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Res 2009- 54 St Thomas Arena ProjectExtract 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 City Hall in said City on Tuesday, the 7th day of July, 2009, at 7:00 P.M. Vitelli The following members were present: Huber, Krebsbach, Duggan, Schneeman and and the following were absent: None Member —Schneeman— introduced the following resolution and moved its adoption: RESOLUTION NO. 09-54 RESOLUTION RECITING A PROPOSAL FOR A RECREATIONAL FACILITIES PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO MINNESOTA STATUTES, SECTION 469.154 AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS (SAINT THOMAS ICE ARENA PROJECT) The motion for the adoption of the foregoing resolution was duly seconded by member —VitellL, and after full discussion thereof 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. 2373992vl RESOLUTION RECITI PROPOSAL FOR A RECREATIONAL FACILITIES PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO MINNESOTA STATUTES, SECTION 469.154 AND AUTHORIZING PREPARATION OF DOCUMENTS (SAINT THOMAS •' • 1 (a) The purpose of Minnesota Statutes, Sections 469.152 to 469.1651 relating to municipal industrial development (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 economically 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 ") has received from Saint Thomas Ice Arena (the "Borrower ") a proposal that the City undertake to refinance a Project hereinafter described, through the issuance of a revenue note (hereinafter the "Note ") pursuant to the Act; (d) The City desires to facilitate the selective development of the community and surrounding area, retain and improve the tax base in the City, 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 in 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 refinanced is the City's Recreational Facilities Revenue Note, Series 2003 (Saint Thomas Ice Arena Project) and two promissory notes of the Borrower, the proceeds of which were used to finance the acquisition and construction of an approximately 50,500 square foot ice arena located at 950 Mendota Heights Road in the City. The Project is owned and operated by the Borrower; (f) The City has been advised by representatives of the Borrower 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; (g) 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. 2373992vl (h) A public hearing on the Project was held on the date hereof, after notice was published and materials made available for public inspection at the City Hall, all as required by the Act and Section 147(f) of the Internal Revenue Code of 1986, as amended, at which public hearing all those appearing who desired to speak were heard and written comments were accepted. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mendota Heights, Minnesota, as follows: 1. The Council hereby indicates its preliminary intent to undertake the Project pursuant to the Act, and pursuant to a revenue agreement between the City and Borrower 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 Note in the total principal amount not exceeding $3,000,000 to be issued pursuant to the Act to refinance the Project. 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 within the meaning of Subdivision 2(b) of Section 469.153 of the Act; that the Project furthers the purposes stated in Section 469.152; that the availability of the financing under the Act and willingness of the City to furnish such financing will be a substantial inducement to Borrower 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 surrounding area 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 surrounding communities and eventually to increase the tax base of the community. 3. The Project is hereby given preliminary approval by the City subject to consideration of information, if any, presented and further subject to final approval by this Council, Borrower, and the purchaser of the Note as to the ultimate details of the refinancing of the Project. 4. The Borrower has agreed and it is hereby determined that any and all costs incurred by the City in connection with the refinancing of the Project, including legal fees, whether or not the Project is carried to completion and whether or not volume cap is obtained will be paid by the Borrower. 5. 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, Borrower and the purchaser of the Note as to the maturities, interest rates and other terms and provisions of the Note and as to the covenants and other provisions of the necessary documents and to submit such documents to the Council for final approval. 2373992v1 6. Nothing in this resolution or in the documents prepared 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 Note 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 Note shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Note or the interest thereon, or to enforce payment thereof against any property of the City. The Note shall recite in substance that the Note including interest thereon, are payable solely from the revenue and proceeds pledged to the payment thereof. The Note shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 7. In anticipation of the issuance of the Note to refinance all or a portion of the Project, and in order that completion of the Project will not be unduly delayed when approved, Borrower is hereby authorized to make such expenditures and advances toward payment of that portion of the costs of the Project as Borrower considers necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the Note if and when delivered but otherwise without liability on the part of the City. Adopted by the City Council of the City of Mendota Heights, Minnesota, this 7th day of July, 2009. CITY COUNCIL CITYOF MENDOTA HEIGHTS E IMI I1.'" By /�u KatlAeen M. Swanson, City Clerk 2373992v1 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 refinancing a recreational facilities project. WITNESS my hand this day of July, 2009. Clerk 2373992vl