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#108 10-15-79 Approve Industrial Development ActResolution #108 October 15, 1979 Member Johnson introduced and read the written resolution and moved its adoption: RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE COMMISSIONER OF SECURITIES FOR APPROVAL; AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota (the "City") as follows: 1. It is hereby found, determined and declared as follows: 1.1 Hoben Properties, Inc., a Minnesota Corporation ("Developer") has advised this counsel that it desires to construct a building to be used as an office facility (hereinafter referred to as the "Project"). 1.2 Said Project does not include any property to be sold or affixed or to be consumed in the production of property for sale, and does not include any housing facility to be rented or used as a permanent residence. 1.3 The welfare of the State requires the active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental action for the prupose of preventing, so far as possible the emergency of blighted and marginal lands and areas of cronic unemployment. 1.4 The existence of the Project in the City will contribute to more in- tensive development and use of lands, to increase the tax base of the City and overlapping taxing authorities, maintain and provide for an increase in opportunities for employment for residents of the City and further promote the purposes stated in Minnesota Statutes Section 474.01. 1.5 The City has been advised that conventional, commercial financing to pay the capital costs of the project is available at such costs of borrowing that the economic feasibility of operating the project would be significantly reduced, but that with the adi of municipal financing, and its resulting low borrowing cost, the project is economically more feasible. 1.6 This counsel has also been advised by representatives of the develop- er, that on the basis of their discussions with potential buyers of tax exempt bonds, industrial development bonds (which may be in the form of a single instrument, such as a Note) of the City could be issued and sold upon favorable rates and terms to finance the project. 1.7 The City is authorized by Minnesota Statues, Chapter 474, to issue its Industrial Revenue Bonds to finance capital Projects consisting of properties used and useful in connection with a revenue producing enterprise, such as that as the Developer, and the issuance of such bonds by the City, would be a substantial inducement to the Developer to construction the project. Resoltuion #108 (continued) October 15, 199 /7-5 1.8 This counsel, by a resolution duly adopted on October 2, 1979, called a public hearing on said project under Minnesota Statutes, Chapter 474. That said public hearing, was duly called, noticed, and held on October 15, 1979, in accordance with Chapter 474, and all persons were afforded an opportunity to be heard. 2. On the basis of all information given to the City to date, it appears that it would be in the best interest of the City to issue its Industrial Development Revenue Bonds under the provisions of Chapter 474 to finance the Project of the Developer at a cost presently estimated to be $800,000.00. 3. The Project above -referred, is hereby given preliminary approval by the City and the issuance of Industrial Development Revenue Bonds of the City (which may consist of a Commercial Development Revenue Note or Notes) in such amount is hereby approved, subject to the approval of the Project by the Commissioner of Securities and to the mutual agreement of this body, the Developer and the initial purchasers of the bond as to the details of the bond issue and pro- visions for their payment. Messrs. Thompson, Nielsen, Klaverkamp and James, Minneapolis, Minnesota, are hereby appointed as bond counsel in connection with said bond issue. In all events, it is understood, however, that the bonds of the City shall not constitute a charge, lien or encumbrance, legal or equitable upon any property of the City, except the project, and each bond, when, as and if issued, shall recite in substance that the bond, in- cluding interest thereon, is payable solely from the revenue received from the Project and property pledged to the payment thereof, and shall not con- stitute a debt of the City. 5. Upon entering into any revenue agreement, the information required by Minnesota Statute Section 474.01, Subdivision 8, will be submitted to the Department of Economic Development. 6. The Developer must pay all administrative and legal costs and fees incurred by the City, if any, whether or not their deve ent contemplated herein is completed or whether or not the bonds con em late% rein are issued or whether or not the entire transaction cont p ted i ey'ein is consumated. ROBERT R. HOOVER, MAYOR ATTEST: JOHN MURPH CITY CLERK The motion for the adoption of the foregoing resolution was duly seconded by Member Anderson, and upon vote being taken thereon, the following members voted in favor thereof: Anderson, Hoover, Johnson, Stockman and the following voted against same: none, whereupon said resolution was declared duly passed and adopted, signed by the Mayor and his signatgre attested by the City Clerk. 4. In accordance with Minnesota Statutes, Section 474.01, Mayor is hereby authorized and directed to execute and Subdivision 7a, the submit the proposal for the Project to the Commissioner of Securities for his approval of the Project. The Mayor, City Manager, City Attorney, and other officers, em- ployees and agents of the City, are hereby authorized to provide the Com- missioner with any preliminary information he may need for this purpose, and the City Attorney is authorized to initiate and assist in the prepar- ation of such documents, as may be appropriate to the project, if it is approved by the Commissioner. 5. Upon entering into any revenue agreement, the information required by Minnesota Statute Section 474.01, Subdivision 8, will be submitted to the Department of Economic Development. 6. The Developer must pay all administrative and legal costs and fees incurred by the City, if any, whether or not their deve ent contemplated herein is completed or whether or not the bonds con em late% rein are issued or whether or not the entire transaction cont p ted i ey'ein is consumated. ROBERT R. HOOVER, MAYOR ATTEST: JOHN MURPH CITY CLERK The motion for the adoption of the foregoing resolution was duly seconded by Member Anderson, and upon vote being taken thereon, the following members voted in favor thereof: Anderson, Hoover, Johnson, Stockman and the following voted against same: none, whereupon said resolution was declared duly passed and adopted, signed by the Mayor and his signatgre attested by the City Clerk.