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HomeMy WebLinkAbout7181 - ADMIN Resolution - City Council - 1982/07/19RESOLUTION NO. 7181 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED COMMERCIAL DEVELOPMENT PROJECT BY G & N PARTNERSHIP UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, AUTHORIZING THE SUBMISSION OF AN APPLICATION TO THE COMMISSIONER OF ENERGY, PLANNING AND DEVELOPMENT FOR APPROVAL THEREOF AND AUTHORIZING THE PREPARATION OF DOCUMENTS AND MATERIALS IN CONNECTION WITH THE PROJECT Resolved by the City Council of the City of St. Louis Park, Minnesota, as follows: 1. There has been presented to the City a proposal by G & N Partnership, a Minnesota general partnership (the "Company") that the City undertake a project pursuant to the Minnesota Municipal Industrial Development Act, Chapter 474, Minnesota Statutes, to provide financing of the cost of acquir- ing, renovating and constructing an office facility in the City (the "Project"). Under the proposal, the Company will enter into a loan agreement whereby the Company agrees to complete the Project and the City agrees to issue up to approximately 34,500,000 Commercial Development Revenue Bonds of the City pursuant to the Act to finance the Project. The Company will retain title to the Project and the site thereof and grant a mortgage of the same to secure, and the loan agreement will require the Company to pay amounts sufficient for, the payment of the principal of and interest on the Bonds issued. The Project will be leased to various tenants, principally medical and dental clinics related to the Company, and the Company will assign its interest in the leases to the Bondholders or a trus- tee therefor as security for the Bonds. The City will assign its interest in any loan agreement or loan agreements to the Bondholders or a trustee therefor to secure the Bonds. The Bonds shall be issued in accordance with the Act, and shall provide that the Bonds are payable solely from amounts received by the City pursuant to the loan agreement and any other prop- erty pledged to its payment. The Bonds shall not be a general obligation of the City or.be payable from any other property or funds of the City, and no taxes shall be levied for payment of the Bonds. 2. There has been presented to the City a form of Application to Commissioner of Energy, Planning and Development for approval of the Project setting forth the estimated costs of the Project and the increased employment and payrolls to result therefrom. 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, encourage- ment, and development of economically sound industry and com- merce so as to prevent, so far as possible, the emergence of blighted and marginal lands and areas of chronic unemployment; the 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, 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 an adequate tax base to fi- nance the increase in the amount and cost of governmental ser- vices provided by the City, the County and the School District in which the City is located. 3. The Project is hereby given preliminary approval by the City, subject to (i) approval of the Project by the Min- nesota Commissioner of Energy, Planning and Development and (ii) approval of this Council, the Company and the purchaser of the Bonds of the ultimate details of the Project and the terms of the Bonds. 4. First National Bank of Minneapolis, on behalf of the Company, has advised this Council that the Project is eco- nomically feasible and that it intends to purchase the Bond. In accordance with Section 474.01, Subd. 7a, Minnesota Stat- utes, the Mayor, City Manager and City Clerk and such other officers and members 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 Energy, Plan- ning and Development and request approval thereof, and the Mayor, City Manager, Clerk, members of the Council and other officers, employees and agents of the -City are hereby autho- rized to provide the Commissioner with such preliminary infor- mation as may be required. The Company, First National Bank of Minneapolis, Messrs. Dorsey & Whitney, as bond counsel, the City Attorney and other City officials are also authorized to initiate the preparation of a proposed loan agreement, mort- gage, and such other documents as may be necessary or appropri- ate to the Project so that, when and if the proposed Project is approved by the Commissioner and this Council gives its final approval, the Project may be carried forward expeditiously. 5. The Company has agreed to pay any and all costs 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 and to indemnify the City, its officers and employees from all liability which the City and any officers and employees may incur in connection with the Project or the issuance and sale of the Bonds. 6. The Company is hereby authorized to enter into on its own behalf such contracts as may be necessary for carrying forward the Project by any means available to it and in the manner it determines without advertisement for bids as may be i • required for the construction or acquisition of other municipal facilities. 7. The City intends to comply with the provisions of Minnesota Statutes 474.01, Subd. 8 by supplying to the Depart- ment of Energy, Planning and Development such information re- lating to the Project as it may require. Adopted by the City Council July 19, 1982 Attest: Reviewed for administration: Approved as to form and legality: City Attd"rney