Loading...
80-47 ~~ CITY OF CHANHASSEN CARVER & HENNEPIN COUNTIES, MINNESOTA e RESOLUTION Date: November 3, 1980 Motion by Councilmember Pearson Resolution No. 80-47 Seconded by Councilmember Neveaux RESOLUTION NO. 80 - 47 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 City), as follows: Section 1. Recitals and Findings 1.1 This Council has received a proposal from Energy Controls, Inc., a Minnesota corporation (the Borrower), that the City 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 thereon of a 10,000 square foot office building for the manufacture of energy-related products for heating and air conditioning equipment. e 1.2 Allison-Williams Company, underwriter acting on behalf of the Borrower has advised the City that all industrial revenue obligations (the Bonds) issued under the Act by the City to finance the Project shall be issued on a private placement basis with one or more financial institutions. 1.3 At a public hearing, duly noticed and held on November 3, 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 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. e ~.. e c. The existence of the Project would add to the tax base of the City, the County and School District in which the Project is located and would provide increased oppor- tunities for employment for residents of the City and surrounding area. d. This Council has been advised by representatives 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 feasi- bility 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 econimically more feasible. e. This Council has also been advised by Allison- Williams Company, Inc. that on the basis of their discussions with the City (which may be in the form of an industrial development revenue note or notes) could be issued and sold upon favorable rates and terms to finance the Project. f. The City 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 sub- stantial inducement to the Borrower to acquire and construct the Project. Section 2. Preliminary Approval of the Project e 2.1 On the basis of information given the City to date, it appears that it would be desirable for the City to issue its revenue bonds under the provisions of the Act to finance the Project in an amount not exceeding $350,000. 2.2 It is hereby determined to proceed with the Project and its financing and the Project is hereby given preliminary approval by the City and the issuance of revenue bonds of the City 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 City 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 City 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 City shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City 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 City. e 2.4 The form of the Application to the Commissioner of Securites, with attachments, is hereby approved, and the Mayor and City Manager are authorized to execute said documents in behalf of the City. -2- . .. .. e 2.5 In accordance with Section 474.10, Subd. 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 City 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 City will enter into a lease, sale or loan agreement or similar agreement satisfying the requirements of the Act (the Revenue Agreement) with the Borrower. The lease rentals, installment sale payments, loan payments or other amounts payable by the Borrower to the City 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 City 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 City by resolution authorizes the issuance of the bonds, will be paid by the Borrower upon request. e 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. Passed and adopted by the Council of the City of Chanhassen on this 3rd day of November , 1980. U~~~~ MAYOR Attest: 121 Qa >" CC0; City Clerk Manager Yes No Absent Mayor Hobbs Councilman Pearson Councilman Neveaux Councilman Geving Councilman Swenson None None e -3-