84-08
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RESOLUTION 84-08
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHANHASSEN, MINNESOTA GIVING PRELIMINARY APPROVAL,
PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT, OF A ~-ROOM HOTEL AND CONVENTION
FACILITY TO BE ACQUIRED AND CONSTRUCTED IN THE
CITY; AUTHORIZING THE SUBMISSION OF AN APPLICATION
WITH RESPECT TO SAID FACILITY TO THE MINNESOTA
ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY; AND
RELATED MATTERS.
WHEREAS, the City of Chanhassen, Minnesota (the
"City") is authorized pursuant to the Minnesota Municipal
Industrial Development Act, Minnesota Statutes, Chapter 474,
as amended (the "Act"), to issue its revenue bonds for the
purpose of financing certain "projects", as defined in the
Act, and thereby promote the welfare of the inhabitants of
the City and State of Minnesota by attracting and encouraging
the development of economically sound industry and commerce
and preventing the emergence of blighted and marginal lands
and areas of chronic unemployment; and
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WHEREAS, SUNNYBROOK VENTURES , a Minnesota
1imi ted partnership to be formed bYSUNNYBRQ.OK DEVELbp~NT GRouj!.he
"Company"), has submitted an application to the LiLY pLoposing
that the City undertake the financing of a Project (as
hereinafter described) on behalf of the Company through the
issuance of its Revenue Bond or Bonds or Revenue Note or
Notes, in one or more series (such Revenue Bonds or Notes
being hereinafter referred to as the "Revenue Bonds"), in an
aggregate face amount of up to $2.900.000 , pursuant to the
Act; and
WHEREAS, the "Project" to be financed by the
Revenue Bonds consists of the acquisition and construction
by the Company of a ;5 -room hotel and convention facility,
together with related food and beverage service facilities,
to be located in the City on a site bordered by HWYS. #5 & #17 i
and
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WHEREAS, the Company's application to the City
indicates that the Project, if and when completed, will
further the general purposes contemplated in Section 474.01
of the Act in that it will add to the tax base of the City
and County and school district in which the Project is
located, and will increase employment opportunities for
residents of the City and the surrounding area by providing
employment for approximately 100 persons; and
WHEREAS, in connection with the issuance of the
Revenue Bonds, the Company will be required to agree with
the City to give preference in employment oppqrtunities to
qualified individuals who are unemployed or economically
disadvantaged, and, therefore, the financing of the Project
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by the City will promote employment opportunities for persons
who are unemployed or economically disadvantaged within the
meaning of Section 474.01, Subdivision 11 of the Act; and
WHEREAS, the City Council of the City conducted a
public hearing with respect to the project on the date hereof,
after publication of notice thereof as required by the Act, and
a draft application to the Minnesota Energy and Economic
Development Authority for approval of the Project has been
available for inspection by the public in the Office of the City
Manager of the City at all times since the publication of such
notice; and
WHEREAS, the Revenue Bonds, if and when issued,
will not constitute a charge, lien or encumbrance upon any
property of the City and such Revenue Bonds will not be a
charge against the City's general credit or taxing power,
but will be payable solely from amounts derived fro~ a
revenue agreement to be entered into between the City and
the Company;
NOW, THEREFORE, BE IT RESOLVED by the City; Council
of the City of Chanhassen, Minnesota, as follows:
(1) On the basis of information provided to the
City to date, and the views expressed at the public hearing
held on the date hereof with respect to the Project, it
is hereby found and determined (a) that the Project constitutes
a "project" within the meaning of Section 474.02, Subdivision
la of the Act, in that the Project will be used in connection
with a revenue producing enterprise, (b) that the Project
furthers the purposes set forth in Section 474.01 of the
Act, in that the Project will tend to add to the tax base of
the City and the County and school district in which it is
located, will increase employment opportunities for residents
of the City and the surrounding area, and in particular,
employment opportunities for persons who are unemployed or
economically disadvantaged, and will promote the development
of economically sound industry in the City, and (c) that, as
an inducement to the Company to acquire and construct the
Project in the City, it is in the best interest of the City
to issue its Revenue Bonds in an aggregate face amount of up
to $ 2,900,000 , pursuant to the Act, to finance costs
of the Project and to pay necessary costs incidental to the
issuance of said Revenue Bonds.
(2) It is hereby determined by the City Council
of the City that it is desirable to proceed with the Project
and the financing thereof and said City Council hereby
declares its present intention to have the City issue the
Revenue Bonds in an aggregate face amount of up to $ 2.900,000
, pursuant to the Act, to finance the Project. All
details of said Revenue Bonds and the provision for payment
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thereof shall be subject to final approval by one or more
resolutions of the City Council of the City, and the issuance
of said Revenue Bonds shall be subject to the approval of
the Project by the Minnesota Energy and. Economic Development
Authority and may be subject to such further conditions as
the City may specify.
(3) If the Revenue Bonds are issued and sold, the
City and the Company shall enter into a lease, mortgage,
direct or installment sale contract, loan agreement, take or
payor similar agreement, secured or unsecured, satisfying
the requirements of the Act (the "Revenue Agreementll). The
amounts payable by the Company to the City under the Revenue
Agreement shall be sufficient to pay the principal of and
interest and redemption premium, if any, on the Revenue
Bonds as and when the same shall become due and payable, and
the Revenue Agreement shall otherwise comply with the require-
ments of the Act.
(4) If the Revenue Bonds are issued and sold, the
City and the Company shall also enter into an agreement
concerning employment recruitment, referral and placement
(the llEmployment Preference Agreementll), under which the
Company will give preference to such persons as employees
for the Project when completed, it being the intention of
the City Council that the execution and performance of such
E~ployment Preference Agreement will further the policies of
Section 474.01, Subdivision 11 of the Act.
(5) In accordance with the Act, the Mayor and
City Clerk are hereby authorized and directed to submit an
application to the Minnesota Energy and Economic Development
Authority for approval of the Project. The Mayor, City
Clerk, City manager, City Attorney and other officers,
employees and agents of the City are hereby authorized to
provide said Authority with any preliminary information
necessary for this purpose, and such officers are hereby
authorized to assist in the preparation of the Revenue
Agreement, the Employment Preference Agreement, and such
other documents as may be appropriate in connection with the
Project and the issuance of the Revenue Bonds.
(6) It is hereby determined that any and all
direct and indirect costs incurred by the City in connection I
with the Project, whether or not the Project is approved by
the Minnesota Energy and Economic Development Authority and
whether or not the City by resolution authorizes the issuance'
of the Revenue Bonds, shall be paid by the Company upon
request.
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(7) Doherty, Rumble & Butler Professional
Association, St. Paul, Minnesota, as bond counsel, is hereby
authorized to prepare all necessary documents relating to
the Project and the issuance of the Revenue Bonds and to
submit such documents to the City Attorney and the City
Council of the City for final approval.
(8) This Resolution shall become effective
immediately upon its passage.
Said Resolution was passed and approved by the
City Council of the City of Chanhassen, Minnesota, on this
27th day of February , 1984 by the following vote:
Ayes: Mayor Hamilton, Councilmembers Horn, Swenson and
Watson.
Nays:
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CERTIFICATE
I, the undersigned, the duly qualified and acting
City Clerk of the City of Chanhassen, Minnesota, do hereby
certify that the foregoing is a true and correct copy of an
excerpt of minutes of the regular meeting of the City Council
of the City of Chanhassen, Minnesota held on ;'J1L(y ';''7 ,
1984, and of a Resolution adopted at said meeting, as
recorded in the official records of said City Council.
this
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WITNESS WHEREOF, I have hereunto set my hand
day of ~~Ul/'lJ- ,1984.
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City Clerk
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