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HomeMy WebLinkAboutCCRes_85-54573V 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 11th day of September, 1985, at 7:00 P.M. The following members were present: Mayor Eggert, Councilmembers Ciernia, Chenoweth, Baldwin, Hard and the following were absent: None Member Mayor Eggert introduced the following resolution and moved its adoption: Resolution R-85-54 • RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT, GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF THE PROJECT TO THE COMMISSIONER OF ENERGY AND ECONOMIC DEVELOPMENT OF THE STATE OF MINNESOTA, 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 Baldwin , and after full discussion thereof and upon vote being taken thereon, the following voted in favor thereof : Mayor Eggert, Councilmembers Ciernia, Chenoweth, Baldwin and Hard 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 PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF THE PROJECT TO THE COMMISSIONER OF ENERGY AND ECONOMIC DEVELOPMENT OF THE STATE OF MINNESOTA, AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH THE PROJECT WHEREAS, (a) On August 14, 1985, this City Council of the City of Falcon Heights, Minnesota (the "City"), adopted a preliminary resolution (the "Earlier Preliminary Resolution") with respect to a Project (as described therein) proposed by Stratford Investments, Ltd., a corporation organized under the laws of the State of Minnesota (the "Company"), in the context of applying to the Commissioner of Energy and Economic Development of the State of Minnesota (the "Commissioner") for an allocation of authority to issue private activity bonds to finance the Project; (b) The Earlier Preliminary Resolution set • forth the purposes of the Minnesota Municipal Industrial Development Act (the "Act") and the manner in which the Project satisfies and furthers such purposes; (c) The Company has proposed that the City assist in financing such Project 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 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 condominimum 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 ~1 U 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 work 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; (e) 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 signi- 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; (f) Pursuant to a resolution of the City Council adopted on August 14, 198, a public hearing on the Project was held on September 11, 1985, after notice-was published and materials made available for public inspection at the City Hall, all as required by Minnesota Statutes, Section 474.01, Subdivision 7b, at which public hearing all those appearing who desired to speak were heard and written comments were accepted; and • (g) 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. This Council hereby finds that no information presented at the hearing or since the adoption of the Earlier Preliminary Resolution has caused it to reject the Project or doubt the findings made in the Earlier Preliminary Resolution. The findings in the Earlier Preliminary Resolution, and the preliminary approvals granted therein, are ratified and confirmed in full. 2. The Council hereby again 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 again undertakes preliminarily to issue its Revenue Bonds in accordance with such terms and conditions. 3. On the basis of information available to this Council it appears, and the Council again 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. 4. The Project is again hereby given preliminary approval by the City, again subject to the further approval of the Project by the Commissioner of Energy and Economic Development or such other state officer having authority to grant approval (the "Commissioner"), and again 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. 5. In accordance with Subdivision 7a of Section 474.01 of the Act, the Mayor or Clerk-Administrator of the City is hereby authorized and directed to submit the proposal for the Project to the Commissioner requesting his approval, and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary information as he may require. • 6. The Company has agreed, and it is again 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. 7. Briggs and Morgan, Professional Association, acting as bond counsel and as City Attorney, are authorized to assist in the preparation and review of necessary documents relating to the Project, to consult with the Company and the purchaser of the Revenue Bonds as to the maturities, interest rates and other terms and provisions of the Revenue Bonds and as to the covenants and other provisions of the necessary documents, and to submit such documents to the Council for final approval. 8. 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. The Revenue Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City except the revenue and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holder of the Revenue Bonds shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal of the Revenue Bonds or the interest thereon, or to enforce payment thereof against any • property of the City. The Revenue Bonds shall recite in substance that the Revenue Bonds, including interest thereon, are payable solely from the revenue and proceeds pledged to the payment thereof. The Revenue Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 9. 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 again 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 of the Revenue Bonds • as the Company considers necessary, including the use of interim, short-term financing., subject to reimbursement from the proceeds of the Revenue Bonds if and when delivered but otherwise without liability on the part of the City. Adopted by the City Council of the City of Falcon Heights, Minnesota, this 11th day of September, 1985. ~" Mayo r Attest: Clerk-Administrator c: • 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 ~~ day of , 1985. Clerk-Administrator (SEAL) •