80-19
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CITY OF CHANHASSEN
CARVER & HENNEPIN COUNTIES, MINNESOTA
RESOLUTION
Date: June 16, 1980
Resolution No. 80- 19
Motion by
Councilman
Seconded by
Councilman
Neveaux
Pearson
RESOLUTION NO. 80-19
RESOLUTION GIVING PRELIMINARY APPROVAL
TO A PROJECT UNDER THE MUNICIPAL
INDUSTRIAL DEVELOPMENT ACT; REFERRING
THE PROPOSAL TO THE COMMISSIONER OF
SECURITIES FOR APPROVAL; AND AUTHORIZING
PREPARATION OF NECESSARY DOCUMENTS
BE IT RESOLVED by the City Council of the City of
Chanhassen, Minnesota (the Municipality), as follows:
SECTION 1
Recitals and Findings
1.1. This Council has received a proposal that the
Municipality finance a portion or all of the cost of a
proposed project under Minnesota Statutes, Chapter 474
(the Act), consisting of the acquisition of land and the
construction and equipping thereon of a 60,000 square foot
office/warehouse building to be owned by Flouroware, Inc.,
a Minnesota corporation (hereinafter the Borrower), for
its manufacturing operations (the Project).
1.2. At a public hearing, duly noticed and held on
June 16, 1980, in accordance with the Act, on the proposal
to undertake and finance the Project, all parties who
appeared at the hearing were given an opportunity to
express their views with respect to the proposal to
undertake and finance the Project. Based on such hearing
and such other facts and circumstances as this Council
deems relevant, this Council hereby finds, determines and
declares as follows:
(a) The welfare of the State of Minnesota
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
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unemployment, and the State has encouraged local
government units to act to prevent such economic
deterioration.
(b) The Project would further the general
purposes contemplated and described in Section 474.01 of
the Act.
(c) The existence of the Project would add to
the tax base of the Municipality, the County and School
District in which the Project is located and would provide
increased opportunities for employment for residents of
the Municipality and surrounding area.
(d) This Council has been advised by
Northwestern National Bank of Minneapolis, on behalf of
the Borrower, that conventional, commercial financing to
pay the cost of the Project is available only on a limited
basis and at such high costs of borrowing that the
economic feasibility of operating the Project would be
significantly reduced, but that with the aid of municipal
borrowing, and its resulting lower borrowing cost, the
Project is economically more feasible.
(e) This Council has also been advised by
Northwestern National Bank of Minneapolis, that on the
basis of their discussions with potential buyers of
tax-exempt bonds, revenue bonds of the Municipality (which
may be in the form of a commercial development revenue
note or notes) could be issued and sold upon favorable
rates and terms to finance the Project.
(f) The Municipality is authorized by the Act to
issue its revenue bonds to finance capital projects
consisting of properties used and useful in connection
with a revenue producing enterprise, such as that of the
Borrower, and the issuance of such bonds by the
Municipality would be a substantial inducement to the
Borrower to acquire and construct the Project.
SECTION 2
Preliminary Approval of the Project
2.1. On the basis of information given the Municipality
to date, it appears that it would be desirable for the
Municipality to issue its revenue bonds under the
provisions of the Act to finance the Project in an amount
not exceeding $1,200,000.
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2.2. It is hereby determined to proceed with the Project
and its financing and the Project is hereby given
preliminary approval by the Municipality and the issuance
of revenue bonds of the Municipality in such amount is
hereby approved, subject to the approval of the Project by
the Commissioner of Securities, the fulfillment of such
other conditions as the Municipality may require with
respect to the issuance of its bonds in connection with
the Project, and the mutual agreement of this Council and
the Borrower as to the details of the bond issue and
provisions for their payment, and subject further to the
reservation of the right by the Municipality to deny the
application of the Borrower at any stage of the ----
proceedings prior to the adoption of the final resolution
authorizing issuance of the Bonds.
2.3. In all events, it is understood, however, that the
bonds of the Municipality shall not constitute a charge,
lien or encumbrance, legal or equitable, upon any property
of the Municipality, except the Project, and each bond,
when, as and if issued, 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 Municipality.
2.4. The form of the Application to the Commissioner of
Securities, with attachments, is hereby approved, and the
Mayor and City Manager are authorized to execute said
documents in behalf of the Municipality.
2.5. In accordance with Section 474.10, Subdivision 7a of
the Act, the Mayor and City Manager are hereby authorized
and directed to cause said Application to be submitted to
the Commissioner of Securities for approval of the
Project. The Mayor, City Manager, City Attorney and other
officers, employees and agents of the Municipality are
hereby authorized and directed to provide the Commissioner
with any preliminary information the Commissioner may need
for this purpose, and the City Attorney is 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.
SECTION 3
General
3.1. If the bonds are issued and sold, the Municipality
will enter into a lease, sale or loan agreement or similar
agreement satisfying the requirements of the Act (the
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Revenue Agreement) with the Borrower. The lease rentals,
installment sale payments, loan payments or other amounts
payable by the Borrower to the Municipality under the
Revenue Agreement shall be sufficient to pay the
principal, interest and redemption premium, if any, on the
bonds as and when the same shall become due and payable.
3.2. The Borrower has agreed and it is hereby determined
that any and all direct and indirect costs incurred by the
Municipality in connection with this Project, whether or
not the Project is carried to completion, and whether or
not approved by the Commissioner of Securities, and
whether or not the Municipality by resolution authorizes
the issuance of the bonds, will be paid by the Borrower
upon request.
3.3. The Mayor and City Manager are directed, if the
bonds are issued and sold, thereafter to comply with the
provisions of Minnesota Statutes, Section 474.01,
Subdivision 8.
Attest:
1]) ~c;;;;b
City Manager
Passed and adopted
Chanhassen this 16thctay of
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YES
NO
Mayor Hobbs
Councilman :S\'ifenSOn
Councilman Neveaux
Councilman Pearson
Councilman Geving
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CERTIFICATION
STATE OF MINNESOTA)
)
COUNTY OF CARVER )
ss
I,
Don Ashworth
, duly appointed,
qualified and acting City Manager for the City of Chanhassan,
Minnesota, do hereby certify that I have compared the fore-
going copy of Resolution 80- 19 with the original minutes
of the proceedings of the City Council of the City of
Chanhassen, Minnesota, at their session held on the 16th
day of June, 1980, now on file in my office, and have found
the same to be a true and correct copy thereof and as
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approved by the City Council.
Witness my hand and official seal at Chanhassen,
Minnesota, this
7th day of
July
, 1980.
City Manager
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The Mayor stated that this was the time and place
fixed by Resolution No. 80-
of this Council, adopted on
May 20, 1980, for a public hearing on the proposal that
the City undertake and finance a Project on behalf of
Flouroware, Inc. a Minnesota corporation (the Borrower)
pursuant to Minnesota Statutes, Chapter 474. The City
Manager presented an affidavit showing publication of the
notice of the public hearing at least once not less than
15 nor more than 30 days prior to the date fixed for the
public hearing, in the Carver County Herald, being the
official newspaper of the City and in the Minneapolis
Tribune, being a newspaper of general circulation
throughout the City. The affidavits were examined, found
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to be satisfactory and ordered placed on file with the
City Manager.
The Mayor then opened the meeting for the public
hearing on the proposal to undertake and finance the
project on behalf of the Borrower. The purpose of the
hearing was explained, the nature of the project and of
the proposed revenue bonds were discussed, the draft copy
of the Application to the Commissioner of Securities with
all attachments and exhibits were available, and all
persons present who desired to do so were afforded an
opportunity to express their views with respect to the
proposal to undertake and finance the project, in response
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to which the fOllowing persons appeared, were recognized
their respective names:
and made statements, summaries of which appear opposite
Name of Speaker
William Gullickson, Chairman
Chanhassen Housing and Redevelopment
Authority
Representatives of Fluoroware, Inc.
Summary of Views
In support of
application.
In support of
Application.
After all persons who wished to do so had stated
their views on the proposal, the Mayor declared the public
hearing to be closed.
After some discussion, motion for the following
Resolution was made by Member
Pearson