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HomeMy WebLinkAbout6882 - ADMIN Resolution - City Council - 1981/07/06f 1 RESOLUTION NO. 6882 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED INDUSTRIAL DEVELOPMENT PROJECT BY KK CORPORATION UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AND AUTHORIZING SUBMISSION OF AN APPLICATION TO THE COMMISSIONER OF SECURITIES FOR APPROVAL THEREOF BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota, as follows: 1. There has been presented to this Council a proposal by KK Corp- oration (the "Company") that the City undertake and finance a project pursuant to the'Minnesota Municipal Industrial Development Act, Minne- sota Statutes, Chapter 474 (the "Act") for the acquisition, construction and equipping of an office and retail sales facility (the "Project"). Under the proposal, the Project facilities will be owned by the Company, and the Company will enter into a Loan Agreement with the City upon such terms and conditions as are necessary to produce income and revenues - sufficient to pay when due the principal of and the interest on up to approximately $1,000,000 Industrial Development Revenue Bonds of the City to be issued pursuant to said Chapter 474, Minnesota Statutes, to provide monies for the acquisition, construction and equipping of the Project; and the City will pledge i-ts interest in the Loan Agreement to the bond- holder, and the Company will mortgage the Project to secure the bonds. 2. As required by the said Chapter 474, Minnesota Statutes, this Council conducted a public hearing on July 6, 1981 on the proposal to undertake and finance the Project, after publication in the official newspaper and a newspaper of general circulation in the City of a notice setting forth the time and place of hearing; stating the general nature of the Project and an estimate of the principal amount of bonds or other obligations to be issued to finance the Project and stating that a draft copy of the proposed Application to the Commissioner of Securities, to- gether with all attachments and exhibits thereto, is available for public inspection at the office of the City Clerk, in the City Hall, St. Louis Park, Minnesota, at all times between the hours of 8:00 a.m. and 4:30 p.m. each day except Saturdays, Sundays and holidays to and including the day of the hearing; and all parties who appeared at the public hearing were given an opportunity to express their views with respect to the proposal. 3. It is hereby found, determined and declared that the purpose of the Project is and the effect thereof will be to promote the public welfare by the attraction, encouragement and development of economically sound industry, agriculture and commerce so as to prevent, so far as Possible, the emergence of blighted and marginal lands and areas of chronic unemployment; the retention and development of industry to use the available resources of the community, in order to retain the benefit of its existing investment in educational and public service facilities; by halting the movement of talented and educated personnel of mature age to other areas and thus preserving the economic and human resources needed as a base for providing governmental services and facilities; and the more intensive development of land available in the area to provide a morb adequate tax base to finance the cost of governmental services in the City, County and School District where the Project is located. 4. The City has been advised that the Company has entered into preliminary discussions with First Edina National Bank, as Lender, and the Lender has reported that the Project and the sale of bonds therefor are feasible. 5. The Project is hereby given preliminary approval by the City subject to approval of the Project by the Commissioner of Securities and subject to final approval by this Council and by the purchasers of any bonds to be issued as to the ultimate details of the Project. 6. In accordance with Section 474.01, Subd. 7, Minnesota Statutes, the Mayor, the City Clerk and such other officers and representatives of the City as may from time to time be designated are hereby authorized and directed to submit the proposal for the Project to the Commissioner of Securities and request her approval thereof, and the Mayor, the City Clerk, and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary information as she may require. The Company, Messrs. Faegre & Benson as bond counsel, the Lender, the City Attorney, and other City officials are also authorized to initiate the preparation of a proposed loan agreement and such other documents as may be necessary or appropriate to the Project so that, when and if the proposed Project is approved by the Commissioner and this Council gives its final approval thereto, the Project may be carried forward expeditiously. 7. The Company has agreed to pay any and all costs, including its legal fees, incurred by the City in connection with the Project whether or not the Project is approved by the Commissioner and whether or not the Project is carried to completion. 8. The Company is hereby authorized to enter into such contracts, in its own name 'and not as agent for the City, as may be necessary for the construction of the Project by any means available to it and in the manner it determines -without advertisement for bids as may be required for the acquisition or construction of other municipal facilities, but the City shall not be liable on any such contracts. Adopted by the City Council July 6, 1981 ep, 2)2ziia/ eviewed for Administration: Ager y "a ager Approved as to form and legality: City Attorney 1 7