85-7061RRESOLUTION N0. 7061
RESOLUTION GI9x,*tG PBELIMINABY APPROVAL TO A
PROJECT UNDER THE MUNICIPAL INDUSTRIAL
DEVELOP*NT ACT: REFER,RI<!iG THE PROPOSAL TO
THE DEPARZ~NT OF ENERGY, PLANNING AND DEVELOPMENT
FOB APPROVAL; AN'D AUTHORIZING EXECQTION OF A MEMORANDUM
OP AGREEMENT AND PREPARATION OF NECESSARY DOCUMEZiTS
BE IT RESOLVED $y the City Council of the City of Richfield,
Minnesota (City), as follows:
1. It is hereby found, determined and declared as follows:
I.I The welfare of the State of Minnesota requires active promo-
tion, attraction, encouragement and development of economically sound
industry and commerce through governmental acts to prevent, so far as
possible, emergency of blighted lands and areas of chronic unemploy-
meat, and the state has 2acouraged local goverment units to act to
prevent such economic deteriaratioa.
1.2 Michael •Oreck and Susan Orec~C, individuals residing is
Hennepin County (Company), have advised this Council of its desire to
rehabilitate certain commercial property in the City located at 6401 -
6435 Lyadale Avenue South is the City for lease to various commercial
tenants (Project).
I.3 The existence of the Project within the City would signifi-
cantly increase the tax base of the City, County and school district
in which the City is located, and would provide opportunities for
employment for residents of the City and surrounding area.
1.4 The City has been advised by the Company that caaveational,
commercial financing to pay the capital cast of the Project is avail-
able only on a limited basis and at each high casts of borrowing that
the economic feasibility of operating the Project would be signifi-
cantly reduced, but that with the aid of municipal financing, and its
resulting low borrowing cast, the Project is economically more fens-
ib1e.
1.5 This Council has been advised by First
Minneapolis, Minneapolis, Minnesota, investment bar
basis of information submitted to it and the
representatives of the Company that bonds or notes
part of the cost of the Project can be successfullq
will undertake to purchase such bonds or -notes.
National Bank of
ikers, that on the
discussions with
to finance all or
sold, and that it
I.6 The City is authorized by Minnesota Statutes, Chapter 474,
to issue its revenue bonds, notes or other obligations (Bonds) to
finance capital projects consisting of properties used and useful in
connection with a revenue producing enterprise, such as that of the
Compaaq, and the issuance of such Bonds by the City would be a sub-
stantial inducement to the Compaay•to construct the Project within the
City.
2. On the basis of information given the City to date, it
presently appears that it would be in the best interest of the City to
issue its industrial development revenue Bonds under the provisions of
Minnesota Statutes Chapter 474 (Act) to finance the Project of the
Company at a cost presently estimated to be agproaimatelq $400,000.
3. The Couacii declares (that it is its present intent to issue
the Bonds. The Project above ~eferred to is hereby given preliminary
approval by the City and the is~uance of Bonds for such purpose and in
such amount approved, subject) to approval of the Project by the
Minnesota Energy and Economic Development Authority (Authority) and to
the mutual agreement of this body, the Company and the initial pur-
chasers of the bonds as to the details of the Bonds and provisions for-
their payment. In all events,' it is understood, however, that the
Bonds shall not constitute a ',charge, lien or encumbrance legal or
equitable upon any property of 'the City except the Project, and each
Bond, when, as and if issued, shall recite in substance that the bond,
including interest thereon, is payable solely from the- revenues
received fxom the Project and properly pledged to the payment thereof,
and shall not constitute a debt of the City within the meaning of nay
constitutional, charter or statutory limitation thereon.
4. The form of-Memorandum of Agreement relating to the issuance
of the Bonds to finance the cbst of the Project is hereby approved,
and the Mayor and City Manager are hereby authorized and directed to
execute the Memorandum of Agreement in behalf of the City.
5. Ia accordance with', Minnesota Statutes, Section 474.01:
Subdivision 7A, the Mayor and City Manager are authorized and directed
to submit the proposal for the!Project to the Authority for approval.
The Mayor, City Manager, City Clerk, City Attorney and other. officers,
employees, and agents of thee, City and LeFevere, Lefler, Rennedy,
O'Brien ~ Drawz, a Professional. Association, as bond counsel and City
Attorney, are hereby authorized to provide the Authority with any
preliminary information needed for this purpose, and the City Attorney
is authorized to initiate and assist in the preparation of such
documents as may be appropriate to the Project , if it is approved by
the Authority. ',
Passed by the City Council of~'the City of Richfield, Minnesota this
9th day of September, 19$5
ATTEST: '~
~L` / l
Thomas P. rerber, City Clerk