HomeMy WebLinkAbout87-010RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT
UNDER THE MUNICIPAL INDUSTRIAL f }iVELOPME:NT ACT, MINNESOTA STATUTES,
CHAPTER 474, AND THE JOINT POWERS ACT, MINNESOTA STATUTES,
SECTION 471.59, REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF
ENERGY AND ECONOMIC DEVELOPMENT FOR APPROVAL, AUTHORIZING PREPARATION
OF NECESSARY DOCUMENTS, AND APPROVING THE AUTHORIZING EXECUTION OF
THE JOINT POWERS AGREEMENT
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WHEREAS, the welfare of the .State of Minnesota (the "State ") requires
active promotion, attraction, encouragement and development of economically
sound Industry and commerce through governmental acts to prevent, so far as
possible, emergence of blighted lands and areas of chronic unemployment, and
it is the policy of the State of facilitate and encourage action by local
government units to prevent the economic deterioration of such areas to the
point where the process can be reversed only by total redevelopment through
the use of Local, state and federal funds derived from taxation, with the
attendant necessity of relocating displaced persons and of duplicating public
services in other areas; and
WHEREAS, technological change t-ias caused a shift to a significant degree
In the area of _opportunity for educated. youth to processing, transporting,
marketing, service and other Industries, and unless existing and related
industries are retained and new Industries are developed to use the available
resources of the City of Prior Lake (the "City "), a large part of the existing
investment of the community and of the State as a whole In educational and
public service facilities will be lost, and the movement of talented, educated .
personnel of mature age to areas where their services may be effectively used
and compensated and the lessening attraction of persons and businesses from
other areas for purposes of industry, commerce and tourism will deprive the
Clay and the State of the economic and human resources needed as a base for
providing governmental services and facilities for the remaIningrpopuIatIon;
and
WHEREAS, the increase In the amount and cost of governmental services
requires the need for more Intensive development and use of Land to provide an
adequate tax base to finance these costs; and
WHEREAS, pursuant to Minnesota Statutes, Section 471.59 (the "Joint Powers
Act ") the City is authorized to enter Into a Joint Powers Agreement to provide
for the' Issuance of revenue bonds jointly by the Cities of Apple Valley,
Big Lake, Chaska, Little Canada, Waite Park and other_ entities to be
Identified In the near future (the "Cities "); and
WHEREAS, the City has been advised of the desire to jointly establish a
fund with the Cities from the proceeds of the Issuance by the Cities oi""
Securitized Development Revenue Bonus In the aggregate principal amount of
$330,000,000 to finance revenue - producing projects for purposes consistent
with the Act, said projects to consist of the acquisition, construction,
reconstruction, rehabilitation and /or Instalietlon of comnarclal, Industrial
or retail f ac: tIitIes in the Cities (the "Pro,Ject"); and
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WHEREAS, the ex I stence of the Project In the C1ty wIII contribute to more
l ntens i ve deveiopmient and use of land. to increase the tax bass of the City ,and
overlapping taxing authorities and maintain and provide for an 'increase In
opportunities for employment for residents of the C1ty, Including economically
disadvantaged or unemployed Individuals; and
WHEREAS, the City has been advised that conventional, commercial financing
"to pay the capital cost of the Project is available at such costs of borrowing
that the econors c feaslblltty of operating the Project would be significantly
reduced, and, therefore, the City fl'nds that but for the aid of municipal
financing, and the avalIabIIIty of other' municipal' assistance In connection
therewith,. the Project woul.d not be, economtically feasible; and
'WHEREAS, this Council has been adv °l.sed that, on the basis of Information
suball.tted to them and their discussions with representatives of area flnanclal
instItutIons and other potential buyers, jointly Issued Securltized
Development Revenue Bonds of the Cities, could be Issued: and sold upon
favorable rates and terms to finance thel Project;' and
WHEREAS, the City is authorized by Minnesota Statutes, Chapter 474, to
issue Its, revenue bonds to finance the cost, 1n whole or in part, of the
acquisition, construction, reconstruction, improvement or extension of capital
projects consisting of properties used and useful In connection with a
revenue - producing enterprise,. and the issuance .,of such Donds by the City
pursuant to. the J"oint,Powers Agreement withi. the Cities would be a substantial
Inducement to revenue- producing enterprises to construct such facilities In tho and
WHEREAS, on the bases of Information given I -the City to date, it appears
that it would be in the best ,interest of the City to jointly issue the
Securitized Development Revenue: Bonds with the Cities under the provisions of
Chapter 474 and Section 471.59 to finance the Project In an amount presently
estimated' not to exceed = (330,000,000.,
NOW0,THEREFORE, BE IT RESOLVED THAT.
L The Project Is hereby given prelm (nary approval by the City and- the
Issuance of the I revenue bonds for such purpose and In such amount is
prolia.l *narily approved, subject to approval of the. Project by the
Minnesota Department of Energy' and Economic Development and to the
mutual agreement of this body, the Cities and the intti.al purchaser of
the bonds as to, the detalits of the bonds and provisions' for their
payment.; In alt events, t.t IS understood, however,, that the bonds of
the City shall not constitute a charge, lien or encumbrance Iegal or
equttabl,o upon any property of the ;City except the Project,; and, the
bonds,, when, as and t"f issued shawl recite In substance that the
bonds,. Including Interest thereon, are payeb"le solely from the
revenues: received f roML the Project and property pledged, to, the payment
tMreof, and she I I not Wonstl.tute a debt of the City.
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to accordance rith Mfrinesota- Statutes, Section 474.01,. Subdivision 7a,,
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the Mayor of "*, I's hereby authorized and directed to, subm the
proposal < for ` the Project to the Mi nnesota' Wpartmant of Energy - and
Econowl,c Development for approval of the• Project.. The Mayor and
other officers,. °employees and agents of the.' City are hereby .
authorized to provIOw the- "Mlnnesofa Department of Energy and-. E:snowic.
DevalopmWt with any peel- Amfnary Information needed for this purpose,
an& the Ci Attorney /is authorized' to Init and, assist in the
preparation of such documents a& ma be appropriate to the Pr if
1t' Is, approved by the Minnesota Department of Energy < and Economic
Dev .l opme►t�.
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Irv 'accordance with Minnesota Statutes, Section 471.59, the Joint
Powers, Agreement between' the Cities,) is hereby approved:` substantlally
the formQ on f11• with the City. The Mayor and City Manager of the
Ci are hereb authorized and di rected. to ex ecut e and del`i'ver the
Joint Powers ..AgrA_enent, , with such. changes, amendments or additions as
she i bo approved. In' their discretion.
4.
The• 1 aw. f i rw of Hol ass 3 Graven, Chartered, I authorized, to. act as
Bond Counsel and: Juran d Moody,. Inc. is hereby appoi as exclusive
Unenrwriter for tti�: bonds, and Bond Counsel and the Underwriter are
hereby authorized' to assist in the preparation and review of necessary
documents rotati to the Project and, bonds Issued'' In connect
therewith. The Mayor,: City Attorney, and cAher officers, employees
and agents- of the City are- hereby author Ized� to assist Bond' Counsel
and the- Underrrlter In the preparation of such documents.`
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S.
In accordant with Minnesota Statutes, Section 474.01, Subdivisi 1i,
the! City Mansg•r - and other officers, emp and agents of the Ci
are hereby, authorized and directed to encourage ati participants In
the f I nanc I ng 'to. be prov l did ,, by the Project to provide ea�p l oyment
opportuniti to
ecaniSwlcally 4 or unemployed
lnd.lviduals.. Such ind`lvtdual way be- identified by such mechanisms as
area avol1 to the City., including, a f agreement. In which
the participant Woos to use a designated State emp foywent office as:
a f Irst source for employWnt� `ricruIi1Mt,, referral,, and placement.
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CERTIF OF MINUTES
Pun I -cipa ity , City, of Prior Lake, Minnesota. :
Govarnl :ng body: City Councils.
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Meeting:, A meeting of the Ci Count 1 i of" the: City of Pr i be Lake,
Minnesota, held on the 9th day of March, 1,987, at 7t3D p.m.
at 4629 Dakota Southeast, Prior Lake, Minnesota. :
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Members present: Andrea, >ritzgerald Larson, Scott and, , filtite
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Members absents Noae
Documents.: A copy of a reso l`ut l on, adoptid by.:; the City Counc i I of the
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City of Prior Lake, M l nnesota at so I; d meet I ng.
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Cart t f Icat i on:
U Dev* ' Unmacht;; Assistant Manger of the C of Pr I or Lake, `MI nnesota, do
hereby certify the foi low i ng;
Attached.hereto is a true` correct copy of 'O resolution on file and of
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record` in tli. off Ices of the Manager,, Which resa►l;uirion Was adopted by the Ctty
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Council , ,at the meeting referred to above. Said meeting was a regu I 4ir ■ met I ng
of the City CouncI L, was open to the pub1 I „ and was held at the ;tips and
P l ace at which matt rigs, of the C l ty, ' Count, it are, , regularly held,
Member Scott coded, the adoption, of the, attached resolution. The
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motion for ° i or;' of the attached; reso ut t.on Was seconded by
Member hracn .; A. vale l» i ng -, takery 'on the mot I on, ttie to l i ow. I ng: va ivd
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i it favor of +he- reso l u,• i on :
Andrea �}
Fitzgerald
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Larson
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, tititate
_ and 1fia.:foi I erri voted
n9, age l nst the. �esoj ut I on a 0
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Whereupon said resolutlon was dW wOd duly passed and adopted. The attached
resolution is In fu °I farce t `ffect and no action has been taken by the
City Council of the City of Prior Lake, Minnesota, which would. In any way
alter or amend the attached resolution.
Witness any hand off IcIaIIy as the Assistant, Manager of the City of
Prior Lfkaj Minnesota, this 9th day of Mar 1987.
e Jnwaght o
t City; Manager /Economic Development Di