Loading...
HomeMy WebLinkAbout86-113 - ADMIN Resolution - City Council - 1986/07/21r RESOLUTION NO. 86-113 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT AND ITS FINANCING UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT (APEX REALTY CO. PROJECT); REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF ENERGY AND ECONOMIC DEVELOPMENT FOR APPROVAL; AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of St. Louis Park, Minnesota (the Municipality), as follows: SECTION 1 Recitals and Findings 1.1. This Council has received a proposal that the Municipality finance a portion or all of the cost of a proposed project under Minnesota Statutes, Chapter 474 (the Act), consisting of the construction and equipping of an approximately 80,000 square foot office warehouse addition to an existing warehouse facility (the Project) by Apex Realty Co., a Minnesota corporation (the Borrower) to be leased by the Borrower to S P S Companies, Inc., a Minnesota corporation. 1.2. At a public hearing, duly noticed and held on July 21, 1986, in accordance with the Act and Section 103(k) of the Internal Revenue Code of 1954, as amended, on the proposal to undertake and finance the Project, all parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal to undertake and finance the Project and interested persons were given the opportunity to submit written comments to the City Clerk before the time of the hearing. Based on the public hearing, such written comments (if any) and such other facts and circumstances as this Council deems relevant, this Council hereby finds, determines and declares as follows: (a) The welfare of the State of Minnesota 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 the State of Minnesota has encouraged local government units to act to prevent such economic deterioration. (b) The Project would further the general purposes contemplated and described. in Section 474.01 of the Act. (c). The existence of the Project would add to the tax base of the Municipality, the County and the School District in which the Project is located and would provide increased opportunities for employment for residents of the Municipality and surrounding area. (d) This Council has been advised by representatives of the Borrower that conventional, commercial financing to pay the cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of constructing and operating the Project would be significantly reduced, but that with the aid of municipal borrowing, and its resulting lower borrowing cost, the Project is economically more feasible. (e) This Council has been advised by representatives of the Borrower that the Project would not be undertaken but for the availability of industrial development bond financing. (f) This Council has also been advised by representatives of the Borrower that on the basis of their discussions with potential buyers of tax-exempt bonds, revenue bonds of the Municipality (which may be in the form of a commercial development revenue note or notes) could be issued and sold upon favorable rates and terms to finance the Project. (g) The Municipality is authorized by the Act to issue its revenue bonds to finance capital projects consisting of properties used and useful in connection with a revenue producing enterprise, such as that of the Borrower, and the issuance of the bonds by the Municipality would be a substantial inducement to the Borrower to acquire, construct and equip the Project., SECTION 2 Determination to Proceed with the Project and its Financing 2.1. On the basis of the information given the Municipality to date, it appears that it would be desirable for the Municipality to issue its revenue bonds under the provisions of the Act to finance the Project in the maximum aggregate face amount of $3,000,000. 2.2. It is hereby determined to proceed with the Project and its financing and this Council hereby declares its present intent to have the Municipality issue its revenue bonds under the Act to finance the Project. Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to -2- 1 r establish a legal obligation on the part of the Municipality or its City Council to issue or to cause the issuance of such revenue bonds. All details of such revenue bond issue and the provisions for payment thereof shall be subject to final approval of the Project by the Minnesota Department of Energy and Economic Development and may be subject to such further conditions as the Municipality may specify. The revenue bonds, if issued, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the Municipality, except the revenues specifically pledged to the payment thereof, and each bond, when, as and if issued, shall recite in substance that the bond, including interest thereon, is payable solely from the revenues and property specifically pledged to the payment thereof, and shall not constitute a debt of the Municipality within the meaning of any constitutional, statutory or charter limitation. 2.3. The Application to the Minnesota Department of Energy and Economic Development, with attachments, is hereby approved, and the Mayor, City Manager and City Clerk are authorized to execute said documents on behalf of the Municipality. 2.4. In accordance with Section 474.10, Subdivision 7a of the Act, the Mayor, City Manager and City Clerk are hereby authorized and directed to cause the Application to be submitted to the Minnesota Department of Energy and Economic Development for approval of the Project. The Mayor, City Manager, City Clerk, City Attorney and other officers, employees and agents of the Municipality are hereby authorized and directed to provide the Department with any preliminary information needed for this purpose. The City Attorney is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project, if approved by the Department. SECTION 3 General 3.1. If the bonds are issued and sold, the Municipality will enter into a lease, sale or loan agreement or similar agreement satisfying the requirements of the Act (the Revenue Agreement) with the Borrower. The lease rentals, installment sale payments, loan payments or other amounts payable by the Borrower to the Municipality under the Revenue Agreement shall be sufficient to pay the principal of, and interest and redemption premium, if any. on, the bonds as and when the same shall become due and payable. 3.2. The Borrower has agreed and it is hereby determined that any and all direct and indirect costs incurred by the -3- t Municipality in connection with the Project, whether or note the Project is carried to completion, and whether or not app d by the Minnesota Department of Energy and Economic Development, and whether or not the Municipality by resolution authorizes the issuance of the bonds, will be paid by the Borrower upon request. 3.3. The Mayor, City Manager and City Clerk are directed, if the bonds are issued and sold, thereafter to comply with e provisions of Section 474.01, Subdivisions 8 and 11 of the Act. Adopted by the City Council July 21 , 1986. Attest: .1zze Ci/Ey Clerk Reviewed for administration: • Q/� City Manager Mayor Approved as to form and legality: -4- �n City Attorney 1