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HomeMy WebLinkAbout1980-204 CCR Member Bill Fignar introduced the following resolution and moved its adoption: RESOLUTION NO. 80 -204 RESOLUTION GIVING PRELIMINARY APPROVAL TO PROJECTS UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE COMMISSIONER OF SECURITIES FOR APPROVAL; AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota (the Municipality), as follows: SECTION 1 Recitals and Findings 1.1. This Council has received -a proposal that the Municipality finance a portion or all of the cost of a proposed project under Minnesota Statutes, Chapter 474 (the Act), consisting of the acquisition, construction and equipping of two or more buildings on land located within the Municipality for use as warehouse and office buildings (the Projects) by Brooklyn Investment Company, a--Minnesota partnership (the Partnership). Under the proposal, the. Partnership, or another partnership or corporation organized by it and including at least one of its partners as a partner or shareholder, would construct and own the Projects and lease them to one or more business entities. 1.2. At a public hearing, duly noticed and.held on August 25, 1980, in accordance with the Act, on the proposal to undertake and finance the Projects, 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 Projects. 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. (b) The Projects would further the general purposes contemplated and described in Section 474.01 of the Act. (c) The existence of the Projects would add to the tax base of the Municipality, the County and School District in which the Projects are located and would provide increased opportunities for employment for residents of the Municipality and surrounding area. (d) This Council has been advised by representatives of the Partnership that conventional, commercial financing to pay the cost of the Projects is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Projects would be significantly reduced, but that with the aid of municipal borrowing, and its resulting lower borrowing cost, the Projects are economically more feasible. RESOLUTION NO. 80 -204 (e) This Council has also been advised by representatives of the Partnership, that on the basis of their discussions with potential buyers of tax exempt bonds, revenue bonds of the Municipality (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 Projects. (f) The Municipality 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 Partnership, and -the issuance of such bonds by the Municipality would be a substantial inducement to the Partnership to acquire, construct and equip the Projects. SECTION 2 Preliminary Approval of the Project 2.1. On the basis of information given the Municipality to date, it appears that it would be desirable for the Municipality to issue its revenue bonds under the provisions of the Act to finance. the Projects in an amount not exceeding $4,600,000. 2.2. It is hereby determined to proceed with the Projects and their financing and the Projects are hereby given preliminary approval by the Municipality and the issuance of revenue bonds of the Municipality in such amount is hereby approved, subject to the approval of the Projects by the Commissioner of Securities, the fulfillment of such other conditions as the Municipality may require with respect to the issuance of its bonds in connection with the Projects, and the mutual agreement of this Council and the Partnership as to the details of the bond issue and provisions for their payment. In all events, it is understood, however, that the bonds of the Municipality shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the Municipality, except the Projects, and each bond, when, as and if issued, shall recite in substance that the bond, including interest thereon; is payable solely from the revenues received from the Projects which it is financing and property pledged to the payment thereof, and shall not constitute a debt of the Municipality. 2.3. The form of the Application to the Commissioner of Securities, with attachments, is hereby approved, and the Mayor and City Manager are authorized to execute said documents in behalf of the Municipality. 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 said Application to be submitted to the Commissioner of Securities for approval of the Projects. The Mayor, City Manager, City Attorney and other officers, employees and agents of the Municipality are hereby authorized and directed to provide the Commissioner with any preliminary information the Commissioner may need for this purpose, and the City Attorney is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Projects, if they are approved by the Commissioner. RESOLUTION NO. 80 -204 SECTION 3 General 3.1. If the bonds are issued and sold, the Municipality will enter into one or more leases., sale or loan agreements or similar agreements satisfying the requirements of the Act (the Revenue Agreement) with the Partnership. The lease rentals, installment sale payments, loan repayments or other amounts payable by the Partnership to the Municipality under the Revenue Agreement shall be sufficient to principal, interest and redemption premium, if any, on the bonds as and when the same shall become due and payable. 3.2. The Partnership has agreed and it is hereby determined that any and all direct and indirect costs incurred by the Municipality in connection with the Projects, whether or not the Projects are carried to completion, and whether or not approved by the Commissioner of Securities, and whether or not the Municipality by resolution authorizes the issuance of the bonds, will be paid by the Partnership upon.request. The Mayor and City Manager are hereby authorized to execute and deliver on behalf of the Municipality a Memorandum of Agreement between the Municipality and the Partnership evidencing the agree ment of the Municipality and the Partnership as to payment of costs, duration of the proposal and other matters relating to the issuance of the bonds. 3.3. The Mayor and City Manager are directed, if the bonds are issued and sold, thereafter to comply with the provisions of Minnesota Statutes, Section 474.01, Subdivision 8. August 25, 1980 (;:7 Date Mayor 1 ATTEST: erk The motion for the adoption of the foregoing resolution was duly seconded by member Tony Kuefler and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Tony Kuefler, Bill Fignar, Gene Lhotka, and Celia-Scott; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted.