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83-6844R69 the Ci was ~e :om- me anc JJ- JJJ. RESOLUTION N0. 6844 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIP.~LL INDUSTRIAL DEVELOPMENT ACT: REFERRING-THE PROPOSAL TO THE DEPARTMENT OF ENERGY, PLAPINING AND DEVELOPMENT FOR APPROVAL; AND AUTHORIZING EMECUTION OF A MEMORAATDUM OF AGREE`~.~1T AND PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED By the City Council of the City of Richfield, Minnesota, as follows: 1. It is hereby found, determined and declared as follows: 1.1 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, emergencT,~ of blighted lands and areas of chronic unemploy- ment, and the state has encouraged local gover:~ent units to act to prevent such economic deterioration. • j -- I -- 1.2 Jerry Mathwg, an individual residing in Scott County (Com- pany) , has advised this Council of its desire to acquire and improve Land and to construct and equip thereon an approximately 10,444 square foot addition to an existing office building for lease to Metro Sales, Inc. (Project). ', I.3 The existence off, the Project within the City would signifi- cantly increase the tax bal,se 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 conventional, commercial financing to pay the capital cost of the Project is avail- able only on a limited basks and at such high costs of borrowing that the economic feasibility f operating the Project would be signifi- cantly reduced, but that w~ th the aid of municipal financing, and its resulting low borrowing cost, the Project is economically more feas- ible. I.5 This Council has!, been advised by Norwest Bank Bloomington, N.A., Bloomington, Minnesota, that on the basis of information sub- mitted to them and the discussions with representatives of the Company that bonds or notes to finance all or part of the cost of the Project can be successfully sold,' and that it will purchase such bonds or notes. 1.6 The City is authorized by Minnesota Statutes, Chapter 474, to issue its revenue bonds or other obligations (Bonds) to finance capital projects consisting of properties used and useful in connec- tion with a revenue producing enterprise, such as that of the Company, and the issuance of such fonds by the City would be a substantial inducement to the Company '~,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 Chapter 474 to finance the ',Project of the Company at a cost presently estimated to be approximately $925,040. 3. The Council declares that it is its present intent to issue the Bonds, and the Project 'above referred to is hereby given prelim- inary approval by the City 'and the issuance 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) of the State of Minnesota and tol the mutual agreement of this body, the Company and the initial purchasers of the bonds as to the details of the bond issue and provisions for its 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 from the Project and prop- erly pledged to the payment' thereof, and shall not constitute a debt of the City within the meaning of any constitutional, charter or statutory limitation thereon'I. 4. The form of Memorandum of Agreement relating to the issuance of the Bonds to finance the cost 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. In 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 Attorney and other officers, employees, and agents of the City and LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Association, as bond counsel, 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 iri the preparation of such documents as may be appropriate to the Project, if it is approved by the Authority. The Motion for the adoption of the foregoing resolution was duly seconded by Councilmember Kirsch and upon vote being taken thereon, the following voted in favor of the motion: Hassenstab, Kirsch, Ludeman, Hamilton and the following voted against: None Absent: Bunce, Priebe whereupon said resolution was declared duly passed and adopted. ATTEST: 5 Syly' K. Bergh City Cler