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#104 10-09-79 Approve Commercial Facilities Development ProjectResolution #104 October 9, 1979 Member Anderson introduced and read the written resolution and moved its adoption: WHEREAS, (a) The purpose of Chapter 474, Minnesota Statutes, known as the Minnesota Municipal Industrial Development Act (the "Act"), as found and deter- mined by the legislature is to promote the welfare of the state by the active at- traction 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 and cost of governmental services required to meet the needs of the in- creased population and the 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") hbs re- ceived from United Properties, a division of the Northland Company, (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 a single debt instrument such as a Note) pursuant to the Act; (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 assist the City in achieving those objectives. Said Project will help to increase assessed valuation of the City and help maintain a positive re- lationship between assessed valuation and debt and enhance the image and repu- tation 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. RESOLUTION (RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT, PURSUANT TO T+1E 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 Statutes, known as the Minnesota Municipal Industrial Development Act (the "Act"), as found and deter- mined by the legislature is to promote the welfare of the state by the active at- traction 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 and cost of governmental services required to meet the needs of the in- creased population and the 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") hbs re- ceived from United Properties, a division of the Northland Company, (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 a single debt instrument such as a Note) pursuant to the Act; (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 assist the City in achieving those objectives. Said Project will help to increase assessed valuation of the City and help maintain a positive re- lationship between assessed valuation and debt and enhance the image and repu- tation 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 been advised by the Borrower that conventional com- mercial 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 re- sulting low borrowing cost, the Project 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 prusuant 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 Bor- rower 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 accor- dance 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 per- sonal, used or useful in connection with one or more revenue producing enter- prises engaged in any business within the meaning of Subdivision is of Section 474.02 of the Act, that the availability of the financing under the Act and will- ingness of the City to furnish such financing will be a substantial inducement to the Borrower to undertake the Project, and that the effect of the Project, if undertaken, will be 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 re- quired by its population, to help prevent the movement of talented and educated persons out of the state and to areas within the State wheretheir 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. Said Project is hereby given preliminary approval by the City subject to the approval of the Project by the Commissioner of Securities, and subject to final by this Council, Borrower, 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, requesting 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 ma- turities, 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; /67 Resolution #104 (continued) October 9, 1979 6. Nothing in this resolution or in the documents 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 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, no shall the City be subject to any li- ability 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 prin- cipal 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 any 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 completion and whether or not approved by the Com- missioner will be paid by the 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. 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 voted in favor thereof; Anderson, Hoover, Johnson, Stockman and Thorsen and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted, signed by the Mayor and his signature attested by the City Clerk. 8. In anticipation of the approval by the Commissioner of Securities and the issuance of the Revenue Bonds in order that completion of the Project to finance all or a portion of the will not be unduly delayed when Project, and approved, Borrower is hereby authorized to make such expenditures and advances toware pay- ment 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 reimbursements from th p oceeds of the Reveneu Bonds, if and when delivered, but otherwise without Ii i ity on the part of the City. ROBERT R. HOOVER, MAYOR 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 voted in favor thereof; Anderson, Hoover, Johnson, Stockman and Thorsen and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted, signed by the Mayor and his signature attested by the City Clerk.