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82-67 C' RESOLUTION 82-67 . RESOLUTION' RECITING A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF SAID PROJECT TO THE COMMISSIONER OF SECURITIES OF THE STATE OF MINNESOTA AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS k~D MATERIALS IN CONNECTION WITH SAID PROJECT WHEREAS, (a) The purpose of Chapter 474, Minnesota Statutes, known as the Minnesota Municipal Industrial Develop- ment Act (the "Act") as found and determined by the legislature is to promote the welfare of the state by the active attraction and encouragement and development of economically sound indus- try and COlnmerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic' unemployment; e (b) Factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration of population in the metropolitan areas and the rapidly rising increase in the amount and cost of governmental services required to meet the needs of the increas- ed population and the need for development of land, use which will provide an adequate tax base to finance these increased costs and access to employment opportunities for such popula- tioni (c) The City Council of the City of Cbanhassen (lithe City") has received from Opus Corporation, a corporation organized under the laws of the State of Minnesota a proposal that the City assist either Opus .Corporation (IOpUS") or Alscor Joint Venture No. II ("Alscor"), a Minnesota partnership in which Opus Corporation is a fifty percent (50%) partner, in financing a Project hereinafter described, through the issuance of a Revenue Bond or Bonds or a Revenue Note or Notes hereinafter referred to in this resolution as "Revenue Bonds" pursuant to the Acti e (d) The City desires to facilitate the selec- tive development of the community, retain and improve the tax base and help to provide the range of services and employment opportunities required by the population; and the Project will assist the City in achieving those objectives. The Project will help to increase assessed valuation of the City and sur- rounding area and help maintain a positive relationship between assessed valuation and debt and enhance the image and reputa- tion of the community; l. e (e) Both Opus and Alscor are currently engaged in the business of real estate development and ownership. The Project to be financed by the Revenue Bonds is the construction of an approximately 48,700 square foot office/warehouse building to be located on land in the City and will result in the employment of additional persons to work within the new facilities; (f) The City has been advised by representa- tives of Opus and Alscor that conventional, 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 the Project would be significantly reduced, but Opus and Alscor have also advised this Council that with the aid of municipal financing, and its resulting low borrowing cost, the Project is economically more feasible; (g) Pursuant to a resolution of the City Coun- cil adopted on October 18, 1982, a public hearing on the Pro- . ject was held'on November 15, 1982, after notice was published, and materials made available for public inspection at the office of the City Manager, all as required by Minnesota Stat- utes, Section 474.01, Subdivision 7b at which public hearing all those appearing who so desired to speak were heard; e (h) No public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefi~ financially from the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chanhassen, Minnesota, as follows: e 1. The Council hereby gives preliminary approval to the proposal that the City undertake the Project pursuant to the Minnesota Municipal Industrial Development Act (Chapter 474, , Minnesota Statutes), consisting of the acquisition, construc- tion and equipping of facilities within the City pursuant to specifications of Opus or Alscor, as the case may be, suitable for the operations described above and to a revenue agreement between the City and Opus or Alscor, as the case may be, upon such terms and conditions with provisions for revision from tilne to time as necessary, so as to produce income and revenues sufficient to pay, when due, the principal of and interest on the Revenue Bonds in the total principal amount of approxi- mately $1,665,000 to be issued pursuant to the Act to finance the construction of the Project; and said agreement may also provide for the entire interest of Opus or Alscor, as the case may be, therein to be mortgaged to the purchaser of the Revenue Bonds; and the City hereby undertakes preliminarily to issue its Revenue Bonds in accordance with such terms and conditions; -2- I . , e . e 2. On the basis of information available to this Council it appears, and the Council hereby finds, that the Project constitutes properties, real and personal, used or useful in connection with one or rnore revenue producing enterprises en- gaged in any business within the meaning of Subdivision la of Section 474.02 of the Act; that the Project furthers the purposes stated in Section 474.01, Minnesota Statutes; that the availability of the financing under the Act and willingness of the City to furnish such financing will be a substantial induce- Inent to Opus or Alscor, as the case may be, to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the development of economically sound in- dustry and commerce, to assist in the prevention of the emerg- ence of blighted and marginal land, to help prevent chronic unemployment, to help the City retain and improve the tax base and to provide the range of service and employment opportun- ities required by the population, to help prevent the movement of talented and educated persons out of the state and to areas within the State where their services may not be as effectively used, to promote more intensive development and use of land within and adjacent to the City and eventually to increase the tax base of the community; 3. The Project is hereby given preliminary approval by the City subject to the approval of the Project by the Com- missioner of the Department of Energy, Planning and Develop- ment, and subject to final approval by this Council, Opus or Alscor, as the case may be, and the purchaser of the Revenue Bonds as to the ultimate details of the financing of the Project; ~ 4. In accordance with Subdivision 7a of Section 474.01 Minnesota Statutes, the Mayor of the City is hereby authorized and directed to submit the proposal for the Project to the Commissioner of the Department of Energy, Planning and Develop- ment, requesting his approval, and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary information as he may require; S. Both Opus and Alscor have agreed that they will pay any and all costs incurred by the City in connection with the financing of the Project whether or not the Project is carried to completion and whether or not approved by the Commissioner; 6. Briggs and Morgan, Professional Association, acting as bond counsel, and Juran & Moody, Inc., investment bankers, is authorized to assist in the preparation and review of necessary -3- ~ , . e . e documents relating to t~e Project, to consult with the City Attorney, Opus or Alscor, as the case may be, and the purchaser of the Revenue Bonds as to the maturities, interest rates and other terms and provisions of the Revenue Bonds and as to the covenants and other provisions of the necessary documents and to submit such documents to the Council for final approval; 7. Nothing in this resolution or in the documents pre- pared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived from the Project or otherwise granted to the City for this pur- pose. The Revenue Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City except the revenue and proceeds pledged to the payment thereof, nor shall the City be subject to any liability there- on. The holder of the Revenue Bonds shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Revenue Bonds or the interest thereon, or to enforce payment thereof against any property of the City. The Revenue Bonds shall recite in substance that the Revenue Bonds; including interest thereon, are pay~le solely from the revenue and proceeds pledged to the payment thereof. The Revenue Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation: 8. In anticipation of the approval by the Commissioner of the Department of Energy, Planning and Development, and the issuance of the Revenue Bonds to finance all or a portion. of the Project, and in order that completion of the Project will not be unduly delayed when approved" Opus or.Alscor, as the case may be, is hereby authorized to make such expenditures and advances toward payment of that portion of the costs of the Project to be financed from the proceeds of the Revenue Bonds as it considers necessary, including the use of interim, short- term financing, subject to reimbursement from the proceeds of the Revenue Bonds if and when delivered but otherwise without liability on the part of the City: 9. The actions of the City Manager in causing public notice of the public hearing and in describing the general nature of the Project and estimating the principal amount of the Revenue Bonds to be issued to finance the Project and in preparing a draft of the proposed application to the Commis- sioner of the Department of Energy, Planning and Development, State of Minnesota, for approval of the Project, which has been available for inspection by the public at the office of the City Manager from and after the publication of notice of the hearing, are in all respects ratified and confirmed. -4- \ e . . > . 10. The City rese!"ves the right, at its sole discretion, to withdraw its approval of the Project if at any time the City Council determines that the public interest and the purpose of the Act will not be served by the Project. Adopted by Minnesota, this the City Council of the City of Chanhassen, 15th day o~ :; iLd Mayor Attest: ~a.1 a.,~ ~ y Hanager Approved as to Form: RH City Attorney -5- ( ~ :' . ,. J . . e STATE OF MINNESOTA COUNTIES OF CARVER AND HENNEPIN CITY OF CHANHASSEN I, the undersigned, being the duly qualified and acting Manager of the City of Chanhassen, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City duly . r called and held on the date therein indicated, insofar as such minutes relate to a resolution giving preliminary approval to a commercial facilities development revenue project. WITNESS my hand and the seal of said City this 16th day of November, 1982. ItlQfL~ City nager (SEAL) -6-