87-70
CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
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DATE:
July 20, 1987
RESOLUTION NO:
87-70
MOTION BY:
Horn
SECONDED BY:
Geving
A RESOLUTION GIVING PRELIMINARY APPROVAL TO THE ISSUANCE
OF COMMERCIAL DEVELOPMENT REVENUE BONDS IN THE APPROXIMATE
AGGREGATE PRINCIPAL AMOUNT OF $600,000 TO FINANCE THE
ACQUISITION, CONSTRUCTION, AND INSTALLATION OF A LICENSED
CHILD DAY CARE FACILITY AND NURSERY SCHOOL
BE IT RESOLVED BY THE City Council of the City of Chanhassen,
Minnesota (the City), as follows:
1. It is hereby found, determined, and declared as follows:
a. The City is authorized, pursuant to Minnesota
Statutes, Chapter 474 (the Act), to develop revenue producing
enterprises which may be financed by the issuance of revenue
bonds of the City.
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b. The City is in need of additional quality child day
care and nursery school services at affordable rates, and
Building Block Nursery School and Day Care Center (the Company)
is willing to develop a licensed day care facility in the City.
c. The City intends to enter into a joint powers
agreement with either the Housing and Redevelopment Authority of
the City of St. Paul, Minnesota, or the City of Woodbury,
Minnesota (the Issuer), whereby the Issuer will issue revenue
bonds pursuant to the Act (the Bonds) on behalf of the City and
other cities in aggregate principal amount sufficient to finance
the acquisition and construction of a licensed day care and nur-
sery school facility consisting of an estimated 5,600 square foot
single story building to accommodate approximately 100 children
within the City, to be located one-half block west of Great Plains
Blvd. on West 78th Street (the Project), as well as similar faci-
lities in other cities (the Program).
d. The City can obtain sufficient financing for the
Project at less cost through the Program than by issuing its own
revenue bonds pursuant to the Act.
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e. The City has been advised by the Company, and on such
oasis hereby finds, that conventional, commercial financing to
pay the capital cost of the Project is available at such costs of
borrowing that the Project would not be economically feasible and
would not be undertaken but for the availability of industrial
development bond financing therefor.
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f. This Council has been advised by Dougherty, Dawkins,
Strand & Yost Incorporated, Minneapolis, of the financial feasi-
bility of the Project, as so undertaken with the assistance of
the City, or of its intention to purchase commercial revenue
obligations to finance the Project.
g. The City has been advised by Larkin, Hoffman, Daly &
Lindgren, Ltd., Minneapolis, Minnesota, that the Project consti-
tutes a "project" within the meaning of Minnesota Statutes,
Chapter 474.
2. The City has conducted a public hearing on the issuance
of the Bonds and on the Project after at least 14 days public
notice thereof published in the South Shore Weekly News and the
Minneapolis Star and Tribune, at which all parties were provided
an opportunity to express their views with respect to the pro-
ject, the financing of the Project and the City's participation
in the Program.
3. On the basis of the information received by the City to
date, the City has determined that the Project will increase the
supply of licensed day care and nursery school facilities in the
City and has further determined that financing of the Project
pursuant to the Program will be in furtherance of the purposes of
the Act.
4. The City gives its preliminary approval to the issuance
of commercial development revenue bonds in the approximate aggre-
gate principal amount of $600,000 on its behalf by the Issuer
pursuant to a joint powers agreement to provide financing for the
acquisition, construction, and installation of the Project, sub-
ject to approval of the Project by the Minnesota Department of
Trade and Economic Development (the Department) and to the mutual
agreement of the Issuer, the Company, and the initial purchasers
of the Bonds as to the details and provision for payment of the
bonds. In all events, it is understood, however, that the Bonds
shall not constitute a debt of the City or a charge, lien, or
encumbrance, legal or equilable, upon any property of the City
except its interest in the Project, if any, and each of the Bonds
when, as, and if issued sh II recite in substance that it is
payable solely from the revenues received from the projact and
property pledged to the payment thereof.
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5. In accordance withjMinnesota Statutes, Section 474.01,
subdivision 7a, the Mayor ~s hereby authorized and directed to
submit the proposal for th~ Project to the Department for appro-
val. The Mayor and other ~fficers, employees, and agents of
the City are hereby authorized to provide the Department with any
preliminary information ne~ded for this purpose and are further
authorized to initiate and assist in the preparation of a joint
powers agreement and such other documents as may be appropriate
to the Project and the financing thereof.
Passed and adopted by the Chanhassen City Council this
20th day of
, 1987.
July
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ATTEST:
YES
Hamilton
Boyt
Johnson
Horn
Geving
V~~!L1L
v Thomas L. Hamilton, Mayor
NO
ABSENT
None
None