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HomeMy WebLinkAbout1983-193 CCRMember Rich Theis introduced the following resolution and moved its adoption: RESOLUTION NO. 83 -193 RESOLUTION DETERMINING TO PROCEED WITH A PROJECT AND ITS FINANCING UNDER THE MINNESO'T'A MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE MINNESOTA ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY 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 or all of the cost of a proposed project under Minnesota Statutes, Chapter 474 (the Act), consisting of the acquisition of land and the construction and equipping thereon of a 65,000 square foot supermarket facility in the City, which will include a bakery, restaurant, gift shop and related facilities (the Project) by Donald Byerly, a Minnesota resident, and /or Byerly's, Inc., a Minnesota corporation whose stock is owned, directly or indirectly, by Donald Byerly (collectively, the Borrower). The Project is located at Shingle Creek Parkway and Summit Drive in the City. 1.2. At a public hearing, duly noticed and held on December 5 1983, in accordance with the Act, 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. Based on the public 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 of Minnesota has encouraged local govern- ment units to act to prevent such economic deterioration. RESOLUTION NO. 83 -193 (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 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 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 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 also been advised by the Borrower that on the basis of its 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. (f) 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. Approvals and Authorizations. 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, in one or more series, to finance the Project in the estimated total amount of $9,590,000. 2.2. The Council hereby determines to proceed with the Project and its financing, and hereby declares its present intent to have the City issue its revenue bonds under the Act to finance the Project, subject to the approval of the Project by the Minnesota Energy and Economic Development Authority. Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to establish a legal obligation on the part RESOLUTION NO. 83 -193 sf 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 the mutual agreement of this Council, the Borrower and the purchaser or purchasers of the revenue bonds and such further conditions as the City may specify, such agreement and specification on the part of the City to be evidenced by a resolution of this Council authorizing the issuance of the revenue bonds on the terms and conditions agreed upon and authorizing the execution of necessary documents. In all events, it is understood that the revenue bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the revenues pledged to payment of such revenue bonds, 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 and any property 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 Energy and Economic Development Authority, with attachments, is hereby approved, and the Mayor and City Manager are authorized to execute said documents in behalf of the City. 2.4. 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, interest and redemption premium, if any, on the bonds as and when the same shall become due and payable. 2.5. 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. 2.6. If the events set forth herein do not take place within the time set forth above or any extension thereof and the revenue bonds are not sold within such time, this resolution shall expire and be of.no further RESOLUTION NO. 83 -193 I force or effect. 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 Energy and Economic Development Authority, and whether or not the City by resolution authorizes the issuance of the bonds, will be paid by the Borrower upon request. December 5, 1983 Date ATTEST: Clerk Mayor �r G 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: none, whereupon said resolution was declared duly passed and adopted.