82-26
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
RESOLUTION
DATE:____MayllL_~~l___________
RE SOLUT ION NO. 82-26
MOTION BY COUNCILMAN: Geving
SECONDED BY COUNCILMAN Neveaux
A RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE
MUNICIPAL INDUSTRIAL DEVELOPMENT ACT: REFERRING THE PROPOSAL
TO THE DEPARTMENT OF ENERGY, PLANNING AND DEVELOPMENT FOR
APPROVAL: AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS.
BE IT RESOLVED By the City Council of the City of
Chanhassen, Minnesota, as follows:
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follows:
It is hereby found, determined and declared as
1.1 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 local government units to act to prevent such econo-
mic deterioration.
1.2 Landco, a Minnesota general partnership
(hereinafter the "Company"), has advised this Council of its
desire to acquire and improve land and to construct and equip
thereon a one story multi-tenant building of approximately
19,552 square feet for commercial rental purposes (the
"Project").
1.3 The existence of the Project within the City would
significantly increase the tax base of the City, County and
School District in which the City is located, and would provide
opportunities for employment for residents of the City and
surrounding area.
1.4 The City has been advised by the Company that con-
ventional, commercial financing to pay the capital cost of the
Project is available only on a limited basis and at such high
costs of borrowing that the economic feasibility of operating
aid of municipal financing, and its resulting low borrowing
cost, the Project is economically more feasible.
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1.5 This Council has been advised by First National
Bank of Wayzata, Wayzata, Minnesota, that on the basis of
information submitted to it and the discussions with represen-
tatives of the Company that bonds or notes to finance all or
part of the cost of the Project can be successfully sold, and
that it will purchase such bonds or notes.
1.6 The City is authorized by Minnesota Statutes,
Chapter 474 (the "Act"), to issue its revenue bonds or other
obligations (the "Bonds") to finance capital projects con-
sisting of properties used and useful in connection with a
revenue producing enterprise, such as that of the Company, and
the issuance of such Bonds by the city would be a substantial
inducement to the Company to construct the Project within the
City.
2. On the basis of information given the City to date,
it presently appears that it would be in the best interest of
the City to issue its industrial development revenue Bonds
under the provisions of the Act to finance the Project of the
Company in an amount not to exceed $650,000.
3. The Council declares that it is its present intent
to issue the Bonds, and the Project above referred to is hereby
given preliminary approval by the City and the issuance of
Bonds for such purpose and in such amount approved, subject to
approval of the Project by the Department of Energy, Planning
and Development ("Department") of the State of Minnesota and to
the mutual aagreement of this body, the Company and the initial
purchasers of the bonds as to the details of the bond issue and
provisions for its payment. In all events, it is understood,
however, 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, 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 within the meaning of any
constitutional, charter or statutory limitation thereon.
4. The form of Memorandum of Agreement relating to the
issuance of the Bonds to finance the cost of the Project is
hereby approved, and the Mayor and City Manager are hereby
authorized and directed to execute the Memorandum of Agreement
1n behalf of the City.
5. This Agreement may be terminated by mutual consent
of the parties at any time, provided, however, that the City
reserves the right, at its sole discretion, to withdraw its
approval of the Project if at any time the City Council deter-
mines that the public interest and the purpose of the Act will
not be served by the Project.
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6. In accordance with Minnesota Statutes, Section
474.01, Subdivision 7a, the Mayor and City Manager are
authorized and directed to submit the proposal for the Project
to the Department for approval. The Mayor, City Manager, City
Attorney and other officers, employees, and agents of the City
and Messrs. Lefevere, Lefler, Kennedy, OlBrien & Drawz, a
Professional Association, of Minneapolis, Minnesota, as bond
counsel, are hereby authorized to provide the Department with
any preliminary information needed for this purpose, and the
City Attorney is authorized to initiate and assist in the pre-
paration of such documents as may be appropriate to the
Project, if it is approved by the Department.
Passed and adopted by the City Council of the City of
Chanhassen this 17th day of May, 1982.
ATTEST:
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Thomas L. Hamilton, Mayor
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Don Ashworth, City Clerk/Manager
YES
NO
ABSENT
Mayor Hamilton
Councilman Geving
Councilwoman Swenson
Councilman Neveaux
Councilman Horn
None
None