#056 07-21-81 Preliminary Aproval Securities ApprovalResolution #56 July 21, 19il
Member Stockman introduced and read the following resolution and moved its adoption:
RESOLUTION GIVING PRELIMINARY APPROVAL
TO A PROJECT UNDER THE MUNICIPAL
INDUSTRIAL DEVELOPMENT ACT; REFERRING
THE PROPOSAL OF 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 Municipality), as follows:
SECTION 1
Recitals and Findings
I.I. This Council has received a proposal that the Municipality finance a
portion or all of the cost of a proposed project under Minnesota Statutes, Chapter
474 (the Act), consisting of the acquisition of land and the construction thereon of
a 20,000 square food office building (the Project) by HB Associates, a Minnesota
Limited Partnership, (hereinafter the Borrower).
1.2. At a public hearing, duly noticed and held on July 21, 1981, in accordance
with the Act, on the proposal to undertake and finance the Project, all parties
who appeared at the hearing were given an opportunity to express their views with
respect to the proposal to undertake and finance the Project. Bases on such
hearing and such other facts and circumstances as this Council deems relevant,
this Council hereby finds, determines and declares as follows:
(a) The welfare of the State of Minnesota requires active promotion,
attraction, encouragement and development of economically sound industry and
commerce through governmental acts to prevent, so far as possible, emergency of
blighted lands and areas of chronic unemployment, and the State has encouraged
local government units to act to prevent such economic deterioration.
(b) The Project would further the general purposes contemplated and
described in Section 474.01 of the Act.
(c) The existence of the Project would add to the tax base of the
Municipality, the County and School District in which the Project is located
and would provide increased opportunities for employment for residents of the
Municipality and surrounding area.
(d) This Council has been advised by representatives of the Borrower
that conventional, commercial financing to pay the 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 that with the aid of municipal borrowing, and its resulting lower borrowing
cost, the Project is economically more feasible.
1
LOX
Resolution #56, continued
July 21, 1981
(e) This Council has also been advised by the Borrower that on
the basis of their discussions with potential buyers of tax-exempt bonds, revenue bonds
of the Municipality (which may be in the form of commercial development revenue
note or notes) could be issued and sold upon favorable rates and terms to finance
the Project.
(f) The Municipality is authorized by the Act to issue its revenue bonds
to finance capital projects consisting of properties used and useful in connection
with a revenue producing enterprise, such as that of the Borrower, and the
issuance of such bonds by the Municipality would be a substantial inducement to
the Borrower to acquire and construct the Project.
SECTION 2
Preliminary Approval of the Project
2.1. On the basis of information given the Municipality to date, it appears that
it would be desirable for the Municipality to issue its revenue bonds under the provisions
of the Act to finance the Project in an amount not exceeding $1,000,000.
2.2. It is hereby determined to proceed with the Project and its financing and the
Project is hereby given preliminary approval by the Municipality and the issuance of
revenue bonds of the Municipality in such amount is hereby approved, subject to the
approval of the Project by the Commissioner of Securities, the fulfillment of such
other conditions as the Municipality may require with respect to the issuance of its
bonds in connection with the Project, and the mutual agreement of this Council and the
Borrower as to the details of the bond issue and provisions for theirpayment.
In all events, it is understood, however, that the bonds of the Municipality shall
not constitute a charge, lien or encumbrance, legal or equitable, upon any property
of the Municipality, except the Project, and each bond, when, as and if issued,
shall recite in substance that the bond, including interest thereon, is payable solely
from the revenues received from the Project and property pledged to the payment
thereof, and shall not constitute a debt of the Municipality.
2.3. The form of the Application to the Commissioner of Securities, with attachments,
is hereby approved, and the Mayor and City Manager are authorized to execute said
documents in behalf of the Municipality.
2.4. In accordance with Section 474.10, Subdivision 7a of the Act, the Mayor and City
Manager are hereby authorized and directed to cause said Application to be submitted to the
Commissioner of Securities for approval of the Project. The Mayor, City Manager,
City Attorney and other officers, employees and agents of the Municipality are hereby
authorized and directed to provide the Commissioner with preliminary information the
Commissioner may need for this purpose, and the City Attorney is authorized to initiate
and assist in the preparation of such documents as may be appropriate to the Project,
if it is approved by the Commissioner.
SECTION 3
General
3.1. If the bonds are issued and sold, the Municipality will enter into a lease,
sale or loan agreement or similar agreement satisfying the requirements of the Act
(the Revenue Agreement) with the Borrower. The lease rentals, installment sale payments,
loan payments or other amounts payable by the Borrower to the Municipality under the
Resolution #56 continued
Revenue Agreement shall be sufficient to pay the principal, interest and redemption
prmium, if any, on the bonds as and when the same shall become due and payable.
3.2. The Borrower has agreed and it is hereby determined that any and all
direct and indirect costs incurred by the Municipality in connection with this
Project, whether or not the Project is carried to completion, and whether or
not approved by the Commissioner of Securities, and whether or not the Municipality
by resolution authorizes the issuance of the bonds, will be paid by the Borrower
upon request.
3.3. The Mayor and City Manager are directed, if the bonds are issued and sold,
thereafter to comply with the provisions of Minnesota Statutes, Section 474.01,
Subdivision 8.
Adopted this 21st day of July, 1981.
ROSHMARY , MAYOR
ATTEST:
9 QWffUTY CITY CLIRO�TK:E
The Motion for the adoption of the foregoing resolution was duly seconded by Member
Johnson and upon vote being taken thereon, the following voted in favor thereof:
Anderson, Johnson, Stockman, and the following voted against; Thorsen, (Mitchell ab-
s . tai,ned)-,
bstained)-, whereupon the resolution was declared duly passed and adopted and was
signed by the Mayor whose signature was attested by the City Clerk.
11
1
•