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Res 1984 - 61 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 Publication of a Notice of Public Hearing on ProjecRESOLUTION NO. 84-61 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 AUTHORIZING THE PUBLICATION OF A NOTICE OF PUBLIC HEARING ON 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 The Northland Company, a corporation organized under the laws of the State of Minnesota a proposal that the City assist in financing two facilities hereinafter described, through the issuance of Revenue Bonds or Revenue Notes pursuant to the Act; (d) The facilities proposed to be financed by the Revenue Bonds were (1) an approximately 48,000 square foot office/service center, consisting of two single story build- ings, to be located at the southwest corner of Mendota Heights Road and Transport Drive in Mendota Heights Industrial Park and leased to various parties, and (2) an approximately 35,000 square foot two-story office building, to be located at the southwest corner of Mendota Heights Road and Transport Drive in Mendota Heights Industrial Park and leased to various parties; (e) Pursuant to a resolution of the City Council adopted on August 28, 1984, notices of public hearings on the two facilities were published, and materials made available for public inspection at the City Hall, all as required by Minnesota Statutes, Section 474.01, Subdivision 7b; (f) At the public hearings for the facilities described above representatives of The Northland Company and MHBC I Partnership advised the City that instead of the two facilities originally proposed, it is intended that the MHBC I Partnership (the "Company") act as the developer of one approximately 35,000 square foot two-story office -service building and one approximately 24,000 square foot office - service building (collectively the "Project") to be developed with the assistance of one issue of the City's Revenue Bonds or Notes (the "Revenue Bonds") and to be located at the southwest corner of Mendota Heights Road and Transport Drive in Mendota Heights Industrial Park in the City; (g) 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, and that the Project would not be undertaken but for the availability of industrial development bond financing; (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; (i) 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. 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; and (j) A new public hearing will be required on the Project to be developed by the Borrower: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mendota Heights, Minnesota, as follows: 1. Subject to the provisions of paragraph (j) above, 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), pursuant to Company's specifications suitable for the operations described above to be initially owned and operated by the Company pursuant 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 as to produce income and revenues sufficient to pay, when due, the principal of and interest on the Revenue Bonds in the maximum aggregate principal amount of $3,000,000 to be issued pursuant to the Act to finance the acquisition and construction 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 upon completion of the public hearing described below 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 Company would not undertaken the Project but for the avail- ability of industrial development bond financing under the Act and willingness of the City to furnish such financing, 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. 3. The Project is hereby given preliminary approval by the City, subject to the requirement for a public hearing described below, and subject to the approval of the Project by the Commissioner of the Department of Energy and Economic Development of the State of Minnesota or such other state officer having authority to grant approval (the "Commis- sioner"), 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 hereby authorized to provide the Commissioner with such preliminary information as he may require. 5. Company has agreed and it is hereby determined that any and all costs incurred by the City in connection with the -3- 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. 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. 7. In anticipation of the approval by the Authority 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, shortterm 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. 8. A Public Hearing on said proposal of the Company will be held at the time and place set forth in the Notice of Hearing hereto attached. 9. The Notice of Hearing shall be in substantially the form hereto attached. 10. The City Clerk is hereby authorized and directed to cause Notice of Hearing to be given one publication in the official newspaper and a newspaper of general circulation available in the City, not less than 15 days nor more than 30 days prior to the date fixed for said hearing, as shown in the Notice of Hearing hereto attached. Adopted by the City Council of the City of Mendota Heights, Minnesota, this 18th day of September, 1984. Attest: City Clerk larefreA—A, �XITc t�l'�0 1 4 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 , 1984. (SEAL) City Clerk NOTICE OF PUBLIC REARING ON A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT Notice is hereby given that the City Council of the City of Mendota Heights, Minnesota will, meet at the City Hall in the City of Mendota Heights, Minnesota at 7:30 p.m. on October 16, 1984, to consider the proposal of MHBC I Partnership, a Minnesota partnership (the "Company"), that the City assist in financing a project hereinafter described by the issuance of commercial development revenue bonds. Description of Project The construction of an approximately 35,000 square foot, two-story office/service center building, and an approximately 24,000 square foot one-story office/ service enter building on land located at the southwest corner of Mendota Heights Road and Transport Drive in Mendota Heights Industrial Park in the City (the "Project"). The maximum aggregate estimated principal amount of bonds or other obligations to be issued to finance this Project is $3,000,000. The Project will be initially owned and operated by the Company and leased to tenants. The bonds or other obligations if and when issued will not constitute a charge, lien or encumbrance upon any property of the City and such bonds or obligations will not be a charge against the City's general credit or taxing powers but will be payable from sums to be paid by the Company pursuant to a revenue agreement. A draft copy of the proposed application to the Coramiseaioner of the Minnesota Department of Energy and Economic Development, for approval of the Project, together with all attachments and exhibits thereto, is available for public inspection from 8:00 a.m. to 4:30 o'clock p.m., Monday through Friday, at the City Hall in Mendota Heights, Minnesota.. At the time and place fixed for the Public fearing, the City COunail of the City of Mendota Heights will give all persons who appear at the hearing an opportunity to express their views with reepeect to the proposal. in addition, interested persons may file written comments respecting the proposal with the City Clerk at or prior to said meeting. (BY ORDER OF THE CITY COUNCIL) By J/ Jathleen Swanson City Clerk