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HomeMy WebLinkAbout7438 - ADMIN Resolution - City Council - 1983/08/011 RESOLUTION NO.743 AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF THE CITY OF ST. LOUIS PARK, MINNESOTA, COMMERCIAL DEVELOPMENT REVENUE BONDS (SUNSET RIDGE COMMERCIAL CONDOMINIUM PROJECT), SERIES 1983-A, WHICH BONDS AND THE INTEREST AND ANY PREMIUM THEREON SHALL BE PAYABLE SOLELY FROM THE REVENUES DERIVED FROM THE LOAN AGREEMENT (THE "LOAN AGREEMENT"); APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE INDENTURE OF TRUST, THE LOAN AGREEMENT, THE SERVICING AGREEMENT, AND THE BOND PURCHASE AGREEMENT; APPROVING CERTAIN OTHER DOCUMENTS AND AUTHORIZING EXECUTION OF CERTAIN DOCUMENTS; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE BONDS; AND PROVIDING FOR THE SECURITY, RIGHTS, AND REMEDIES OF THE HOLDERS OF SAID BONDS. WHEREAS, the purpose of the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Chapter 474, as amended (the "Act"), as found and determined by the Legislature of the State of Minnesota, is to promote the welfare of the State of Minnesota by the active attraction, encouragement, and develop- ment of economically sound industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment, and for this purpose the State of Minnesota has encouraged action by local governmental units; and WHEREAS, factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration of population in urban and metropolitan areas, the rapidly rising increase in the amount and cost of governmental services required to meet the needs of the increased population, and the need for development and use of land which will provide an adequate tax base to finance these increased costs; and WHEREAS, the City of St. Louis Park, Minnesota (the "City"), desires to expand the business and employment opportunities, and the available tax base of the City, and to promote the development of property within the City; and WHEREAS, the City is authorized by the Act to enter into a revenue agreement with any person, firm, or public or private corporation or federal or state governmental subdivision or agency in such manner that payments required thereby to be made by the contracting party shall be fixed, and revised from time to time as necessary, so as to produce income and revenue sufficient to provide for the prompt payment of principal of and interest on all bonds issued under the Act when due, and the revenue agreement shall also provide that the contracting party shall be required to pay all expenses of the operation and maintenance of the project including, without limitation, adequate insurance thereon and insurance against all liability for injury to persons or property arising from the operation thereof, and all taxes and special assessments levied upon or with respect to the project and payable during the term of the revenue agreement; and WHEREAS, the Act further authorizes the City to issue revenue bonds, in anticipation of the collection of revenues of a project, to finance, in whole or in 1 GL part, the cost of acquisition, construction, reconstruction, improvement, better- ment, or extension of such project; and WHEREAS, the City has received from Sunset Ridge Financial Corporation (the "Developer"), a proposal that the City finance a project for purposes consistent with the Act, said project to consist of the acquisition, construction and installation of a commercial condominium facility (the "Project") in the City; and WHEREAS, by Resolution Number 7360, adopted on April 4, 1983, the City approved the proposal that the City undertake to provide financing for the Project and gave preliminary approval to the financing of the Project, including the issuance, sale and delivery of the Bonds, as hereinafter defined, subject to final approval by the City; and WHEREAS, the City proposes to finance the acquisition, construction and installation of the Project pursuant to authority conferred by the Act through the issuance of the Bonds, as hereinafter defined; and WHEREAS, Juran & Moody, Inc. (the "Underwriter") proposes to purchase said Bonds; and WHEREAS, said Bonds issued under this resolution will be secured by a pledge and assignment of the Loan Agreement, as hereinafter defined, and of the revenues derived by the City from the Loan Agreement, and said Bonds and the interest on said Bonds shall be payable solely from the revenue pledged therefor and the Bonds shall not constitute a debt of the City within the meaning of any constitutional, charter, or statutory limitation nor shall constitute nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers and shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City other than its interest in the Loan Agreement. NOW, THEREFORE, BE _ IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ST. LOUIS PARK: 1 1. That the City Council of the City finds, determines, and declares that the acquisition and construction of the Project within the City will expand the business and employment opportunities within the City, will promote the develop- ment of property within the City, will generally aid and assist the City. 2. That for the purpose of financing the acquisition and construction of the Project there is hereby authorized the issuance, sale and delivery of revenue bonds in the aggregate principal amount presently estimated not to exceed $3,030,000 to be designated the City of St. Louis Park, Minnesota, Commercial Development Revenue Bonds (Sunset Ridge Commercial Condominium Project), 2 1 Series 1983-A (the "Bonds") to the Underwriter. The Bonds shall be in such denomination, shall be numbered, and shall be dated, shall be subject to redemption prior to maturity, shall be in such form, and shall have such other details and provisions as are prescribed in the Indenture of Trust dated as of the date of the Bonds (the "Indenture") between the City and National City Bank of Minneapolis, in Minneapolis, Minnesota, as trustee (the "Trustee"). The City Manager is hereby authorized to perform the duties and functions of the City identified in the Indenture. 3. That the Bonds shall not be general obligations but shall be special limited obligations of the City payable solely from the revenues derived from the Loan Agreement dated as of the date of the Bonds, and executed by the City and the Developer (the "Loan Agreement") in the manner provided in the Indenture. The Bonds shall be secured by the Indenture. The Mayor, President pro tem, or any member of the City Council (hereinafter referred to as the "Mayor"), City Manager, and City Clerk of the City are hereby authorized and directed to execute the Bonds in accordance with the Indenture. 4. That the Loan Agreement, the Indenture, the Servicing Agreement, dated as of August 1, 1983, among the Trustee, National City Bank of Minneapolis, as servicer, the City, and the Developer (the "Servicing Agreement"), and the Bond Purchase Agreement, dated as of the date of this resolution, by and between the City, the Developer, and the Underwriter (the "Bond Purchase Agreement") are hereby approved, including the provisions relating to the indemnification of the City. The Mayor, City Clerk, and City Manager of the City are hereby authorized and directed to execute and deliver the Loan Agreement, the Indenture, the Servicing Agreement, and the Bond Purchase Agreement, substantially in the forms now on file with the City, with such necessary and appropriate omissions, modifica- 3 tions, insertions, and additions as are not materially inconsistent with the form on file with the City, consistent with the Act, as the City Manager in his discretion shall determine. The execution of the Loan Agreement, the Indenture, the Servicing Agreement, and the Bond Purchase Agreement by the City Manager with the advice of the City Attorney shall be conclusive evidence of such determination. All of the provisions of the Loan Agreement, the Indenture, the Servicing Agreement, and the Bond Purchase Agreement when executed and delivered as authorized herein, shall be deemed to be a part of this resolution as fully and to the same extent as if incorporated herein and shall be in full force and effect from the date of execution and delivery thereof. 5. That the.Mayor, City Clerk, and City Manager of the City are hereby authorized to execute and deliver, on behalf of the City, such other documents as are necessary or appropriate in connection with the issuance, sale, and delivery of the Bonds, including the election required to be made by the City pursuant to Section 103 (b)(6)(D) of the Internal Revenue Code of 1954, as amended, and Section 1.103-10(b)(2)(vi) of the Regulations promulgated pursuant thereto. 6. That all covenants, stipulations, obligations, and agreements of the City contained in this resolution and the aforementioned documents shall be deemed to be the covenants, stipulations, obligations, and agreements of the City to the full extent authorized or permitted by law, and all such covenants, stipulations, obligations, and agreements shall be binding upon the City upon execution and delivery of such documents. Except as otherwise provided in this resolution, all rights, powers, and privileges conferred and duties and liabilities imposed upon the City or its officers by the provisions of this resolution or of the aforementioned documents to be executed and delivered by the City shall be exercised or performed by the City or by such officers of the City, or such board, 4 J 1 body, or agency thereof as may be required by law to exercise such powers and to perform such duties. No covenant, stipulation, obligation, or agreement herein contained or contained in the aforementioned documents shall be deemed to be a covenant, stipulation, obligation, or agreement of any member of the City Council of the City, or any officer, agent or employee of the City in that person's individual capacity, and neither the City Council of the City nor any officer executing the Bonds shall be liable personally on the Bonds or be subject to any personal liability or accountability by reason of the issuance thereof. 7. That except as herein otherwise expressly provided, nothing in this resolution or in the aforementioned documents expressed or implied, is intended or shall be construed to confer upon any person or firm or corporation, other than the City, the Developer or any holder of the Bonds issued under the provisions of this resolution, any right, remedy or claim, legal or equitable, under and by reason of this resolution or any provision hereof, this resolution, the aforementioned documents and all of their provisions being intended to be and being for the sole and exclusive benefit of the City, the Developer and any holder from time to time of the Bonds issued under the provisions of this resolution. The City reserves the right to withhold execution and delivery of all such documents in the event the City Manager and the City Attorney are not satisfied as to the form and content of such documents or any other material aspect of the above referenced issue. 8. That in case any one or more of the provisions of this resolution (except any provision limiting the City's liability under the Bonds), or of the aforementioned documents (except any provision limiting the City's liability under the Bonds), or of the Bonds issued hereunder (except any provision limiting the City's liability under the Bonds) shall for any reason be held to be illegal or invalid, 5 such illegality or invalidity shall not affect any other provision of this resolution, or of the aforementioned documents, or of the Bonds, but this resolution, the aforementioned documents and the Bonds shall be construed and endorsed as if such illegal or invalid provision had not been contained therein. 9. That the Bonds shall contain a recital that they are issued pursuant to the Act, and such recital shall be conclusive evidence of the validity of the Bonds and the regularity of the issuance thereof, and that all acts, conditions, and things required by the laws of the State of Minnesota relating to the adoption of this resolution, to the issuance of the Bonds, and to the execution of the aforementioned documents to happen, exist, and be performed precedent to and in the enactment of this resolution, and precedent to issuance of the Bonds, and precedent to the execution of the aforementioned documents have happened, exist, and have been performed as so required by law. 10. That the officers and other agents or employees of the City are hereby authorized to do all acts and things required of them by or in connection with this resolution, the aforementioned documents, and the Bonds for the full, punctual, and complete performance of all the terms, covenants, and agreements contained in the Bonds, the aforementioned documents, and this resolution. 11. That the City Manager, or in his absence, the designee of the City Manager, is hereby designated as City Representative for the purpose of taking all actions and doing all things required to be taken or done by the City Representative pursuant to the aforementioned documents. 12. That in the event any of the officers of the City authorized to execute documents on behalf of the City under this resolution shall for any reason be unable to do so, any other officer of the City authorized by the City Charter to act for such designated officer is hereby directed and authorized to do so on behalf 6 1 of the City with the same effect as if executed by the officer authorized to do so in this resolution. 13. All actions of the members, employees, and staff of the City Council heretofore taken in furtherance of the Project are hereby approved, ratified and confirmed. 14. The Mayor, City Clerk, and City Manager of the City, and other officers of the City are authorized and directed to prepare and furnish with regard to the issuance of the Bonds, certified copies of all proceedings and records of the City relating to the Bonds and such other affidavits and certificates (including but not limited to those required by the Bond Purchase Agreement) as may be required to show`the facts relating to the legality, tax exemption, and marketability of the Bonds as such facts appear from the books and records in said officers custody and control or as otherwise known to them; and all such certified copies, certificates, and affidavits, including any heretofore furnished, shall constitute representations of the City as to the truth of all statements made by the City and contained therein. 15. The Trustee is hereby appointed authenticating agent with respect to the Bonds pursuant to Minnesota Statutes, Section 475.55, and paying agent with respect to the Bonds pursuant to Minnesota Statutes, Section 475.553. The Trustee is hereby directed to accept as additional security for the Bonds such other documents and instruments as shall be provided to it by the Developer or any other person or entity. If so required thereof the Trustee is hereby authorized to become a party to such documents and instruments and to take all necessary and appropriate actions thereto as required by a party to such documents and instruments. 7 16. The issuance of the Bonds and the transactions contemplated thereby are hereby found to be consistent with the procedures of the City established for such undertakings and, in the event of any inconsistencies, strict compliance with such procedures is hereby waived. 17. The City hereby authorizes the Mayor and City Manager to consent to the circulation of the Preliminary Official Statement and the Official Statement to be prepared by the Underwriter in connection with the sale and delivery of the Bonds. Adopted by the City Council August 1, 1983. Attest: City Clerk Reviewed for administration: • k1%d4Ael Manager 0 0x- 8 w )Uet_,,A, Approved as to form and legality: