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Res 1983 - 30 Reciting a Proposal for a Commercial Facilities Development Project Giving Preliminary Approval to the Project Pursuant to the MN Municipal Industrial Development Act Authorizing the Submission of an Application for Approval of Said ProjectRESOLUTION NO. 83-30 RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF SAID PROJECT TO THE COMMISSIONER OF ENERGY, PLANNING AND DEVELOPMENT OF THE STATE OF MINNESOTA AND AUTHORIZING THE PREPARATION OF .NECESSARY.DOCUMENTS AND MATERIALS IN CONNECTION WITH SAID PROJECT WHEREAS, (a) 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 by the active attraction and encouragement and development of economi- cally sound industry and commerce to prevent so far as possible t'ne emergence of blighted and marginal lands and areas of chronic unemployment; (b) Factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration of population in the metropolitan areas and 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 will provide an adequate tax base to finance these increased costs and access to employment opportunities for such population; (c) The City Council of the City of Mendota Heights (the "City") has received from Linvill Associates Company, a Minnesota general partnership (the "Company") a ,proposal that the City assist in financing a Project hereinafter described, through the issuance of a Revenue'Bond or Bonds or a Revenue Note or Notes hereinafter referredrto'•in this resolution as "Revenue Bonds" pursuant to the Act; (d) The City desires to facilitate the selec- tive development of the community, retain•and improve the,tax abase .and :help to provide'.the range of services and .,employment opportunities required by the population; and -the Project will assist the City in achieving those objectives. The Project will 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 community; (e) The Project to be financed by the Revenue Bonds is an office warehouse facility to be located in the City and consists of the acquisition of land and the construction of buildings and improvements thereon and the installation of equipment therein, and will result in the employment of 188 additional persons to work within the new facilities; (f) The City has been advised by representa- tives of Company 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 Company has also advised this Council that with the aid of municipal financing, and its resulting low borrowing cost, the Project is economically more feasible; (g) Pursuant to a resolution of the City-. Council adopted on March 15, 1983, a public hearing on the Project was held on April 5, 1983, after notice was published, and materials made available for public inspection at the City Hall, all as required by Minnesota Statutes, Section 474.01, Subdivision 7b at which public hearing all those appearing who so desired to speak were heard; (h) No public official of the City has either.a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project. NOW, THEREFORE, -BE IT RESOLVED by the City Council of the City of Mendota Heights, Minnesota, as follows: 1. The Council hereby gives preliminary approval to,the -proposal of Company that the City undertake the Project pursuant to the Minnesota Municipal Industrial Development. Act (Chapter 474, Minnesota Statutes), consisting of the acqui- sition, construction and equipping of facilities within the City. pursuant to Company's specifications suitable for the operations described above and to a revenue agreement between :the City and Company upon such terms .and ,conditions':with -provisions for revision from time to 'time as -,necessary; so was to produce income and revenues sufficient to pay, when due, the principal of and interest on the Revenue Bonds in the total principal amount of approximately $2,750,000 to be issued pursuant to the Act to finance the acquisition, construction and equipping of the Project; and said agreement may also provide for the entire interest of Company therein to be mortgaged to the purchaser of the Revenue Bonds; and the City hereby undertakes preliminarily to issue its Revenue Bonds in accordance with sund equipping of the Project; and said agreement may also provide for the entire interest of Company therein to be mortgaged to the purchaser of the Revenue. Bonds; and the City hereby undertakes preliminarily to issue its Revenue 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 Project furthers the purposes stated in Section 474.01, Minnesota Statutes; that the availability of the financing under the Act and willingness.of the City to furnish such financing will be a substantial inducement to Company to undertake the Project, and that the effect of the Project, if undertaken, will 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 prevent chronic, unemployment, to help the City retain and improve the tax base and to provide the range of service and employment opportunities required by the 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 intensive development and use of land within the City and eventually to increase the tax base of the community; 3. The Project is hereby given preliminary approval by the City subject to the approval of the Project by the Commissioner of Energy, Planning and Development (the "Commissioner"), and subject to final approval by this Council, Company, and the purchaser of the Revenue Bonds as to the ulti- mate details of the financing of the Project; 4. In accordance with Subdivision 7a of Section 474.01 -Minnesota Statutes, the Mayor-'of•the City `is',hereby authorized and directed to submit the proposal for the'Project to the Commissioner requesting his approval, and other officers, employees and agents of the ,City are he,reby'authorized-to provide the . Commissioner'rwith ;such , preliminary .,information .;as 'ne ..may require; 5. Company 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 and whether or not approved by the Commissioner will be paid by Company; 6. Briggs and Morgan, Professional Association, acting as bond counsel, is authorized to assist in the preparation and review of necessary documents relating to the Project, to consult with the City Attorney, Company and the purchaser of the Revenue Bonds as to the maturities, interest rates and other terms and provisions of the Revenue Bonds and as to the covenants and other provisions of the necessary documents and to submit such documents to the Council for final approval; 7. Nothing in this resolution or in the documents pre- pared 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 Revenue 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. The holder of the Revenue Bonds shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Revenue Bonds or the interest thereon, or to enforce payment thereof against any property of the City. The Revenue Bonds shall recite in substance that the.Revenue Bonds, including interest thereon, is payable solely from the revenue and proceeds pledged to the payment thereof. The Revenue Bonds shall not constitute a debt of the City within the meaning of any constitutional or :statutory ;limitation; 8. In anticipation of the approval by the Commissioner the issuance of the Revenue Bonds to finance all or a portion of the Project, and in order that completion of the Project will not be unduly delayed when approved, Company is hereby authorized to make such expenditures and advances toward payment of that portion of the costs of the Project to be financed from the proceeds of the Revenue Bonds as Company con- siders necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the ,Revenue Bonds .if and when delivered but otherwise without liability "on :thepart sof -the City. Adopted by the City Council of the City of Mendota Heights, Minnesota, this 5th day of April, 1983. Attest: City Clerk MeAtZ, Mayor STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF MENDOTA HEIGHTS I, the undersigned, being the duly qualified and acting Clerk of the City of Mendota Heights, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City.Council of said City duly called and held on the date therein indicated, insofar as such minutes relate to a resolution giving =preliminary approval to a commercial facilities development project. WITNESS my hand and the seal of said City this day of , 1983. (SEAL) City Clerk City r +k RESOLUTION NO. 83-30 t Extract of Minutes of a Meeting of the City Council of the City of Mendota Heights, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Mendota Heights, Minnesota, was duly held at the Council Chambers in the Dakota County State Bank Building, 750 South Plaza Drive in said City on Tuesday, the 5th day of April, 1983, at7 30 o'clock P .M. The following members were present: Mayor Lockwood, Councilmembers Hartmann, Mertensotto & Witt and the following were absent: Councilman Losleben Councilmember Hartmann introduced the following resolution and moved its adoption: RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT, GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AND RATIFYING PRIOR PRELIMINARY APPROVAL, AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF SAID PROJECT TO THE COMMISSIONER OF THE DEPARTMENT OF ENERGY, PLANNING AND DEVELOPMENT OF THE STATE OF MINNESOTA, AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH SAID PROJECT The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Mertensotto , and upon vote being taken thereon the following voted in favor thereof: all and the following voted against the same: none whereupon said resolution was declared duly passed and adopted. RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT, GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AND RATIFYING PRIOR PRELIMINARY APPROVAL, AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF SAID PROJECT TO THE COMMISSIONER OF THE DEPARTMENT OF ENERGY, PLANNING AND DEVELOPMENT OF THE STATE OF MINNESOTA, AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH SAID PROJECT WHEREAS, (a) 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 by the active attraction and encouragement and development of economi- cally sound industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment; (b) Factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration of population in the metropolitan areas and 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 will provide an adequate tax base to finance these increased costs and access to employment opportunities for such population; (c) The City Council of the City of Mendota Heights ("the City") received from M H Associates, a partnership proposed to be organized under the laws of the State of Minnesota, a proposal that the City assist in financing a Project hereinafter described, through the issuance of a Revenue Bond or Bonds or a Revenue Note or Notes (hereinafter referred to in this resolution as "Revenue Bonds") pursuant to the Act; (d) Pursuant to said proposal, the City Council on March 1, 1983, held a public hearing on the Project and adopted a resolution granting preliminary approval to the Project (the "Previous Resolution"); (e) After such hearing, it was proposed that The Northland Company (the "Company"), a Minnesota corporation which was intended to be a partner in M H Associates with an interest of fifty percent or greater, proceed with the Project directly on its own behalf without taking on partners or completing the organization of M H Associates, which proposal was accepted by The Northland Company; (f) The Company is currently engaged in the business of the development and management of commercial properties; and the Project to be financed by the Revenue Bonds consists of the construction of three (3) office/warehouse buildings to be located in the City, and will result in the em- ployment of additional persons to work within the new facilities; (g) The Company has advised the City that it intends to own the first of the three buildings comprising the Project, but would like to retain the ability to develop either or both of the remaining buildings comprising the Project in the form of an entity, a partnership or a corporation, in which it has a substantial interest and which it designates to complete the Project (its "designee"); (h) Notice of the March 1, 1983, hearing was published only in the West St. Paul -Mendota Heights Sun, the official newspaper of the City; (i) Bond Counsel has advised that to insure compliance with the public policies of the Act a second hearing on the Project should be held after wider publication of the notice of the hearing to recognize the change in the entity or entities to which financing for the Project is provided; (j) The City desires to facilitate the selec- tive development of the community, retain and improve the tax base and help to provide the range of services and employment opportunities required by the population; and the Project will assist the City in achieving those objectives; and the Project. will help to increase assessed valuation of the City and surrounding area and help maintain a positive relationship between assessed valuation and debt and enhance the image and reputation of the community; (k) The City has been advised by representa- tives of the Company 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 signi- ficantly reduced, but the Company has also advised this Council that with the aid of municipal financing, and its resulting low borrowing cost, the Project is economically more feasible; (1) A second public hearing on the Project was held on April 5, 1983, after notice was published in the West -2- St. Paul -Mendota Heights Sun and the St. Paul Pioneer Press and materials were made available for public inspection at the office of the City Clerk in the Dakota County State Bank Building, 750 South Plaza Drive, all as required by Minnesota Statutes, Section 474.01, Subdivision 7b, at which second public hearing all those appearing who so desired to speak were heard; and (m) No public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mendota Heights, Minnesota, as follows: 1. The Council hereby ratifies and confirms the prelimi- nary approval granted to the Project in the Previous Resolution and hereby gives preliminary approval to the proposal of the Company that the City undertake the Project, pursuant to the Minnesota Municipal Industrial Development Act (Chapter 474, Minnesota Statutes). The Project will consist of the acqui- sition, construction and equipping of facilities within the City conforming to the specifications of the Company or its designee or both, suitable for the operations described above. The Project will be undertaken pursuant to one or more revenue agreements between the City and the Company or its designee or both containing such terms and conditions (with provisions for revision from time to time as necessary) as may be necessary to produce income and revenues sufficient to pay, when due, the principal of and interest on the Revenue Bonds in the total principal amount of approximately $5,000,000 to be issued pursuant to the Act to finance the acquisition, construction and equipping of the Project; and said agreement may also provide for the entire interest of the Company or its designee or both therein to be mortgaged to the purchaser of the Revenue Bonds; and the City hereby undertakes preliminarily to issue its Revenue Bonds in accordance with such terms and conditions. 2. The Council hereby ratifies and confirms the findings made in paragraph 2 of the Previous Resolution. 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 Project furthers the purposes stated in Section 474.01, Minnesota Statutes; that the availability of the financ- ing under the Act and willingness of the City to furnish such financing will be a substantial inducement to the Company to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the development of economic- ally sound industry and commerce, to assist in the prevention -3- of the emergence of blighted and marginal land, to help prevent chronic unemployment, to help the City retain and improve the tax base and to provide the range of service and employment opportunities required by the population, to help prevent the- movement hemovement 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 intensive development and use of land within and adjacent to the City, and eventually to increase the tax base of the community. 3. The Project is hereby given preliminary approval by the City subject to the approval of the Project by the Com- missioner of the Department of Energy, Planning and Develop- ment, and subject to final approval by this Council, the Company or its designee or both, and the purchaser of the Revenue 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 Mayor of the City is hereby authorized and directed to submit the proposal for the Project to the Commissioner of the Department of Energy, Planning and Develop- ment, requesting his approval, and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary information as he may require. 5. The Company 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 and whether or not approved by the Commissioner of the Department of Energy, Planning and Development, will be paid by the Company. 6. Briggs and Morgan, Professional Association, acting as bond counsel, is authorized to assist in the preparation and review of necessary documents relating to the Project, to con- sult with the City Attorney, the Company or its designee or both, and the purchaser of the Revenue Bonds as to the maturi- ties, interest rates and other terms and provisions of the Revenue Bonds and as to the covenants and other provisions of the necessary documents and to submit such documents to the Council for final approval. 7. Nothing in this resolution or in the documents pre- pared 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 pur- pose. The Revenue 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 there- on. The holder or holders of the Revenue Bonds shall never -4- have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Revenue Bonds or the interest thereon, or to enforce payment thereof against any property of the City. The Revenue Bonds shall recite in substance that the Revenue Bonds, including interest thereon, are payable solely from the revenue and proceeds pledged to the payment thereof. The Revenue Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 8. The Council hereby ratifies and confirms the authority granted in paragraph 8 of the Previous Resolution and confirms that in anticipation of the approval by the Commissioner of the Department of Energy, Planning and Development, and of the issuance of theRevenue Bonds to finance all or a portion of the Project, and in order that completion of the Project will not be unduly delayed when approved, the Company and its designee, or either of them, are authorized to make such expenditures and advances toward payment of that portion of the costs of the Project to be financed from the proceeds of the Revenue Bonds as the Company considers necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the Revenue Bonds if and when delivered but otherwise without liability on the part of the City. 9. The actions of the City Clerk in causing public notice of the second public hearing and in describing the general nature of the Project and estimating the principal amount of the Revenue Bonds to be issued to finance the Project and in preparing a draft of the proposed application to the Commissioner of the Department of Energy, Planning and Development, State of Minnesota, for approval of the Project, which has been available for inspection by the public at the office of the City Clerk from and after the publication of notice of the second hearing, are in all respects ratified and confirmed. Adopted by the City Council of the City of Mendota Heights, Minnesota, this 5th day of April, 1983. Attest: Mayor > m. / City Clerk 9 STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF MENDOTA HEIGHTS I, the undersigned, being the duly qualified and acting Clerk of the City of Mendota Heights, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City duly called and held on the date therein indicated, insofar as such minutes relate to a resolution giving preliminary approval to a commercial facilities development revenue project. WITNESS my hand and the seal of said City this ,..5-7L6 day of April, 1983. (SEAL) City Clerk City Clerk