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HomeMy WebLinkAbout08-02 RESOLUTION NO. 08-02 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT PURSUANT TO MINNESOTA STATUTES, SECTION 469.154, AND AUTHORIZING THE SUBMISSION OF AN APPLICATION TO THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENTAND THE PREPARATION OF NECESSARY DOCUMENTS (ALL SAINTS SCHOOL PROJECT) WHEREAS, (a) The purpose of Minnesota Statutes, Sections 469.152 to 469.165 relating to municipal industrial development (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 industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment; (b) Factors necessitating the active promotion and development of economically soundindustry 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 increased 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 population; (c) The Board of Commissioners of the Housing and Redevelopment Authority of the City of Lakeville, Minnesota (the "Authority") received a proposal from All Saints Church of Lakeville, Dakota Co., Minnesota (a/k/a All Saints Catholic Church), a Minnesota religious corporation (the "Borrower") that the Authority undertake to finance a Project hereinafter described, through the issuance of revenue bonds (hereinafter the "Bonds" or the "Revenue Bonds") pursuant to the Act; (d) The Authority desires to facilitate the selective .development of the community and surrounding area, retain and improve the tax base in the Authority, and help to provide the range of services and employment opportunities required by the population; and'the Project will assist the Authority in achieving those objectives. The Project will help to increase assessed valuation in the Authority and help maintain a positive relationship between assessed valuation and debt and enhance the image and reputation of the community; (e) The Project to be financed by the -Bonds is the refinancing of the renovation, construction and equipping of a school facility for All Saints School located in the City of Lakeville, Minnesota (the "Project"). The Project created thirty-six (36) additional new jobs in addition to the existing thirty (30) jobs. (f) The Borrower is requesting an issue in .the amount not to exceed $2,000,000. 2145160v3 (g) The Authority has been advised by representatives of Borrower 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; (h) No public official of the Authority has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project; (i) A public hearing on the Project was held on March 17, 2008, pursuant to published notice as required by the Acf and Section 147(fj of the Internal Revenue Code of 1986, as amended. NOW, THEREFORE, BE IT RESOLVED by -the Board of the Housing and Redevelopment Authority of Lakeville, Minnesota, as follows: 1. The Authority hereby indicates its preliminary intent to undertake the Project, and financing therefore, pursuant to the Act, and pursuant to a revenue agreement between. the AUthority and Borrower upon such terms and conditions with provisions for revision from time to time as necessary, so as to produce income and revenues sufficient to pay, when due, the principal of and interest on .the Bonds in the total. principal amount of up to approximately $2,000,000 to be issued pursuant to the Act to fmance or refinance a portion of the. costs of the construction and installation of the Project. 2. On the basis of information available to this Authority it appears,. and the Authority hereby finds, that the Project constitutes properties, real and personal, used or useful in connection with. one or more revenue producing enterprises within the meaning of Subdivision 2(b) of Section 469.153 of the Act; that the Project furthers the purposes stated in Section 469.152; that the availability of the financing under the Act and willingness of the Authority to furnish such financing will be a substantial inducement to Borrower to undertake the Project, and that the effect of the Project,. if undertaken, will be to encourage the development of economically sound industry and commerce, to assist in the prevention of the emergence of blighted and marginal land, to help prevent chronic unemployment, to help the surrounding area retain and improve the tax base and to provide the range of service and employment opportunities 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 the City of Lakeville, Minnesota and surrounding communities and eventually to increase the tax base of the community. 3. The Project is hereby given preliminary approval by the Authority subject to .final approval by this Authority, .the Borrower, and the purchaser of the Bonds as to the ultimate details of the financing of the Project. 4. The Authority and .staff of the Authority are .hereby authorized and directed to submit an "application for approval of a bond project to the Minnesota Department of Employment and Economic Development for the Project. 2145160v3 2 5. The Borrower .has agreed and it is. hereby determined that any and all costs incurred by the Authority in connection with the financing of the Project, including legal fees, whether or not the Project is carried to completion, be paid by the Borrower.. 6. Briggs and Morgan, Professional Association, acting as bond counsel, is authorized to assist in the preparation and review of necessary documents relating to the Project, to consult with the counsel to the Authority, the Borrower and the purchaser of the Bonds as to the maturities, interest rates and other terms and provisions of the Bonds and as to the covenants and other provisions of the necessary documents and to submit such documents to the Authority for final approval. 7. Nothing in this resolution or in the documents prepared 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 Authority for this purpose.. The Bonds shall not .constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the Housing and Redevelopment Authority of Lakeville, Minnesota except the revenue and proceeds pledged to the payment thereof, nor shall the Housing and Redevelopment Authority of Lakeville, Minnesota be subject to any liability thereon. The holder of the Bonds shall never have the right to compel any exercise of the taxing power of the Housing and Redevelopment Authority of Lakeville, Minnesota to pay the outstanding principal on the Bonds or the: interest thereon, or to enforce payment thereof against any property of the Housing and Redevelopment Authority of Lakeville, Minnesota. The Bonds shall recite in substance that the Bonds including interest thereon, are payable .solely from the revenue and proceeds pledged to the payment thereof. The Bonds shall not constitute a debt of the Housing and Redevelopment Authority of Lakeville, Minnesota within the meaning of any constitutional or statutory limitation. 8. This resolution shall take effect immediately upon adoption. Adopted by the Board of the Housing and Redevelopment Authority of Lakeville, Minnesota, this 17th day of March, 2008. r 1..~,.:~LJU Laurie Rieb, Chair Attest: Steven C. Mielke, Executive Director 2145160v3 3