consisting of the acqui-
sition, construction and equipping of facilities pursuant to
Company's specifications suitable for the operations described
above and to a revenue agreement between the City and Company
upon such terms and conditions with provisions for revision
from time to time as necessary, so as to produce income and
revenues sufficient to pay, when due, the principal of and
interest on the Revenue Bonds in the total principal amount of
approximately $750,000 to be issued pursuant to the Act to
finance the acquisition, construction and equipping of the
Project; and said agreement may also provide for the entire
interest of Company therein to be mortgaged to the purchaser of
the Revenue Bonds; and the City hereby undertakes preliminarily
to issue its Revenue Bonds in accordance with such terms and
conditions;
2. On the basis of information available to this Council
it appears, and the Council hereby finds, that the Project
constitutes properties, real and personal, used or useful in
connection with one or more revenue producing enterprises
engaged in any business within the meaning of Subdivision la of
Section 474.02 of the Act; that the Project furthers the
purposes stated in Section 474.01, Minnesota Statutes; that the
availability of the financing under the Act and willingness of
the City to furnish such financing will be a substantial
inducement to Company to undertake the Project, and that the
effect of the Project, if undertaken, will be to encourage the
development of economically sound industry and commerce, to
assist in the prevention of the emergence of blighted and
marginal land, to help prevent chronic unemployment, to help
the Community retain and improve the tax base and to provide
the range of service and employment opportunities required by
the_ population, to help prevent the movement of talented and
educated persons out of the state and to areas within the State
where their services may not be as effectively used, to promote
more intensive development and use of land within and adjacent
to the City and eventually to increase the tax base of the
community;
3. The Project is hereby given Dreliminary approval by
the City subject to the approval of tze Project by the
Commissioner of Energy, Planning and Development (the
"Commissioner"), and subject to final approval by this Council,
Company, and the purchaser of the Revenue Bonds as to the ulti-
mate details of the financing of the Project;
4. In accordance with Subdivision 7a of Section 474.01
Minnesota Statutes, the Mayor of the City is hereby authorized
and directed to submit the proposal for the Project to the
Commissioner requesting his approval, and other officers,
employees and agents of the City are hereby authorized to
provide the Commissioner with such preliminary information as
he may require;
5. Company has agreed and it is hereby determined that
any and all costs incurred by the City in connection with the
financing of the Project whether or not the Project iscarried
to completion and whether or not approved by the Commissioner;
6. Briggs and Morgan, Professional Association, acting as
bond counsel, and First Corporate Services, Inc., investment
bankers, are authorized to assist in the preparation and review
of necessary documents relating to the Project, to consult with
the City Attorney, Company and the purchaser of the Revenue
Bonds as to the maturities, interest rates and other terms and
provisions of the Revenue Bonds and as to the covenants and
other provisions of the necessary documents and to submit such
documents to the Council for final approval;
7. Nothing in this resolution or in the documents pre-
pared pursuant hereto shall authorize the expenditure of any
municipal funds on the Project other than the revenues derived
from the Project or otherwise granted to the City for this
purpose. The Revenue Bonds shall not constitute a charge, lien
or encumbrance, legal or equitable, upon any property or funds
of the City except the revenue and proceeds pledged to the
payment thereof, nor shall the City be subject to any liability
thereon. The holder of the Revenue Bonds shall never have the
right to compel any exercise of the taxing power of the City to
pay the outstanding principal on the Revenue Bonds or the
interest thereon, or to enforce payment thereof against any
property of the City. The Revenue Bonds shall recite in
substance that the Revenue Bonds, including interest thereon,
is payable solely from the revenue and proceeds pledged to the
payment thereof. The Revenue Bonds shall not constitute a debt
of the City within the meaning of any constitutional or
statutory limitation;
8. In anticipation of the approval by the Commissioner,
the issuance of the Revenue Bonds to finance all or a portion
of the Project, and in order that completion of the Project
will not be unduly delayed when approved, Company is hereby
authorized to make such expenditures and advances toward
payment of that portion of the costs of the Project to be
financed from the proceeds of the Revenue Bonds as Company con-
siders necessary, including the use of interim, short-term
financing, subject to reimbursement from the proceeds of the
Revenue Bonds if and when delivered but otherwise without
liability on the part of the City;
J
9. The actions of the City Clerk -Treasurer in causing
public notice of the public hearing and in describing the
general nature of the Project and estimating the principal
amount of the Revenue Bonds to be issued to finance the Project
and in preparing a draft of the proposed application to the
Commissioner for approval of the Project, which has been
available for inspection by the public at the City Hall from
and after the publication of notice of the hearing, are in all
respects ratified and confirmed.
10. All commitments of the City expressed herein are
subject to the condition that within twelve months from the
date of adoption of this resolution the City and the Company
shall have agreed to mutually acceptable terms and conditions
of the revenue agreement, the Revenue Bonds and of the other
instruments and proceedings relating to the Revenue Bonds and
their issuance and sale.
11. The Company 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 the Project is
carried to completion, and whether or not approved by the
Commissioner, and whether or not the City by resolution
authorizes the issuance of the Revenue Bonds, will be paid by
the Company upon request.
12. The City reserves the right, in its sole discretion,
to withdraw from participation, and accordingly, not issue its
Revenue Bonds to finance the Project, should this Council at
any time prior to the adoption of the resolution authorizing
the issuance thereof determine that it is in the best interest
of the City not to issue its Revenue Bonds to finance the
Project.
Adopted by the City Council of the City of Medina,
Minnesota, this 15th day of June, 1982.
J
J /
Mayor
Attests
City Clerk -Treasurer