#269 10-20-80 Approve North Wirth Associates-J
Resolution #269 October 20, 1980
Member Johnson introduced and read the following resolution and moved its adoption:
RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT
WITH NORTH WIRTH ASSOCIATES UNDER THE MINNESOTA
MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, GIVING
PRELIMINARY APPROVAL FOR THE ISSUANCE OF REVENUE
BONDS TO FINANCE THE PROJECT, 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.
WHEREAS, (a) 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 by the active attraction
and encouragement and development of economically sound industry and commerce to
pevent 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 econ-
omically sound industry and commerce are the increasing concentration of population
in the metropolitan areas and the rapidly rising increase in the amount of cost of
governmental services required to meet the needs of the increased 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") has re-
ceived from North Wirth Associates (the "User") a proposal that the City undertake
to finance a Project hereinafter described, through the issuance of revenue bonds
or notes (the "Bonds") 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 achieving
those objectives. 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 Bonds is a five -story office building
to be leased by the User to certain tanants for use by them as general office space,
and consists of the acquisition of land and the construction of buildings and improve-
ments thereon and the installation of equipment therein, and will result in the em-
ployment of additional persons to work within the new facilities;
(f) The City has been advised by representatives of the User that conven-
tional 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 User has also
advised this Council that with the aid of municipal financing, and its resulting
low borrowing cost, the Project is economically more feasible.
Resolution #269 (continued)
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
User that the City undertake the Project pursuant to the Minnesota Municipal
Industrial Development Act (Chapter 474, Minnesota Statutes), consisting of the
acqusition, construction and equipping of facilities within the City pursuant to the
User's (or its affiliates) specifications suitable for the operations described
above and to a revenue agreement between the City and the User 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 total principal amount of $7,000,000 to be
issued pursuant to the Act to finance the acquisition, construction and equipping
of said Project and said agreement may also provide for the entire interest of the
User, therein to be mortgaged to the purchaser of the Bonds; the City hereby under-
takes preliminarily to issue its Bonds in accordance with such terms and conditions;
and the City requires that its Bonds be sold to one or more institutions experienced
in evaluating the type of credit involved, capable of bearing the financial risk and
purchasing for investment purposes;
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 enter-
prises engaged in any business within the meaning of Subdivision 1(a) of Section
474.02, Subdivision 1(a) of the Act, 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 User (or its affiliates) to undertake the Project, and that the
eefect 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 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 intensice
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 approval by this Council, the User, and the purchaser or purchasers of the
Bonds as to the ultimate details of the financing of the Project;
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4. In accordance with Subdivision 7(a) 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 User 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 Commissioner
will be paid by the User;
6. Nothin 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 Bonds shall not constitute a charge, lien or encumbrance, legal or
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Resolution #269 (continued)
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 City. The Bonds shall recite in substance that the Bonds, in-
cluding interest thereon, is 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 constitutional or statutory limiation;
7. In anticipation of the approval of the Commissioner of Securities
and the issuance of the 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, the
User 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
Bonds as the User considers necessary, including the use of interim, short-term
financing, subject to reimbursement from the proceeds of the Note if and when
delivered but otherwise without liability on the part of the City.
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ROSEMAIRY THORSEN,=gA
ATTEST:
JOHN MURPHY, GITT%"CLERK
The motion for the adoption of the foregoing resolution was seconded by Member
Stockman and upon vote being taken thereon, the following voted in favor thereof:*
Anderson, Johnson, Mitchell and Stockman and the following voted against the same:
none, whereupon said resolution was declared duly passed and adopted, signed by the
Mayor and her signature attested by the Clerk. (*Mayor Thorsen abstained)
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