1989-078
~.
, _!&..
'\. IOn
MF517-St.Paul
RESOLTUION NO: 89-78
RESOLUTION RECITING A PROPOSAL FOR AN
INDUSTRIAL FACILITIES DEVELOPMENT PROJECT,
GIVING PRELIMINARY APPROVAL TO THE PROJECT
PURSUANT TO MINNESOTA STATUTES
SECTION 469.154, AUTHORIZING THE SUBMISSION OF
AN APPLICATION FOR APPROVAL OF THE PROJECT TO THE
COMMISSIONER OF THE DEPARTMENT OF TRADE AND
ECONOMIC DEVELOPMENT OF THE STATE OF MINNESOTA,
AND AUTHORIZING THE PREPARATION OF
NECESSARY DOCUMENTS AND MATERIALS
IN CONNECTION WITH THE PROJECT
(POWELL'S FINE CANDIES, INC. PROJECT)
(a) WHEREAS, the purpose of Minnesota Statutes,
Sectlons 469.152 through 469.165, relatlng to munlclpal
lndustrlal development (the "Act"), as found and determined by
the leglslature, lS to promote the welfare of the state by the
actlve attract10n and encouragement and development of
econoffilcally sound lndustry and commerce to prevent so far as
poss1ble the emergence of bl1ghted and marglnal lands and
areas of chron1C unemployment; and
(b) WHEREAS, factors necessitatlng the actlve
promotlon and development of economically sound lndustry and
commerce are the increasing concentratlon of populatlon in the
metropolltan areas and the rapidly rislng increase ln the
amount and cost of governmental serVlces required to meet the
needs of the 1ncreased population and the need for development
of land use which will provide an adequate tax base to flnance
these lncreased costs and access to employment opportunities
for such population; and
(c) WHEREAS, the City Council of the Clty of
Hopklns, Mlnnesota (the "City"), has received from Powell's
Flne Candles, Inc., a corporation organlzed under the laws of
the State of Minnesota (the "Company"), a proposal that the
Clty ass 1St in flnanclng a Project hereinafter described,
through the issuance of a Revenue Bond or Bonds (hereinafter
referred to ln thlS resolution as "Revenue Bonds") pursuant to
the Act; and
(d) WHEREAS, the City desires to facilitate the
selectlve 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 wlll assist the City in achieving those objectives;
the Project will help to increase assessed valuation of the
Clty and help maintaln a positlve relationship between
assessed valuatlon and debt and enhance the image and
reputatlon of the community; and
(e) WHEREAS, the Company is currently engaged in
the buslness of the manufacture of candy; and the Project to
be flnanced by the Revenue Bonds is an approximately 60,000
square foot expanslon of the Company's eXlsting faclllty
located on the northwest corner of Excelslor Boulevard and
Powell Road ln the Clty and conslsts of the construction of
bUlldlngs and lmprovements thereon and the lnstallatlon of
equlpment thereln, all to be constructed pursuant to the
Company's speciflcatlons and to be owned and operated by the
Company (the "ProJect"), and wlll result in the employment of
approxlmately 90 addltlonal persons to work withln the new
facllltles; and
(f) WHEREAS, the City has been advised by
representatlves of the Company that conventlonal, commercial
flnanclng to pay the capltal cost of the Project is available
only on a limlted basis and at such hlgh costs of borrowing
that the econom1C feaslbllity of operatlng the Project would
be slgnlflcantly reduced wlthout the avallability of
lndustrlal development bond flnanclng; and
(g) WHEREAS, pursuant to a resolution of the Clty
Counc1l adopted on August 7, 1989, a public hearing on the
Project was held on September 5, 1989, after notice was
publlshed, and materlals made avallable for public lnspection
at the City Hall, all as required by Minnesota Statutes,
Section 469.154, Subdivision 4 at which public hearing all
those appearlng who so desired to speak were heard;
(h) WHEREAS, no public offlcial of the City has
either a dlrect or lndirect financial interest in the Project
nor wlll any publlC official either dlrectly or lndirectly
beneflt flnanclally from the Project:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Hopklns, Minnesota, as follows:
1. The Council hereby gives prellminary approval to the
proposal of the Company that the Clty undertake the Project
pursuant to the Act and pursuant to a revenue agreement
2
between the City and Company containing such terms and
condltions (wlth provisions for revision from time to time as
necessary) as may be necessary to produce income and revenues
sufflclent to pay, when due, the principal of and interest on
the Revenue Bonds in the maximum aggregate principal amount of
$3,000,000, to be issued pursuant to the Act to finance the
acqulsltlon, construction and equipping of the Project. Said
revenue agreement may also provide for the entire interest of
the Company therein to be mortgaged to the purchaser of the
Revenue Bonds. The City hereby undertakes preliminarily to
lssue ltS Revenue Bonds in accordance with such terms and
condltlons, subject to considerat1on of discussion at the
publlC hearlng.
2. On the basis of informatlon available to thlS Councll
lt appears, and the Council hereby finds, that the Project
constltutes propertles, real and personal, used or useful ln
connectlon wlth one or more revenue producing enterprlses
engaged ln any business wlthln the meaning of Subdivislon 2(b)
of Sectlon 469.153 of the Act; that the Project furthers the
purposes stated ln Sectlon 469.152 of the Act; that the
wllllngness of the Clty to furnish such financlng makes the
ProJect economlcally more feasible; and that the effect of the
Project, lf undertaken, will be to encourage the development
of economlcally sound lndustry and commerce, to help prevent
chronlC unemployment, to help the City retaln and lmprove the
tax base and to provlde the range of serVlce and employment
opportunltles requlred by the population, to help prevent the
movement of talented and educated persons out of the State and
to areas wlthln the State where their services may not be as
effectlvely used, to promote more intenslve development and
use of land wlthln the City, and eventually to increase the
tax base of the community.
3. The Project lS hereby given preliminary approval by
the Clty subject to the approval of the Project by the
Commlssioner of the Department of Trade and Economic
Development or such other state officer having authority to
grant approval (the "Commissioner"), the receipt of federal
allocatlon of authorlty to lssue tax-exempt financlng and
subject to flnal approval by this Council, the Company, and
the purchaser of the Revenue Bonds as to the ultlmate details
of the financing of the Project.
4. In accordance with Subdivision 3 of Section 469.154
of the Act, the Mayor or Manager of the City lS hereby
authorlzed and directed to submlt an application for federal
allocatlon and to submlt the proposal for the Project to the
3
.
Comm1ssioner requesting his approval, and other officers,
employees and agents of the City are hereby authorized to
provide the Commissioner with such preliminary information as
he may require.
5. The Company has agreed and it is hereby determined
that any and all costs incurred by the C1ty in connection w1th
the financ1ng of the Project, including any deposit required
to hold allocation of author1ty to issue the Revenue Bonds
w1ll be pa1d by the Company, whether or not the Project is
carr led to complet1on and whether or not approved by the
Comm1SS1oner.
6. Briggs and Morgan, Professional Association, act1ng
as bond counsel, and Norwest Corporate F1nance, are author1zed
to ass 1St ln the preparat10n and reV1ew of necessary documents
relatlng to the Project, to consult w1th the C1ty Attorney,
the Company and the purchaser of the Revenue Bonds as to the
matur1t1es, interest rates and other terms and provisions of
the Revenue Bonds and as to the covenants and other prov1slons
of the necessary documents, and to subm1t such documents to
the Counc1l for f1nal approval.
7. Noth1ng 1n th1S resolut1on or in the documents pre-
pared pursuant hereto shall author1ze the expend1ture of any
municipal funds on the ProJect other than the revenues derived
from the ProJect or otherwise granted to the C1ty for th1S
purpose. The Revenue Bonds shall not const1tute a charge,
llen or encumbrance, legal or equ1table, upon any property or
funds of the C1ty except the revenue and proceeds pledged to
the payment thereof, nor shall the City be subJect to any
liab1lity thereon. The holder of the Revenue Bonds shall
never have the r1ght to compel any exerC1se of the taxing
power of the C1ty to pay the outstand1ng principal of the
Revenue Bonds or the interest thereon, or to enforce payment
thereof against any property of the C1ty. The Revenue Bonds
shall rec1te in substance that the Revenue Bonds, including
interest thereon, are payable solely from the revenue and
proceeds pledged to the payment thereof. The Revenue Bonds
shall not const1tute a debt of the City with1n the meaning of
any const1tutional or statutory Ilmitation.
8. In antic1pation of the approval by the Commissioner
and the 1ssuance of the Revenue Bonds to finance all or a
port1on of the Project, and in anticipation that the City w1ll
procure and devote to the Revenue Bonds an adequate allocat1on
of author1ty to 1ssue private activ1ty bonds, and in order
that completlon of the Project will not be unduly delayed when
4
approved, the Company is hereby authorized to make such
expend1tures and advances toward payment of that portion of
the costs of the Project to be financed from the proceeds of
the Revenue Bonds as the Company considers necessary,
1nclud1ng the use of inter1m, short-term financing, subject to
re1mbursement from the proceeds of the Revenue Bonds if and
when del1vered but otherwise without liability on the part of
the Clty.
Adopted by the C1ty Council of the City
Minnesota, th1s 5th day of September, 1989.
d~~
Mayor
~
o
.
.
5
.... ,.. . ....
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF HOPKINS
I, the unders1gned, be1ng the duly qual1f1ed and
act1ng Clerk of the C1ty of Hopk1ns, M1nnesota, DO HEREBY
CERTIFY that I have compared the attached and forego1ng
extract of mlnutes wlth the orlg1nal thereof on file 1n my
off1ce, and that the same 1S a full, true and complete
transcr1pt of the mlnutes of a meetlng of the City Counc1l of
sald C1ty duly called and held on the date there1n 1nd1cated,
lnsofar as such mlnutes relate to a resolutlon glvlng
prel1m1nary approval to an lndustrlal facllit1es development
.
proJect.
WITNESS my hand and the seal of sa1d C1ty thlS 121-/.
day of ~k/J1t,....- I 19Bf.
(SEAL)
6