Loading...
HomeMy WebLinkAbout84-172 - ADMIN Resolution - City Council - 1984/10/15RESOLUTION NO. 84-172 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT WITH BASS LAKE PARTNERSHIP UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, GIVING PRELIMINARY APPROVAL FOR THE ISSUANCE OF COMMERCIAL DEVELOPMENT REVENUE BONDS TO FINANCE THE PROJECT, AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF SAID PROJECT TO THE ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY OF THE STATE OF MINNESOTA AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS WHEREAS, the purpose of Chapter 474, Minnesota Statutes, known as the Minnesota Municipal Industrial Development Act (the "Act"), as found and determined by the legislature, is to promote the welfare of the State of Minnesota (the "State") by the active attraction and encouragement and development of economically eound industry and commerce to prevent, so far as possible, the emergence of blighted and marginal lands and areas of chronic unemployment; and WHEREAS, factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration of population in the 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 of land use which shall provide an adequate tax base to finance these increased costs and access to employment opportunities for such population; and WHEREAS, the City Council (the "Council") of the City of St. Louis Park, Minnesota (the "City"), has received from Bass Lake Partnership, a Minnesota general partnership (the "Borrower"), a proposal that the City undertake to finance a Project (as hereinafter described) through the issuance of revenue bonds (the "bonds") pursuant to the Act; and WHEREAS, the City desires to facilitate the selective development of the community, retain and improve its tax base and help provide the range of services and employment opportunities required by its population, and the Project shall assist the City in achieving those objectives. The Project shall help to increase assessed valuation of the City and help maintain a positive relationship between assessed valuation and debt and enhance the image and reputation of the City; and WHEREAS, the Project to be financed by the bonds is the acquisition of land and the acquisition and construction thereon of an approximately 50,000 square foot, 3 -story brick and glass, steel frame, office building and related parking (the "Project") in the Beltline Business Center, which is located in the southeast corner of the City; the boundaries of the Beltline Business Center are as follows: West of Highway 100, East of France Avenue, South of Highway 7 and the Milwaukee Railroad and North of Excelsior Boulevard; the Project shall be located on approximately 3.9 acres at the intersection of Klodt Drive and Beltline Boulevard; and shall result in the employment of additional persons to work within the new facilities; and WHEREAS, the City has been advised by representatives of the Borrower that conventional commercial financing to pay the capital cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly 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 more feasible and that the Project would not be undertaken but for the availability of industrial development bond financing. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY AS FOLLOWS: 1. The Council hereby ratifies the publication of the notice calling for a public hearing on the Project and gives preliminary approval to the proposal of the Borrower that the City undertake the Project pursuant to the Minnesota Municipal Industrial Development Act, Chapter 474, Minnesota Statutes (the "Act"), pursuant to the Borrower's specifications suitable for the operations described above and to a revenue agreement between the City and the Borrower upon such terms and conditions, 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 proposed bonds in the estimated maximum principal amount of $2,799,150, to be issued pursuant to the Act to finance the costs of the Project, and the agreement may also provide for the entire interest of the Borrower therein to be mortgaged to the purchaser of the bonds; the City hereby undertakes preliminarily to issue its bonds in accordance with such terms and conditions. 2. On the basis of information available to this Council, it appears and the Council hereby finds that the Project constitutes properties, real and personal, used or useful in connection with one or more revenue-producing enterprises engaged in any business within the meaning of Subdivision la of Section 474.02 of the Act; that the availability of the financing under the Act and willingness of the City to furnish such financing shall be a substantial inducement to the Borrower to undertake the Project; that, based upon representations of the Borrower, the Project would not be undertaken but for the availability of industrial development bond financing; and that the effect of the Project, if undertaken, shall be to encourage the development of economically sound industry and commerce, to assist in the prevention of the emergence of blighted and marginal land, to help 2 prevent chronic unemployment, to help the City retain and improve its tax base and provide the range of service and employment opportunities required by its population, to help prevent the movement of talented and educated persons out of the State and to areas within the State where their services may not be as effectively used, to promote more intensivs development and use of land within the City and to eventually increase the City's tax base. 3. The Project is hereby given preliminary approval by the City, subject to the approval of the Project by the Minnesota Energy and Economic Development Authority (the "Authority") and subject to final approval by this Council, the Borrower and the purchaser or purchasers of the bonds as to the ultimate details of the financing of the Project. 4. In accordance with Subdivision 7a of Section 474.01, Minnesota Statutes, the Clerk of the City is hereby authorized and directed to submit the proposal for the above-described Project to the Authority, requesting the Authority's approval, and other officers, employees and agents of the City are hereby authorized to provide the Authority with such preliminary information as the Authority may require. Representatives of the City and Lindquist & Vennum, as bond counsel, are hereby authorized, in cooperation with the Borrower and the Borrower's counsel, to take such action as is necessary to maintain the City's allocation of $2,799,150 of the federal limit on private activity bonds, pursuant to Minnesota Laws for 1984, Chapter 582, which allocation is hereby allocated to this Project and to initiate the preparation of a proposed loan agreement, mortgage and such other documents as may be necessary or appropriate to the Project so that, when and if the proposed project is approved by the Authority and this Council gives its final approval thereto, the Project may be carried forward expeditiously. The Clerk of the City is hereby authorized, at a time and date the City deems appropriate, to publish a notice for a public hearing in substantially the form of the notice attached hereto as Exhibit A. 5. The Borrower has agreed and it is hereby determined that any and all costs incurred by the City in connection with the financing of the Project, whether or not the Project is carried to completion, whether or not the bonds or operative instruments are executed and whether or not approved by the Commissioner, shall be paid by the Borrower. 6. Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived from the Project or otherwise granted to the City for this purpose. The bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City except the revenue and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. 9 , 3 EXHIBIT A NOTICE OF PUBLIC HEARING ON PROPOSED PROJECT AND THE ISSUANCE OF COMMERCIAL DEVELOPMENT REVENUE BONDS UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, MINNESOTA STATUTES, CHAPTER 474, AS AMENDED CITY OF ST. LOUIS PARK, MINNESOTA NOTICE IS HEREBY GIVEN that the governing body of the City of St. Louis Park, Minnesota (the "City"), shall meet on Oct. 15 , 1984, at 7:30 o'clock p -.m., at the City Hall, 5005 Minnetonka Boulevard in the City, for the purpose of conducting a public hearing on a proposed issue of Commercial Development Revenue Bonds (the "bonds") under the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Chapter 474, as amended, to undertake and finance a project on behalf of Bass Lake Partnership, a Minnesota general partnership (the "Borrower"). The initial owner of the project shall be the Borrower. The Project shall consist of the acquisition of land and the acquisition and construction of an approximately 50,000 square foot, 3 -story brick and glass, steel frame, office building and related parking (the "Project") and shall be located in the Beltline Business Center, which is located in the southeast corner of the City. The boundaries of the Beltline Business Center are as follows: West of Highway 100, East of France Avenue, South of Highway 7 and the Milwaukee Railroad and North of Excelsior Boulevard. The Project shall be located on approximately 3.9 acres at the intersection of Klodt Drive and Beltline Boulevard, which is located in the central area of the Beltline Business Center. The maximum aggregate face amount of the proposed bond issue is $2,799,150. The bonds shall be limited obligations of the City, and the bonds and interest thereon shall be payable solely from the revenue pledged to the payment thereof, except that,such bonds may be secured by a mortgage and other encumbrances on the Project. No holder of any such bond shall ever have the right to compel any exercise of the taxing power of the City to pay the bonds or the interest thereon or to enforce payment against any property of the City except the Project. A draft copy of the proposed application to the Minnesota Energy and Economic Development Authority for approval of the Project, together with all attachments and exhibits thereto, is available for public inspection at the office of the City Clerk between the hours of 8:00 a.m. and 4:30 p.m. Dated: Oct. 16 , 1984 A-1 The holder or holders from time to time of the bonds shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal_on the bonds or the interest thereon or to enforce payment thereof against any property of the City. The bonds shall recite in substance that the bonds, including interest thereon, are payable solely from the revenue and proceeds pledged to the payment thereof. The bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. • 7. In anticipation of the approval of the Authority and the issuance of the bonds to finance all or a portion of the Project and in order that completion of the Project shall not be unduly delayed when approved, the Borrower may make such expenditures and advances toward payment of that portion of the costs of the Project to be financed from the proceeds of the bonds as the Borrower considers necessary, including the use of interim, short-term financing, to be reimbursed from the proceeds of the bonds if and when delivered, but the City shall in no event be liable for payment of, or in any respect with regard to, any such expenditures whether or not bonds are issued or whether or not the City gives final approval to the issuance of bonds, except such costs may be paid from bond proceeds if and when such bonds are issued. Approved and adopted by the City Council this 15th day of October, 1984. ATTEST: Reviewed for administration: IRA' mm -110 MiN MME " W.'k -- • L9 4 Mayor Approved as to form and legality: City Attor y