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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