78-75
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
RESOLU':EION
Date: December 18, 1978
Motion by Councilman Geving
Resolution No. 78-75
Seconded by Councilman
Pearson
RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL
DEVELOPMENT PROJECT, GIVING PRELIMINARY APPROVAL
TO THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL
INDUSTRIAL DEVELOPMENT ACT, AUTHORIZING THE SUB-
MISSION OF AN APPLICATION FOR APPROVAL OF SAID PROJECT
TO THE COMMISSIONER OF SECURITIES, AND AUTHORIZING THE
PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN
CONNECTION WITH SAID PROJECT.
WHEREAS,
(a) The purpose of Chapter 474, Minnesota Statutes, known
as the Minnesota Municipal Industrial Development Act, as found
and determined by the legislature, is to promote the welfare of
the state by the active attraction, encouragement and development
of economically sound industry and commerce to prevent so far as
possible the emergence of blighted and marginal lands and areas
of chronic unemployment, and for this purpose the state has
encouraged action~ local governmental units;
(b) Factors necessitating the active promotion and development
of economically sound industry and commerce are the increasing
concentration of population in urban and 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 and use of land which will provide an
adequate tax base to finance these increased costs;
(c) The City desires to expand its business and employment
opportunities, and the available tax base of the City;
(d) The City Council has received from Rome Properties (the
"Company") a proposal that the City finance a project for purposes
consistent with the Minnesota Municipal Industrial Development Act,
said project to consist of the acquisition of land and construction
of two professional office buildings aggregating approximately 22,000
square feet (the "Project"), all at a cost presently estimated at
$700,000;
(d) The Project would aid and assist the City, the school
district and the county, and the full faith and credit of the City
would not be pledged or be responsible in connection with such Project.
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NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Chanhassen, as follows:
(1) The proposal of the Company that the City undertake to
provide financing for the Project pursuant to the Minnesota Municipal
Industrial Development Act (Chapter 474, Minnesota Statutes) by
acquisition of the Project to be leased or sold by the City to the
Company, or by direct loans of the revenue bond proceeds to the
Company, all upon such terms and conditions, with provisions for
revision from time to time as necessary, so as to produce income and
revenues suffic~ent to pay, when due, the principal of and interest
on bonds of the City to be issued pursuant to the aforesaid Chapter
474 to finance said Project, is hereby given preliminary approval
by the City.
(2) On the basis of information provided to this Council it
appears, and the Council hereby finds, that the effect of the
Project, if undertaken, will be to encourage the development of
economically sound commerce in the City, to increase the assessed
value of property within the City and to increase current employ-
ment opportunities for residents of the City and surrounding areas,
all to the benefit of the residents and taxpayers of the City, the
school district, the county and the State of Minnesota.
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(3) The Project above referred to and the issuance of revenue
bonds in the amount necessary to pay the costs of the Project,
presently estimated to be $700,000, are hereby given preliminary
approval by the City subject to approval of the Project by the
Con~issioner of Securities and to the mutual agreement of the City,
the Company, and the initial purchaser of the bonds as to the
details of the bond issue and provisions for their payment, and
subject, further, to the reservation of the right by the City to deny
the application of the Company at any stage of the proceedings prior
to the adoption of the final resolution authorizing issuance of the
bonds.
(4) In all events, it is understood, however, that the bonds,
when, as and if issued, shall be sold only to institutional investors ,
that the bonds shall not constitute a charge, lien or encumbrance,
legal or equitable, upon any property of the City except the project,
and each bond shall recite in substance that the bond, including
interest thereon, is payable solely from the revenues received from
the Project and property pledged to the payment thereof, and shall
not constitute a debt of the City.
(5) In accordance with the Minnesota Statutes, S474.0l, Subd. 7,
the Mayor is hereby authorized and directed to submit the proposal for
the Project to the Commissioner of Securities for his approval of the
Project. The Mayor, City Manager, City Attorney and other officers,
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employees and agents of the City are authorized to initiate and
assist in the preparation of such documents as may be appropriate
to the Project, if it is approved by the Commissioner.
Council of the City of Chanhassen this
, 1978._
C)~~~~
Mayor
Passed and adopted by the
18thday of Decemner
ATTEST~
Ci ty Manager
(JJL,~
YES
Mayor Hobbs
Councilman Pearson
Counc11man Geving
Councilman Waritz
Councilman Neveaux - absent
NO
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