82-6685R1z
RESOLUTION N0. 6685
RESOLUTION GIVING
PROJECT UNDER THE
DEVELOPMENT ACT:
THE DEPARTMENT OF
FOR APPROVAL: AND
OF AGREEMENT AND
P~tELIMINARY APPROVAL TO A
MUNICIPAL INDUSTRIAL
REFERRING THE PROPOSAL TO
ENERGY, PLANNING AND DEVELOPMENT
AUTHORIZING EXECUTION OF A MEMORANDUM
PREPARATION OF NECESSARY DOCU`~SENTS
BE IT RESOLL"ED 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
promotion, 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
unemployment, and the state has encouraged local government units
to act to prevent such economic deterioration.
1.2 Minnesota Mini-Storage II, a Minnesota general partnership
(hereinafter the "Company"), has advised this Council of its aesire
to acquire and improve land in the City and to construct and equip
therecn an approximately 79,750 square foot self storage facility
(the "Project") .
1.3 The existence of the Project within the City would signi-
ficantly increase the tax base of the City, County and school dis-
trict 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 cf the Project is
available only on a limited basis and at such high costs of borrow-
ing that the economic feasibility of operating the Project would be
significantly reduced, but.-that with the aid of municipal financing,
and its resulting low borrowing cost, the Project is economically
more feasible.
1.5 This Council has been advised by
cipals, Inc., inves t-nent bankers, that on
submitted to them and the discussions with
Company that bonds or notes to finance all
the Project can be successfully sold, and
Company in the placement of such bonds or
Miller & Schroeder Muni-
the basis of information
representatives of the
or part of the cost of
that it will assist the
notes.
1.6 The City is authorized by Minnesota Statutes, Chapter 474,
to issue its revenue bonds or other obligations (the "Bcnds") to
finance capital projects consisting of properties used and useful
in connection with a revenue producing enterprise, such as that of
the Company, and the issuance of such Bonds by the City would be a
substantial inducement to *_he Company to construct the Project
within the City.
-z-
2. On tY:e_ basis of i
presently appears tY.at it
to issue its industrial de
visiors cf Chapter 474 to
cost presently estimated t
3. The Council decla,
issue the Bonds, and the P.
preliminary approval by~th
purpose and in such amount
Project by the Minnesota D
cement and to the mutual a
the initial purchasers of
issue and provisions roc i
stood, however, that the B
or encumbrance legal or eq
except the Project, and ea
recite in substance that t
payable solely from the re
properly pledged to the pa
a debt of the City within
ter or statutory limitatic
formation given the City to date, it
~ould be in the best interest of the City;
~elopment revenue Bonds under the pro-
'inance the Project of the Company at a
be approximately 51,500,000.
es that it is its present intent to
oject above referred to is hereby given
City and the issuance of Bonds for such
approved, subject to approval of the
partment of Energy, Planning and Devel-
reement of this body, the Company and
he bonds as to the details of the bond
s payment. In all events, it is under-
nds shall not constitute a charge, lien
itable upon any property of the City
h Bond, when, as and if issued, shall
.e bond, including interest thereon, is
°enues received from the Project and
meat thereof, and shall not constitute
:he meaning of any constitutional, char-
~ thereon.
4. The fore of Memor~iandum of Agreement relating to the issu-
ance of the Bonds to finar.Ce the cost of the Project is hereby
approved, and the Mayor ar~'d City Manager are hereby authorised and
directed to execute the Memorandum of Agreement in behalf of the
Ci ty .
5. In accordance wi
Subdivision 7A, the Mayor
directed to submit the pr
Department of Energy, Pla
:~ayor, City Manager, City
and agents of the City an
Drawn, a Profess-oval Ass
authorized to provide the
lion needed Los this pulp
to init~.ate and assist in
be appropriate to the Prc
h Minnesota Statutes, Section 474.01,
and City Manager are authorized and
posal for the Project to the Minnesota
Wing and Development for approval. The
Attorney and other officers, employees,
LaFevere, Lefler, Kennedy, O'Brien &
ciation, as bond counsel, are hereby
Department with any preliminary informa-
se, and the City Attorney is authorized
the preparation of such documents as may
ect, if it is approved. by the Department.
The motion for the adoption of the foregoing resolution was
duly seconded by Council ~hember ~ Bunce and
upor< vote being taken thereon, the following voted in favor of the
motion: I,
Bunce, Hassenstab, Kirsch, Ludeman, Hamilton
and the following voted against: None
:ahereuoon said resolution was declared duly gassed and adopted.
1
~ , ~
Passed by the City Council of the City of Richfield, Minnesota
this 8th day of _ November ~ ~ 19 82 .
ATTEST:
Sy v K. Bergh, ity C r