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