79-31
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE:
May 21, 1979
RESOLUTION NO:
79-31
MOTION BY COUNCIL~Ulli:J. Neveaux
SECONDED BY COUNCILMAN:R. Matthews
A RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED INDUSTRIAL
DEVELOPMENT PROJECT BY FRONTIER PARTNERSHIP UNDER THE MUNICIPAL IN-
DUSTRIAL DEVELOP11ENT ACT, AUTHORIZING THE SUBMISSION OF AN APPLICATION
TO THE COM}lISSIONER OF SECURITIES FOR APPROVAL THEREOF AND AUTHORIZING
THE PREPARATION OF DOCUMENTS M~D MATERIALS IN CONNECTION WITH THE
PROJECT.
Resolved by the City Council of the City of Chanhassen, ninnesota,
as follows:
1). There has been presented to the City a proposal by Frontier
Partnership, a Minnesota general partnership (the "Company") that the
City undertake a project pursuant to the Minnesota Municipal Industrial
Development Act, Chapter 474, !unnesota Statutes, to provide financing
of the cost of acquiring and constructing and equipping a vehicle
sales and service facility in the City (the "Project"). Under the
proposal, the Company will enter into a loan agreement whereby the
Co~pany agrees to complete the Project and the City agrees to issue
an Industrial Development Revenue Bond of the City in an amount not
to exceed $400,000 pursuant to the Act to finance the Project. The
Company will retain title to the Project and the site thereof and the
loan agreement will require the Company to pay amounts sufficient to
pay the principal of and interest on the Bond issued. The Project
will be leased to Frontier Dodge Inc., and the Company will assign
its interest in the. lease to the Bond Purchaser as ~ortgagee as security
for the Bond. The City will assign its interest in any loan agreement
or loan agreements to the mortgagee to secure the Bond. The Bond shall
be issued in accordance with the Act, and shall provide that the Bond
when, as and if issued, shall not constitute a charge, lien or encum-
brance, legal or equitable, upon any property of the City except the
project, and the 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, and no taxes shall be levied for its
payment.
2). There has been presented to the City a form of Application
to commissioner of Securities for approval of the Project setting
forth the esti~ated costs of the Project and the increased employment
and payrolls to result therefrom. It is hereby found, determined and
declared that the purpose of the Project is and the effect thereof
will be to promote the public welfare by the attraction, encouragement
and development of economically sound industry and commerce so as to
prevent, so far as possible, the emergence of blighted and marginal
lands and areas of chronic unemployment: the development of industry
to use the available resources of the community, in order to retain
the benefit of its existing investment in educational and public service
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facilities, by halting the movement of talented, educated personnel
of mature age to other ar.eas and thus preserving the economic and
human resources needed as a base for providing governmental services
and facilities; and the more intensive development of land available
in the area to provide an adequate tax base to finance the increase in
the amount and cost of governmental services provided by the City, the
County and the School District in which the City is located.
3). The Project is hereby given preliminary approval by the
City, subject to (i) approval of the Project by the Minnesota
commissioner of Securities, (ii) approval of this Council, the
Company and the purchaser of the Bond of the ultimate details of the
Project and the terms of the Bond, and (iii) subsequent 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 Bond.
4). The Ministers Life and Casualty Union, on behalf of the
Company, has advised this Council that the Project is economically
feasible and that it intends to purchase the Bond. In accordance
with section 474.01, Subd. 7a, Minnesota statutes, the Mayor, City
Clerk and such other officers and members of the City as may from time
to time be designated are hereby authorized and directed to submit
the proposal for the Project to the Commissioner of Securities and
request her approval thereof, and the Mayor, Clerk, members of the
Council and other officers, employees and agents of the City are hereby
authorized to provide the Commissioner with such preliminary information
as she may require. The Company, the Ministers Life and Casualty
Union, Messrs. Faegre & Benson, as bond counsel, the City Attorney
and other City officials are also authorized to initiate the prepara-
tion of a proposed loan agreement, mortgage, and such other documents
as may be necessary or appropriate to the Project so that, when and
if the proposed Project is approved by the Commissioner and this
Council gives its final approval thereto, the Project may be carried
forward expeditiously.
5). The Company has agreed to pay any and all costs incurred by
the City in connection with the Project whether or not the Project is
approved by the Commissioner and whether or not the Project is carried
to completion and to indemnify the City, its officers and employees
from all liability which the City and any officers and employees
may incur in connection with the Project or the issuance and sale of the
Bond.
6). The Company is hereby authorized to enter into on its own
behalf such contracts as may be necessary for carrying forward the
Project by any means available to it and in the manner it determines
without advertisement for bids as may be required for the construction
or acquisition of other municipal facilities.
Passed and adopted by the City Council of the City of Chanhassen
this 21st day of f.1ay, 1979.
ATTESY2 (Jz ~
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YES NO
Mayor Hobbs None
Councilman Neveaux
Councilman Pearson
Councilman Geving
Councilman Matthews
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