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HomeMy WebLinkAbout7287 - ADMIN Resolution - City Council - 1982/12/06RESOLUTION NO. 7287 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF SAID PROJECT TO THE COMMISSIONER OF ENERGY, PLANNING AND DEVELOPMENT, AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH SAID PROJECT BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota as follows: Section 1. Recitals. 1.01 The City Council has received from Mr. Gary M. Bell (the "Borrower"), a proposal that the City issue its revenue obligations pursuant to the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Chapter 474, to finance the cost of a Project as defined in Chapter 474 to be undertaken by the Borrower; 1.02 The Project consists generally of the acquisition of land and an existing building and improvement of said building for use as an office/ warehouse/light manufacturing facility in the Borrower's business of fabricating plastic pouches and related products; 1.03 The total capital cost of acquisition, design, construction, equip- ping and financing the Project is estimated to be $750,000; 1.04 The City has been advised by the Borrower that conventional, com- mercial 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, but the Borrower has also advised this Council that with the aid of municipal financing and its resulting low borrowing cost, the Project is economically enhanced; and 1.05 The Council held a public hearing on the proposed financing of the Project by the City on December 6, 1982 at which hearing all residents and interested persons were afforded an opportunity to express their views and to be heard by the Council. Section 2. Policy and Purpose. On the basis of information provided to this Council by the Borrower it appears, and the Council hereby finds, determines and declares that the effect of the Project, if undertaken, will be to increase the general level of economic activity in the City, to increase the property tax base in the City, and to increase current em- ployment opportunities for residents of the City, all to the benefit of the residents of the City and the State of Minnesota. Section 3. Authorization. 3.01 The Council hereby approves the proposal of the Borrower that the City undertake to issue its revenue obligations pursuant to Chapter 474 to finance all or such portion of the cost of the Project as the City shall determine, and upon such terms and conditions as are hereafter mutually agreed upon by the City, the Borrower and the purchaser of the revenue obligations, with provisions for revision from time to time as necessary, so as to produce income and revenues sufficient to pay, when due, the principal of and interest on the revenue obligations. 3.02 The Project is hereby given preliminary approval by the City. The City hereby undertakes preliminarily to issue its revenue obligations in one or more series, in an aggregate amount not exceeding the cost of the Project, to finance the cost of the Project. 3.03 The Mayor and City Manager are hereby authorized and directed to submit the proposal for the above-described Project to the Commissioner of Energy, Planning and Development requesting his approval. Section 4. No Liability of City. 4.01 Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any moneys of the City on the Project other than the revenues derived from the Project or the proceeds of the revenue obligations authorized by the City herein. The revenue obligations shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or moneys of the City and the revenue pledged to the payment thereof, nor shall the City be subject to any liability thereon. No holder of any of the obligations shall ever have the right to compel any exercise of the taxing power of the City to pay any such obligations or the interest thereon, nor to enforce payment thereof against any property of the City. Each revenue obligation shall recite in substance that the revenue obligation, including interest thereon, is payable solely from the revenue pledged to the payment thereof. 4.02 All commitments of the City expressed herein are subject to the condition that within 12 months from the date of adoption of this resolution, the City and the Developer shall have agreed to mutually acceptable terms and conditions of the revenue agreement, the revenue bonds and of the other instruments and proceedings relating to the revenue bonds and their issuance and sale. 4.03 If the events set forth herein do not take place within the time set forth above or any extension thereof and the revenue bonds are not sold within such time, this resolution shall expire and be of no further force or effect. The Developer has agreed and it is hereby determined that any and all direct and indirect costs incurred by the City in connection with this Project, whether or not the Project is carried to completion, and whether or not approved by the Commissioner of Energy, Planning and Development, and whether or not the City by resolution authorizes the issuance of the revenue bonds, will be paid by the Developer upon request. 4.04 The City shall have the right, in its sole discretion, to withdraw from participation, and accordingly, not issue its revenue bonds for the Project, should the City at any time prior to the issuance thereof determine that it is in the best interest of the City not to issue its revenue bonds or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. The decision of the City Council with respect to any of the aforementioned matters shall be incontestable. Section 5. Project Expenditures. In anticipation of the approval by the Commissioner of Energy, Planning and Development and the issuance of revenue obligations to finance the cost of the Project, and in order that completion of the Project will not be unduly delayed when approved, the Borrower is hereby authorized to make such expenditures and advances toward payment of costs of the Project as it considers necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the revenue obligations when delivered, but otherwise without liability on the part of the City. Approved by the City Council December 6, 1982 Attest: Reviewed for administration: y Manage."-'621-1A.'"A-4114."...r Approved as to form and legality: City At%orney