Report on Industrial Development Revenue Bonds ( K-Tel Investment Project)November 3, 1981
Mr. Michael T. McKim
Stolpestad, Brown Smi
2000 North Central Tower
443 Minnesota Street
St. Paul, Mn. 55101
Dear Mr. McKim
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Re: City of Hopkins, Minnqaota, 4
Industrial Development ReNtentte,AttnAs,,_,..,...,,
Series 1981
(K-Tel Investment Project)
Yours very truly,
Enclosed is the informatio,4
William P. Craig
City Manager
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mmissiCnr, of 'Lec,,iities
Minnesota Department of Commerce
Securit ...s and Kell Estate Division
500 Met S ar
St. Paul, Minnesota 55101
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Series 1981 (K -Tel Investment Project)
Gentlemen:
On the basi's of representations made to us by 'K -Tel Investment, a
Minnesota general partnership (the "Contracting Party we believe
that the above-referenced project (the "Project to be constructed
with the pl t of an issuc of industrial devLicpLent revenue bc- s
(the "Bonds") of the City of Hopkins, Minnesota (the "City in an
aggregate principal amount not to exceed $400,000, will satisfy the
public purpose_,of the ;Minnesota Municipal "Industrial Development Act,
Chapter `474, Minnesota' S 1980_., as R.z supp`lemented'_and amended
(the "A The pro�te's.�of .the °"Pods° an amount sufficient to
finance the o
cst H of ry theProj e ct,, currently y estimated not to exceed
$350,000 will be ,F4 "assist in the cing�" th e acquisition
of land and t -be cons a iictaon :and equipping- of a 10', 70? <.square foot
facility thereon in _t1 e C t of F Hopkins', Minnesota (Ole "City to be
owned or:= leased from��th w i�t b Conttractin P art and leased or
g
subleased. to West Electric, Inc:. and other tenants for use as an office,
warehouse facility.: w, When -completed, Approximately 17 new jobs will be
created in the City -at °an annual payroll 'of approximately $600,000.00.
We believe the- Project Will promote attract, encourage, and develop
economically sound industry and commerce in the City, and will help to
prevent the emergence of areas of unemployment and economic deteriola-
tion, till promote the need for intensive development and use of
land which will enable the City to provide a range of employment oppor
tunities required by the pop ion of the City, all in accordance with
the provisions of Section 474.01 of the Act.
The Project does not include any property to be sold or affixed to or
consumed in the production of property for sale and does not include
any housing facility to be rented or used as a permanent residence.
A public hearing was conducted pursuant to Minnesota Statutes, Section
47! .01, Subd. 7b (1980) on October 20, 1981, at 7 :30 o'clock p.m. at
t ;e Council Chambers in the City Hall. At such public hearing all
int wrested parties were afforded an opportunity to express their vies P,
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ri,qa)ly, the inforvation rerlui by Tinnesote SLatut:.s. Sc>ction
474.01, Subd. 8 (1980) will be submitted to the Department of Energy,
Planning and Development upon a revenue agrecm=t being entered into
o-atu,:.en the Ccntracting raity nd CaL ity
V ry truly yqrs,
Robert F. Miller
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To:
Minnesota Department of Commerce
Securities Division
500 Metro Square Building
St. Paul, Minnesota 55101
FIRM
ADDRESS
cnm' Hopkins
This Ap; l,c3tion must be Submitted to Comr" ,r;;nir ii, duplicate
STATE OF MINNESOTA
DEPARTMENT OF COMMERCE SECURITIES DIVISION
K -Tel Investments
State of Incorporation
Attorn y
Name of Project West Electric Inc.
APPLICATION
FOR APPROVAL OF MUNICIPAL INDUSTRIAL REVENUE BOND PROJECT
The governing body of Hopkins County of Hennepin
Minnesota, hereby applies to the Commissioner of the State of Minnesota, Securities Division of the
Department of Commerce, for approval of this community's proposed municipal Industrial Revenue
Bond Issue, as required by Section 1, Subdivision 7, Chapter 474, Minnesota Statutes.
We have entered into preliminary discussions with:
Address
This firm is engaged primarily in (nature of business): Electrical Contractors
The funds received from the sale of the Industrial Revenue Bonds will be used to (general nature of
project)
Build a general purpose facility.
Date
STATE Minnesota
October 20, 1981
It will be located in Hopkins, Minnesota
Q
The total bond issue will be approximately 350,000 to be applied toward payment of
costs now estimated as follows:
Cost Item Amount
Land Acquisition and Site Development 0—
Construction Contracts 300,000
Equipment Acquisition and. Installation —0—
Architectural and Engineering Fees —0—
Legal Fees 5.000
Interest during Construction 20,000
Initial Bond Reserve —0—
Contingencies 15 000
Bond Discount Placement Fees 10,000
Other
it y cs Y c t i .v„ g in on or 19 8"
s pre��:nti that ..ins, L��s i b;�.� c about F'ei�r_ tit: s
and will he completed on or about 1' 19 82 erg r e cc, there will be
approximately 17 new jobs created by the project at an annual payro:l of approximately
S 600,000 based upon currently prevailing wages.
CO The tentative term of the financing is 15 years, commencing July 1,
9 82
The following exhibits are furnished with this application and are incorporated herein by reference:
1. An opinion of bond counsel that the proposal constitutes a project under Minnesota Stat.,
Chapter 474.02.
2. A copy of the city council resolution giving preliminary approval for the issuance of its revenue
bonds.
3. A comprehensive statement by the municipality indicating how the project satisfies the public
purpose of Minnesota Stat., Chapter 474.01.
4. A letter of intent to purchase the bond issue or a letter confirming the feasibility of the project
from a financial standpoint.
5. A statement, signed by the Mayor, to the effect that upon entering into the revenue agreement,
the information required by Minn. Stat. Sec. 474.01 Subd. 8 will be submitted to the Depart-
ment of Economic Development.
6. A statement signed by the Mayor, that the project does not include any property to be sold or
affixed to or consumed in the production of property for sale, and does not include any housing
facility to be rented or used as a permanent residence.
7. A statement signed by the Mayor that a public •hearing was conducted pursuant to Minn. Stat.
474.01 Subd. 7b. The statement shall include the date, time and place of the meeting and that
all interested parties were afforded an opportunity to express their views.
8. A copy of the notice of publication of the public hearing.
We, the undersigned, are duly elected representatives of Hopkins Minnesota,
and solicit your approval of this project at your earliest convenience so that we may carry it to a final
conclusion.
Signed by: (Principal Officers)
Robert F. Miller Mayor
William P. Craig,
City Manager
This approval shall not be deemed to be an approval by the Commissioner or the state of the
feasibility of the project or the terms of the lease to be executed or the bonds to be issued therefor.
Date of Approval
Commissioner of Securities
Minnesota Department of Commerce