Loading...
HomeMy WebLinkAbout00-088 - ADMIN Resolution - City Council - 2000/07/17RESOLUTION NO 00-088 RESOLUTION GIVING PRELIMINARY APPROVAL TO INDUSTRIAL DEVELOPMENT PROJECT ON BEHALF OF BENILDE-ST. MARGARET'S SCHOOL AND CALLING FOR PUBLIC HEARING WHEREAS, Benilde-St Margaret's School, together with Catholic Finance Corporation (the "Borrower") has submitted an application to the City requesting industrial development bond financing for a project generally descnbed as the construction and equipping of a new performing arts center, additional classrooms, a new library, new administrative offices, and the remodeling of existing classroom and office areas (the "Project"), all to be located at 2501 Highway 100 South in the City, and to be owned and operated by the Borrower; and WHEREAS, the acquisition and construction of the Project will maintain and provide for an increase in opportunities for employment for residents of the City, including economically disadvantaged or unemployed individuals; and WHEREAS, the Council has been advised by the Borrower 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 acquisition and construction of the Project; and WHEREAS, pursuant to Minnesota Statutes, Sections 469.152 to 469.165, as amended (the "Act"), the City is authonzed to issue its revenue bonds to finance all or part of the cost of the Project, NOW, THEREFORE, BE IT RESOLVED THAT: 1. The Project and the issuance of industnal development revenue bonds for such purposes and in an amount not to exceed $11,000,000 are hereby given preliminary approval by the City, subject to the approval of the Project by the Minnesota Department of Trade and Economic Development pursuant to the Act, and subject to the mutual agreement of this body, the Borrower 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, hen or encumbrance legal or equitable upon any property of the City, and the bonds, when, as, and if issued, shall recite in substance that the bonds, including interest thereon, are 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. As required by the Act and by Section 147(f) of the Internal Revenue Code of 1986, as amended, this Council will conduct a public hearing on the Project and the proposal to issue the bonds. The hearing will be conducted on Monday, August 7, 2000, at 7:30 o'clock p.m. The actions of the City Manager in causing notice of the hearing to be published as provided in the Act are hereby ratified and affirmed in all respects. 3. The law firm of Kennedy & Graven, Chartered is authonzed 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 City Manager and other officers, employees and agents of the City are hereby authonzed to assist Bond Counsel in the preparation of such documents. Resolution No. 00-088 -2- 4. The Borrower has agreed to pay directly or through the City any and all costs incurred by the City in connection with the Project whether or not the Project is approved by the Department of Trade and Economic Development, whether or not the Project is carned to completion, and whether or not the bonds or operative instruments are executed. 5. The borrower has agreed to pay the City's Administrative Fee semi-annually in an amount equal to one-eighth of one percent (0.125%) of the average daily pnncipal amount of the Bonds outstanding dunng the preceding year. 6. All commitments of the City expressed herein are subject to the condition that by August 30, 2000 the City and the Borrower shall have agreed to mutually acceptable terms and conditions of the loan agreement, the bonds and of the other instruments and proceedings relating to the bonds and their issuance and sale. If the events set forth herein do not take place within the time set forth above, or any extension thereof, and the bonds are not sold within such time, this Resolution shall expire and be of no further effect. 7. The adoption of this Resolution does not constitute a guaranty or firm commitment that the City will issue the bonds as requested by the Borrower. The City retains the nght in its sole discretion to withdraw from participation and accordingly not to issue the bonds, or issue the bonds in an amount less that the amount referred to herein, should the City at any time pnor to issuance thereof determine that it is in the best interest of the City not to issue the bonds, or to issue the bonds in an amount less than the amount referred to in paragraph 1 hereof, 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. Reviewed for Administration: Ad6pted by the Ci Council July 17, 2000 1 City Manager Attest: Ci' Clerk Mayo