Loading...
HomeMy WebLinkAbout7377 - ADMIN Resolution - City Council - 1983/05/02r i 1 RESOLUTION NO. 7377 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED INDUSTRIAL DEVELOPF•1ENT PROJECT BY FRANTZ KLODT & SON, INC. UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AND AUTHORIZING SUBMISSION OF AN APPLICATION TO THE COMMISSIONER OF SECURITIES FOR APPROVAL THEREOF WHEREAS, there has been presented to this Council a proposal by Frantz Klodt & Son, Inc. (the "Company") that the City undertake and finance a project pursuant to the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Chapter 474 (the "Act") for the acquisition, construction and equipping of a 134 -room hotel facility (the "Project"); and WHEREAS, 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 $6,000,000 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 its interest in the Loan Agreement to the Bond- holder, and the Company will mortgage the Project to secure the bonds; and WHEREAS, as required by the said Chapter 474, Minnesota Statutes, this Council conducted a public hearing on May 2, 1983 on the proposal to under- take 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, together 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; and WHEREAS, the City has been advised that the Company has entered into pre- liminary discussions with Heitman Financial Services Ltd., Inc., as Lender, and the Lender has reported that the Project and the sale of bonds therefore are feasible; and WHEREAS, 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, NOW, THEREFORE, BE IT RESOLVED: 1. 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 unem- ployment; 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 more adequate tax base to finance the cost of governmental services in the City, County and School District where the Project is located. 2. The Project is hereby given preliminary approval by the City subject to approval of the Project by the Commissioner of Securities and sub- ject to final approval by this Council and by the purchasers of any bonds to be issued as to the ultimate details of the project. It is understood 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 each bond, when, as, and if issued, shall recite in substance that the bond, 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. The foregoing preliminary approval of the Project by the City is for the purposes of financing pursuant to the Act and shall not be con- strued as a waiver -of any zoning, density, land use, or similar restriction that may be applicable to the Project. 3. 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 his 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 infor- mation as he may require. The Company, 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 pro- posed Project is approved by the Commissioner and this Council gives its final approval thereto, the Project may be carried forward ex- peditiously. 4., The adoption of this resolution does not constitute a guarantee or a firm commitment that the City will issue the bonds as requested by the Company. The City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the bonds should the City at anytime prior to issuance thereof determine that it is in the best interest of the City not to issue the bonds or should the parties to the transaction be unable to reach an agreement as to r the terms and conditions of any of the documents required for the transaction. Adopted by the City Council May 2, 1983 ,L) r Ala,L) m;.,r Attest: Reviewed for administration: Approved as to form and legality: ity Manager City Attorney