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HomeMy WebLinkAbout6076 - ADMIN Resolution - City Council - 1978/08/071 AUGUST 7, 1978 8g RESOLUTION NO. 6076 RESOLUTION RECITING A PROPOSAL FOR A COMMERICAL DEVELOPMENT PROJECT AND GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO MINNESOTA STATUTES AND 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 RELATED MATTERS IN CONNECTION WITH SAID PROJECT WHEREAS, (a) The request of Reuben L. Anderson - Cherne, Inc., a Minnesota corporation (hereinafter "Company") for assistance in financing its banking and office facility (hereafter "Project") warrants the support of the City of St. Louis Park, because (i) the City has an interest in delivery of commercial services to area residents; and (ii) additional job opportunities will be generated by the Project. (b) The purpose of Chapter 474, Minnesota Statutes, known as the Minnesota Municipal Industrial Development Act (hereinafter called "Act") as found and determined by the legislature is to promote the welfare of the state by the active attraction, encouragement and development of economically sound development proposals. (c) The City Council has received from the Company a proposal, which proposal is outlined in a letter, a copy of which is attached hereto as Exhibit A, that the City assist in the financing of the Project 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, and, if necessary, to issue one or more bonds (or notes as the case may be) on an interim basis in anticipation of payment from the proceeds of such bonds or note. e 1 1 (d) The City of St. Louis Park desires to facilitate the selective development of the community and to help it provide the range of services and employment opportunities required by its population and said Project will assist the City in achieving that objective. (e) The Company will be engaged as a developer in the acquisition and improvement of commercial and industrial properties. The Project to be financed in whole or part by the proposed industrial development revenue bonds will be new facilities anticipated to be used for a four story bank and office building of approxi- mately 50,000 square feet, and consists of the construc- tion and installation thereon of buildings and improvements from this date forth, and will result in the employment of additional persons to work within the new facilities. (f) The City has been advised by representatives of the Company that conventional, commercial financing to pay the capital cost of undertaking the Project is available only at such costs of borrowing that the economic feasibility of undertaking the Project would be reduced, and the Company has also advised this Council that with the aid of municipal financing, and its resulting lower borrowing cost, the Project is economically enhanced. (g) Juran & Moody, Inc., Investment Bankers, Saint Paul, Minnesota, has advised that on the basis of information submitted to them and their discussions with representatives of the Company, such bonds could in their opinion be issued and sold upon favorable rates and terms in the amount required. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota, as follows: 1. The Council hereby gives preliminary approval to the proposal of the Company that the City undertake to assist in financing the Project pursuant to Chapter 474, Minnesota Statutes, consisting of the acquisition, con- struction and installation of facilities within the City pursuant to the Company's specifications suitable for the operations described above, to be financed by the City pursuant to a revenue agreement upon such terms and conditions with provisions for revision from time to time r i as necessary, so as to produce income and revenues sufficient to pay, when due, the principal of and interest on the proposed Revenue Bonds of the City in the total principal amount of approximately $2,250,000 to be issued to finance in part the acquisition, construction and installation 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 property used or useful in connection with one or more revenue producing enterprises engaged in any business within the meaning of Subdivision 1(a) of Section 474.02 of the Minnesota Statutes, that the avail- ability of the financing unuer the Act and willingness of the City to furnish such financing will be of substantial benefit to the Company in completing the Project, and that the effect of the Project, if undertaken, will encourage economically sound development, will help to provide the range of services, and employment opportunities required by the population of St. Louis Park, and will help to 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. 3. Said Project is hereby given preliminary ap- proval by the City subject to the approval of the Project by the Commissioner of Securities and subject to final approval by this Council and the Company of the Revenue Bonds to be issued and as to the ultimate details of financing the Project. 4. In accordance with Subdivision 7 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. The Company has agreed and it is hereby determined that any and all cost incurred by the City in connection with the Project, whether or not the Project is carried to completion and whether or not approved by the Commissioner, will be paid by the Company. 5. LeFevere, Lefler, Pearson, O'Brien & Drawz, Minneapolis, Minnesota, Bond Counsel, is authorized, in consultation with Juran and Moody, Inc., the City Attorney i } i and any other necessary parties to assist in the preparation and review of necessary documents relating to the Project, and to consult with the Company and any other involved parties as to the maturities, interest rates and other terms and provisions of the Revenue Bonds and 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 documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues thereof or the proceeds of the Revenue Bonds or other funds 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 Project and the revenue pledged to the payment thereof nor shall the City be subject to any liability thereon. The bondholders shall never have the right to compel any exercise of the taxing power of the City to pay the Revenue Bonds or the interest thereon, nor to enforce payment thereof against any property of the City except the Project. The Revenue Bonds shall, recite in substance that the Revenue Bonds, including interest thereon, are payable solely from the revenue pledged to the payment thereof. No Revenue Bonds issued hereunder shall con- stitute a debt of the City within the meaning of any constitutional or statutory limitation. 7.: 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, the Company 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 the Company con- siders necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the Revenue Bonds, when and if delivered, but otherwise without liability on the part of the City. Attest: 174f f`4 ity Cler Adopted by the City ouncil August 7, 1978. Rev\ewefor stration: Approved as to form and legality: C