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HomeMy WebLinkAboutCCRes_85-46I ~ 573V Extract of Minutes of a Meeting of the City Council of the City of Falcon Heights, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Falcon Heights, Minnesota, was duly held at the City Hall in said City on Wednesday, the 14th day of August, 1985, at 7:00 P.M. The following members were present: Eggert, Chenoweth, Baldwin, Hard, and Ciernia and the following were absent: None Member Chenoweth introduced the following resolution and moved its adoption: RESOLUTION R-85-4:6 RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT, GIVING PRELIMINARY APPROVAL TO THE PROJECT, AUTHORIZING THE SUBMISSION OF AN APPLICATION TO THE COMMISSIONER OF ENERGY AND ECONOMIC DEVELOPMENT OF THE STATE OF MINNESOTA FOR AN ALLOCATION OF AUTHORITY TO ISSUE PRIVATE ACTIVITY BONDS, AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH THE PROJECT The motion for the adoption of the foregoing resolution was duly seconded by member Ciernia , and after full discussion thereof and upon vote being taken thereon, the following voted in favor thereof: Eggert, Chenoweth, Baldwin, Hard, and Ciernia. and the following voted against the same: None. • whereupon said resolution was declared duly passed and adopted. RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT, .GIVING PRELIMINARY APPROVAL TO THE PROJECT, AUTHORIZING THE SUBMISSION OF AN APPLICATION TO THE COMMISSIONER OF ENERGY AND ECONOMIC DEVELOPMENT OF THE STATE OF MINNESOTA FOR AN ALLOCATION OF AUTHORITY TO ISSUE PRIVATE ACTIVITY BONDS, AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH THE PROJECT WHEREAS, (a) The purpose of Minnesota Statutes, Chapter 474, known as the Minnesota Municipal Industrial Development Act (the "Act"), as found and determined by the legislature, is to promote the welfare of the state by the active attraction and encouragement and development of economically sound industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment; (b) Factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration of population in the metropolitan • areas and 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 of land use which will provide an adequate tax base to finance these increased costs and access to employment opportunities for such population; (c) The City Council of the City of Falcon Heights, Minnesota (the "City"), has received from Stratford Investments, Ltd., a corporation organized under the laws of the State of Minnesota (the "Company"), a proposal that the City assist in financing a Project hereinafter described, through the issuance of a Revenue Bond or Bonds or a Revenue Note or Notes (hereinafter referred to in this resolution as "Revenue Bonds" ) pursuant to the Act; (d) The City desires to facilitate the selec- tive development of the community, retain and improve the tax base and help to provide the range of services and employment opportunities required by the population; and the Project will • assist the City in achieving those objectives; the Project will help to increase assessed valuation of the City and help maintain a positive relationship between assessed valuation and debt and enhance the image and reputation of the community; (e) The Company is currently engaged in the business of real estate development and construction; and the Project to be financed by the Revenue Bonds is an approximately 45,000 square foot office condominium project consisting of seven buildings, two of two story construction and of approximately 10,000 square feet each and five of one story construction and of approximately 5,000 square feet each, to be located at the northwest corner of the intersection of Larpenteur Avenue and Prior Avenue in the City, and consists of the acquisition of land and the construction of buildings and improvements thereon and the installation of equipment therein, all to be constructed pursuant to the Company's specifications and to be initially owned and operated by the Company (the "Project"), and will result in the employment of additional persons to wo rk within the new facilities; and the financing will be provided to the purchasers of condominium units in the Project, and will not be provided to the Company for the construction of the Project; (f) The City has been advised by representa- . tives of the Company that conventional, commercial financing to pay the capital 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 sig ni- ficantly reduced, and the Company has also advised this Council that the Project would not be undertaken but for the availability of industrial development bond financing; (g) Pursuant to a resolution of the City Council adopted on August 14, 1985, a public hearing on the Project will be held on September 11, 1985, after notice has been published and materials made available for public inspection at the City Hall, all as required by Section 474..01, Subdivision 7b, of the Act, at which public hearing all those appearing who desire to speak will be heard and written comments will be accepted; (h) Prior to the holding of said public hearing it is necessary and convenient to apply to the Commissioner of Energy and Economic Development of the State of Minnesota (the "Commissioner") for an allocation of the limited authority available for the. issuance of private activity bonds; and r~ U i ( ) No public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project: NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Falcon Heights, Minnesota, as follows: 1. The Council hereby gives preliminary approval to the proposal of the Company that the City undertake the Project pursuant to the Act and pursuant to a revenue agreement between the City and Company containing such terms and conditions (with provisions for revision from time to time as necessary) as may be necessary to produce income and revenues sufficient to pay, when due, the principal of and interest on the Revenue Bonds in the maximum aggregate principal amount of $4,000,000, to be issued pursuant to the Act to finance the acquisition, construction and equipping of the Project. Said revenue agreement may also provide for the entire interest of the Company therein to be mortgaged to the purchaser of the Revenue Bonds. The City hereby undertakes preliminarily to issue its Revenue Bonds in accordance with such terms and conditions. 2. On the basis of information available to this Council it appears, and the Council hereby finds, that the Project • constitutes properties, real and personal, used or useful in connection with one or more revenue producing enterprises engaged in any business within the meaning of Subdivision la of Section 474.02 of the Act; that the Project furthers the purposes stated in Section 474.01 of the Act; that the Project would not be undertaken but for the availability of industrial development bond financing under the. Act and the willingness of the City to furnish such financing; and that the effect of the Project, if undertaken, will be to encourage the development of economically sound industry and commerce, to assist in the prevention of the emergence of blighted and marginal land, to help prevent chronic unemployment, to help the City retain and improve the tax base and to provide the range of service and employment opportunities required by the population, to help prevent the movement of talented and educated persons out of the State and to areas within the State where their services may not be as effectively used, to promote more intensive development and use of land within the City, and eventually to increase the tax base of the community. • 3. The Project is hereby given preliminary approval by the City subject to later preliminary approval by this City Council after a hearing on the Project and further subject to the approval of the Project by the Commissioner, and further subject to final approval by this Council, the Company, and the purchaser of the Revenue Bonds as to the ultimate details of the financing of the Project. 4. The Company has agreed and it is hereby determined that any and all costs incurred by the City in connection with the financing of the Project, whether or not the Project is carried to completion and whether or not approved by the Commissioner, will be paid by the Company. 5. Briggs and Morgan, Professional Association, acting as bond counsel and City Attorney, and the Company and its counsel are authorized to assist in the preparation and review of necessary documents relating to the application for an allocation of authority to issue private activity bonds for the Project, and to submit such documents to the Mayor or Clerk-Administrator or both for its submission to the Commissioner. 6. The Mayor or City Clerk-Administrator or both are hereby authorized and directed to submit to the Commissioner an application for an allocation of authority to issue private activity bonds. The City shall provide the application deposit required for such application, but solely from moneys given to the City. in advance by the Company. 7. Nothing in this resolution or in the documents pre- pared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived from .the Project or otherwise granted to the City for this purpose. 8. In anticipation of the approval by the Commissioner and the. issuance of the Revenue Bonds to finance all or a portion of the Project, and in anticipation that the City will procure and devote to the Revenue Bonds an adequate allocation of authority to issue private activity bonds (which allocation is not made hereby), and in order that completion of the Project will not be unduly delayed when approved, the Company is hereby authorized to make such expenditures and advances toward payment of that portion of the costs of the Project to • • be financed from the proceeds Company considers necessary, short-term financing, subject proceeds of the Revenue Bonds otherwise without liability o of the Revenue Bonds as the including the use of interim, to reimbursement from the if and when delivered but n the part of the City. Adopted by the City Council of the City of Falcon Heights, Minnesota, this 14th day of August, 1985. Attest Mayo r i - /. ' ~~__ Clerk-Administrator STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF FALCON HEIGHTS I, the undersigned, being the duly qualified and acting Clerk-Administrator of the City of Falcon Heights, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City duly called and held on the date therein indicated, insofar as such minutes relate to a resolution giving preliminary approval to a commercial facilities • development project. WITNESS my hand and the seal of said City thi s 14th day of August , 1985. f /'~ ~ i ~ Clerk-A ministrator (SEAL) •