#075 07-02-79 Approve Facilities Development ProjectResolution # 75 July 2, 1979
Member Thorsen introduced and read the written resolution and moved its adoption:
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 SECURITIES
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 Statues, 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 economically 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
of the increased population and 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 Golden Valley (the "City") has
received from Valley Square Company, a business partnership organized under the
laws of the State of Minnesota (the "Borrower"), a proposal that the City undertake
to finance a Project hereinafter described, through the issuance of Revenue Bonds
(which may be in the form of asingle debt instrument such as a Note) pursuant to
the Ace;
(d) The City desires to facilitate the selective development of
the community, retain and improve its tax base and help it provide the range of
services and employment opportunities required by its population; and said Project
will help to increase assessed valuation of the City and help maintain a positive
relationship between assessed valuation and debt and enhance the image and
reputation of the City;
(e) The project to be financed by the Note is a business office
facility to be located in the City of Golden Valley at the southeast corner of
Golden Valley Road and Rhode Island Avenue, just north of Country Club Drive and
west of Pennsylvania Avenue, and consists of the acquisition of land and the
construction of an office building and other improvements comprising 40,000 square
feet and the installation of equipment therein, and will result in the employment
of additional persons to work within the new facilities. Said Project will be
leased to a number of tenants who will utilize the facility for business office
purposes.
(f) The City has
commercial financing to pay the
limited basis and at such high
operating the Project would be
advised this Council that with
low borrowing cost, the Project
been advised by the Borrower that conventional,
capital cost of the Pruject is available only on a
costs of borrowing that the economic feasibility of
significantly reduced, but the Borrower has also
the aid of municipal financing, and its resulting
is economically more feasible.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Golden
Valley, Minnesota as follows;
1. The Council hereby gives preliminary approval to the proposal of the
Borrower that the City undertake the Project pursuant to the Minnesota Municipal
Industrial Development Act (Chapter 474, Minnesota Statutes), consisting of the
acquisition, construction and equipping of facilities within the City pursuant to
the Borrower's specifications suitable for the operations described above and gives
preliminary approval 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 Revenue Bonds in the total principal
amount of approximately $2,500,000 to be issued pursuant to the Act to finance the
acquisition, construction and equipping of said Project; 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 said 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 law of Section 474.02 of the Acet,
that the availability of the financing under the Act and willingness of the City to
furnish such financing will be a substantial inducement to the Borrower to under-
take 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 City retain and improve its tax base and provide
the range of services 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 withing the City and to eventually
increase the City's tax base;
3. Said Project is hereby given preliminary approval by the City subject
to the approval of the Project by the Commissioner of Securities , and the purchaser
of the Revenue Bonds as to the ultimate 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 above described Project to the Commissioner of Securities, re-
questing,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. The City's legal counsel and bond counsel are authorized to assist
in the preparation and review of necessary documents relating to the Project, to
consult with the Borrower 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;
6. Nothing in this resolution or in the coduments prepared 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 consittute 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
Resolution #75, cont'd
on the Revenue Bonds or the interest thereon, or to enforce payment thereof
against any property of the City. 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, are 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 nay constitutional or statutory limitation;
7. 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 completiong and whether or not approved by the
Commissioner will be paid by Borrower; Borrower has submitted with this application
a deposit in the amount of Fifteen Hundred Dollars ($1,500.00) to be utilized by
the City if necessary, to defray costs incurred by the City in connection with this
proposal.
8. In anticipation of the approval by the Commissioner of Securities and
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,
Borrower 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 borrower considers necessary, including the use of interim;. short-
term financing, subject to reimbursement from the pi?)ceeda of the Revenue Bonds if
and when delivered but otherwise without liabi1io hn tJe part of the City.
ROBERT R. HOOVER,
ATTEST:
JOHN MU HY, CITY CLERK
The motion for the adoption of the foregoing resolution was duly seconded by
Member Stockman and upon vote being taken thereon, the following members voted
in favor thereof: Anderson, Johnson, Stockman, and Thorsen, and the following
voted against the same: none, Hoover abstained, whereupon said resolution was
declared duly passed and adopted, signed by the Mayor and his signature attested
by the City Clerk.
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