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HomeMy WebLinkAboutCity Council Resolution 1984-793RESOLUTION NO. 84-793 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT WITH NATHAN LANE ASSOCIATES AND CALLING FOR PUBLIC HEARING PURSUANT TO MINNESOTA STATUTES, SECTION 474.01, SUBDIVISION 7b, AND PUBLICATION OF NOTICE WHEREAS, 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 of Minnesota (the "State") by the active attraction and encouragement and development of economically sound industry and commerce to prevent, so far as possible, the emergence of blighted and marginal lands and areas of chronic unemployment; and WHEREAS, factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration of population in the metropolitan areas, 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 shall provide an adequate tax base to finance these increased costs and access to employment opportunities for such population; and WHEREAS, the City Council (the "Council") of the City of Plymouth, Minnesota (the "City"), has received from Nathan Lane Associates, a Minnesota general partnership (the "Borrower"), a proposal that the City undertake to finance a Project (as hereinafter described) through the issuance of revenue bonds (the "bonds") pursuant to the Act; and WHEREAS, the City desires to facilitate the selective development of the community, retain and improve its tax base and help provide the range of services and employment opportunities re- quired by its population, and the Project shall assist the City in achieving those objectives. The Project shall help to increase assessed valuation of the City and help maintain a positive rela- tionship between assessed valuation and debt and enhance the image and reputation of the City; and WHEREAS, the Project to be financed by the bonds is the acquisition and construction of an approximately 75,000 square _feet office and warehouse facility constituting an addition to an existing facility owned by the Borrower at 1035-1065 Nathan Lane North in the City and to be leased to Minter -Weisman Co., a Minnesota corporation (the "Project") and shall result in the employment of additional persons to work within the new facilities; and WHEREAS, the City has been advised by representatives of the Borrower 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 the Borrower has also advised this Council that with the aid of municipal financing and its resulting low borrowing cost the Project is economically more feasible and that the Project would not be undertaken but for the availability of industrial development bond financing. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY AS FOLLOWS: 1. The Council hereby gives preliminary apprcral to the proposal of the Borrower that the City undertake the Project pursuant to the Minnesota Municipal Industrial Development Act, Chapter 474, Minnesota Statutes (the "Act")► pursuant to the Borrower's specifications suitable for the operations described above and to a revenue agreement between the City and the Borrower 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 proposed bonds in the estimated maximum principal amount of $5,500,000, to be issued pursuant to the Act to finance the costs of the Project, and the agreement may also provide for the entire interest of the Borrower therein to be mortgaged to the purchaser of the bonds; the City hereby undertakes preliminarily to issue its 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 within the meaning of Section 474.02 of the Act, that the availability of the financing under the Act and willingness of the City to furnish such financing shall be a substantial inducement to the Borrower to undertake the Project, that, based upon representations of the Borrower the Project would not be undertaken but for the availability of industrial development bond financing and that the effect of the Project, if undertaken, shall 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 City retain and improve its tax base and provide the range of service and employment opportunities required by its 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 the City and to eventually increase the City's tax base. 3. The Prosect is hereby given preliminary approval by� the Cit , subject to subsequent preliminary -approval of theCity following a public hearing,the approval of the Project by the Minnesota Energy and Economic Development Authority (the 2 "Authority`), obtaining an allocation for arivate activi ana rinai approval gy Lnis Louncil, the Borrower ana the purchaser or purchasers of the bonds as to the ultimate details of the financing of the Project. 4. Representatives of tha City and Lindquist i Vennum, as bond counsel, are hereby authorized, in cooperation with the Borrower and the Borrower's counsel, to take such action as is necessary to obtain or maintain an allocation of the federal limits on private activity bonds, pursuant to Minnesota Laws for 1984, Chapter 582, and to initiate the preparation of a proposed loan agreement, mortgage 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 Authority, receives an allocation as to the federal limits on private activity bonds and this Council gives its final approval thereto, the Project may be carried forward expeditiously. The City does not hereby or commit to allocate any of its a location with respect to federal limits on private activity bonds, but will consider a request for an allocation by the Borrower in the year in which the 5. The Borrower 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 is carried to completion, whether or not an allocation as to the federal limits on private activity bonds is obtained and whether or not the bonds or operative instruments are executed and whether or not approved by the Commissioner, shall be paid by the Borrower. 6. The rantee or a sole aiscrezion to witnoraw trom uarticipation and accordingly not issue the bonds should the City at any time prior to the issuance thereof determine that it is in the hest interest of tho ri tu n„* 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 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 or holders from time to time of the bonds shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the bonds or the interest thereon or to enforce payment thereof against any property of the 3 City. The bonds shall recite in substance that the bonds, in- cluding interest thereon, are payable solely from the revenue and proceeds pledged to the payment thereof. The bonds shall not constitute a debt of the City within the meaning of any constitu- tional or statutory limitation. S. In anticipation of the approval of the Authority and the issuance of the bonds to finance all or a portion of the Project and in order that completion of the Project shall not be unduly delayed when approved, the Borrower may make such expendi- tures and advances toward payment of that portion of the costs of the Project to be financed from the proceeds of the bonds as the Borrower considers necessary, including the use of interim, short-term financing, to be reimbursed from the proceeds of the bonds if and when delivered, but the City shall in no event be liable for payment of, or in any respect with regard to, any such expenditures whether or not bonds are issued or whether or not the City gives final approval to the issuance of bonds, except such costs may be paid from bond proceeds if and when such ')onds are issued. 9. A public hearing is hereby authorized to be conducted by this Council on the proposal to undertake and finance the Project at any regularly scheduled meeting of this council for which notice is published at the City Hall, 3400 Plymouth Boulevard in the City, at which hearing all parties who appear shall be given an opportunity to express their views with respect to said proposal. 10. Notice of the time and place of hearing, which shall contain (i) a general functional description of the type, use and nature of the Project, (ii) the estimated maximum aggregate face amount of the bonds or other obligations to be issued with respect to the Project, (iii) the initial owner, operator or manager of the Project, and (iv) the prospective location of the Project by its street address or, if none by a general description designed to inform readers of the specific location of the Project, is hereby authorized to be published at least once not less than fifteen (15) days nor more than thirty (30) days prior to the date fixed by the City Manager as set forth in paragraph 9 above for the hearing in the official newspaper and in a newspaper of general circulation of the City. The notice shall state that a draft copy of the proposed application to the Minnesota Energy and Economic Development Authority together with all attachments and exhibits therto, shall be available for public inspection -following the publication of such notice and shall specify the place and times such application and its exhibits and attachments shall be so available. 4 Approved and adopted by the Council this 5th day of November, 1984. Mayor City Manager