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HomeMy WebLinkAbout1981-065 CCRMember Bill Fignar introduced the following resolution and moved its adoption: RESOLUTION NO. 81 -65 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT WITH BROOKDALE OFFICE PARK PARTNERSHIP (OR ASSIGNS) AND AUTHOR- IZING THE ISSUANCE OF REVENUE BONDS OR TAX EXEMPT MORTGAGE NOTES THEREFOR UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING THE PROPOSAL TO THE COMMISSIONER OF SECURITIES FOR APPROVAL, AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS WHEREAS, The Minnesota Legislature has enacted Chapter 474 of the Minnesota Statutes, which is cited as the "Minnesota Municipal Industrial Development Act" (hereinafter, the "Act and WHEREAS, in enacting the Act, the Legislature found that the welfare of the state requires the active promotion, attraction, encouragement and development of economically sound industry and commerce to prevent as far as possible the emergence of blighted and marginal lands and areas of chronic unemployment, and to prevent economic deterioration; and WHEREAS, other factors necessitating such active promotion and development of industry and commerce for the City of Brooklyn Center, Minnesota (the "City are the increasing movement of population and business to other areas, the steady and rapid increase in the amount and cost of governmental services required to meet the needs of the community and the need for more intensive development and use of land within the City; and WHEREAS, Brockdale Office Park Partnership, a Minnesota general partnership, or its assigns (the "Company intends to acquire land in the City and construct thereon three commercial office buildings and undertake related improvements (the "Project and WHEREAS, the Company has proposed that the City undertake and finance the Project under the Act and that Industrial Development Revenue Bonds or Tax Exempt Mortgage Notes in one or more series (the "Obligations in an amount now estimated not to exceed $8,000,000 be issued by the City for the purpose of financing the Project, and the proposal calls for the City and the Company to either enter into a lease agreement or loan agreement wherein the City will own the Project and lease the Project to the Company or will loan the proceeds of the Obligations to the Company and the Company will agree to acquire, equip, construct, operate and maintain the Project and pay all costs thereof and to make lease payments or to repay the loan from the City by payments to be fixed and revised from time to time as necessary so as to produce income and revenues sufficient to provide for the prompt payment of the principal of and interest on the Obligations and all costs and expenses of the City in connection with the Project and issuance and sale of the Obligations; and WHEREAS, the proposal further provides that a mortgage and security interest will be granted on the Project and the City's right and interest in the lease agreement or loan agreement assigned for the -b:enefit and security of the holders from time to time of the Obligations; and RESOLUTION NO. 81 -65 WHEREAS, the City has been advised by the Company that conventional, commercial financing to pay the capital cost of the Project has not been obtained and is available only on a limited basis and at such high costs of borrowing that the economic feasibility of acquiring and operating the Project would be significantly reduced, but the Company has also advised this City Council that the use of municipal financing, and its resulting low borrowing cost, will constitute a significant inducement to the Company to undertake the Project; and WHEREAS, the proposed Project would encourage the expansion of a revenue- producing enterprise; and C WHEREAS, the full faith and credit of the City will not be pledged or responsible for the Project or the payment of the principal of and interest on the Obligations; and WHEREAS, the undertaking of the Project and the issuance of the Obligations appear to satisfy the legislative objects, purposes and require- ments of the Act; and WHEREAS, pursuant to the Act a public hearing on the proposal to undertake and finance the Project (the "Public Hearing has been conducted following notice of the Public Hearing complying with the provisions of the Act being published once not less than 15 days nor more than 30 days prior to the date fixed for the Public Hearing, in the official newspaper and a newspaper of general circulation of the City; and WHEREAS, at the Public Hearing all parties who appeared were given an opportunity to express their views with respect to the proposed under- taking and financing of the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center: 1. On the basis of information furnished to this City Council, the effect of the Project, if undertaken by the City, will be to encourage the development of economically sound industry and commerce, and the providing of greater employment opportunities, all of benefit to residents and taxpayers of the City. 2. The undertaking and financing of the Project and the issuance of the Obligations in an amount now estimated not to exceed $8,000,000 to finance the costs thereof, all as referred to above, is hereby authorized and approved by the City, and it is hereby determined to proceed with the Project and the financing thereof, subject to the approval of the Project by the Commissioner of Securities as required by the Act, and to the agreement of the City, the Company and the purchaser or purchasers of the Obligations on the details, terms and conditions on which the Project will be financed and the Obligations will be issued, sold and secured. 3. The Obligations may be privately placed or publicly offered. 4. In accordance with Section 474.01, Subdivision 7, of the Act, the Mayor and City Clerk are hereby authorized and directed to submit the proposal for undertaking the Project to the Commissioner of Securities, RESOLUTION NO. 81 -65 requesting her approval of the Project. The Mayor and City Clerk and other officers, employees and agents of the City are hereby authorized to provide the Commissioner of Securities with such preliminary information as she may require for this purpose. The City Attorney is also authorized in cooperation with Kutak Rock Huie to initiate preparation of such documents as may be appropriate to the Project in order that, when and if the Project is approved by the Commissioner of Securities, it may be carried forward expeditiously. 5. Appointment of Messrs. Kutak Rock Huie, as bond counsel, is hereby approved, and Kutak, Rock Huie is authorized to initiate the pre- paration of proposed documents as may be necessary or appropriate to the Project and the issuance of the Obligations and to meet any registration requirements of the securities laws of the State of Minnesota so that, when and if the proposed Project is approved by the Commissioner of Securities and this City Council gives its final approval thereof, the Project may be carried forward expeditiously. March 23, 1981 7 Date or� ATTEST: Cl 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.