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HomeMy Public PortalAbout1983-016CERTIFICATION OF MINUTES RELATING TO $1,200,000 COMMERCIAL DEVELOPMENT REVENUE BONDS (MEDINA MOTOR INN PROJECT) Issuer: City of Medina, Minnesota Kind, date, time and place of meeting: A regular meeting held on May 17, 1983, at 8:00 o'clock P.M. Members present: /,"c/ Members 'absent: e t'c- , i7y Y' :a c /7 Documents attached: Minutes of said meeting (pages): MINUTES OF PUBLIC HEARING ON PROPOSED PROJECT RESOLUTION NO. 13_ / I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they .relate to said obligations; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer and seal of this City this day of /2t/4,./ , 1983. (SEAL) Signature Donna Roehl, City Clerk -Treasurer Name and Title TheAMayor stated that this was the time and place fixed by resolution of this Council, adopted on April 19, .983, for a public hearing on the proposal that the City undertake and finance a Project on behalf of Medina Motor Inn, a Minnesota partnership, pursuant to Minnesota Statutes, Chapter 474. The City Clerk -Treasurer presented an affidavit showing publication of the notice of the public hearing at least not less than 15 nor more than 30 days prior to the date for hearing in the Crow River News, being the official newspaper of the City and The Minneapolis Star and Tribune, being a newspaper of general circulation in the City.. The affidavits were examined, found to be satisfactory and ordered placed on file with the Clerk -Treasurer. ThdAMayrir then on the proposed Project once fixed. opened the meeting for public hearing The purpose of the hearing was explained, the nature of the Project and of the proposed •revenue bonds were discussed, the draft copy of the application to the Commissioner of Energy, Planning and Development with all attachments and exhibits was available, and all persons present who desired to do so were afforded an opportunity to express their views with respect to the proposal to undertake and finance the Project. The following views or opinions on the proposal were stated: Name of Speaker Summary of Opinion Stated After all persons who wished to do so had stated their views.on the proposal, the Mayor declared the hearing to be closed. After some discussion, Councilmember .Shiver introduced the following resolution and moved its adoption: RESOLUTION NO. 5/-3- /� RESOLUTION RELATING TO THE AUTHORIZATION AND ISSUANCE OF REVENUE BONDS OF THE CITY UNDER MINNESOTA STATUTES, CHAPTER 474, FOR THE PURPOSE OF FINANCING A PROJECT THEREUNDER; AND AUTHORIZING AN APPLICATION BY THE CITY TO THE MINNESOTA COMMISSIONER OF ENERGY, PLANNING AND DEVELOPMENT BE IT RESOLVED by the City Council of the City of Medina, Minnesota, as follows: Section 1. Recitals. 1.01. The Legislature of the State of Minnesota in Minnesota Statutes, Chapter 474, as amended (the Act), has found and declared that the welfare of the State requires active promotion, attraction, encouragement 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; has authorized municipalities to issue revenue bonds to finance, in whole or in part, the cost of the acquisition, construction, reconstruction, improvement and betterment of projects, including any properties, real or personal, used .or useful in connection with a revenue producing enterprise engaged in any business; and has authorized municipalities to enter into "revenue agreements", as defined in the Act, with any person, firm, or public or private corporation or federal or state governmental subdivision or agency (the Contracting. Party) providing for the payment by the Contracting Party of amounts sufficient to provide for the prompt payment of principal and interest on the revenue bonds. 1.02. It has been proposed by Medina Motor Inn, a Minnesota partnership (the Partnership) that the City issue its revenue bonds, pursuant to the authority of the Act, in an amount not exceeding in aggregate principal amount $1,200,000, or such lesser amount as may be necessary to finance all or a portign of the costs of constructing and equipping a motel (the Project) in Medina, and make the proceeds of the sale of those' revenue bonds available to the Partnership who will agree to pay the City amounts sufficient to pay promptly the principal of and interest on the revenue bonds, and will agree to cause the Project to be constructed. The Project is presently estimated to cost approximately $1,200,000. 1.03. The City has been advised 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 scope of the Project or the economic feasibility of operating the Project would be significantly reduced, but that with the aid of municipal financing, and its resulting low borrowing costs, the Project can be constructed as designed and its operation is economically more feasible. 1.04. This Council has been advised by First Corporate Services, Inc., fiscal consultant (the Consultant) that it is economically feasible to issue and sell the revenue bonds upon the proposed rates and terms to finance the Project. Section 2. Public Hearing. 2.01. As required by Section 474.01, Subdivision 7b of the Act, this Council, pursuant to a resolution adopted on Apcil 1911983, called and held a public hearing on the proposal to undertake and finance the Project. Notice of the time and place of the hearing, and stating the general nature of the Project and an estimate of the principal amount of the bonds to be issued to finance the Project was published at least once not less than fifteen days nor more than thirty days prior to the date fixed for the hearing, in the official newspaper of the City and a newspaper of general circulation of the City. A draft copy of the proposed application to the Minnesota Commissioner of Energy, Planning and Development, together with all attachments and exhibits thereto, was available for public inspection following the publication of such notice at the place and times set forth in the notice. 2.02. All parties who appeared at the public hearing were given an opportunity to express their views with respect to the proposal to undertake and finance the Project. This Council has heard and considered the views expressed at the public hearing and the information submitted to the City by the Partnership and the Consultant. Section 3. Approvals and Authorizations. 3.01. On the basis of information given the City to date, and the views expressed at the public hearing, it is found.and determined that the Project furthers the purposes stated in Section 474.01 of the Act, and that it would be in the best interest of the City to issue its commercial development revenue bonds (the Bonds) under the provisions of the Act to finance costs of the Project in an amount not to exceed $1,200,000. 3.02. The Project is hereby given preliminary approval by the City and the issuance of the Bonds for such purposes approved. The Bonds shall not be issued until the Project has.. been approved by the Commissioner of Energy, Planning and Development as provided by the Act and until the City, the Partnership and the Consultant have agreed upon the details of the Bonds and provisions for their payment. 3.03. If the Bonds are issued and sold, the City will enter into a lease, mortgage, direct or installment sale contract, loan agreement, take or pay or similar agreement, secured or unsecured, satisfying the requirements of the Act (the Revenue Agreement) with the Partnership The amounts payable by the Partnership to the City under :the Revenue Agreement will be sufficient to pay the prinoapal of and interest and redemption premium, if any, on the Bonds as and when the same shall become due and payable. 3.04. In accordance with the Act, the Mayor and City Clerk —Treasurer are hereby authorized and directed to submit the proposal for the Project to the Minnesota Commissioner of Energy, Planning and Development for approval of the Project. The Mayor, City Clerk —Treasurer, City Attorney and other officers, employees and agents of the City are hereby authorized to provide the Commissioner 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. 3.05. The City will comply with all of the provisions of the Act, including Section 474.01, Subdivision 8 thereof, in the issuance of the Bonds and the financing of the Project. Section 4. Special Obligations. 4.01. In all events, it is understood, however, that the Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the Project, if it becomes the property of the City, and each Bond, when, as and if issued, shall recite that it is payable solely from the revenues received from the,Project and property pledged to the payment thereof, and shall not constitute a debt of the City. Attest: '71lug -ete:/LJ City Clerk -Treasurer The motion for the adoption of the �� foregoing A4resolution was seconded by Councilmember / d y /fl a l , and upon vote being taken thereon, the following voted in favor thereof: :5-, /le v , l' •n [�,,� j`���J• and the following voted against the same: A21> whereupon said resolution was declared duly passed and finally adopted. /f // 9. CTTY RADIO FREQUENCY �� � 5 Discussion of the request by the City of Hanle Plain that: they be allowed to submit app- lication to the FCC to broadcast on the same radio frequency as Medina. Council agreed that the request should be explored and asked that Don Wendling be contacted to make a determination as to Maple Plain's plans for use of the system. MEDINA MOTOR INN, INDUSTRIAL REVENUE BONDING, PUBLIC HEARING, 8:05 P.M. ting Mayor, William Reiser presided at this portion of the meeting. George Halvorson of First Corporate Services, explained that they would like the Council to approve the resolution regarding authorization and issuance of Revenue Bonds to finance construction of the Medina Motor Inn. Council was given a brief review of their building schedule. Richard Schieffer reviewed the resolution and explained that there is no limit as to the amount of bonds a city may approve, although some cities place a limit on themselves. Anne Heideman stated that the document would need to be corrected because the Mayor is not the presiding officer. Motion by Scherer, seconded by Heideman to close the Public Hearing. Motion declared carried Public Hearing closed at 8:20 P.M. Jerry Roberts of First Corporate Services stated that they would make the necessary corr- ections in the documents, regarding the presiding officer. JoEllen Hurr asked if the resolution referred to a specific parcel. Richard Schieffer stated that it did not. \ Motion by Scherer, seconded by Heideman to approve Resolution 83-16, regarding issuance of revenue Bonds for Medina motor Inn construction, subject to changing documents to reflect "Acting Mayor" as presiding officer. Motion declared carried. Not participating, Thomas Anderson 11. ROGER BHURT omas Anderson explained that he had suggested that Mr. Bhurt and Mr. Griffiths discuss eir project with the City Council as JoEllen Hurr had told them that certain things eded to be done before issuance of a Conditional Use Permit for Mr. Griffiths to conduct an automotive rebuilding business at 62 Hamel Rd. JoEllen Hurr stated that she had discussed, with the City Attorney, the possibility of issuing a temporary Conditional Use Permit while the city was reviewing the project, but that she was concerned that such action might set a precedent for other projects. She also explained that she cannot grant variances and this project would require several variances. Richard Schieffer stated that there might be a problemif a temporary permit were granted and something developed after the project were underway. He added that if the applicant could operate under the Zoning Administrators recommendations while seeking formal approval it would be before the City Council within 6 weeks. Mr. Griffiths stated that he would be rebuilding automotive devices and selling parts. Anne Heideman stated that there may be ramifications if temporary permission were granted and that the project should go through the regular channels. JoEllen Hurr said that consideration should be given to nearby residences. Motion by Heideman, seconded by Reiser to direct that the project go through the established city procedures for approval. Motion declared carried Thomas Anderson stated that it is unclear as to whether or not this type of business should be allowed in this commercial area. 12. PLANNING AND ZONING DEPARTMENT rnard and Janice Wendland, Subdivision Ellen Hurr reviewed memo and Planning Commission recommendations regarding the Wendland's placation to subdivide Lots 8,9,10,14,15,16,17, B1.9, Independence Beach into 2 parcels ( Lots 8 and 17 and Lots 9,10,14,15,16). She stated that both parcels would meet the cities square footage requirements. Anne Heideman asked if further subdivision of the property was possible. Richard Schieffer stated that it would not be possible under the cities ordinances. COMPREHENSIVE STATEMENT CONCERNING A PROPOSED PROJECT UNDER MINNESOTA STATUTES, CHAPTER 474 The undersigned, being the duly qualified and acting Mayor and City Clerk -Treasurer, respectively, of the City of Medina, Minnesota (the City), certify that the City has been provided by Medina Motor Inn, a Minnesota partnership (the Partnership), with certain information concerning a proposed Project under the Minnesota Municipal Industrial Development Revenue Act, Minnesota Statutes, Chapter 474 (the Act). On the basis of such information the City Council, by resolution adopted Apr-rl 5, -1 3,44?,./ i7 if8.3 after public hearing duly noticed and held on April=4,y/ /7,/9g3 1-S06, has given preliminary approval to the proposed Project and the financing thereof by the issuance of revenue bonds of the City. The following are factors considered by the City Council in determining to give preliminary approval to the Project: 1. The Partnership states that the Project consists generally of the construction and equipping of a motel. 2. Dor's_ey & Whitney, Bond Counsel, are of the opinion that the Project constitutes a "project" as defined in Minnesota Statutes, Section 474.02, Subdivision lb. 3. The Partnership estimates that, upon completion of the Project, 22 new jobs will be created in the City. The City Council is concerned about the level of unemploy- ment in the area and the resulting movement of persons to other areas where jobs are more plentiful, and believes that the. existence of the Project in the City would help alleviate those problems. 4. The Partnership estimates that the acquisition and construction of the Project will result in an additional annual payroll of approximately $60,000 based on wage rates currently in effect. The City Council believes that a substantial percentage of that additional payroll will be spent on housing, food and other goods and services in the City and surrounding area, thus benefiting the local economy. tax base of the City. 5. The Project, when in place, will add to the 6. The City Council believes that the Project, when completed, will be compatible with present and projected development in the area. 7. Upon entering into the Revenue Agreement, as defined in the Act, the information required by Section 474.01, Subdivision 8 of the Act will be submitted to the Department of Energy, Planning and Development. 8. 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. The Crow River News is the official newspaper of the City. Mayor vc J %��6 � J City Clerk -Treasurer