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88-88 lC; . t .: .' .' . e . 'or' CERTIFICATION OF MINUTES RELATING TO INDUSTRIAL DEVELOPMENT REVENUE BONDS Issuer: City of Chanhassen, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting, held on August 22, 1988, at 7:30 o'clock P.M., at the City Hall. Members present: Mayor Hamilton, COW'lcilmen Horn, Boyt, Johnson arxl Geving. Members absent: None Documents Attached: Minutes of said meeting (pages): 14 MINUTES OF PUBLIC HEARING ON PROPOSED PROJECT and RESOLUTION NO. 88-88 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT ON BEHALF OF LYMAN LUMBER COMPANY AND ITS FINANCING UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT FOR APPROVAL; AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of the corporation in my legal custody, from which they have been transcribed; that the documents are a correct and complete transcript of the minutes of a meeting of the governing body of the corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at the meeting, insofar as they relate to the obligations; and that the meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand and the seal of the City officially as such recording officer this ~ ilf 7J~8. Signature Don Ashworth, City Manager Name and .itle e e e ~ The Mayor stated that ~his.was the time and place fixed by Resolution No. 88-77 of this Council, adopted on July 25, 1988, for a public hearing on the proposal that the City undertake and_ finance a project (the Project) on behalf of Lyman Lumber Company, a Minnesota corporation (the Borrower) pursuant to Minnesota Statutes, Sections 469.152 through 469.165. The City Manager presented an affidavit showing publication of the notice of 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 , the official newspaper of the City, and a newspaper of general circulation throughout the City. The affidavit was examined, found 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 was discussed, the draft copy of the Application to the Minnesota Department of Trade and Economic Development with draft copies of 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 to which the following persons either appeared, were recognized y' . and made statements, or filed written comments with the City Manager before the date set for the hearing, summaries of which appear opposite their respective names: Name of Speaker Summary of Views None The City Manager [reported that no written comments had been] filed in the office of the City Manager before the date of the hearing. ~ After all persons who wished to do so had stated or filed their views on proposal, the Mayor declared the public hearing to be closed. After some discussion, Councilmember Johnson moved for adoption of the following resolution: * Strike inappropriate language e ~I e RESOLUTION NO. 88-88 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT ON BEHALF OF LYMAN LUMBER COMPANY AND ITS FINANCING UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF TRADE AND. ECONOMIC DEVELOPMENT 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 e 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, Sections 469.152 through 469.165 (the Act), consisting of the construction and equipping of an approximately 30,240 square foot addition to the existing facility owned by Lyman Lumber Company, a Minnesota corporation (the Borrower) and to be leased by the Borrower to Automated Building Components, Inc., a corporation affiliated to the Borrower by common management and common ownership for use principally for prefinishing and assembly of building products and related storage (the Project). The Project is located at 18800 West 78th Street in the Municipality. 1.2. At a public hearing, duly noticed and held on August 22, 1988, in accordance with the Act and Section 147(f) of the Internal Revenue Code of 1986, as amended, 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 and interested persons were given the opportunity to submit written comments to the City Manager before the time of the hearing. Based on the public hearing, such written comments (if any) 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 of Minnesota has encouraged local government units to act to prevent such economic deterioration. e e (b) The Project would further the general purposes contemplated and described in Section 469.152 of the Act. (c) The existence of the Project would add to the tax base of the Municipality, the County and the School District in which the Project is located and would provide increased opportunities for employment for reside~ts of the Municipality 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 feasibility of constructing and 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 been advised by representatives of the Borrower that the Project would not be undertaken but for the availability of industrial development bond financing. e (f) This Council has also been advised by representatives of the Borrower that on the basis of its discussions with potential buyers of tax-exempt bonds, revenue bonds of the Municipality (which may be in the form of a revenue note or notes) could be issued and sold upon favorable rates and terms to finance the Project. (g) 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 the bonds by the Municipality would be a substantial inducement to the Borrower to acquire, construct and equip the Project. SECTION 2 Determination To Proceed with the Project and its Financing 2.1. On the basis of the 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 the maximum aggregate face amount of $1,000,000. e -2- e e e 2.2. It is hereby determined to proceed with the Project and its financing and this Council hereby declares its present intent to have the Municipality issue its revenue bonds under the Act to finance the Project. Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the Municipality or its City Council to issue or to cause th~ issuance of such revenue bonds. All details of such revenue bond issue and the provisions for payment thereof shall be subject to final approval of the Project by the Minnesota Department of Trade and Economic Development and may be subject to such further conditions as the Municipality may specify. The revenue bonds, if issued, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the Municipality, except the revenues specifically pledged to the payment thereof, and each bond, when, as and if issued, shall recite in substance that the bond, including interest thereon, is payable solely from the revenues and property specifically pledged to the payment thereof, and shall not constitute a debt of the Municipality within the meaning of any constitutional, statutory or charter limitation. 2.3. The Application to the Minnesota Department of Trade and Economic Development, with attachments, is hereby approved, and the Mayor and City Manager are authorized to execute said documents on behalf Df the Municipality. 2.4. In accordance with Section 469.154, Subdivision 3 of the Act, the Mayor and City Manager are hereby authorized and directed to cause the Application to be submitted to the Minnesota Department of Trade and Economic Development 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 Department with any preliminary information needed for this purpose. The City Attorney is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project, if approved by the Department. 2.5. The approvals contained herein to the issuance by the City of its revenue bonds under the Act to finance the Project is subject to the condition that such revenue bonds be sold only to "accredited investors" as such term is defined by Rule 50l(a) under the Securities Act of 1933, as amended, who agree to purchase the bonds for investment purposes only and without a view to re-sell or distribute the bonds, and that the minimum denomination of any bonds be not less than $20,000. -3- e e e 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 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 of, and 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 the Project, whether or not the Project is carried to completion, and whether or not approved by the Minnesota Department of Energy and Economic Development, 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 Section 469.154, Subdivisions 5 and 7 of the Act. Adopted Attest: n Da5C6 City Manager -4- e e e The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Horn and, upon vote being taken thereon, the following voted in favor thereof: Mayor Hamilton, Councilmen Geving, Jolmson, Boyt and Horn. and the following voted against the same: None whereupon the resolution was declared duly passed and adopted and was signed by the Mayor, which signature was attested by the City Manager. -5- .... 54' City Council Meeting - August 22; 1988 .. e Councilman Johnson: There's another alternative too, he can buy 7.4 feet of his neighbor's property. r Mayor Hamil ton moved, Councilman Geving seconded to approve a 7.4 foot variance to the side yard setback for the construction of a 10' x 20' boat cover. All voted in favor except Counci lman Boyt and Counci lman Johnson who opposed and the motion carried with a vote of 3 to 2. PUBLIC HEARING: LYMAN LUMBER INDUSTRIAL DEVELOPMENT REVENUE BONDS. Mayor Hamilton called the public hearing to order. Mayor Hamil ton: We have a public hearing to consider the issuance of one million dollars in industrial development revenue bonds for the Lyman Lumber expansion facility in Chanhassen. Is there anyone here who would wish to speak to this item? Councilman Horn moved, Councilman Geving seconded to close the public hearing. , All voted in favor and the motion carried. Resolution #88-88: Councilman Johnson moved, Councilman Horn seconded to approve the issuance of $1,000,000.00 in industrial development revenue bonds for Lyman Lumber's expansion facility in Chanhassen. All voted in favor and the motion carried. [ e PUBLIC HEARING: TH 101 REALIGNMENT: A. Ca1PREHENSIVE PLAN TEXT AMENDMENT TO AMEND THE TRANSPORTAION CHAPTER TO IDENTIFY THE REALIGNMENT OF TH 101. B. ADOPI' OFFICIAL MAP, FIRST AND SOCOND READING. C. CONSIDER AUTHORIZING CONDEMNATION. D. SITE PLAN REVIEW FOR A 40,000 SQUARE FOOT SHOPPING CENTER (HIDDEN VALLEY CENTER), NORTH OF LAKE DRIVE EAST, JUST EAST OF Q-SUPERETTE, NEW AMERICAN Ha1ES CORPORATION. Public Present: Name Address -- Jerry Schlenk Stephen J. MacDonald Missey Kersch Chuck Bye Scott & Kirsten Melencamp Roger & Dorothy Downing Ulrico Sacchet 225 West 78th Street 8017 Cheyenne Spur 271 Hidden Lane 271 Hidden Lane 8137 Dakota Lane 7200 Juniper Road (P.O. Box 651) 8071 Hidden Circle b 14