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HomeMy WebLinkAbout6569 (Res.)6569 RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJD-_ Gi PR _;E. _ E _ PE:T ::NAR'. AP= r:C:VA, THE P _ _ T. . MUI.IC IY:.L INDUS:I ..AL DE`v'ELOP"..�_. _ ACI AUTHORIZING TEL S=I-SION OF AN APPLICATION FOR APPROVAL O. SA7D rR=CJ, CR PROJECTS T.. COMMISSIONER OF SECUrITIE ✓ OF THE STATE Or MINNESOTA AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH SAID PROJECT OR PROJECTS WHEREAS, (a) 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 encourage- ment 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 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 costs and access to employment opportunities for such population; (c) The City Council of the City of Stillwater (the "City") has received from Mr. Thomas Barrett and Mr. Mark Ravich a proposal that the City undertake to finance a Project or Projects hereinafter described, through the issuance of revenue bonds in the form of one or more debt instruments (the "Note") or other obligations (the "Bonds") pursuant to the Act; (d) Messrs. Barrett and Ravich intend to be part- ners in Croixwood Properties (the "Partnership"), a partnership to be formed under the laws of the State of Minnesota; and the Partnership shall be developers or codevelopers of the Project or Projects hereinafter described; (e) The City desires to facilitate the selective development of the community, retain and improve its tax base and help it provide the range of services and employment oppor- tunities required by its population; and said Project or Projects will assist the City in achieving those objectives. Said Pro- ject or projects will help to increase assessed valuation of the City and help maintain a positive relationship between assessed valuation and debt and enhance the imaoe and reputation of the City; (f) The Partnership shall be engaged in the busi- ness of developing commercial proPerties. The Project or Projects to he financed by the Note or Bonds ccu:sist of commercial facil- ities, including, without limitation, restaurants, stores, and office facilities, to be located in the City and consist of the acquisition of a tract of land and the construction of buildings and improvements on part of the land and the installation of equipment therein for the commercial and/or office facilities and will result in the employment of additional persons to work within the new facilities; (g) The City has been advised by representatives of the Partnership that coventional, commercial financing to pay tfie capital cost of the Project or Projects is available only on a limited basis and at such high costs of borrowing that the eonomic feasibility of operating the Project or Projects would be significantly reduced, but the Partnership has also advised this Council that with the aid of municipal financing, and its result- ing low borrowing cost, the Project or Projects are economically more feasible. NOW THEREFORE, BE IT RESOLVED by the City Council of the c-ity of Stillwater, Minnesota, as follows: 1. The Council hereby gives preliminary approval to the proposal of the Partnership that the City undertake the Pro- ject or Projects 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 the Partnership's specifications suitable for.the operations described above and to a revenue agreement between the City and the Partnership upon such terms and condi- tions with provisions for revision from time to time as neces- sary, so as to produce income and revenues sufficient to pay, when due, the principal of and interest on the proposed Note or Bonds in one or more series in the total principal amount not to exceed approximately $ 4,900,000.00 to be issued pursuant to the Act to finance the acquisition, construction and equipping of said Project or Projects; and said agreement may also provide for the entire, or a portion of the interest of the Partnership in the Project, or in each of the Projects, to be mortgaged to the purchaser or purchasers of the one or more series of the Note or Bonds; and the City hereby undertakes preliminarily to issue its Note or Bonds in one or more series 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 said Project cr Prclects constitute properties, real any personal, used or use- ful in connection with one or more revenue pro:uc_nc enterprises enCaced in any business within the m=a :_nof Subdivision _a of Section 474.02 of the Act, that the availablity of the financinc under the Act and willincness cf the City to _`.:rnish such financinc will be a substantial inducement to the Partnership to undertake the Project or Projects, and that the effect of the Project or Projects, if undertaken, will be to encourage the development of economically sound industry and commerce, to assist in the preven- tion of the emergence of blighted and marginal land, to help pre- vent chronic unemployment, to help the City retain and improve its tax base and provide the range of services and employment opportunities required by its 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 and to eventually increase the City's tax base; 3. Said Project or Projects are hereby given prelim- inary approval by the City subject to the approval of the Project or Projects by the Commissioner of Securities, and subject to final approval by this Council, the Partnership and the purchaser or purchasers of the Note or Bonds as to the ultimate details of the financing of the Project or Projects; 4. In accordance with Subdivision 7a of Section 474.01, Minnesota Statutes, the Mayor of the City is hereby authorized and directed to submit the proposal for the above described Project or Projects to the Commissioner- of Securities, requesting his approval, and other officers, emp..Dyees and agents of the City are hereby authorized to provide the Commissioner with such preliminary information as he may require; 5. The Partnership has agreed and it is hereby deter- mined that any and all costs incurred by the City in connection with the financing of the Project or Projects whether or not the Project or Projects are carried to completion and whether or not approved by the Commissioner will be paid by the Partnership; 6. A recognized bond counsel selected by the Part- nership and acceptable to the City, is authorized to assist in the preparation and review of necessary documents relating to the Project or Projects, to consult with the City Attorney, the Partnership and the purchaser or purchasers of the Note or.Bonds, as to the maturities, interest rates and other terms and provi- sions of the Note or Bonds and as to the covenants and other -3- provisions of the necessary documents and to submit such documents to the Council for final approval; Nothing in this resolution or in the documents pre- pared pursuant hereto shall authorize the expenditure of any municipal funds on the Project or Projects other than the revenues derived from the Project or Projects or otherwise granted to the City for this purchase. The Note, or Bonds, as the case may be, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City except the revenue and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holders of the Note or Bonds shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Note or Bonds or the interest thereon, or to enforce pay- ment thereof against any property of the City. The_ Note or Bonds shall recite in substance that the Note or Bonds, including i.4zterest thereon, is or are payable solely from the revenue and proceeds pledqed to the payment thereof. The Note or Bonds, as the case may be, shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation; 8. In anticipation of the approval by the Commissioner of Securities and the issuance of the Note or Bonds to finance all or a portion of the Project or Projects, and in order that comple- tion of the Project or Projects will not be unduly delayed when approved, the Partnership is hereby authorized to make such expenditures and advances toward payment of that portion of the costs of the Project or Projects to be financed from the proceeds of the Note or Bonds, as the case may be, as the Partnership con- siders necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the Note or Bonds, as the case may be, if and when delivered but otherwise without liability on the part of the City._ Adopted by the City Council of the City of Stillwater, Minnesota, this 24th day of October , 1978. Publish--10-30-78 AFFIDAVIT OF' PUBLICATION STILLWATER EVENING GAZETTE STATE OF MINNESOTA )ss. COUNTY OF WASHINGTON ) Phil Easton, being duly sworn, on oath says he is and during all the times herein stated has been the Publisher and Printer of the newspaper known as Stillwater Evening Gazette and has full knowledge of the facts herein stated as follows: (1) Said newspaper is printed in the English language in newspaper format and in column and sheet form equivalent in printed space to at least 900 square 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 local 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. (4) 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 75% of its total circulation 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 im- mediately 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. (8) 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. He further states on oath that the printed .•}t•€ .. N.RA. E�►�Q.�.. 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 ...QIL s ii(dXX�eKs-days; that it was first so published on )i 011■ the Oth day of ..QG L.• 1978 and was thereafter printed and published on every — to and including the day of — 19.7.. 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: abcdefghijkImnogg rstuvwxyz Subscribed and sworn to before me this.Oth day of .. P.Q.ti A 19. "l,a ( Notarial Seal ) Printers Fee $ ?t . lC� c3 GUDRUN MEYERS Notary public, Washington County, Minnesota. My Commission Expires May 17, 1981. Received Payment 19 STILLWATER EVENING GAZETTE Evening Gazette, Oct. 30, 1978 RESOLUTION rel. 6569 RESOLUTION RECITING A PROPOSAL FOR A COM- MERCIAL FACILITIES DEVELOPMENT PROJECT OR PROJECTS GIVING PRELIMINARY APPROVAL TO THE PROJECT OR PROJECTS PURSUANT TO THE MIN- NESOTA MUNICIPAL IN- DUSTRIAL DEVELOPMENT ACT AUTHORIZING THE SUBMISSION OF AN AP- PLICATION FOR APPROVAL OF SAID PROJECT OR PROJECTS TO THE COM- MISSIONER OF SECURITIES OF THE STATE OF MIN- NESOTA AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CON- NECTION WITH SAID PROJECT OR PROJECTS WHEREAS, (a) 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 as possible the emergence of blighted and marginal lands and areas of chronic unemployment; (b) Factors necessitating the active promotion and development of economically sound industry and commerce are the increasing con- centration 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 costs and access to employment op- portunities for such population; (c) The City Council of the City of Stillwater (the "City") has received from Mr. Thomas Barrett and Mr. Mark Ravich a proposal that the City undertake to finance a Project or Projects hereinafter described, through the issuance of revenue bonds in the form of one or more debt instruments (the "Note") or other obligations (the "Bonds") pursuant to the Act; (d) Messrs. Barrett and Ravich intend to be partners in Croixwood Properties (the "Partnership"), a partnership to be formed under the laws of the State of Minnesota; and the Partnership shall be developers or codevelopers of the Project or Projects hereinafter described; (e) The City desires to facilitate the selective development of the com- munity, retain and improve its tax base and help it provide the range of services and employment op- portunities required by its population; and said Project or Projects will assist the City in achieving those objectives. Said Project or projects will help to increase assessed valuation of the City and help main- tain a positive relationship between assessed valuation and debt and enhance the Image and reputation of the City; By ffl The Partnership Shall be engaged in the business of developing commercial properties. The Project or Projects to be financed be the Note or Bonds consist of commercial facilities, includ;,g. without limitation, reslaura,.'s, stores, and office facilties, to be located in the City and consist of the acquisition of a tract of land and the construction of buildings and improvements on part of the land and fhe installation of equipment therein for the commercial and!or office facilities and will result in the employment et additional persons to work within the new facilities. {4 i The City has representatives of that cOvenliona financing to pay the Project Or Projects been advised by the Partnership I, commercial capital cost Of the is available Only On a limited basis and at such high costs of borrowing that the economic feasibility of Operating the Project or Projects would be significantly reduced, but the Partnership has also advised this Council that with the aid of municipal financing, and i1S resulting low borrowing cost, the Project or Projects are economically more feasible. NOW THEREFORE, BE IT RESOLVED by the City Council Of the City of Stillwater, Minnesota. as follows: 1, The COunc;l hereby gives . preliminary approval to the proposal of the Partnership that the City en. dertake the Project or Projects 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 t0 the Partnership's specffication5 suitable for the Operations described above and to a revenue agreement between the City and the Partnership 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 intrest on the proposed Note or Bonds in one or more series in the total principal amount not to exceed approximately S 4,900,000,00 to be issued pursuant to the Act to finance the acquisition. construction and equipping Of saki Project Or Projects; and said agreement may also provide for the entire, or a portion of the interest of the Partnership in the Project, er in each of the Projects, to be mortgaged to the purchaser or purchasers et the one or more series of the Note or Bonds; and the City hereby un. dertakes preliminarily to issue its Note or Bonds in one or more series 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 said Project or Projects constitute 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 law of Section 474.02 of the Act, that the availability of the financing under the Act and willingness of the City to furnish such financing will be a substantial in- ducement to the Partnership ?0 un• dertake Inc Project Or Projects, and that the effect of the PrdjecT Or Projects, if undertaken, will be to encourage fhe development of economically Sound indestry and commerce, to assist in the prevention of the emergence of blighted and marginal and. to help prevent chronic unemployment, to help the City retain and improve its tax base and provide the range of services ano employment opportunities required by its papule lion, to help prevent the movement of talented and educated persons out of the state and to areas Within the state where there Services may not be as effectively used, to promote more intensive development and use of land within the City and 10 eventually increase the City's tax base: 3. Said Project or Projects are hereby given preliminary approval by the City subject to the approval of the Project or Projects by the Corn. missioner of Securities, and subject To final approval by this Council, the Partnership and the ourchaser or purchasers of the Note or Bonds as to the ultimate details of the financing of the Project or Projects; 4. In accordance with Subdivision 7a of Section 474.01, Minnesota Statutes, the Mayor of the City is hereby authorized and directed i 10 submit the proposal for the above described Project or Projects to the Commissioner of S.ecurities, requesting his approval, and other officers, employees and agents of the City are hereby authorized 10 provide the Commissioner with such preliminary information as he may require; 5. The Partnership has agreed and it is hereby determined that any and all costs incurred by the City in con- nection with .the financing of the Project or Projects whether or not the Project or Projects are carried to completion and whether or not ap- proved by the Commissioner will be paid by the Partnership; 6. A recognized bond counsel selected by the Partnership and ac- ceptable to the City, is authorized to assist in the preparation and review of necessary documents relating to the Poo lee ?.Of ,grol&ctoorta,e 5 laf the Note or Bonds, as to the maturities, interest rates and other terms and provi5ians of the Note or 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 Project or Projects other than the revenues derived from the Project or Projects or otherwise granted to the City for this Purchase. The Note, or Bonds, as the case may be, shall not constitute a charge. lien or encumbrance, legal or equitable, upon any property or funds of the City except the revenue and proceeds pledged to the payment thereof, nor Shalt the City be subject to any liability thereon. The holders of the Note or Bonds shalt never have the right to compel any exercise 0f the taxing power of Inc City to pay the outstanding principal on the Note or Bonds or the interest thereon. or to enforce payment Thereof against any property of the City. The Note or Bonds shall recite in substance that the Note Or Bonds, including interest !hereon, is or are payable solely from the revenue and proceeds pledged To the payment ?hereof, The Note or Bonds, as the case may be, shall not constitute a debt of fhe City within the meaning of any Constitutional or statulory limitation; 8. In anticipation of the approval by the Commissioner of Securities and the issuance of the Note or Bonds to finance all or a portion of the Project or Protects, and in order that corm plelion of She Project or Projects will not be unduly delayed when approved, the Partnership is hereby au ftiorized to make such expenditures and ad- vances toward payment of that por- tion of the costs of the Project or Projects to be financed from the proceeds of the Note or Bonds, as the case may be, as the Partnership considers necessary, including the use of interim, short.term financing, subject to reimbursement from the proceeds of the Note or Bonds, a5 the case may be, if and when delivered bul otherwise without liability on the part of she City. Adopted by the City Council 0f the City of Stillwater, Minnesota, this 24th day of October, 1978. 10/30