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Extract of 'Minutes of a Meeting of the
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City Council of the
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City of Prior Lake, Minnesota
Pursuant to due call and notice thereof, a regular
meeting of the City Council of the City of Prior Lake,
Minnesota, was duly held at the City Hall in said City on
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Monday, the 3rd day of February, 1986, , at 7,30 P.M.
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The following members were present: Mayor Mdren,
CouncilnAwbers Busse:, Fitzgerald, Scott and White.
and the following were absent: None
Member White introduced the following
resolution moved its adoption;
RESOLUTION N6 -04
RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL
FACILITIES DEVELOPMENT PROJECT, GIVING PRELIMINARY
APPROVAL`TO THE PROJECT, - AUTHORIZING THE SUBMISSION
OF AN APPLICATION TO THE 'MINNESOTA 'ENERGY'AND. ECONOMIC
DEVELOPMENT AUTHORITY FOR AN ALLOCATION OF AUTHORITY`
TO ISSUE "PRIVATE ACTIVITY BONDS, AND AUTH6iXtINt., THE
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PREPARATION OF NECESSARY DOCUMENT AND aMATERf" IN
CONNECTION WITH THE PROJECT
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The motiCh for the adoption of the `foregoing;
resolution was duly seconded by member Fitzgerald and
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after full discussion thereof and`''upon vote being taken
thereon, the following voted in favor thereof:
Mayor Mdren, Councilmevbers Busse, Fitzgerald, Scott and.White
and the following voted against the same: None
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whereupon said resolution was declared duly passed and adopted.'
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1 RESOLUTION RE- CITING A PROPOSAL FORA
COMMERCIAL FACILITIES,DEVELOPMENT PROJECT, r
GIVING PRELIMINARY APPROVAL TO THE PROJECT,
AUTHORIZING THE SUBMISSION OF AN APPLICATION
TO THE MINNESOTA ENERGY >,AND ECONOMIC
AUTHORITYI FOR AN ALLOCATION OF AUTHORITY TO ISSUE
k" PRIVATE ACTIVITY BONDS, MD THE
PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS
N CONNECTION WITH THE, PROJECT
WHERf,AS R
(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
industiy 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 Prior LaKe
Minnesota (the "City "), has received from First- Frame,`A
Minnesota corporation (the "Company "),, a proposal that the.City
agsist 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) ' 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 °
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assist the City in achieving those objectives; the Project will
help'to increase assessed valuation of the °City and help =
maintain a..positiye 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 bowling, food and recreation; and the Project to be
financed by the Revenue Bonds is'the acquisition of land and an ,
existing 21,525__ square foot building and the renovation,
construction and equipping the building for use as a sports
and'recreational facility to be located at 4540 Tower Street
S.E. ih, City, all to be constructed and installed pursuant
to>theCompany's specifications and to be initially owned and Q
operated by the Company (the "Project "), and will result in the
employment of "additional persons to work - ,within the new
facilities.
(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
s economic feasibility of operating the would signi-
ficantly reduced, 'and the.Company has also advised this Council
that the.Proect would not be undertaken but for the
;availability of industrial development bond financing;
(g) A public hearing on the Project will be
held after notice has been published and materiale,amade
available' for public inspection at the City Hall, � a3'1 'as _
required by Section 474.01, Subdivision 7b, of the Act, at
which public'hearing all _those appearing who desire to speak `z
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 Minnesota Energy
and Economic Development Authority (the "Authority ") for an
allocation of the limited authority available for the - issuance
of private activity bonds; and
(i) No' public .offi'cial 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:
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NOW, THEREFORE, I BE IT RESOLVED by the City Council of the
City of Prior Lake, Minnesota,,as follows:
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J. The Council hereby gives preliminary approval to the<
proposal of the Company that the City undertake the Project
r 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 �1,500,000 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
iinprove,lthe tax base and to provide the range of service and
employiue;nt opportunities required by the population, to nelp _
prevent: the movement of talented and educated persons out of
,I DI the ¢Stat9 and to areas within the State where their services
may ',not..be as effectively used, to promote more intensive r.
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 approva]'r;; by
the City, subject to later preliminary.approval by this C { qty
° Council after a hearing on the Project and further subject to
the approval of the Project by the Authority, 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 financingdof the Project.
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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 no's- approved by the
Authority, will be paid by the Company.
5. _ Briggs and Morgan, Professional Association, acting as
bond counsel, is authorized to assist in the preparation and
review of necessary documents relating to the application for
an,alfocation of autlibrity to issue private: activity bonds for
the Project, and to submit such documents to the Mayor or
Manager or both for its submission to the Authority.
; 6. ;The'Nayor or Manager or both are hereby authorized and
directed `to submit to the Authority an application for an
,allocation of authority to issue private activity bonds. The
Ci:;y shall provide the application deposit required for such
application; , ,,,but solely "from moneys given to the City in
advance by th,,e 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.
In anticipation of the approval„` by the Authority and
the issuance of the Revenue Bonds to finance all or a portion
of the Project, and in anticipation tha!� 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 ;sucty -- 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
Asvenue Bonds if and when delivered but otherwise without
liability on the part of the City.
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