HomeMy WebLinkAbout85-013RESOLUTION NO. 85 -13
i,
RESOLUTION GIVING PRELIMINARY APPROVAL TO A
PROJECT UNDER THE MINHOSOTA'MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT, REFERRING THE :PROPOSAL TO THE
MINNESOTA, DEPARTMENT OF ENERGY AND ECONOMIC
DEVELOPMENT FOR APPROVAL AND AUTHORIZATION
PREPARATION OF NECESSARY DOCUMENTS.
as IT **SOLVED by the City Council (the "Couhcil ") of the City of
Prior Lake, Minnesota (the "City "), as follows:
I. It is hereby found, determined and declared as followgIs
1.1 The welfare of the State of Minnesota (the " 8tate")
requires active promotion., attraction, encouragoMent-andc
development of economically sound , industr'y and commerce through>
governmental acts to prevent, so far as possible, emergence of
blighted lands and acres of chronic unemployment, and it is the
policy of ;the State to facilitate and encourage action by local
government units to prevent the economic deterioration of iiach
areas to the point where the process can be reversed only by
total redevelopment through the US* pf local, state and fedtral
tunds,derived from taxation, with the attendant necessity of !%
relocating displaced persons and of duplicating public services
in other areas. ;
1.2 Technological chang has caused a shift to a signii
g g cant
degree in ,.the area of opportunity for educated youth to
processing, transporting, marketing, service and other
industries, and unless existing and related industries a ✓i
retained and new industries are developed to use the avi.`lable
"isdourcaa of the City, a large part of the existing investment of
the 4:0 munity and of. the state as a whole in educational and
public service facilities will b• lost, and the movement of
talented, educated pirsonnil of mature age to areas where their
services may be effectively used and compensation and the
lessening attraction of persons and businesses from other areas
for purposes of industry, commerce and tourism will deprive the
City and tho,State of the economic and human resources needed as
a base for providing governmental services and facilities for the
remaining population:
1.3 The increase in the amount and cost of governmental ;
services requires the need for moreAntensivs development and use
of land to provide'an adequate tax base to finance these costs.
1.4 Priordale Nall Investors Uikited Partnership, a
Minnesota limited partnership (the "Company"), has advised the
Council that it desires to undert a project consists Of
the reconstruction and rehabilitation of the exterior,,__,
4 ; ,
� 1
1
h of the Priordale Mall, an enclosed retail shopping ,mall of
approximately 93,360 square fret (the "Pr,pjec:t"), located
16760 Toronto Avenue in the City.
1.5 The existence of the Project in the City will contribute
to more intensive development and use of lands thereby increasing
the talc base and employment opportunities in the City,.
1.6 The City has been advised by the Company and on that
basis hereby finds that conventional, commercial financing to pay
)the capital cost of the Project is available at such costs of
borrowing that the Project would not be economacaliy feasible and
would not be undertaken but for the availability of industrial
, "development bond financing therefor.
1.7 This Council has been advised by Dougherty, Dawkins,
' Strand-& Yost Incorporated, of Minneapolis, Minnesota, of the
n, �i,nancial feasibility of the 'Project, as so undertaken xith the
r assistance of be City, or of ite'inte,ntion to purchase
commercial or Industrial revenue obligations of the City to
finance the Project.
1.6 z City is authorised by Minnesota Statutes,
Chapter 474, to issue its revenue bonds, notes or other
gbligations.to finance the cost, in whole or'in part, of the
acquisition, c6oatruction, reconstruction, improvement,
n 7 betterment or eatansion of capital projects consisting,of
s �' properties used and useful in connection with a revenue producing
enterprise, including the Project, and the issuance of such
Comp , reconstruct and improve its facility i
any to rehabilitateii
obligations b the City Mould be a substantial inducement to
the city
�,.
1.l The City has been, advised by
p•a• D �' •'�'
. Paul, Minnesota,'. who shall act as bond counsel to the
City with respect to the Project, that the Project consttiutes a
"project" within the meaning of Minnesota Statutes, Cha,`ter 474.
r f 2. On the basis of information given the City to Date'!!, it
appears that it would be in the best ,interest of the City ro issue eta
obligations (the 0 1lond6 6 ) under the provisians of Minnesot,/ ! ltatutes,
Chapter 474 to finance the Project in an amount presentl�l estimated
not to, e xceed $500,000.Q0.
financi Project and the related
3. The Pro I
j nq thereof b�!I the City are
hereby given preliminary approval, and the issuance of;tlq�'6 bonds for
such
ap p rov al an&An such estimated amount is _,hereby appcdived subject
to a
�/
pp 1 of „ t
he Project by the Minnesota Departmeno� snergy and
Economic Development (thee "Department ") and to the mutual agreement of
the Council, the Company and the initial purchases of,tb /o bids as to
, the eetaila- and provision for payment of the sonde. Yn, events, it
i
_
is understood, however, that the Bonds shall not constitute a debt of
the City or a charge, lien or encumbrance, legal or equitable, upon
any property of the City except its"interest in the project, and,each
of the Bonds when, as and if issued shall recite in substance that it
is payable solely from the revenues received from the Project and
property pledged to the payment thereof.
4. in accordance with Minnesota statutes, Section 474.01,
Subdivision 7 the Mayor is hereby authorised and directed to sub 3
the proposal for the project "to the Department for approval. The
Mayor and other officers,.,employees and a'onto of the City are hereby,
authorised to provide the Departmont with any preliminary information
needed for this purpose and are further authorised to initiate and
i assist in the preparation of suck doouments as may be appropriate to
f
the Project and the financing thereof. the c ouncil does not
S. Th ado of constitutwa guarantee or coritmoat C
that the city i11 issue
the Donds as requested by tM = CoDprny
The City retains tl+ right to
its sole discretion to withdraw fret oacticipation and seoerdirqlf'not
issue the bonds should the :City setYtair 'that it it in the boat
Interest of the Cit not to do io or should the parties to the
transaction be u nabl e to ' c oach agreemat on the torts ther eof.
Adopted by the Prior Like City Council on Oi is
n�o
} �f1A� �ir�: M.:.YwYiSewa•R:7dyR�'•1 -.
r;
c
Clerk's Gertifiete ?
r I, the undersigned ,(being, the duj; qualified and acting Clark of
4
i the City of Prior Lake, Minnesota, hereby certify that I have
carefully compared the attached and toregbing resolution Minh the w�
originel theroot on file in lay office and- further certify -',that the .;
ease is "a foll, true and complete transcript there - from, i Wefar ,aa the
s ame ro to the preliiinary' approval of a 'commercial or thduot' riel
development project and the firAheing thereof for Prior Lake'Ball
Investora,Limited Partnership, a limited partnsc Alp-
I. cartiI !fr � otldidt j's
adoption' mob motion r �otioeLan �, moved, i,la .
oP Cosoni **asbely secw. a y coo es r '
. an ca ll,, they'' o • ,, P Absta ins 0
t
• fs�wro as `� upon roll cs ap s V ,
UK ABS TAIM ,
X c,
x
P "16 x
fft erowas tM► roK►letion rea declared duly„ Passed �!Nt
1 94tt1hrr aettifr' 'thAt said ; *solution r66 dolr' ado�t�� bf tM'
r hiot` ' Ra CAIAP, waoll at a doll aail4d eM aim oc
, ,
, IW officially a, uch sad . too coeporatt seal of
O
t" CIO. shlo, i�a� of
_ � '�
city
Pr falle iiklYaa��ta
IMAM
.. _' r. �Ii1M'YYYKX6CYN4MM'#+t`. ' +1M. +'tii {MMW�NbA� �'Ik'a.AkR��GiwMNM yW '•