77-2571 CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTION NO. 77-2571
RESOLUTION GIVING PRELIMINARY APPROVAL TO A
PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT
ACT, REFERRING THE PROPOSAL TO THE DEPARTMENT OF
ECONOMIC DEVELOPMENT FOR APPROVAL, AND AUTHORIZING
EXECUTION OF A MEMORANDUM OF AGREEMENT AND PREPARA-
TION OF NECESSARY DOCUMENTS.
BE IT RESOLVED by the City Council of the City of Hopkins, Minnesota,
as follows:
1. It is hereby found, determined and declared as follows:
1.1. The welfare of the State of Minnesota requires active promotion, attraction,
encouragement and development of economically sound industry and commerce through
governmental acts to prevent, so far as possible, emergence of blighted lands and
areas of chronic unemployment, and the state has encouraged local government units
to act to prevent such economic deterioration.
1.2. It has been proposed that the City acquire from the Hopkins Housing and
• Redevelopment Authority certain land within the City, together with certain improve-
ments under construction thereon, and cause such improvements to be completed, and
certain equipment and other personal property to be acquired and installed in such
improvements (the land, improvements, equipment and other personal property being
hereinafter referred to as the Project) all suitable for use as a medical clinic and
office building, and that the City lease the Project to Hopkins Medical Building
Associates, a limited partnership (the Partnership) .
1.3. The existence of the Project within the City would significantly increase
the tax base of the City, County and School District in which the City is located,
would provide opportunities for employment for residents of the City and surrounding
area and will encourage doctors and other trained medical personnel to locate or retain
their practice in the City, thus providing better health care facilities for the
residents of the City and the local area.
1.4. The City has been advised 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 that with the aid of municipal financing, and its re-
sulting low borrowing cost, the Project is economically more feasible.
• 1.5. This Council has been advised by a representative of the Partnership that
on the basis of their discussions with mortgage brokers and potential buyers of tax-
exempt bonds, commercial development revenue bonds or notes of the City could be
issued and sold upon favorable rates and terms to finance the Project.
1.6. The City is authorized by Minnesota Statutes, Chapter 474, to issue its
revenue bonds to finance capital projects consisting of properties used and useful in
connection with a revenue producing enterprise, such as that of the Partnership.
1.7. The proposed Project is consistent with the Housing and Redevelopment
Authority's plan for the area, and the issuance of revenue bonds by the City for the
Project would facilitate and enhance the development of the property for the purpose
specified in the plan.
2. On the basis of information given the City to date, it appears that it would
be in the best interest of the City to issue its commercial development revenue bonds
or notes under the provisions of Chapter 474 to finance the Project of the Partnership
at a cost presently estimated to be approximately $500,000.
3. The Project above referred to is hereby given preliminary approval by the City
and the issuance of bonds or notes for such purpose and in such amount approved, sub-
",
ject to approval of the Project by the Commissioner of Economic Development and to the
mutual agreement of this body, the Partnership and the initial purchasers of the bonds
or notes as to the details of the issue and provisions for their payment. In all
events, it is understood, however, that the bonds or notes of the City shall not
constitute a charge, lien or encumbrance legal or equitable upon any property of
the City except the Project, and each bond or note, when, as, and if issued, shall
recite in substance that the bond or note, including interest thereon, is payable
solely from the revenues received from the Project and property pledged to the payment
thereof, and shall not constitute a debt of the City.
4. The form of Memorandum of Agreement relating to the issuance of revenue bonds
or notes of the City to finance the cost of the Project is hereby approved and the
Mayor and City Manager are authorized and directed to execute the Memorandum of
Agreement on behalf of the City.
5. In accordance with Minnesota Statutes, Section 474.01, Subdivision 7, the
Mayor and City Manager are hereby authorized sand directed to submit the proposal for
the Project to the Commissioner of Economic Development for his approval of the Project.
The Mayor, City Manager, City Attorney and other officers, employees and agents of
the City are hereby authorized to provide the Commissioner with any preliminary in-
formation he may need for this purpose, and the City Attorney is authorized to initiate
and assist in the preparation of such documents as may 4)9 appropriate to the Project,
if it is approved by the Commissioner. /
-71(/
Mayor
'/
•
Attest:
#P1-
6,41/Le2/1_,,,
City Clerk
411
•
-2-
• The motion for the adoption of the foregoing resolution was duly introduced by
Dr. Slaton and seconded by Mr. Pokorny , and the
following voted in favor thereof:
Councilman Milbert
McDonald
Slaton
Pokorny
Mayor Miller
and the following voted against the same:
None
whereupon said resolution was declared duly passed and adopted at a regular meeting
held on April 5th, 1977, and was presented to the Mayor who approved and signed
the same, which was attested by the City Clerk.
i
STATE CF MINNESOTA )
COUNTY OF HENNEPIN ) SS.
CITY OF HOPKINSI,THE UNDEPSMNED
r.Ing OF THE
CITY OFI•IOPK`NSilr.'Ni•!aq; CO:it .`
OF THE SEAL A.:W) S
TI ABCVD O Fr
AND COPY OF THE \,,,i. i` ;. ::J
AND ON FILE IN THE C`•F C Ur z Xi i_:::;.
CITY CLERK OF :F;r'' Fri O;- HOPKINS
S
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