RES 1983-121 - 00005860240
RESOLUTION NO. 121 - 1983
RESOLUTION RECITING A PROPOSAL FOR A COMMERICAL 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 THE PROJECT TO THE ENERGY AND
ECONOMIC DEVELOPMENT AUTHORITY OF THE STATE OF MINNESOTA
AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND
MATERIALS IN CONNECTION WITH THE PROJECT (INTEGRA -BUILT
II, INC.)
WHEREAS, the purpose of Chapter 474, Minnesota Statues, 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; and
WHEREAS, 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 base to finance these increased costs and access to
employment opportunities for such population; and
WHEREAS, the City Council of the City of Fridley (the "City") has received
from Integra -Built II, Inc., a Minnesota corporation which will be a general
partner in a Minnesota limited partnership to be formed (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 Revenue Note or Notes
hereinafter referred to in this resolution as "Revenue Bonds" pursuant to the
Act; and
WHEREAS, 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
reputation of the community; and
WHEREAS, the Project to be financed by the Revenue Bonds is an approximately
202 room hotel including banquet facilities to be located on the Northwest
corner of the intersection of Highway 694 and Highway 65 in Fridley (the
present 100 Twin Drive -In Theatre property) and consists of the acquisition of
land and the construction of buildings and improvements thereon and the
installation of equipment therein to be initially owned and operated by the
Company, and will result in the employment of additional persons to work
within the new facilities; and
0
Page 2 — Resolution No. 121 - 1983
241
WHEREAS, 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 Company has also advised this Council that with the aid of municipal
financing, and its resulting low borrowing cost, the Project is economically
more feasible; and
WHEREAS, a public hearing on the Project was held on December 5, 1983, after
notice was published, and materials made available for public inspection at
the City Hall, all as required by Minnesota Statutes, Section 474.01,
Subdivision 7b at which public hearing all those appearing who so desired to
speak were heard; and
WHEREAS, no public official of the City 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.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Fridley,
Minnesota, as follows:
1. The Council hereby gives preliminary approval to the proposal of Company
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 the Company's specifications suitable for the operations described
above to be intially owned and operated by the Company and pursuant to a
revenue agreement between the City and Company upon such terms and conditions
with provisions for revision from time to time as necessary, so as to produce
income and revenues sufficient to gay, when due, the principal and interest on
the Revenue Bonds in the maximum aggregate principal amount of $9,900,000 to
be issued pursuant to the Act to finance the acquisition, construction 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; 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 la of
Section 474.02 of the Act; that the Project furthers the purposes stated in
Section 474.04, 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 to Company 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 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
promoted more intensive development and use of land within the City and
eventually to increase the tax base of the community;
Page 3 — Resolution No. 121 - 1983
242
3. The Project is hereby given preliminary approval by the City subject to
the approval of the Project by the Minnesota Energy and Economic Development
Authority or such other state officer having authority to grant approval (the
"Authority "), and subject to final approval by this Council, Canpany, 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 City is hereby authorized and directed to submit the proposal
for the Project to the Authority requesting its approval, and other officers,
employees and agents of the City are hereby authorized to provide the
Authority with such preliminary information as it may require;
5. Company 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 approved by the
Authority will be paid by Company;
6. O'Connor & Hannan, acting as bond counsel, and Juran & Moody, Inc.,
investment bankers, are authorized to assist in the preparation and review of
necessary documents relating to the Project, to consult with the City
Attorney, Company and the purchaser of the Revenue Bonds as to the maturities,
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 Project other
than the revenues derived fran the Project or otherwise granted to the City
for this purpose. The Revenue Bonds 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 holder of the Revenue Bonds shall never
have the right to carpel any exercise of the taxing power of the City to pay
the outstanding principal on the Revenue Bonds or the interest thereon, or to
enforce payment thereof against any property of the City. 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;
8. In anticipation of the approval by the Authority the issuance of the
Revenue Bonds to finance all or a portion of the Project, and in order that
completion of the Project will not be unduly delayed when approved, Canpany 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
interim, 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 City;
�Y
�I
Page 4 — Resolution No. 121 - 1983
243
9. It is further found, determined and declared that it is the present intent
of the City Council to authorize the issuance and sale of the Revenue Bonds
but the City reserves the right in its sole discretion to withdraw this
preliminary approval of the Project if at any time the City Council determined
that the public interest and the purposes of the Act will not be served by the
Project.
10. This resolution is subject to the condition that within twelve months
from the date of its adoption the City and the Company shall have agreed to
' mutually acceptable terms and conditions of a revenue agreement, the Revenue
Bonds, and of the other instruments and proceedings relating to the Revenue
Bonds, and their issuance and sale. If such agreement does not take place
within that time or any extension thereof and the Revenue Bonds are not sold
within such time, this resolution shall expire and be of no further force or
effect.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 127H DAY OF
SEPTEMBER, 1983.
ATTEST:
SIDNEY C. IMM - CITY CLERK
< W--Q--
IAM J. NEE OR