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79-004 RES RESOLUTION 79-4 RESOLUTION REQUESTING THE MINNESOTA DEPARTMENT OF TRANSPORTATION TO INSTALL TRAFFIC SIGNALS AT THE INTERSECTIONS OF HWY. 169 AND MAIN ST. AND HWY, 10 AND MAIN ST. AND TO REQUEST THE MINNESOTA DEPARTMENT OF TRANSPORTATION TO EXPEDITE SCHEDULED WORK FOR THE INTERSECTION OF PROCTOR AV, AND HWY. 10 WHEREAS, U. S. Trunk Highways #10 and #169 are located in part in the City of Elk River; and, WHEREAS, The City of Elk River's street known as Main St. intersects both Hwy. 169 and Hwy. 10; and, WHEREAS, Proctor Av. is located in the City of Elk River and intersects Hwy. 10; and, WHEREAS, The Minnesota Department of Transportation is responsible for the maintenance and safety of Hwy. 169 and Hwy. 10; and, WHEREAS, Sufficient amounts of traffic are generated at the intersections of Hwy. 169 and Main St. and Hwy. 10 and Main St. to pose a hazard to the health and safety of Elk River residents, as well as individuals passing through the City of Elk River; and, WHEREAS, The intersection of Proctor Av. and Hwy. 10 has been deemed to be a potential hazard and as such, a high priority item by the 40 Elk River City Council. NOW, THEREFORE, BE IT RESOLVED the Elk River City Council that the Minnesota Department of Transportation is hereby requested to install traffic signals at the intersection of Hwy. 169 and Main Street and Hwy. 10 and Main Street in the City of Elk River, and BE IT FURTHER RESOLVED that the Elk River City Council request the Minnesota Department of Transportation to advance scheduled plans to signalize the intersection of Proctor Ave. and Hwy. 10 so that construction is completed in 1979. Adopted this 16th day of April, 1979 by the Elk River City Council. Fr n1Ma sen, Mayor ATTEST: ----- Rob rt C. Midda , City Adm ` "rator _ low STATE OF MINNESOTA COUNTY OF SHERBURNE CITY OF ELK RIVER RESOLUTION NO. RESOLUTION RECITING A PROPOSAL FOR ASSISTA!N?CE IN FINANCING A RESIDENTIAL REAL PROPERTY FOR FAMILY UNITS DEVELOPMENT PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, AUTHORIZING THE SUBMISSION OF AN APPLICATION AS NECESSARY FOR APPROVAL OF SAID PROJECT TO THE COMMISSIONER OF SECURITIES OF THE STATE OF MINNESOTA AND AUTHORIZING THE PREPARATION OF OTHER NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH SAID PROJECT WHEREAS, • ( a) The request of Car-Son Homes, Inc. ,• a corpo- ration, or an affiliate or subsidiary or legal assignee, ( hereinafter "Company" ) for assistance in financing family housing properties ( hereinafter "Project" ) warrants the support of the City of Elk River ( hereinafter "City" ) , because ( i) the reduction of costs to the Company, at no cost to the City, will allow for the reduction of interest rates to area residents; ( ii) the City has an interest in the availability of adequate housing to area residents at as low cost as possible; ( iii) additional job opportunities will be generated by undertaking the Project; and ( iv) housing costs are at historic highs and appropriate programs aimed at reducing such costs are desirable, and in the public interest; (v) the existence of adequate shelter and housing is a significant factor in attracting and encouraging industry and commerce, and the employees of such, to the City; ( vi) adequate shelter and housing in the City makes less likely the shift of persons out of the City to other areas; (vii) new housing attracts educated and talented persons and strengthens the City; (viii) additional housing will improve the City' s tax base; ( ix) the development of suitable housing and shelter units, and the financing of such through a commercial development enterprise is the type of revenue producing enterprise that the City • desires to encourage . • (b) The purpose of Chapter 474 , Minnesota Statutes , known as the Minnesota Municipal Industrial Development Act • ( hereinafter called "Act" ) as found and determined by the legislature is to promote the welfare of the state by the active attraction and encouragement and development of economically sound industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment; (c) Factors necessitating the active promotion and development of economically sound industry and commerce are . the increasing concentration of population in the metropolitan areas and the rapidly rising increase in the amount and cost of governmental services required to meet the needs of the in- creased population and the need for development of land use which will provide an adequate tax base to finance these increased costs and access to employment opportunities for such population; (d) The City has received from the Company a pro- posal , summarized in the letter attached , that the City undertake to assist in the financing of all or a portion of the cost of a Project through the issuance in one or more series of Commercial Development Revenue Bonds or Notes ( hereinafter "Bonds" ) in the aggregate principal amount of up to approximately $3 ,000 ,000 pursuant to the Act, and, if • necessary, to issue one or .more notes on an interim basis ( " Interim Bonds" ) in anticipation of payment from the proceeds of such bonds; • ( e) The City desires to facilitate development of areas in the City to retain and improve its ' tax base and to help provide the range of shelter, services and employment opportunities required by its population and said Project will assist the City in achieving that objective . The Council believes that said Project will help to increase assessed valu- ation within the City and helm maintain a positive relationship between assessed valuation and debt and enhance the image and reputation of the City; ( f) The City is informed that: The Company will be engaged as a developer and financing enterprise in the building and financing of the Project consisting of residential real property for family units, and will provide continuing mortgage financing services in connection with the ultimate sale of the housing properties to individual purchasers . The Project to be financed in whole or part by the proposed Bonds will be new family units, and consists of 110 • the acquisition of land and the construction and installation • thereon of buildings and improvements, and will result in the temporary employment of additional persons to work in and about said Project, and the permanent addition to new housing for persons employed in the City and the metropolitan area, and the addition of some additional permanent jobs; (g ) The City Council has been advised by repre- sentatives of the Company that conventional , commercial financing to pay the entire 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 the Company has also advised this Council that with the aid of municipal financing , and its resulting low borrowing cost,, the Project is economially feasible; • ( h) Piper, Jaffray & Hopwood , Incorporated , invest- ment bankers, have advised that on the basis of information submitted to them and their discussions with representatives of the Company, such bonds could in their opinion be issued and .sold upon favorable rates and terms in the amount to pay all or a portion of the cost of undertaking the Project, and that any required equity investments can reasonably be expected to be available; • ( i) Briggs and Morgan, Professional Association, Bond Counsel , have advised the City of the legality and tax-exempt features of the financing assistance requested . NOW, THEREFORE, BE IT RESOLVED by the City of Elk River, Minnesota, as follows : • 1 . The City hereby gives preliminary approval to the proposal of Company that the City undertake financing assistance to the Project pursuant to the Minnesota Municipal Industrial Development Act ( Chapter 474 , Minnesota Statutes) , consisting of construction and improvement of facilities within the City pursuant to specifications approved by the Company suitable for the operations described under revenue agreements between the City and the Company upon such terms and conditions with provisions for revision from time to time as necessary, so as to produce income and revenues sufficient to pay, when due, the principal amount of up to approximately $8 , 000 , 000 ' to be issued in one or more series pursuant to the q1 Act to finance acquisition,a construction or a part of the ac..,�is_tion, construe ion and improvement of said Project; and said proposal may also provide for the entire interest of City herein to be pledged • 1 • and mortgaged to the holders the 3onds And any interim 1 notes of the City or a trustee therefor under such conditions • as are necessary to assure that the interest on the 3cnds and the Interim 3cnds is exempt from federal and '!innescta income taxes ; and the City herein undertakes preliminarily to issue its bends in accordance with such terms and conditions ; 2 . On the basis of information available to this Council it appears , and the Cite' Council hereby finds , rhAt said Protect constitutes properties, real and personal , used . or useful in connection with one or more revenue producing enterprises engaged in any business within the meaning of Sub- division la of Section 474 . 02 of the Act, that the availability of the financing under the Act and willingness ' of the Ci ty to furnish s .ch financing will be a substantial inducement to the Company to undertake the Project, and that the effect of the Project, if undertaken , will be to encourage the development of economically sound industry and commerce J and assist in the prevention of the emergence of blighted a nC marginal land , wiL•J hetp to prevent chronic unemployment, and will help the City to retain and improve _ :s tax base and provide the range of sh° 1 `er services and employment opportunities required by its population, and will help to Prevent the movement of talented and educated persons cut of d t:e state and to a re as within t !e state wh ere their se rvo=s may net be as effectively used and will result in the • development And use of land within the City consistent w- t.. economic use of municipal services and •,ii_- result in the tax base of the City being improved ; 3. Said Project is hereby given preliminary approval by the City subject to the approval of the Project by the Commissioner of Securities, preliminary and final plat approval by the City, payment by the Company of the costs of developing a 72 acre park in accordance with the Hakanson Anderson and Associates Park Plan (Park Plan) for the Project dated March 26, 1979, provision by the Company of security deemed appropriate by the City to ensure that the Park Plan will be fully implemented, any and all conditions imposed by the City to assure that the housing shall be available to persons and families with income and assets levels acceptable to the City, and subject to final approval by this Council, and the purchasers of the Bonds and any Interim Bonds to be issued as to the ultimate details of the Project. The specific plans and details for the Project shall be subject to all local zoning and other laws and regulations; 4. In accordance with Subdivision 7 of Section 474.01, Minnesota Statutes, the Mayor of the City is hereby authorized and directed to submit the proposal for the above described Project to the Commissioner of Securities requesting his approval, and other officers , employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary in- formation as he may require. ,The Company has agreed and it is hereby deter- • mined that any and all costs incurred by the City in connection with the Project whether or not the Project is carried to completion and whether or not approved by the Commissioner will be paid by the Company . The exact amount of Bonds shall be determined prior to further . resolution on said subject, after consultation by the City and the Company with Briggs and Morgan, Professional Association, Bond Counsel, Piper, Jaffray & Hopwood, Incorporated, investment bankers, and the City Attorney. 5 . Briggs and Morgan, Professional Association, and Piper, Jaffray & Hopwood , Incorporated, are authorized to assist in the preparation and review of necessary documents relating to the Project, and to consult with the City' s fiscal consultant, the City Attorney, and representatives of the Company and the purchasers of the Bonds and any Interim Bonds as to the maturities, interst rates and other terms and provisions of the Bonds and any Interim Bonds and the covenants and other provisions of the necessary documents and to submit such documents to the City Council for final approval; 6 . Nothing in this resolution or in the documents prepared hereto shall authorize the expenditure of any City funds on the Project other than the revenues desired therefrom or the proceeds of the Bonds and any interim notes or other funds properly available to the City for this purpose. Neither the Bonds nor any Interim Bonds shall constitute a charge, lien or encumbrance, legal or equitable, upon any • property or funds of the City except the revenues pledged to the payment thereof nor shall the City be subject to any liability .thereon. No holder of any Bond or Interim Bonds shall ever have the right to compel any exercise of the taxing power of• the City to pay any such Bond or interim note or the interest thereon, nor to enforce payment thereof against any property of the City. Each Bond or Interim Bonds, including interest thereon, is payable solely from the revenues pledged to the payment thereof. No Bond or Interim Bonds issued hereunder shall constitute a debt of the City within the meaning of any constitutional or statutory limitation; 7 . In anticipation of the approval by the Commis- sioner of Securities and the issuance of the Bonds to finance all or a portion of the Project, and in order that completion of the Project will not be unduly delayed when approved, the Company is hereby authorized to make such expenditures and advances toward payment of that portion of the costs of the Project to be financed from the proceeds of the Bonds or Interim Bonds as the Company considers necessary, including 110 • 411 the use of interim, short term financing , in the event Interim Bonds are not issued by the City, subject to reimbursement from the proceeds of the Bonds when and if delivered but otherwise without liability on the part of the City. 8 . In the event that it appears appropriate to issue housing revenue bonds under any other statute allowed by law, the Bonds may, subject to legality and confirmation of details by the City and the Company, be finally issued under such other statute or statutes . Adopted this 2 IN day of A >T— ( , 1979 . • Mayor Clerk -7 • • • • w STATE OF MINNESOTA 411 COUNTY OF SHERBURNE CITY OF ELK RIVER I , the undersigned , being the duly qualified and acting Clerk of the City of Elk River, Minnesota, DO HEREBY CERTIFY that I have compared the attached 'and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full , true and complete transcript of the minutes of a meeting of the City Council of said City duly called and held on the date therein indicated, insofar as such minutes relate to a resolution giving • preliminary approval to a commercial development housing project. WITNESS my hand and the seal of said City this /2 day of , pr--, ( , 1979. City Cle ( SEAL) BRIGGS LAW OFFICES CHARLES W.bRIoo5(1887-19781 A N D M O R G A N PETER W.StPIINs J.NEIL MORTON DOUGLAS L.SEOR RICHARD E.KYLE PROFESSIONAL ASSOCIATION MICHAEL H.JEEONIMUR SAMUEL II.MORGAx R.SCOTT DAMES NI N.GRAEAM B JANES W.RUCE C.EcEROI.x LD GEHLRE Elf ruaixci DAMS 2200 FIRST NATIONAL BANK FSUILDINC) RICHARD D.BoLPieye,Ja R.NE HAMMOND LEONARD J.Kira. RICHARD G.MARE 1L C.HARr SAINT PAUL,MINNESOTA 55101 GERALD L.SvoaoDA JOHN M.SULLIVAN ANDREW C.BECHEE BERNARD P.FRIEL M.T.FAEYINSIE BURT E.SWANSON JEROME A.Guys M.J.CiALVIN,JE. DAVID L.MITCHELL DAVID C.FORSBERO 2452 I I)S CENTER BONNIE L.BEREZOVPIT JOHN J.MCNEELY STEVE A.BRAND MCNEIL V.SEYMOUR,JH. MINNEAPOIIS,MINNESOTA 55402 MARK W.WESTRA EDWARD C•STRINGER JEFFREY F.SHAW I EHENCE N.DOYLE DAVID G.GREENING RICHARD H.KYLE DAVID B.SAND JONATHAN H.MoEGAN (612) 291-1215 Barry L.Hum Jui/N L.DHVNEY CHARLES R.RAYNOR H.L.SORENSON ANDREA M.BOND PETER H.SEED MARTIN H.FISE PHILIP L.BRUNER April 6 19 7 9 JOHN BULTENA SAMUEL L.HANSON , RICHARD H.MARTIN RONALD E.ORCIAED MART L.IPPEL JOHN R.KENEPICE DAVID J.ALLEN Ju II R.FRIEDMAN RoETN L.Hammy ANDRE J.7OHAZIL RONALD L.AERAME DAVID J.SPENCER MARGARET K.SAVAGE IIANIEI.J.COLE,JR. LESLIE M.FROST BRIAN G.BELISLE REPLY TO Saint Paul VIA MESSENGER Mr. Robert Middaugh City Administrator City of Elk River 505 V. P. A. Drive Elk River, Minnesota 55330 Re: Elk River - Car-Son Homes Project . Dear Mr. Middaugh: Enclosed is the application to the Commissioner of Securities on the above project on the new form he has distributed, together with statement of public purpose to be retyped on the City's letterhead. Two copies of the application should be signed, and copies of the preliminary • resolution as passed and authenticated should be attached. All documents should be returned to us. As you know, the Commissioner of Securities requires a perliminary opinion of bond counsel as to the legality of the project. We will also add the required investment banker' s letter, and then forward the documents to the Commissioner of Securities. Because of time presure developments, perhaps you could call either Bill Waldusky or me when the papers are completed. ery truly y rs, t • �' t ohn R. Friedman IIIJRF:plg Enclosure cc: William E. Waldusky