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HomeMy WebLinkAbout1980-125 CCRMember Celia Scott introduced the following resolution and moved its adoption: RESOLUTION NO. 80 -125 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT OR 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, as follows: 1. It is hereby found, determined and declared as follows: 1.1. 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 it is the policy of the State of Minnesota to facilitate and encourage action by local government units to prevent the economic deterioration of such areas to the point where the process can be reversed only by total redevelopment through the use of local, state and federal funds derived from taxation, with the attendant necessity of relocating displaced persons and of duplicating public services in other areas. 1.2. Technological change has caused a shift to a significant degree in the area of opportunity for educated youth to processing, transporting, marketing, service and other industries, and unless existing and related industries are retained and new industries are developed to use the available resources of the City of Brooklyn Center (the "City a large part of the existing investment of the community and of the State as a whole in educational and public service facilities will be lost, and the movement of talented, educated personnel of mature age to areas where their services may be effectively used and compensated and the lessening attraction of persons and businesses from other areas for purposes of industry, commerce and tourism will deprive the City and the State of the economic and human resources needed as a base for providing govern- mental services and facilities for the remaining population. 1.3. The increase in the amount and cost of governmental services requires the need for more intensive development and use of land to provide an adequate tax base to finance these costs. 1.4. Commercial Partners- Brookdale, a Minnesota general partnership or its designee (hereinafter the "Applicant has advised this City Council (the "Council that it desires to bring about the acquisition and construction of certain lands and one or more structures with respect thereto and to acquire and install equipment therefor with respect thereto as usable facilities for the carrying on of certain productive commercial activity of various types (hereinafter referred to collectively as the "Project" or separately as the "Projects RESOLUTION NO. 80 -125 1.5. The existence of the Project or Projects in the City will contribute to more intensive development and use of land to increase the tax base of the City and overlapping taxing authorities and maintain and provide for an increase in opportunities for employment for residents of the City. 1.6. The City has been advised that conventional, commercial financing to pay the capital cost of the Project or Projects is available at such costs of borrowing that the economic feasibility of operating the Project or Projects would be significantly reduced, but that with the aid of municipal financing, and its resulting low borrowing cost, the Project or Projects are economically more feasible. 1.7. This Council has been advised by representatives of Dougherty, Dawkins, Strand Ekstrom, Inc., as placement agent, that on the basis of information submitted to them and their discussions with representatives of area financial institutions and potential buyers of tax exempt bonds, commercial development revenue bonds of the City could be issued and sold upon favorable rates and terms to finance the Project or Projects. 1.8. The City is authorized by Minnesota Statutes, Chapter 474, to issue its revenue bonds to finance the cost, in whole or in part, of the acquisition, construction, reconstruction, improvement or extension of capital projects consisting of properties used and useful in connection with a revenue producing enterprise, such as that of the Applicant, and the issuance of such bonds by the City would be a substantial inducement to the Applicant to construct its facility in the City. 2. On the basis of information given the City to date, it appears that it would be in the best interest of the City to issue its commercial development revenue bonds under the provisions of Chapter 474 to finance the Project or Projects of the Applicant at a cost presently estimated not to exceed $7,200,000. 3. The Project or Projects above referred to are hereby given preliminary approval by the City and the issuance of bonds for such purpose and in such amount approved, subject to approval of the Project or Projects by the Commissioner of Securities and to the mutual agreement of this body, the Applicant and the initial purchasers of the bonds as to the details of the bond issue and provisions for their payment. In all events, it is under- stood, however, that the bonds of the City shall not constitute a charge, lien or encumbrance legal or equitable upon any property of the City except the Project or 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 Project or Projects and property pledged to the payment thereof, and shall not constitute a debt of the City. 4. whereas, Dougherty, Dawkins, Strand Ekstrom, Inc., being familiar with the Project or Projects and the marketability of commercial development revenue bonds, has advised the Council that in its opinion the bonds in the approximate principal amount of $7,200,000 may be sold on terms and conditions satisfactory to the City and the Developer. RESOLUTION NO. 80 -125 5. In accordance with Minnesota Statutes, Section 474,01, Subdivision 7a, the Mayor of Brooklyn Center is hereby authorized and directed to submit the proposal for the Project or Projects to the Commissioner of Securities for her approval of the Project or Projects. The Mayor, Clerk, City Manager and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with any preliminary information she 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 Project or Projects, if it is approved by the Commissioner. 6. The law firm of Holmes Graven, Chartered, is authorized to act as Bond Counsel and to assist in the preparation and review of necessary documents relating to the Project or Projects and bonds issued in connection therewith. May 19, 1980 Date Maki /f ATTEST: Deputy Clerk 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: Gene Lhotka; whereupon said resolution was declared duly passed and adopted.