HomeMy WebLinkAbout90-120 CITY OF LAKEVILLE
RESOLUTION
Date October 1, 1990 Resolution No. 90-120
Motion by Harvey Seconded by Mulvihill
RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT WITH ARDEN
INTERNATIONAL KITCHENS, INC., A MINNESOTA CORPORATION, AND OTHERS;
GIVING PRELIMINARY APPROVAL WITH .CONDITIONS OR THE ISSUANCE BY THE
MINNESOTA AGRICULTURAL AND ECONOMIC BOARD OR THE
CITY OF LAKEVILLE OF REVENUE BONDS TO FINANCE THE PROJECT AND
PROVIDING FOR OTHER MATTERS RELATED THERETO..
WHEREAS, the City Council, in and for the City of Lakeville
(herein, the "City"), is desirous of inducing and. encouraging (i)
Arden International Kitchens, Inc., a Minnesota corporation,. (ii) and
R. Stephan Tanner, individual, either individually or collectively
(herein, the "Applicant"), to cause to be acquired, equipped, and
operated a 90,000 square foot office/production facility to be
located in the City at 21150 Hamburg Avenue (herein, the.
"Project") and to be used for food processing.
• WHEREAS., the Minnesota Agricultural and Economic Development
Board has been established pursuant to Minnesota Statutes, Chapter
41A (and including certain provisions of Minnesota Statutes 1986,
Chapter 116M notwithstanding the repeal thereof) {collectively, the
"Act") to act on behalf of the State of Minnesota within the scope of
powers granted to it in the Act to implement loan programs under the
Act by which the State, along or in cooperation with private or
public lenders, may provide adequate funds or incentives to finance
or assist in financing of projects and otherwise assist the
development, construction and installation of such projects.; and
WHEREAS, the State has yet to act officially on the Applicant's
application but is expected to do so in the near future; and
WHEREAS, the Applicant has specifically requested that the State
undertake to issue its revenue bonds under the Program and Resolution
to finance the, costs of the Project in the estimated principal amount
of $5,.800,000 and with a final maturity not to be in excess of the
estimated average economic useful life of the Project; and
WHEREAS, pending such action by the State, the Applicant has
requested the City to adopt this resolution to encourage the State to
finance the Project .and to serve as the appropriate substitute for a
"bond resolution or other form of official action" necessary to
• document the Applicant's intentions and the intentions of a state or
local subdivision to cause the Project to be financed with tax-exempt
bonds under the Internal Revenue Code of 1986, as amended;
i
NOW, THEREFORE, BE IT RESOLVED by the City Council in .and for
the City of Lakeville as follows:
Section 1. The City hereby acknowledges receipt of a copy of
the application of the'Applicant to the State (the "Application") for
financial assistance with respect to the Project..
Section 2. Based on the Application of the Applicant and on
other information available to the City, the City hereby finds and
determines that:
(1) financing of the Project by the issuance of tax-exempt
bonds is necessary to permit the Applicant to expand or remain
in Minnesota and the Applicant has demonstrated that it cannot
obtain suitable financing from other sources and the issuance of
the Bonds would be substantial inducement to the Applicant to
undertake the Project:
(2) the Project will create or retain significant numbers
of jobs in the City and will add to the tax base of the State,
the City and other. taxing jurisdictions;
• (3) the Applicant has a significant potential for growth in
jobs or economic activities in Minnesota during the ensuing
five-year period; and
(4) the Applicant will maintain a significant level of
productivity in Minnesota during the ensuing five-year period.
Section 3. The City Council hereby gives preliminary approval
to the Project and its financing by the State by the issuance of the
State's Small Business Development Loan Bonds. Subject to the
conditions herein stated the City hereby encourages the State to give
preliminary approval to the proposal that the State issue its Bonds
in an amount not to exceed $5,800,000 and use the proceeds thereof to
make the loan to finance the costs of the Project or a portion
thereof pursuant to the Act. Sueh issuance would be made upon such
terms and .conditions and with such provisions as the State may
require and the proceeds of the loan shall be used solely for costs
as described in this resolution. If the state is unwilling or unable
to issue such bonds, the City hereby evidences its preliminary
approval of the Project and its intent to issue revenue bonds
pursuant to Minnesota Statutes, Sections 469.152 - 469.165 to finance
the Project. Notwithstanding any other terms and provisions set
• forth in this resolution to the contrary, this resolution. shall not
obligate the City to issue such bonds but only shall serve as the
necessary preliminary official action of the City evidencing its
• present intent to issue its bonds for the Project if so requested.
Section 4. The Bonds, whether issued by the State or the City,
would be special obligations of the issuer thereof payable solely
from the revenues realized from the loan agreement with respect to
the loan financed with Bond proceeds, from the application of amounts
on deposit in any debt service reserve fund established by the issuer
thereof with respect to the Bonds and from other revenues, moneys or
assets specifically pledged to the benefit of the bondholders. The
Bonds would not constitute a debt or loan of credit of the State or
any political subdivision thereof (other than the Minnesota
Agricultural and Economic Development Board, if issued by the State)
nor will any political subdivision thereof be liable on the Bands.
Neither the faith and credit nor the taxing power of the State or of
any political subdivision thereof shall be pledged to the payment of
the principal of or the interest on the Bonds.
Section 5. In anticipation of the approval by the State or City
of the Bonds and the Project and of the disbursements to the
Applicant of the proceeds of the Bonds as and for the loan pursuant
to any indenture or similar instrument nd loan agreement to be
entered by the State or the City with respect thereto, and in order
that the completion of the Project shall not be unduly delayed when
approved, the City has adopted this resolution so as to permit the
Applicant, or any duly authorized person or corporation acting on the
Applicant's behalf, to pay or incur qualified costs under the Act and
the Internal Revenue Code of 1986., as amended (the "Code") with
respect to the Project to be financed by the loan and to pay such
costs either by direct payment of such costs from proceeds of the
loan when and if funded from Bond proceeds or by reimbursement to the
• Applicant from the proceeds of the loan when and if funded from bond
proceeds for such costs paid directly by the Applicant or aforesaid
agent of the Applicant from its own funds, including the use of
interim, short-term financing, subject to reimbursement from the
proceeds of the Bonds, if and when delivered, but otherwise without
liability to the State or the City. Neither the incurring of
expenses nor the disbursement of funds by the Applicant pursuant to
this Section 5 shall create an obligation., by estoppel or otherwise,
on the part of the City or the State to issue the Bonds,. such
_ issuance to remain within the sole discretion of the City or the
State.
Section 6. The Applicant has agreed and it is hereby determined
that any and all costs incurred by the City in connection with the
financing of the Project, whether or not the Project is carried to
completion and whether or not the Bonds are issued, shall be paid by
the Applicant.
Section. 7. This resolution shall take effect immediately and
shall be effective (subject to Section 3 hereof) for a period of 24
months from the date of adoption, unless extended by subsequent
resolution of the City of Lakeville.
CITY OF LAKEVILLE
•
BY:
D one Zaun, ayor
ATTEST:
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t~ ~
Charlene Friedges, City,`-lerk