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Res 1985 - 57 Giving Preliminary Approval to a Project Under the Municipial Industrial Development ActCERTIFICATION OF MINUTES RELATING TO $6,400,000 COMMERCIAL DEVELOPMENT REVENUE BONDS OF 1985 (ALPHA ENVIRONMENTS PROJECT) Issuer: City of Mendota Heights, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting, held on August 20, 1985, at o'clock p.m., at the City Hall, 750 South Plaza Drive, Mendota Heights Minnesota. Attendance at the Meeting: Present: Absent: Documents Attached: Minutes of said meeting (pages) : RESOLUTION NO .85-57 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY FOR APPROVAL; AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS I, the undersigned, being the duly qualified and acting recording officer of the public body issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said body in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said body, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. W TNESS my hand officially as such recording officer this co'4"--- day of , 1985. ,.Ze_,e......_, ` 1" 1 jai -a -A. -2.....-G---_ City Clerk (SEAL) Councilmember offered the following resolution and moved its adoption, which motion was seconded by Councilmember RESOLUTION NO. RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY FOR APPROVAL; AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Mendota Heights, Minnesota (the "City"), as follows: SECTION 1. Recitals and Findings 1.1. This Council has received a proposal that the City finance a proposed project under Minnesota Statutes, Chapter 474 (the "Act"), consisting of the acquisition of land and constructing and equipping thereon of an approximately 55,000 square foot building to be used as an educational and convention facility (the "Project") by a Minnesota partnership to be formed in which Larry Lee will be one of the general partners therein (the "Borrower") . 1.2. The Council previously granted preliminary approval of the Project pursuant to a resolution adopted September 18, 1984, following a public hearing held on said date. The Borrower has requested that the Council adopt another preliminary resolution with respect to the Project to increase the - amount of revenue bonds to be issued therefor to an amount not to exceed $6,400,000. 1.3. At a public hearing, duly noticed and held on August 20, 1985, in accordance with the Act, 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. Based on such hearing 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 has encouraged local government units to act to prevent such economic deterioration.j (b) The Project would further the genet 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 City, the County and the School District in which the Project is located; would provide increased opportunities for employment for residents of the City and the surrounding area. (d) This Council has been advised by a representative of the Borrower that conventional, commercial financing to pay the cost of the Project if 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 that with the aid of municipal borrowing, and its resulting lower borrowing. cost, the Project is economically more feasible. (e) The City is authorized by the Act to issue its revenue bonds to finance capital projects consisting of properties, real and/or personal, used or useful in connection with a revenue producing enterprise, such as that of the Borrower, and the issuance of such bonds by the City would be a substantial inducement to the Borrower to acquire and install the Project. SECTION 2. Prelimin4ry Approval of Project 2.1. On the basis of information given the City to date, it appears that it would be in the best interest of the City to issue its revenue bonds under the provisions of the Act to finance the Project in an amount not exceeding $6,400,000.00. 2.2. It is hereby determined to proceed with the Project and its financing. Preliminary approval of the Project and the issuance of revenue bonds of the City (which may be in the form of a commercial development revenue note or notes) in such amounts hereby approved is hereby granted by the City, subject to the approval of the Project by the Minnesota Energy and Economic Development Authority, the fulfillment of such other conditions as the City may require with respect to the issuance of its revenue bonds in connection with the Project, and the mutual agreement of this Council and the Borrower as to the details of the revenue bonds and provisions for their payment. In, all events, it is understood, however, that the revenue 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 revenue bond, when, as and if issued, shall recite in substance that the revenue 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. 2.3. The form of the Application to the Minnesota Energy and Economic Development Authority, with attachments, is hereby approved, and the Mayor and City Clerk are authorized to execute' said documents on behalf of the City. 2.4. In accordance with Section 474.1, Subdivision 7a, of the Act, the Mayor is hereby authorized and directed to submit the proposal for undertaking the Project to the Minnesota Energy and Economic Development Authority, requesting approval of the Project. The Mayor, City Clerk, City Attorney and other officers, employees and agents of the City are hereby authorized and directed to provide this Commissioner with any preliminary information the Commissioner may need for this purpose, and the City Attorney is also authorized, in cooperation with bond counsel to be approved by the City, to initiate preparation of such documents as may be appropriate to the Project in order that, if it is approved by the Commissioner, it may be carried forward expeditiously. SECTION 3. General 3.1. If the revenue bonds are issued and sold, the City 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 City under the Revenue Agreement shall be sufficient to pay the principal, interest and redemption premium, if any, on the revenue 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 City in connection with this Project, whether or not the Project is carried to completion, and whether or not approved by the Minnesota Energy and Economic Development Authority, and whether or not the City by resolution authorized the issuance of the revenue bonds, will be paid by the Borrower upon request. 3.3. The Mayor is directed, if the revenue bonds are issued and sold, thereafter to comply with the provisions of Minnesota Statutes, Section 474.01, Subdivision 8. 3.4. The approvals sufficient amount of issue revenue bonds Adopted by the Attest: (SEAL) granted herein are subject to the City obtaining a allocation on entitlement pursuant to the Act in order to for the Project in an amount not exceeding $6,400,000. Council this 20th day of August, 1985. P0-1-tA-t". Yo-cituo-0-0L Mayor City Clerk Upon call of the roll, the vote on said motion was as follows: Councilmembers: In Favor Opposed Absent Not Voting 1. 2. 3. 4. 5. 6. 7.