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HomeMy WebLinkAboutCCRes_85-60r 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 9th day of October, 1985, at 7:00 P.M. The following members were present: Eggert, Hard, Ciernia, Chenoweth and Baldwin and the following were absent: None. Member Eggert introduced the following resolution and moved its adoption: • RESOLUTION R-85-60 RESOLUTION RECITING A PROPOSAL FOR AN INCREASED AMOUNT OF FINANCING FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT, GIVING PRELIMINARY APPROVAL TO THE ADDITIONAL AMOUNT FOR 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 FOR THE ADDITIONAL AMOUNT, 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 uar~ and after full discussion thereof and upon vote being taken thereon, the following voted in favor thereof : Eggert, Hard, Ciernia, Chenoweth and Baldwin, and the following voted against the same: None. • whereupon said resolution was declared duly passed and adopted. RESOLUTION R-85-60 • RESOLUTION RECITING AN INCREASED AMOUNT OF FINANCING FOR A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT, GIVING PRELIMINARY APPROVAL TO THE ADDITIONAL AMOUNT FOR 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 FOR THE ADDITIONAL AMOUNT, AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH THE PROJECT WHEREAS, (a) On August 14, 1985, and after a hearing again on September 11, 1985, this City Council of the City of Falcon Heights, Minnesota (the "City"), adopted resolutions giving preliminary approval to providing financing pursuant to Minnesota Statutes, Chapter 474, known as the Minnesota Municipal Industrial Development Act (the "Act") a project (as defined in said resolutions, the "Project") proposed by Stratford Investments, Ltd. (the "Company"); (b) The purposees of the Act are set forth in said resolutions; • (c) The Company has further considered the intended use and costs of the Project, and has determined that the $4,000,000 principal amount of obligations set forth in said resolutions will be inadequate and that $5,500,000 will instead be adequate; (d) The Company has proposed that the City assist in financing the additional $1,500,000 cost of the Project through the issuance of a Revenue Bond or Bonds or a Revenue Note or Notes (the "Revenue Bonds") in an amount of $1,500,000 more than the $4,000,000 previously approved; (e) 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; (f) 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 48,600 square foot office condominium project (instead of the 45,000 square feet estimated in said earlier resolutions) consisting of seven buildings, two of two story construction and of approximately 10,800 square feet each and five of one story construction-and of approximately 5,400 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 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; (g) 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; (h) Pursuant to a resolution of the City Council adopted on October 9, 1985, a public hearing on the Project will be held on November 13, 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; (i) 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 an additional $1,500,000 amount of the limited authority available for the issuance of private activity bonds; and n U • (j) 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 provide an additional $1,500,000 of financing for the Project pursuant to the Act on the terms outlined in said resolutions of August 14, 1985, and September 11, 1985, for the $4,000,000 then contemplated. The City hereby undertakes preliminarily to issue its Revenue Bonds in the additional amount of $1,500,000 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 financed in the amount of $5,500,000 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 in- dustry 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. L~ 3. The increased $1,500,000 financing for 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. 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 an additional $1,500,000 amount 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. 5. The Mayor or City Clerk-Administrator or both are hereby authorized and directed to submit to the Commissioner an application for an additional $1,500,000 amount of 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. • 6. 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 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 o Minnesota, this 9th day of October Attest: • ,~ . , Clerk- ministrator City of Falcon Heights, 5. 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 f ile 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 for an additional amount to finance • a commercial facilities development project. WITNESS my hand and the seal of said City this 9th day of October 1985. ,, ,~~~'°. Clerk- dministrator (SEAL) •