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HomeMy WebLinkAbout1980-287 CCRCouncil member Celia scottintroduced the following resolution and moved its adoption. RESOLUTION NO. 80 -287 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER, MINNESOTA "CITY AUTHORIZING THE ISSUANCE, SALE AND DELIVERY OF THE $6,200,000 INDUSTRIAL DEVELOPMENT REVENUE NOTE (COMMERCIAL PARTNERS/ BROOKDALE PROJECT), SERIES 1980 "NOTE WHICH NO'T'E AND THE INTEREST AND ANY PREMIUM THEREON SHALL BE PAYABLE. SOLELY FROM THE REVENUES DERIVED FROM THE LOAN AGREEMENT; APPROVING THE FORM OF AND AUTHO- RIZING THE EXECUTION AND DELIVERY OF A CONSTRUCTION LOAN AGREEMENT, A LOAN AGREEMENT, A TRUST AGREE- MENT AND A DISBURSING AGREEMENT; APPROVING THE FORM OF A COMBINATION MORTGAGE, SECURITY AGREEMENT, AND FIXTURE FINANCING STATEMENT; APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF THE NOTE; AND PROVIDING FOR THE SECURITIES, RIGHTS AND REMEDIES OF THE HOLDER OF SAID NOTE WHEREAS, the purpose of the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Chapter 474, as amended (the "Act as found and determined by the Legislature of the State of Minnesota, is to promote the welfare of the State of Minnesota by the active attraction, encouragement and develop ment of economically sound industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment, and for this purpose the State of Minnesota has encouraged action by local governmental units; and WHEREAS, factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration of population in urban and metropolitan areas, 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 and use of land which will provide an adequate tax base to finance these increased costs; and WHEREAS, the City of Brooklyn Center, Minnesota (the "City desires to expand the business and employment opportunities, and the available tax base of the City and to promote the redevelopment of property within the City; and WHEREAS, the City is authorized by the Act to enter into a revenue agreement with any person, firm, or public or private corporation or federal or state governmental subdivision or agency in such manner that payments required thereby to be made by the contracting party shall be fixed, and revised from time to time as necessary, so as to produce income and revenue sufficient to provide for the prompt payment of principal of and interest on all bonds issued under the Act when due, and the revenue agreement shall also provide that the contracting party shall be required to pay all expenses of the operation and maintenance of the 2 RESOLUTION NO. 80 -287 project including, but without limitation, adequate insurance thereon and insurance ,against all liability for injury to persons or property arising from the operation thereof, and all taxes and special assessments levied upon or with respect to the project and payable during the term of the revenue agreement; and WHEREAS, the Act further authorizes the City to issue revenue bonds, in anticipation of the collection of revenues of a project, to finance, in whole or in part, the cost of acquisition, construcion, reconstruction, improvement, better- ment, or_ extension of such project; and WHEREAS, the City has received from Commercial Partners /Brookdale (the 'Developer a proposal that the City finance a project for purposes consistent with the Act, said project to consist of the construction of a commercial shopping center complex (the "Project in the City; and WHEREAS, by Resolution No. 80 -125, adopted on May 19, 1980, the City determined that, on the basis of information provided to it by the Developer and others, the effect of the Project, if undertaken, would be to encourage the development of economically sound commerce in the City, increase the assessed value of property within the City, increase current employment opportunities for residents of the City and surrounding areas, and to facilitate the redevelopment of property within the City, all to the benefit of the residents and taxpayers of the City; and WHEREAS, by Resolution No. 80 -125, adopted on May 19, 1980, the City approved the proposal of the Developer that the City undertake to provide financing for the Project and gave preliminary approval of the Project, including the issuance, sale and delivery of the Note, subject to final approval by the City; and WHEREAS, the Issuer proposes to undertake said Project under the Act and to finance the cost thereof by the issuance of the Note of the City under this resolution as hereinafter defined; and WHEREAS, the Note issued under this resolution will be secured by a mortgage and lien on said Project and a pledge and assignment of the Loan Agreement, as hereinafter defined, and of the revenues derived by the City from the Loan Agreement, and said Note and the interest on said Mote shall be payable solely from the revenue pledged therefor and the Note shall not constitute a debt of the -City within the meaning of any constitutional, charter, or statutory limitation nor shall constitute nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers and shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City other than its.interest in the revenues derived from the Loan Agreement, NOW, THEREFORE, BE IT RESOLVED BY THE CITY: I. That the City Council of the City finds, determines and declares that the construction of the Project within the City will expand the business and employment opportunities within the City, will expand the tax base of the City, will promote the redevelopment of property within the City, and will generally aid and assist the City, the School District in which the City is located, and the County of Hennepin. K3 RESOLUTION NO. 80 -287 2. That for the purpose of financing the acquisition, construction, and installation of the Project, there is hereby authorized the issuance, sale and delivery of revenue bonds in the principal amount of $6,200,000. The City shall employ its best efforts to issue its revenue bonds in order to provide permanent financing for the Project, but the City is not presently legally obligated to issue such revenue bonds. Such revenue bonds shall be issued on or before December 1, 1982. To provide funds immediately required for the purpose of financing the acquisition, construction, and installation of the Project, there is hereby authorized the issuance, sale and delivery of the $6,200,000 Industrial Development Revenue Note (Commercial. Partners /Brookdale Project), Series 1980 (the "Note The Note shall bear interest at the rates, shall be numbered, shall be dated, shall mature, shall be subject to redemption prior to maturity, shall be in such form, and shall have such other details and provisions as are prescribed in Exhibit A attached hereto. 3. The Note shall be a special obligation of the City the proceeds of which shall be disbursed pursuant to the Trust Agreement, dated as of the date of the Note and executed by the City, the First National Bank of Minneapolis (the "Trustee and FBS Financial, Inc. (the "Trust Agreement the Construction Loan Agreement, dated as of the date of the Note and executed by FBS Financial, Inc.. (the ''Lender'=), the Developer and the City (the "Construction Loan Agree- ment and the Disbursing Agreement, dated as of the date of the Note and executed by the City, the. Lender, the Trustee; Title Insurance Company of Minnesota, and the Developer (the "Disbursing Agreement 'The principal, premium, if any, and interest on the Note shall be payable solely from the revenues derived from the Loan Agreement, dated as of the date of the Note and executed by the City and the Developer (the "Loan Agreement"). The Mayor and City Manager of the City are hereby authorized and directed to execute and deliver the Note. 4. That the Trust Agreement, the Disbursing Agreement, the Construc- tion Loan Agreement, the Loan Agreement, and the Assignment of Loan Agree- ment, dated as of the date of the Note and executed by the City (the "Assignment of Agreement all in the form now on file with the City Clerk of the City are hereby approved. The Mayor and City Manager of the City are hereby authorized and directed to execute and deliver the Trust Agreement, the Disbursing Agreement, the Construction Loan Agreement, Loan Agreement and Assignment of Loan Agreement. 5. That the Combination Mortgage, Security Agreement, and Fixture Financing Statement, dated as of the date of the Note and executed by the Developer, and the Assignment of Leases and Rents, dated as of the Date of the Mote and executed by the Developer, are hereby approved in the form now on file with the City Clerk of the City. 6. That the Guaranty Agreement, dated as of the date of the Note and executed by Robert M. Larsen, Alan W. Gustafson, Paul R. Anderson, and D. James Guzy, is hereby approved in the form now on file with the City Clerk of the City. 7. That upon approval by the Mayor, and concurrence by Counsel for the City, amendments may be made to the aforementioned documents to the extent not inconsistent with this resolution. Such approval and concurrence shall be evidenced by the execution of the aforementioned documents by the Mayor and the delivery of the opinion of Counsel for the City. 4 RESOLUTION NO. 80 -287 8. That the Mayor, City Manager and Clerk of the City are hereby authorized to execute and deliver, on behalf of the City, such other documents as are necessary or appropriate in connection with the issuance, sale, and delivery of the Note. S That all covenants, stipulations, obligations and agreements of the City contained in this resolution and the aforementioned documents shall be deemed to be the covenants, stipulations, obligations and agreements of the City to the full extent authorized or permitted by law, and all such covenants, stipulations, Obligations and agreements shall be binding upon the City. Except as otherwise provided in this resolution, all rights, powers and privileges conferred and duties and liabilities imposed upon the City by the provisions of this resolution or of the aforementioned documents shall be exercised or performed by the City or by such members of the City, or such officers, board, body or agency thereof as may be required by law to exercise such powers and to perform such duties. No covenant, stipulation, obligation or agreement herein contained or contained in the aforementioned documents shall be deemed to be a covenant, stipulation, obligation or agreement of any member of the City Council of the City, or any officer, agent or employee of the City in that person's individual capacity, and neither the City Council of the City nor any officer executing the Note shall be liable personally on the Note or be subject to any personal liability or accountability by reason of the issuance thereof. 10. That except as herein otherwise expressly provided, nothing in this resolution or in the aforementioned documents expressed or implied, is intended or Shall be construed to confer upon any person or firm or corporation, other than the City or any holder of the Note issued under the provisions of this resolution, any right, remedy or claim, legal or equitable, under and by reason of this resolution or any provision hereof, this resolution, the aforementioned documents and all of their provisions being intended to be and being for the sole and exclusive benefit of the City and any holder from time to time of the Note issued under the provisions of this resolution. 11. That in case any one or more of the provisions of this resolution, or of the aforementioned documents, or of the Note issued hereunder shall for any reason be held to be illegal or invalid, such illegality or invalidity shall not affect any other provision of this resolution, or of the aforementioned documents, or of the Not but this resolution, the aforementioned documents and the Note shall be construed and endorsed as if such illegal or invalid provision had not been contained therein. 12. That the Note shall contain a recital that it is issued pursuant to the Act, and such recital shall be conclusive evidence of the validity of the Note and the regularity of the issuance thereof, and that all acts, conditions and things required by the laws of the State of Minnesota relating to the adoption of this resolution, to the issuance of the Note and to the execution of the aforementioned documents to happen, exist and be performed precedent to and in the enactment of this resolution, and precedent to issuance of the Note and precedent to the execution of the aforementioned documents have happened, exist and have been performed as so required by law. 5 RESOLUTION NO. 80287 13. That, as provided in the Trust Agreement, the Trustee shall hold and invest the proceeds from the sale of the Note, shall pay the principal of and interest on the Note from the revenues derived from the Loan Agreement, and shall undertake such other duties provided in the Trust Agreement. The Trustee is hereby appointed as Paying Agent and Note Registrar for purposes of paying the principal of and interest on the Note on behalf of the City and for maintaining a record of the owner of the Note and for registering any transfer of the Note. 14. That the officers of the City, attorneys, engineers and other agents or employees of the City are hereby authorized to do all acts and things required of them by or in connection with this resolution, the aforementioned documents, and the Note for the full, punctual and complete performance of all the terms, covenants and agreements contained in the Note, the aforementioned documents and this resolution. 15. That this resolution shall be in full force and effect from and after its passage. December 22, 1980 Date Tlayor ATTEST: Cl k .The motion for the adoption of the foregoing resolution was duly seconded by member Bill Fignar ,'and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Tony Kuefler, Bill Fignar, and Celia Scott; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. f] 6