HomeMy Public PortalAbout1988-034Extract of Minutes of Meeting of the
City Council of the City of Medina, Minnesota
Pursuant to due call and notice thereof, a regular
meeting of the City Council of the City of Medina, Minnesota was
duly held at City Hall in said City on Tuesday, June 7, 1988
atts /5 o'clock P.M.
The following members were present: /
!-1 /) Clc-t' _, �' i 7 /�/t T c hP / / ���h 2�G-L�/ StvY,' 1
and the following were absent:
,'C'1r
* * *
The Mayor announced that this was the time and place
for a public hearing on the undertaking and financing of an
industrial development project on behalf of a Minnesota general
partnership, Highway 18 & 55 Properties, and DeVac, Inc., a
Minnesota corporation. The following persons appeared:
After all persons present had an opportunity to
express their views, the hearing was closed.
Member
then introduced and read the
following written resolution and moved its adoption:
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RESOLUTION GIVING PRELIMINARY APPROVAL
TO A PROPOSED INDUSTRIAL DEVELOPMENT PROJECT
ON BEHALF OF HIGHWAY 18 & 55 PROPERTIES AND
DEVAC, INC. UNDER THE MUNICIPAL
INDUSTRIAL DEVELOPMENT ACT AND AUTHORIZING
SUBMISSION OF AN APPLICATION TO THE
MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT
FOR APPROVAL THEREOF
The motion for adoption of the foregoing resolution
was duly seconded by Member .‘j , and upon
vote being taken thereon the following voted in favor
%thereof:
ert
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and the following voted against the same:
17one
whereupon said resolution was declared duly passed and adopted.
RESOLUTION GIVING PRELIMINARY APPROVAL
TO A PROPOSED INDUSTRIAL DEVELOPMENT PROJECT
ON BEHALF OF HIGHWAY 18 & 55 PROPERTIES AND DEVAC, INC.
UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT
AND AUTHORIZING SUBMISSION OF AN APPLICATION TO THE
MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT
FOR APPROVAL THEREOF
BE IT RESOLVED by the City Council of the City of
Medina, Minnesota, as follows:
1. There has been presented to this Council a
proposal by Highway 18 & 55 Properties, a Minnesota general
partnership (the "Borrower") and DeVac, Inc., a Minnesota
corporation (the "Lessee"), that the City undertake and finance
a, project pursuant to the Minnesota Municipal Industrial
Development Act, Minnesota Statutes, Sections 469.152 to
469.165, as amended (the "Act"), generally consisting of the
acquisition, construction and equipping of a new manufacturing
facility in the City to be owned by the Borrower and leased by
the Borrower to the Lessee (the "Project"). The Project is
proposed to consist of an approximately 85,000 square foot
building to be located in the Medina Industrial Park in the
City. The Borrower will enter into a revenue agreement with the
City upon such terms and conditions as are necessary to produce
income and revenues sufficient to pay when due the principal of
and the interest on up to approximately $4,000,000 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 7, 1988, 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 Department of Trade and Economic
Development, 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.
-3-
3. It is hereby found, determined and declared that
the Project furthers the purposes set forth in the Act in that
the purpose of the Project is and the effect thereof will be to
promote the public welfare by the attraction, encouragement 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 retention
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
available 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 Borrower and the Lessee, the Project as proposed would not
be undertaken but for the availability of industrial development
bond financing.
4. The Borrower has entered into preliminary
discussions with Cronin & Co., Inc., as underwriter, and the
underwriter has reported that the Project and the sale of bonds
therefor are feasible.
5. The Borrower 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 Department of Trade
and Economic Development 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
Department of Trade and Economic Development 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 the Act, the Mayor, the
Clerk -Treasurer, 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 Department of Trade and Economic Development
and request its approval thereof, and the Mayor, the City
Clerk -Treasurer, and other officers, employees and agents of the
City are hereby authorized to provide the Department with such
preliminary information as it may require. The Borrower, Faegre
& Benson as bond counsel, the City Clerk -Treasurer, the City
Attorney, and other City officials are also authorized to
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 Department and this Council gives its final approval
thereto, the Project may be carried forward expeditiously.
8. The Borrower is hereby authorized to enter into
such contracts, in its own name and not as agent for the City,
as may be necessary for the construction of the Project by any
means available to it and in the manner it determines without
advertisement for bids as may be required for the acquisition or
construction of other municipal facilities, but the City shall
not be liable on any such contracts.
9. The City and the Borrower are hereby authorized
to prepare and submit an application to the Minnesota Department
of Trade and Economic Development for an allocation of issuance
authority for the Project pursuant to Minnesota Statutes,
Chapter 474A, in the amount of $4,000,000. Prior to submission
of said application, the Borrower shall submit to the City an
application deposit representing one percent of the requested
allocation, and the City shall make payment of the required
application deposit to the Department at the time of submission
of the application. The City shall return an amount equal to
all or a part of the application deposit to the Borrower if, as
and when the application deposit, or a part thereof, is returned
to the City by the Department.
STATE OF MINNESOTA )
) SS.
COUNTY OF HENNEPIN )
I, the undersigned, being the duly qualified and
acting City Clerk -Treasurer of the City of Medina, Minnesota do
hereby certify that the attached extract of minutes of a regular
meeting of the City Council of the City held Tuesday, June 7,
1988, and the resolution incorporated therein is a full, true
and correct transcript therefrom insofar as the same relates to
an industrial development project to be undertaken pursuant to
Minnesota Statutes, Sections 469.152 to 469.165, as amended, by
the City on behalf of Highway 18 & 55 Properties, a Minnesota
general partnership, and DeVac, Inc., a Minnesota corporation.
WITNESS My hand and seal officially as said City
Clerk -Treasurer this
(Seal)
1684f
day of , 1988.
City Clerk -Treasurer