77-2603 RESOLUTION NO. 77-2603
RESOLUTION GIVING PRELIMINARY APPROVAL TO A
PROPOSED INDUSTRIAL DEVELOPMENT PROJECT TO BE
CONSTRUCTED AND FINANCED UNDER THE MUNICIPAL
• INDUSTRIAL DEVELOPMENT ACT, AUTHORIZING
THE SUBMISSION OF AN APPLICATION TO THE
COMMISSIONER OF ECONOMIC DEVELOPMENT FOR
APPROVAL THEREOF AND AUTHORIZING THE
PREPARATION OF DOCUMENTS AND MATERIALS
IN CONNECTION WITH THE PROJECT
BE IT RESOLVED by the City Council of the City of Hopkins,
Minnesota, as follows:
1. There has been presented to this Council a proposal
that the City undertake a project pursuant to the Minnesota Munic-
ipal Industrial Development Act, Chapter 474 , Minnesota Statutes,
consisting of a supermarket facility for the sale of food and re-
lated merchandise (the "Project") in the City to be constructed
and equipped by Reilly and Hagen, a co-partnership, and leased to
T. & H. Markets, Inc. , a franchisee of Super Valu Stores, Inc.
Under the proposal, Reilly and Hagen will enter into a revenue agree-
ment to construct and equip the Project and the City will issue up
111 to approximately $755, 000 Industrial Development Revenue Bonds of
the City pursuant to the Act to finance the Project. If the revenue
agreement takes the form of a loan agreement, Reilly and Hagen will
retain title to the Project and the site thereof and the loan agree-
ment will require Reilly and Hagen to pay amounts sufficient to pay
the principal of and interest on any Bonds issued. If the revenue
agreement takes the form of a lease, title to the Project will be
conveyed to the City and the lease will reauire Reilly and Hagen to
pay rent sufficient to pay the principal of and interest on the
Bonds. The City may assign its interest in the revenue agreement
to a trustee or the bondholder to secure the Bonds. The Bonds may
also be secured by a mortgage of the Project, or by an assignment
of the lease or sub-lease to T. & H. Markets, Inc. , or both. The
Bonds shall be issued in accordance with the Act, and shall provide
funds payable solely from amounts received by the City pursuant to
the revenue agreement. The Bonds shall not be a general obligation
of the City or be payable from any other property or funds of the
City.
2 . There has been presented to this meeting a form of
Application to Commissioner of Economic Development for approval
of the Project setting forth the estimated costs of the Project
and the increased employment and payrolls to result therefrom.
It is hereby found, determined and declared that the purpose of
the Project is and the effect thereof will be to promote the
public welfare by the attraction, encouragement and development
of economically sound industry, agriculture and commerce so as
to prevent, so far as possible, the emergence of blighted and
marginal lands and areas of chronic unemployment; the development
of industry to use the available resources of the community, in
order to retain the benefit of its existing investment in educa-
tional and public service facilities, by halting the movement of
talented, educated personnel of mature age to other areas and
thus preserving the economic and human resources needed as a base
for providing governmental services and facilities; and the more
intensive development of land available in the area to provide
an adequate tax base to finance the increase in the amount and
cost of governmental services provided by the City, the County and
the School District in which the City is located.
3. The Project is hereby given preliminary approval by
the City, subject to (i) approval of the Project by the Minnesota
Commissioner of Economic Development and (ii) approval of this
111 Council, Reilly and Hagen and the underwriters or an institutional
investor of the ultimate details of the Project and the terms of
the Bonds.
4. Reilly and Hagen is undertaking to make arrangements
with an underwriter or institutional investor for the purchase of
the Bonds. Upon receipt of a letter of intent to purchase the Bonds
from an underwriter or other purchaser designated by Reilly and
Hagen, the Mayor and City Manager are hereby authorized and directed
to submit to the Commissioner of Economic Development an Application
for approval of the Project, substantially in the form presented
to this meeting, together with the letter of intent necessary to
complete such Application. The Mayor and City Manager and other
officers, employees and agents of the City are hereby authorized to
provide the Commissioner with such preliminary information as he
may request.
5. Reilly and Hagen has agreed to pay any and all costs
incurred by the City in connection with the Project whether or not
the Project is approved by the Commissioner and whether or not the
Project is carried to completion.
111 6. Reilly and Hagen has agreed to, and is hereby author-
ized, to enter into such contracts as may be necessary for the con-
struction of the Project by any means available to it and in the
manner it determines without advertisement for bids as may be required
for the construction or acquisition of 6 .her municipal facilities.
AW
M. or
Attest:
Ci y Clerk
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