1j. Set Public Hearing Date, Sale of Industrial Revenue Bonds, Control ProductsCITY OF
AqBANBASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
TO
FROM:
DATE:
Don Ashworth, City Manager
Todd Gerhardt, Assistant City Manager
(612) 937 -1900 • FAX (612) 937 -5739 ktIM by City Adminietntor
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Bak Submitted to Commission
Do% Submitted to Council
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September 7, 1995
SUBJ: Request from Control Products to Call for a Public Hearing Regarding the
Issuance of Industrial Development Revenue Bonds
Building Management Group, the owner of Control Products, Inc., is considering building a
35,000 sq. ft. office manufacturing facility in the Chanhassen Business Center adjacent to the
National Weather Service. As a part of this project, Building Management Group is
requesting city assistance in issuing industrial development revenue bonds. Under this type of
"private placement" bond application, the city will not take on any additional financial
liability such as repayment obligations, liens, increase in the city's overall debt, or be a part of
the city's bond/general credit review. All payments under the bonds will be made by the
borrower and will not be an obligation of the city.
The city's role is to submit an application to the Dept. of Trade and Economic Development
requesting approval for the proposed industrial development bonds and to ensure that the
project satisfies the public purpose of encouraging additional employment opportunities and
enhancing the city's overall tax base. In addition, the borrower will be responsible for all
costs and expenses incurred by the city in connection with the issues of these bonds.
Recommendation:.W-.
Staff recommends that the city council approve the attached resolution calling for a public
hearing on October 9, 1995 to consider issuing $2,000,000 in industrial development revenue
bonds for Building Management Group.
Attachment
1 1. Resolution calling for a public hearing on October 9, 1995.
MEMORANDUM
RESOLUTION CALLING FOR A PUBLIC HEARING
ON A PROPOSAL FOR AN INDUSTRIAL
FACILITIES DEVELOPMENT PROJECT PURSUANT TO
MINNESOTA STATUTES AND AUTHORIZING THE
PUBLICATION OF A NOTICE OF HEARING
(a) WHEREAS, Minnesota Statutes, Sections 469.152
through 469.165, relating to municipal industrial development (the
"Act "), gives municipalities the power to issue revenue bonds for
the purpose of the encouragement and development of economically
sound industry and commerce to prevent so far as possible the
emergence of blighted and marginal lands and areas of chronic
unemployment; and
(b) WHEREAS, the City Council of the City of Chanhassen,
Minnesota (the "City "), has received from Building Management
Group, LLC, a Minnesota limited liability corporation (collectively
the "Company "), a proposal that the City assist in financing a
project hereinafter described, through the issuance of its
industrial revenue bonds (the "Bonds ") pursuant to the Act; and
(c) WHEREAS, before proceeding with consideration of the
request of the Company it is necessary for the City to hold a
public hearing on the proposal pursuant to Section 469.154,
Subdivision 4, of the Act:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Chanhassen, Minnesota, as follows:
1. A public hearing on the proposal of the Company will
be held at the time and place set forth in the Notice of Public
Hearing hereto attached.
2. The general nature of the proposal and an estimate
of the principal amount of Bonds to be issued to finance the
proposal are described in the attached form of Notice of Public
Hearing.
3. A draft copy of the proposed application to the
Commissioner of the Department of Trade and Economic Development,
State of Minnesota, for approval of the project, together with
proposed forms of all attachments and exhibits thereto, is on file
in the office of the Manager.
4. The Manager is hereby authorized and directed to
cause notice of the hearing to be given one publication in the
official newspaper of the City and also in a newspaper of general
circulation available in the City, not less than 14 days nor more
than 30 days prior to the date fixed for the hearing, substantially
in the form of the attached Notice of Public Hearing.
730335.1
Adopted by the City Council of the City of Chanhassen,
Minnesota this 11th day of September, 1995.
Mayor
I ATTEST:
Manager
L'
' 730335.1
NOTICE OF PUBLIC HEARING
ON A PROPOSAL FOR AN INDUSTRIAL
DEVELOPMENT PROJECT
Notice is hereby given that the City Council of the City of
Chanhassen, Minnesota, will meet at the City Hall, 690 Coulter
Drive, at p.m. on Monday, October 9, 1995, to consider the
proposal of Building Management Group (the "Company "), that the
City assist in financing a project hereinafter described by the
issuance of industrial development revenue bonds.
The project consists of the acquisition of land located on
Lake Drive West in the Chanhassen Business Center described as Lot
2, Block _, Third Addition, Chanhassen Business Center and
construction of an approximately 35,000 sq. ft. facility thereon to
be leased by the Company to Control Products, Inc. for use in the
design and manufacture of custom temperature and other building
controls. The owner of the building will be Building Management
Group, LLC, a Minnesota limited liability corporation (the
"Company ").
The maximum aggregate estimated principal amount of bonds or
other obligations to be issued to finance this project is
$2,000,000.
The bonds or other obligations if and when issued will not
constitute a charge, lien or encumbrance upon any property of the
City except the project and such bonds or obligations will not be
a charge against the City's general credit or taxing powers but
will be payable from sums to be paid by the Company pursuant to a
revenue agreement.
A draft copy of the proposed application to the Minnesota
Department of Trade and Economic Development, State of Minnesota,
for approval of the project, together with all attachments and
exhibits thereto, is available for public inspection beginning
September 11, 1995 from 8:00 a.m, to 4:30 p.m., Monday through
Friday, at the City Hall.
At the time and place fixed for the Public Hearing, the City
Council of the City of Chanhassen will give all persons who appear
at the hearing or present their written views an opportunity to
express their views with respect to the proposal.
(BY ORDER OF THE CITY COUNCIL)
By /s/ Don Ashworth
City Manager
730335.1