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HomeMy WebLinkAbout7024 (Res.) missing page431 • • RESOLUTION NO. 7024 RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF SAID PROJECT TO THE COMMISSIONER OF SECURITIES OF THE STATE OF MINNESOTA AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH SAID PROJECT. A WHEREAS, (a) The purpose of Chapter 474, Minnesota Statutes, known as the Minnesota Municipal Industrial Developnait Act (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 economi- cally sound industry and commerce to prevent so far as possible the energence of blighted and marginal ]ands and areas of chronic unemployment; (b) Factors necessitating the active promotion and development of economically sound industry 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 eiployment opportunities for such population; (c) The City Council of the City of Stillwater (the "City") has received from the principals of Grand Stillwater Associates, Ltd., who intend to reform such partnership as a Minnesota limited partnership (the "Company") a proposal that the City assist in financing a Project hereinafter described, through the issuance of a Revenue Bond or Bonds or a Revalue Note or notes hereinafter referred to in this resolution as "Revenue Bonds" pursuant to the Act; (d) The City desires to facilitate the selective development of the community, retain and improve the tax base and help to provide the range of services and employment opportunities required by the population; and the Project will assist the City in achieving those objectives. The Project will help to increase assessed valuation of the City and help maintain a positive relationship between assessed valuation and debt and enhance the image and repurtation of the unity; real estate. (e) Company is currently engaged in the business of awning and developing The Project to be financed by the Revere Bonds is a restaurant and retail facility to be located in the City and consists of the acquisition of land and the construction of buildings and improve- ments thereon and the installation of equipment therein, and will result in the employment of additional persons to work within the new facilities; (f) The City has been advised by representatives of Company 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, but Compahy has also advised this Council that with the aid of municipal financing, and its resulting low borrowing cost, the Project is ecammdcally more feasible; (g) Pursuant to a resolution of the City Council adopted on December 15, 1981, a public hearing on the Project was held on January 5, 1982, after notice was published, and materials made available for public inspection at the City Hall, all as required byyMumes � totu es, Section noe 474.01, Subdivision 7b at which public hearing all those appearingpew heard- (h) No public official of the City has either a direct or indirect financial interest in the Project nor will any public officail either directly or indirectly benefit financially from the Project. NOW, THE, BE IT RESOLVED by the City Council of the City of Stillwater, Minnesota, as follows: 1. The Council hereby gives preliminary approval to the proposal of Cmpany that the City undertake the Project pursuant to the Minnesota Municipal Industrial Development Act (Chapter 474, Minnesota Statutes), consisting of the acquisition, construction and equipping of facilities within the City pursuant to Company's specifications suitable for the terms andtions conditions described and to a revenue agreement between the City and Company upon suchthem provisions for revision from time to time as necessary, so as to produce incase and revenues sufficient to pay, when due, the principal of and interest on the Revamue Bonds in the total principal amount trctionxand approximately 000 �t�t�the financet acquisition, uceeQppoejec; and entnampovide for the entire interest of Company therein to be mortgaged to the purchaser of the Revenue Bonds; and the City hereby undertakes preliminarily to issue its Revenue Bonds in accordance with such terms and conditions; 2. On the basis of information available to this Council it appears, and the Council hereby finds, that the Project constitutes properties, real and personal, used or useful in connection with one or more revenue producing enterprises engaged in any business within the meaning of Subdivision 1-a of Section 474.02 of the Act; that the Project furthers the purposes stated in Section 474.01, Minnesota Statutes; that the availability of the financing under the Act and willingness of the City to furnish such financing will be a substantial inducement ant to undertake the Project and that the effect of the Project, if undertaken, will be to encourage the develop- ment of economically sound industry and ccumerce, to assist in the prevention of the emergence of blighted and marginal land, to help prevent chronic unemployment, to help the City retain and (continued page 432) • • • AFFIDAVIT OF PUBLICATION STILLWATER EVENING GAZETTE STATE OF MINNESOTA )ss. COUNTY OF WASHINGTON ) Phil Easton ano John Easton, being duly sworn, on oath say they have and during all the times herein stated nave been the Publishers and Printers of the newspaper known as Stillwater Evening Gazette and has full knowledge of the facts herein Stated as follows! (1) Said newspaper i5 printed in the English language in newspaper format and in column and Sheet form equivalent in printed space to at least 9o05quare inches. (2) Said newspaper is a daily and is distributed Monday through Friday of each week, except holidays. (3) Said newspaper has 25%of its news columns devoted to news of locat interest to the community which it purports to serve and does not wholly duplicate any other publication and Is not made up entirely of patents, plate matter and advertisements. (A) Said newspaper is circulated in and near the municipality which it purports to serve, has at least 500 copies regularly delivered to paying subscribers, has an average of at least 95% of its total cir- culation currently paid or no more than three months in arrears and has entry as second- class matter in its local post -office. (5) Said newspaper purports to serve the City of Stillwater and surrounding area in the County of Washington and it has its known office of issue in the City of Stillwater in said coUnty, established and open during its regular business hours for the gathering of news, sale of advertisements and sale of subscriptions and maintained by the publisher or persons in his employ and subject to his direction and control during all such regular business hours at which said newspaper is printed. (6) Said newspaper files a copy of each issue immediately with the State Historical Society. (7) Said newspaper is made available at single or subscription prices to any person, corporation, partnership or other unincorporated association requesting the newspaper and making the applicable payment. (B) said newspaper has complied with all the foregoing conditions for at least one year preceding the -day or dates of publication mentioned below. (9) Said newspaper has filed with the Secretary of State of Minnesota prior to January 1, 1966 and each January 1 thereafter an affidavit in the form prescribed by the Secretary of State and signed by the Publisher and sworn to before a notary public stating that the newspaper is a legal newspaper. They further state on oath that the printed C S O 117 t 1071 No. 7024 City of Stillwater hereto attached as a part hereof was cut from the columns of said newspaper, and was printed and published therein in the English language, once each week, for O f w ............ 'A'ii>t-days; that it was first so published on �Ql�r the llth day of January„ 19 82 and was thereafter printed and published on every — to and including the — day of 19.... and that the following is a printed copy of the lower case alphabet from A to Z, both inclusive, and is hereby acknowledged as being the size and kind of type used in the composition and publication of said notice, to wit: abcdefgh i j kl mnopgrstuvwxyz Subscribed and sworn to before me this llth day of January 19 82 2,ck I Notarial Seal GUDRUN MEYERS Notary public, Washington County, Minnesota My Commission Expires May 17, 1988 Printers Fee $ /o /' S Received Payment 19 STILLWATER EVENING GAZETTE By Evening Gazette, Jan. 11, 1912 RESOLUTION NO. 7024 RESOLUTION RECITING PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AUTHORIZING THE SUBMISSION OF AN AP- PLICATION FOR APPROVAL OF SAID PROJECT TO THE COMMISSIONER OF SECURITIES OF THE STATE OF MINNESOTA AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH SAID PROJECT WHEREAS, (al The purpose of Chapter 474, Minnesota Statutes, known as the Minnesota Municipal Industrial Development Act (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 es possible the emergence of blighted and marginal lands and areas of chronic unemployment; (b) Factors necessitating the active promotion and developitient of economically. sound Industry and commerce are the Increasing concentration of population In the metropolitan areas and the rapidly rising Increase in the amount and cost of govern. mental 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 Clty Council of the Clty of Stillwater (the "City") has received from the principals of Grand Stillwater Associates, Ltd., who intend to reform such partnership as a Minnesota limited partnership (the "Company") a proposal that the Clty assist in financing a Project hereinafter described, through the issuance of a Revenue Bond or Bonds or a Revenue Note or Notes hereinafter referred to Ih this resolution as "Revenue Bonds" pursuant to the Act; 111 (d) The City desires to facilitate the selective development of the community, retain and Improve the tax base and help to provide the range of services and em- ployment opportunities required by the population; and the Project will assist the City in achieving those objectives. The Project will help to increase assessed valuation of the City and • help maintain a, positive relationship between assessed valuation and debt and enhance the Image and reputation of the community; (e) Company Is currently engaged in the business of owning and developing real estate. The Project to be financed by the Revenue Bands is a restaurant and retell facility to be located in the Clty and consists of the acquisition of land and the construction of buildings and Improvements thereon and the installation of equipment therein, and will result In the employment of additional persons to work within the new facilities; (f) The Clty has been advised by representatives of Company that con• ventlonal, 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 Prolect would be significantly reduced, but Company has also advised this Council that with the old of municipal financing, and its resulting low borrowing cost, the Protect Is economically more • feasible; Council adopted on December 1s, 1981, a public hearing on the Project was held on January 5, 1962, after notice was published, and materials made available for public inspection at the City Hall, ail as required by Minnesota ' Statutes, Section 474,01, Sub- division 7b at which public hearing all those appearing who so desired to speak were heard; (h) No public official of the City has either a direct or Indirect financial Interest in the Project nor4 will any public official either directly or Indirectly benefit financially from the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Stillwater, Minnesota, es follows: 1. The Council hereby gives_ preliminary approval to the proposal of Company that the City undertake the Prolect pursuant to the Minnesota Municipal Industrial Develop- ment Act (Chapter 474, Minnesota Statutes), consisting of the acquisition, construction and equipping of facilities within the Clty pursuant to Company's specifications suitable for the operations described above and toe revenue agreement between the Clty and Company upon such terms and con- ditions with provisions for revision from time to time as necessary, so as to produce Income and revenues sufficient to pay, when due, the princlpal of and interest on the Revenue Bonds In the total principal amount Of ap- proximately S1,500,000 to be Issued pursuant to the Act to finance the acquisition, con- struction and equipping of the Project; and said agreement may also provide for the entire Interest of Company therein to be mortgaged to the purchaser of the Revenue Bonds; and the Clty hereby undertakes preliminarily to Issue Its Revenue Bonds In accordance with such terms and conditions; 2. On the basis of information available to this Council It appears, and the Council hereby finds, that the Prolect constitutes properties, real and personal, used or useful in connection with one or more revenue producing enterprises engaged In any business within the meaning of Subdivision la of Section 474.02 of the Act; that the Prolect furthers the purposes stated In Section 474.01, Minnesota Statutes; that the availability of the financing under the Act and willingness of the Clty to furnish such financing will be a substantial Inducement to Company to undertake the Prolect, and that the effect of the Prolect, 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 City 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 In- tensive development and use of land within the City and eventually to Increase the tax base of the community; , 3. The Project Is hereby given preliminary approval by the Clty subject to the approval of the Project by the Commissioner of Securities and Real Estate, and sublect to final approval by this Council, Company, and the purchaser of the Revenue Bonds as to the ultimate details of the financing of the Project; 4. In accordance with Subdivision 7a of Section 474.01 Minnesota Statutes, the Mayor of the Clty Is hereby authorized and directed to submit the proposal for the Project to the Commissioner of Securities and Real Estate, requesting her approval, and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary Information as she may require; 5. Company has agreed and It Is hereby determined that any and all costs Incurred by the Clty In connection with the financing of the Project whether or not the Project Is carried to completion and whether or not approved by the Commissioner will be paid by Company; b. Briggs and Morgan, Professional Ass0Cla'llan, acting as bond counsel, are authorized to assist In the preparation and review of necessary documents relating to the Prolact. to consult with the City Attorney, Company and the purchaser of the Revenue Bonds as to the maturttles, Interest rates and • other terms and provisions of the Revenue Bonds and as to the covenants and other provisions of the necessary documents and to submit such documents to the Council 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 Projects other than the revenues derived from the Project or otherwise granted to the City for this purpose. The Revenue Bonds shall not constitute a charge, Ilen or emcumbrance, legal or equitable, upon any property or funds of the Clty except the revenue and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holder of the Revenue Bonds shall never have the right to compel any exercise of the taxing power of the Clty to pay the outstanding princlpal on the Revenue Bonds or the Interest thereon, or to enforce payment thereof against any property of the Clty. The Revenue Bonds shall recite In substance that the Revenue Bonds, including interest thereon, Is payable solely from the revenue and proceeds pledged to the payment thereof. The Revenue Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation; 0. In anticipation of the approval by the Commissioner of Securities and the Issuance of the Revenue Bonds to finance all or a portion of the Project, and In order that completion of the Prolect will not be unduly delayed when approved, Company Is hereby authorized to make such expenditures and advances toward payment of that portion of the costs of the Project to be financed from the Proceeds of the Revenue Bonds as Company considers necessary, Including the use of (ntermim, short-term financing, subject to reimbursement from the proceeds of the Revenue Bonds If and when delivered but otherwise without liability on the part of the Clty. Adopted by the City Council of the Clty of Stillwater, Minnesota, .this 5th day of January, 1902.