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HomeMy WebLinkAbout7288 - ADMIN Resolution - City Council - 1982/12/06r RESOLUTION NO. 7288 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, marketing, 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, the increase in the amount and cost of governmental services requires the need for more intensive development and use of land to provide an adequate tax base to finance these costs; and WHEREAS, a representative of Peaceful Family Partnership, a Minnesota general partnership (the "Developer"), has advised this City Council that it desires to acquire land, construct a building thereon and install equipment in connection therewith for use as an indoor sports and health facility to be located in the City (hereinafter referred to as the "Project"); and WHEREAS, the existence of the Project and the construction of the building in connection therewith 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 -1- 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 would be significantly reduced, but that with the aid of municipal financii.o, 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 br in part, of the acquisition, construction, reconstruction, improvement or extension of capital projects consisting of properties used and useful in connection with a revenue producing enterprise, such as that of the Developer, and the issuance of such bonds by the City would be a substantial inducement to the Developer to locate and undertake 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 bonds under the provisions of Chapter 474 to- finance the Project of the Developer in an amount presently estimated not to exceed $2,760,000. NOW, THEREFORE, BE IT RESOLVED THAT: 1. The Project is hereby given preliminary approval by the City and the issuance of the revenue 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 purchaser 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 and directed to submit the proposal for the Project to the Commissioner of Energy, Planning and Development for approval of the Project. The Mayor, Clerk and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with any preliminary information needed 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 Sc 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 bonds issued in connection therewith. The Mayor, 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. -2- 4. All commitments of the City expressed herein are subject to the condition that within twelve 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. - 5. 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. 6. 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. Attest: .11A-12' ity Clerk Adopted by the City Council December 6, 1982 Reviewed for administration Cdb, tlit-gr,, C./7) C.,6&a-e-c, Mayor J Approved as to form and legality ty Manager o City Aitorney -3-