HomeMy WebLinkAbout78-025STATE OF MINNESOTA
COUNTY OF SCOTT
CITY OF PRIOR LAKE
Resolution No. 78 =25
!Notion by: Watkins
Seconded by: Hafermann
RESOLUTION RECITING A PROPOSAL FOR A
- SHOPPING CENTER DEVELOPMENT -
PROJECT AND GIVING PRELIMINARY r
APPROVAL TO THE PROJECT "PURSUANT TO MINNESOTA
STATUTES AND AUTHORIZING „THE SUBMISSION OF
AN :APPLICATION FOR APPROVAL OF SAID
PROJECT TO THE COMMISSIONER OF 'SECURITIES '
OF THE STATE OF MINNESOTA AND AUTHORIZI,NG
THE PREPARATION OF NECESSARY DOCUMENTS AND
f; RELATED MATTERS IN CONNECTION WITH SAID
PROJECT'
4 1 , J `WHEREAS,
(a) The request of William Henning and John
Wedum,''a'Minnesota partnership(hereinafter "Partnership ")
f,or assistance in financing its Shopping Center Construction
f, (hereafter "Project ")`warrants` the support of the City of
Prior Lake, because (i) the City has an interest in delivery
of commercial services..to area residents; and (ii) additional
job opportunities will be generated by the Project; (iii) the
City's.tax base will, +be improved.
(,b) The purpose of'Chapter 474, Minnesota
known as the Minnesota Municipal Industrial Development Act
(hereinafter called "Act ") found and determined by the
legislature is to promote the welfare of t.he,state by the
active attraction, encouragement and development of
economically Y sound development proposals.
(c) The City Council has received from the
Partnership .a proposal, which proposal is outlined in °a
letter copy of which is attached hereto as Exhibit A, that 4 ,
the City assist in the financing of the Project through the
issuance of a Revenue Note pursuant to- the-Act, and, if
necessary, to issue one,or more notes on an interim basis in =t:
anticipation of payment from the proceeds of such note.
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(d) The City of Prior Lake desires td facilitate
the selective development of the community and to help it:
provide the rangLe of services and employment opportunities
required by its population and said Project will assist the
City in achieving that objective.
(e) The Partnership will be engaged,as a
developer in'the acquisition and improvement of commercial
and industrial properties. The Project to be financed in
wholo'or part by the proposed industrial development revenue(,
note iii'll be new facilities containing retail rental space,
anticipated to be used for a general shopping center of
approximeftely �5,000 square feet, and consists of the
construction and installation thereon of buildings and
improvements from.this date forth, and will result in the,
,,,employment of 'significant additional persons to work within
the new facilities.
i(f) The has-been advised by representatives
,of th;a Partnership that conventional, commercial financing
to pay the capital cost of undertaking the Project is avail-
able only at such costs,,,of borrowing that the economic feas-
ibility of undertaking the Project would be reduced, and,,the
Partners ' hip has also advised this Council that with the aid
financing, and,,its resulting,lower borrowing
cost, the Projectis economically enhanced.
�'_/_Saint Paul,,'Minnesota, has advised that on the basis of
information submitted to them an discussions with
, representatives of the Partnership, such note could in
their opinion be issued and sold upon favorable rates and
terms In the amount required.
NOW THEREFORE, BE IT RESOLVED by tke City Council
of the City of Prior Lake, Minnesota, as follows:
1. The Council hereby giv(es preliminary approval
to the proposal of the Partnership that the City undertake to,
assist in financing the Project pursuant to Chipter 47A,
Minnesota 9i,atut e,s, consisting of the acquisition,'con-
9truction and installation of facilities within the City
operations above, to be financed by the City
pursuant. agreement secured by a mortgage on the
Parthership"s property comprising the project and adjacent'to
it, upon such terms and conditions with'provisions for
�evision from,time to time as necessary4 so as to produce
income andArevenues sufficient to pay, wfiendue, the
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principal of and interest` on the proposed Revenue Note of the''
City in ",the total. principal amount of approximately $800,000
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to be issued finance in part the acquisition, construction
and installation of said Project, and the City hereby G
.undertakes preliminarily, to issue its Revenue Note in
accordance.with_,such terms and conditions.
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° 2.,. On the basis of information available to this
�Council, appears, and the Council hereby finds, that said
' Prooject' cornst :�utes property used or useful in connection
th one or more revenue producing enterprises engaged in any
wi o
business within the meaning of , Subd;ivision 1(a) of Sectio
474.62 of the Minnesota Statutes, that.the availability o °�
the financing under the Act and willingness of the City tc:rv'
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furnish such financing will be of substantial benefit'to the
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Partnership in completing the Project, and the of
the Project;, if undertaken, will encourage economically sound
" development', will help to provide the range of services,
including, shopping center services; and employment °
opportunities required by the ,population of Prior Lake, and,
will help-to 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.
3. Said Project is hereby given preliminary ap-
proval by the City subject to the approval of the Project by
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the`Commissioner of Securities and subject 'to final approval.
by this Council and the Partnership of the Note to be issued
and as to the ultimate details_ of financing the Project.
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4 In accordance with Subdivision 7 of Section
474„ 0l, Minnesota Statutes, the Mayor of the City is hereby
authorized and directed to submit the proposal for the above
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described Proj to the Commissioner of Securities
r=equesting his approval, and other officers,, °employees and
agents of the City are hereby authorized to provide the
Commissioner with such pre�'imnary 'information as he may
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`= require'._ The Partnership has agreed and it is hereby
determined that an y and 'all cost incurred by the City; in
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+ion with, the Project, whether or not the Project is
�connec+t
carried to completion and whether or not approved by the
Commissioner, will be paid by ;the Partnership.
5 Briggs and Morgan, Professional Association,
Saint Paul,,`M.innesota, Bond Counsel,, is authorized, in
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consultation with Juran and.Mgody,,Inc., the City Attorney
-and any other necessary parties to assist in the preparation
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and review of necess'ary documents relating " to the:Project
and to consult with the Partnership and any other involved
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parties as to the maturities, 'interest rates and other terms
and provisions of the Not,,e and'the „ covenants and other
provisions of the necessary documents and to ,submit such a
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documents to the Council for final approval.
6. , Nothing in this resolution or in the documents
prepared pursuant hereto shall authorize ` the expenditure of
any municipal funds on the Project other than th revenues`
thereof or the proceeds of the Revenue note or other funds
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granted to the City for this purpose. The Note shall not
'or
constitute a charge, lien or encumbrance, legal :equitable,
upon any property or funds of the C'ty except the Project and
the revenue pledged 'to the payment ..thereof nor shall the City
be subject to any liability thereon. ==The bondholders shall'”,
never have - the "right to compel any exercise of the taxing
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.power�df the City to pay the note br the interest thereon,
nor 6 to enforbe payment thereof against any property of the
City except the Project.. The Note shall recite In substance
that the .Note, including interest thereon, ois' payable I so1Fe],y ,'
from the revenue pledged ,to the payment. °}hereoff.� ?No; Note
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issued' hereunder' shall constitute a debt of the city "within
,the meaning of any constitutional or statutory -a imitation.
7. In anticipation of °the approval by the
Commissioner of Sec.uritiesandthe issuance of the Revenue
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Note to`finance`a portion of the Project, and in order that
completion bf the Project will;not be unduly delayed when
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approved, the Partnership is hereby authorized.to make such
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expenditures and- advances toward payment of that portion of
the . costsz' of the Project to be :financed from the proceeds of
"the_Partnership
the Revenue Note`as considersenecessary#
including the uie ,�f interim, short -term financing', subject
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t fm the Revenue Note, when
to reimbursemenro the proceeds'of
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and if deliveked but'"otherwise without liabi.lity.,.on the part `
of the city. '
Adopted by the City Council of the City Prior
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Lake, Minnesota this to day of 178.
Ma r
Aitesii*
City Manager
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