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HomeMy WebLinkAbout7073 - ADMIN Resolution - City Council - 1982/03/01c. RESOLUTION NO. 7073 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING THE PROPOSAL TO THE COMMISSIONER OF ENERGY, PLANNING AND DEVELOPMENT FOR APPROVAL, AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS WHEREAS, the welfare of the State of Minnesota (the "State") requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental acts to prevent, so far as possible, emergence of blighted lands and areas of chronic unemployment, and it is the policy of the State to facilitate and encourage action by local government units to prevent the economic deterioration of such areas to the point where the process can be reversed only by total redevelopment through the use of local, state and federal funds derived from taxation, with the attendant necessity of relocating displaced persons and of duplicating public services in other areas; and WHEREAS, technological change has caused a shift to a significant degree in the area of opportunity for educated youth to processing, transporting, market- ing, service and other industries, and unless existing and related industries are retained and new industries are developed to use the available resources of the City of St. Louis 'Park (the "City"), a large part of the existing investment of the community and of the State as a whole in educational and public service facilities will be lost, and -the movement of talented, educated personnel of mature age to areas where their services may be effectively used and compensated and the' lessening attraction of persons and businesses from other areas for purposes of industry, commerce and tourism will deprive the City and the State of the economic and human resources needed as a base for providing governmental services and facilities for the remaining population; and WHEREAS, other factors necessitating such action are the increasing concentration of population in urban and metropolitan areas; the consequent increase in the amount and cost of governmental services required in these areas; the energy crisis and energy cost escalation, and their contribution to unemployment, rising interest rates, balance of payments deficits and increased welfare payments to cover rising fuel costs and the increased costs of fuel intensive necessities; and the need for more intensive development and use of land to provide an adequate tax base to finance these costs; and WHEREAS, the effect of these factors is intensified by the necessity of withdrawing land for public use for highways, parks and open space reserves, schools and playgrounds, and other public enterprises needed to sustain proper living conditions, communications, and mobility in an increasingly urban society; and WHEREAS, a representative of Darrel A. Farr Development Corp., on behalf of -a Minnesota "partnef'ship to be formed with Darrel A. Farr -Development Corp. ;as a partner of the partnership (the "Developer"), has advised this City Council that it desires to acquire land, construct a building or buildings thereon and install equipment in connection therewith for use as a retail commercial and office facility in the City (hereinafter referred to as the "Project"); and WHEREAS, the existence of the Project in the City will contribute to more intensive development and use of land to increase the tax base of the City and overlapping taxing authorities and maintain and provide for an increase in opportunities for employment for residents of the City; and WHEREAS, the City has been advised that conventional, commercial financing to pay the capital cost of the Project is available at such costs of borrowing that the economic feasibility of operating the Project wouldbe significantly reduced, but that with the aid of municipal financing, and its resulting lower borrowing cost, the Project is economically more feasible; and WHEREAS, this Council has been advised by a representative of the Developer that on the basis of information submitted to them and their discussions with representatives of area. financial institutions and potential buyers of tax- exempt bonds, industrial development revenue bonds of the City could be issued and sold upon favorable rates and terms to finance the Project; and WHEREAS, the City is authorized by Minnesota Statutes, Chapter 474, to issue its revenue bonds to finance the cost, in whole or in part, of the acquisition, construction, reconstruction, improvement or extension of capital projects con- sisting of properties used and useful in connection with a revenue producing enterprise, such as that of the Developer, and the issuance of such bond by the City would be a substantial inducement to the Developer to construct its facility in the City; and WHEREAS, on the basis of information given the City to date, it appears that it would be in the best interest of the City to issue its industrial development revenue bond under the provisions of Chapter 474 to finance the Project of the Developer in an amount presently estimated not to exceed $10,000,000. NOW, THEREFORE, BE IT RESOLVED THAT: 1. The Project is hereby given preliminary approval by the City and the issuance of bonds for such purpose and in such amount approved, subject to approval of the Project by the Commissioner of Energy, Planning and Development and to the mutual agreement of this body, the Developer and the initial purchasers of the bonds as to the details of the bonds and provisions for their payment. 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 the bonds, when, as, and if issued, shall recite in substance that the bonds, 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 City. 2. In accordance with Minnesota Statutes, Section 474.01, Subdivision 7a, the Mayor of the City is hereby authorized a do directed to submit the proposal for the Project to the Commissioner of Energy, Planning and Development for his 2 approval of the Project. The Mayor, City Clerk and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with any preliminary information necessary 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. 3. The law firm of Holmes & Graven, Chartered, is authorized to act as Bond Counsel and to assist in the preparation and review of necessary documents relating to the Project and note issued in connection therewith. The Mayor, City Clerk, City Attorney, and other officers, employees and agents of the City are hereby authorized to assist Bond Counsel in the preparation of such documents. Attest: i yCerk s°5C)14-6 Reviewed for administration: Adopted by the City Council March / , 1982 3 riao yr Approved as to form and legality: City 'r torney RESOLUTION STATE OF MINNESOTA ) COUNTY OF HENNEPIN )ss CITY OF ST. LOUIS PARK) The undersigned duly qualified and acting City Clerk of the City of St. Louis Park hereby certifies the following: 1) The attached is a full, true and correct copy of the original Resolution No. ?o7, adopted ,44/D g"' , and on file in the Office of the City Clerk. '2) The City Council meeting was held upon due call and notice and present thereat. 3) WITNESS my hand and the seal of the City. members were Ls4/4°°1 Beverly A. lanagan City Cler Da[e/4/(4/-- (SEAL ),