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HomeMy WebLinkAbout1985-192 CCRMember Celia Scott introduced the following resolution and moved its adoption: RESOLUTION NO. 85 -192 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT AND ITS FINANCING UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT (BROOKDALE CORPORATE CENTER III PROJECT): REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF ENERGY AND ECONOMIC DEVELOPMENT FOR APPROVAL: AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota (the City), as follows: SECTION 1 Recitals and Findings 1.1. This Council has received a proposal that the City finance a portion of all of the cost of a proposed project under Minnesota Statutes, Chapter 474 (the Act), consisting of the acquisition of certain land and the construction and equipping thereon of an approximately 110,000 square foot facility to be located at the northeast corner of the intersection of Summit Drive and Earl Brown Drive in the City (the Project) by Brookdale Corporate Center III Limited Partnership, a Minnesota limited partnership to be formed in which Ryan Properties, Inc. will be a general partner (the Borrower), to be leased by the Borrower to various tenants for use as a commercial office facility. 1.2. At a public hearing, duly noticed and held on October 21 1985, in accordance with the Act and Section 103(k) of the Internal Revenue Code of 1954, as amended, 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 and interested persons were given the opportunity to submit written comments to the City Manager before the time of the hearing. Based on the public hearing, such written comments (if any) 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 of Minnesota has encouraged local government units to act to prevent such economic deterioration. RESOLUTION NO. 85 -192 (b) The Project would further the general 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 and would provide increased opportunities for employment for residents of the City and surrounding area. (d) This Council has been advised by representatives of the Borrower that conventional, commercial financing to pay the cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of constructing and 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) This Council has been advised by representatives of the Borrower that the Project would not be undertaken but for the availability of industrial development bond financing. (f) This Council has also been advised by representatives of the Borrower that on the basis of their discussions with potential buyers of tax exempt bonds, revenue bonds of the City (which may be in the form of a commercial development revenue note or notes) could be issued and sold upon favorable rates and terms to finance the Project. (g) The City is authorized by the Act to issue its revenue bonds to finance capital projects consisting of properties used and useful in connection with a revenue producing enterprise, such as that of the Borrower, and the issuance of the bonds by the City would be a substantial inducement to the Borrower to acquire, construct and equip the Project. SECTION 2 Determination To Proceed with the Project and its Financinq 2.1. On the basis of the information given the City to date, it appears that it would be desirable for the City to issue its revenue bonds under the provisions of the Act to finance the Project in the maximum aggregate face amount of $9,000,000. f s I RESOLUTION NO. 85 -192 2.2. It is hereby determined to proceed with the Project and its financing and this Council hereby declares its present intent to have the City issue its revenue bonds under the Act to finance the Project. Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the City or this Council to issue or to cause the issuance of such revenue bonds._ All details of such revenue bond issue and the provisions for payment thereof shall be subject to final approval of the Project by the Minnesota Department of Energy and Economic Development and may be subject to such further conditions as the City may specify. The revenue bonds, if issued, shall constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, except the revenues specifically pledged to the payment thereof, and each bond, when, as and if issued, shall recite in substance that the bond, including interest thereon, is payable solely from the revenues and property specifically pledged to the payment thereof, and shall not constitute a debt of the City within the meaning of any constitutional, statutory or charter limitation. 2.3. The Application to the Minnesota Department of Energy and Economic Development, with attachments, is hereby approved, and the Mayor and City Manager are authorized to execute said documents on behalf of the City. 2.4. In accordance with Section 474.10, Subdivision 7a of the Act, the Mayor and City Manager are hereby authorized and directed to cause the Application to be submitted to the Minnesota Department of Energy and Economic Development for approval of the Project. The Mayor, City Manager, City Attorney and other officers, employees and agents of the City are hereby authorized and directed to provide the Department with any preliminary information needed for this purpose. The City Attorney is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project, -if approved by the Department. SECTION 3 General 3.1. If the 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 of, and interest and redemption premium, if any, on, the bonds as and when the same shall become due and payable. M RESOLUTION NO. 85 -192 3.2. All commitments of the City expressed herein are subject to the condition that within twelve months from the date of adoption of this resolution the City and the Borrower shall have agreed to mutually acceptable terms and conditions of the Revenue Agreement, the revenue bonds and of the other instruments and proceedings relating to the revenue 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, this resolution shall expire and be of no further force or effect. 3.3. The Borrower has agreed and it is hereby determined that any and all direct and indirect costs incurred by the City in connection with the Project, whether or not the Project is carried to completion, and whether or not approved by the Minnesota Department of Energy and Economic Development, and whether or not the City by resolution authorizes the issuance of the bonds, will be paid by the Borrower upon request. 3.4. The Mayor and City Manager are directed, if the bonds are issued and sold, thereafter to comply with the provisions of Section 474.01, Subdivisions 8 and 11 of the Act. 3.5. It is the present intent of the City Council to issue the Bonds for the Project hereby given preliminary approval subject to the provisions of paragraph 2.2, provided, however, that in the event the Borrower and the City are unable to prepare and execute a satisfactory development agreement for the development of the Project in the Earle Brown Redevelopment Project Area prior to December 31, 1985 the City may at its sole discretion withdraw the preliminary approval hereby given. 3.6. The Borrower has agreed to supply to the City the 1% deposit required by the Energy and Economic Development Authority for the reservation of an entitlement amount therefor under the Act prior to October 31, 1985. Unless such amount is timely received by City from Borrower the approval hereby given shall lapse and be of no effect. ATTEST: October 21, m:9, f The motion for the adoption of the foregoing resolution was duly seconded by member Bill Hawes and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Celia Scott, Bill Hawes, and Rich Theis; and the following voted against the same: Gene Lhotka, whereupon said resolution was declared duly passed and adopted. r