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HomeMy WebLinkAbout83-064 > ~ 'A> . STATE OF MINNESOTA COUNTY OF RAMSEY CITY OF ARDEN HILLS Resolution No. 83-64 RESOLUTION ESTABLISHING APPLICATION REQUIREMENTS FOR CONSIDERING INDUSTRIAL REVENUE BOND FINANCING FOR THE PROPOSED ARDEN HILLS BUSINESS CENTER WHEREAS, David Weir, President of Woodbridge Properties, Inc., has requested that the Arden Hills City Council consider Industrial Revenue Bond financing for the proposed Arden Hills Business Center, end WHEREAS, the City Council Is desirous of establishing application requirements before considering Industrlel Revenue Bond financing for the project; NOW, THEREFORE, BE IT RESOLVED thet the following requirements ere established: . Section I. Application Requirements: The eppllcant shall supply to the City and Its authorized agents, together with en executed copy of the City's eppllcatlon form the following: a) Before any City consideration can be given, proposals Investigated, or staff end advisor's time expended, a non-refundable cash peyment In the amount of $5,000 shall be paid to the City. In addition, e $10,000 cash deposit shall be deposited with the City to be used for administrative and consulting costs, any balance of such deposit to be refunded after all costs are paId. Both sums shall be paid to the City et the time the applicatIon and supporting datll Is filed. b) A statement defining the project, showing Its compliance with Minn. Stat. 474 In detail, end Indlcetlng the number of jobs created, yearly enticl- pated payroll, and tax base being created. c) A detelled breakdown of al I elements of antlclpeted costs, not just a generel statement of total costs anticipated. dl The applicant shall be required to furnish certified annual audits for the last three fiscal years, the most current rating report of Dun & Brad- street, if eny, and the applicant's reasonebly antici- pated financial forecasts for e perIod of not less than three years. , e) A list of all officers and directors, together with their biographies and personlll financial statements If the bonds wll I be guaranteed by them. f) An underwriter's or investment banker's letter as to proposed Interest rates and possibility of place- ment. . g) An attorney's opinion regarding the legal entity Involved and status of title of the land In- volved. h) A complete legal description and surveyor certification thereof and survey. I) A schedule and timetable of the planned construction. J) A statement as to the environmental Impact, effect on surrounding properties, and any other similar or pertinent comments. k) A statement that the applicant agrees to pay all costs Incurred by the City and Its agents In process- ing the application if not covered by the sumS pre- viously deposited with t~e City. Section 2. Other Conditions: a) Size of Issue: Normally, because of costs and expenses Involved, an Industrial revenue Issue of less than $1,000,000 will not be considered or processed. b) Plans and Specifications: In addition to normal zoning, building end code requirements, the Council reserves the right of final approval or disapproval of plans and specifications. For example, the City will not utilize Its bond powers to build buildings that aesthetically are not pleasing, even though such con- struction might satisfy other requirements. c) Prior Review: Prior to any applicant approach- Ing the Councl I, any proposal will have to be reviewed by the City staff, attorney, bond consultant or other City agencies. The Council wi II not adopt a resolution setting a public hearing date end wi II not adopt any other preliminary resolutions until the respective reports, even If preliminary In form, are received. . d) City Consultants: The City shall deslgnete the bond counsel and bond consultants and name the trustees and paying agents. The City reserves the right to employ legal, accounting, appraisal, financial, engineering, architectural, and other consultants to review the proposed project and Its financing. The cost of such consultants, together with the City's administrative expense, shall be paid by the applicant, . . whether or not the City agrees to finance the project or whether or not the project Is constructed. . e) Equity: The City may require the applicant to establish and maIntaIn a sIgnificant equity In the structure and to maIntain a reserve balance or deposit of securIties with or for the benefit of the City, or lease Insurance to protect against a lease payment default. or satisfactory evidence of mortgage Insur- ance, or a wrItten confirmation by a netlonally known credit rating service that the bonds or other Invest- ment instruments carry a ratIng satisfactory to the City. f) Guarantee: The applicant may be required to guarantee payment of the principal and Interest and premium. If any, of the bonds Issued, and the City may require an addItional guaranty by any related entity to the applicant and the tenants. g) Completion: The applicant shall be required to complete the project as described from Its own funds should the bond or note proceeds prove to be Inadequate for such purpose. The applicant Shall require payment and performance bonds of the building, electrical, mechanical and other contractors for the full llmount of their contracts. h) Hold Harmless: The applicant, the purchaser of notes, and. If underwriters are Involved In the Issuance and sale of bonds, shal I hold harmless the City, its officers, employees. consultants and agents for any alleged or actual violation of any securities laws, state or federal. in connection with the Issuance of bonds or notes for the project. The City may require a bond or appropriate Insurance to assure this "hold harmless" provlslo~. I) Administrative Fee: In consideration of the City's making such tax exempt financing available and to assist the City further In defraying Its present and future administrative expenses, the applicant shall, subject to applicable federal arbitrage regulations, pay to the City the sum of $10.000 or I~ of the amount financed, whichever Is greater, which shall be used by the City for any other expenses In connection with the project, or for any other City purpose. To the extent permitted by law, the City wi II allow the applicant to use this cost as a project cost for financing purposes. . j) Denial: The City reserves the right to deny an application for any reason and to revoke approval of an application at any time before actual Issuance of bonds or notes without any liability to the City. Its Council members, offIcers or agents to the applicant, the underwriter, attorneys or other counsel associated wIth the project. '. ,. . . kl No AsslQnment: The applicant shall have no right to assign any asserted "right or privilege" under any action by the City, Its Councilor administrative staff to any other person or firm. All applications shall name the real parties In interest In the project, Including the principal stockholders If a corporation. I l Application Form: The app II cant will be required to complete the application as required by the City. Adopted ~ the CitY~~~9cIJ. of the City of Arden Hills this d/.dL day of ~ ' 1983. i~L~~ Mayor ATTEST: atA~,~~ Charlotte McN esh Clerk Administrator