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HomeMy WebLinkAbout79-01579-15 RPSGLUTION 11-:1,ATING TO A l'IlO,IEXT UVIDE R THE MUNICIPAL 1NDU:iTR CAL DEVEE,01'?11'N t' A::'['; GIVING PRELIMINARY APPROVAL TO THE; PROJECT; l;l:FERRING 'rill; PROPOSAL TO THE COMMISSIONER OF SECURITIES FOR APPROVAL; AND AUTHORISING EXFCUT10N OF A 11116LIMINARY AGRE:}:r•il;NT AND PREPARATION OP NECESSARY DJC01'-1LNTS BE IT RESOLVEID by the City Council of the City of Lakeville, Minnesota (the "City"), gas, follows: Section 1. Policy_and Puri)ose. 1.01. The welfare of the residents of the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce through qovernmental acts; the encouragement of employment opportunities for citizens of the State; the development of industry to use available resources of the State in order to retain the benefit of its existing invest- ment in educational and public service facilities; and the more intensive development of land available in metropolitan areas to provide an adequate tax base to finance the increase in the amount anti cost of governmental services required to be provided by the State anti its .local govern- ment units, including the City, Dakota County and the School District in which the City is located. 1.02. For the purposes specified in paragraph 1.01 the City is authorized by the Municipal Industrial Development Act, Minnesota Statutes, Chapter 474 (the "Act") , to acquire and lease real and personal property for use by a revenue-producing enterprise, or to loan funds directly to the enterprise to be used for such acquisition, said funds to be raised through the issuance of revenue obligations of the City the interest on which is exempt from federal and state income taxes. 1.03. Lakeville Properties, a general partnership organized under the laws of the State of Minnesota ( the "Partnership") , desires to undertake a project in the City, at a total cost presently estimated at approximately $2,200,000, comprising the acquisition of three parcels of land and the design, construction and equipment on each parcel of a building to be leased to the First State Bank of Lakeville for banking purposes. The Partnership proposes to immediately acquire all of the necessary land and to construct and equip one of such buildings (Phase I); to construct and equip a second of such buildings (Phase II) immediately upon completion of Phase I; ant to construct and equip the third building (Phase III) immediately upon i completion of Phase II.'I11e estimattNI cost or the lan:J, building and equipment comprising cacti phase is $1,150,000 for Phase I, $250,000 for Fhase II, and $300,000 for Phase III. 1.04. The Project, and each Phase of it, would increase the level of economic activity in the City, would increase the tax base of the City, Dakota County and the School District, and would provide additional employment opportunities for residents of the City and surrounding area. 1.05. The partnership has advised the City that conventional commercial financing for the cost of the Project is available only on a limited basis and at interest rates which decrease the economic feasibility of the Project; and that ta:c exempt revenue obligation financing pursuant to the Act would substantially increase the economic feasibility of the Project, and would be a signi- ficant inducement to the construction of the Project in the City by the Partnership and the lease of it by said Bank. 1.06. The partnership has proposed that the City issue its revenue obligations pursuant to the Act to finance up to $2,200,000 of the cost of the Project, and has also adivsed the City that the of , Minnesota (the"Uiidert'vr i rer"j , has agreed to purchase or provide others to purchase revenue obligations of the City issued in such amount for such purpose. The obligations may be issued in one or more series. Section 2. Authorization. 2.01. Subject to approval of the Project by the Commissioner of Securities of the State of Minnesota as required by law, and subject to the mutual agreement of the City, the Partnership and the Underwriter as to the details of a loan agreement, a mortgage and security agreement and other documents necessary to evidence and effect the financing of the Project and tile issuance of t:he revenue obligations, the issuance of revenue obligations of the City pursuant to the Act in an amount not exceeding $2,200,000 is authorized to finance the cost of the Project. The exact amount of revenue obll(lations to be issued with respect to the Project shall be determined by ana subject to the approval of this Council. 2.02. The Mayor and City Clerk are authorized and directed to subject the Project to the Commissioner of Securities for his approval as tending to further the Purposes and poi is ic!:: or the Act, cin(i to c..luse such infor- matron concerning the Project to be submitted to the Commissioner as he shall require for this purpose. 2.03. The City's legal counsel and bond counsel are ,authorized to assist in the preparation and review of documents necessary to provide for the issuance, payment and security of the revenue obligations; to consult with the Partnership and the Underwriter as to the terms and provisions of the reVenlIe obligation!,. and the necessary documents; and to submit such documents to this Council for final approval. Section 3. No Liability Of City. Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any moneys of the City on the Project other than the revenues thereof or the proceeds of the revenue obligations. The revenue obligations shall not constitute a char(le, lien or encumbrance, legal or equitable, upon any property or fund;; of. the City except the Project and the revenues pledged to the payment thereof, nor shall the City be subject to any liability thereon. No holder of any revenue obligation shall ever have the right to compel any exercise of the taxing; power of the City to pay any such obligation or the interest thereon, nor to enforce payment thereof against any property of the City except the Project. Each revenue obli(jation shall recite on its face that the obligation, includindl interest thereon, if-, Payable solely from the revenues pledged to the payment thereof. No obligation issued hereunder shall constitute indebtedness of the City within the meaning of any constitu- tional, statutory or charter limitation. Section 4. Proiect_Expenditures. In anticipation of the approval of tt,e 1'roJect by the Commissioner of Securities and the issuance of revenue obligations of the City to finance the Project, and in order that completion of the Project will not he unduly delayed when approved, the Partnership is hereby authorized to make such expenditures and advances toward payment of costs of the Project as it considers necessary, including] the us; , of interim financing, subject to reimbursement. from the hroL-(, .ds of the revenue Obligations when ai►d it issued], but otherwise without liability on the part of the City. Section Vii. Apple gv_al_Of_Prel iminarX_Aelreement. The form of Preliminary Agreement rel.ai.iri�j to the issuance of the revenue obligations authorized in Section 2, pre- sented to the Council at this meeting, is hereby approve;], and the Mayor and City Clerk are hereby authorized and directed to execute the Preliminary Agreement on behalf of. the City. Section 6. Withdrawal by City. The adoption by the City of this resolution does not constitute a quaranty that the City will issue the revenue obligations as requested by the Partnership. The City retains the right at its reasonable discretion to withdraw from participation, and accordingly not issue the revenue obligations should the parties be unable to reach agreement as to the structuring of the financing or as to the terms and conditions of any of the documents required for the transaction. Adopted: March 1.9, 1979. Mayor Attest: City Cler I