82-6581R12
RESOLUTION N0. 6581
RESOLUTION GIVING PRELIMINARY APPROVAL TO A
PROJECT UNDER THE MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT: REFERRING THE PROPOSAL TO
THE DEPARTMENT OF ENERGY, PLANNING AND DEVELOPMENT
FOR APPROVAL: AND AUTHORIZING 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 trf 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-
ment, and the state has encouraged local government units to act to
prevent such economic deterioration.
1.2 New Age Developers, a Minnesota general partnership. {here-
• inafter the "Company"), has advised this Council of its desire to
acquire and improve land and to construct and equip thereon of approx-
imately 125,000 square feet of commercial office and retail facilities
and related parking facilities (the "Project").
1.3 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, would provide opportunities for employ-
ment for residents of the City and surrounding area,. and would
significantly assist the City and its Housing and Redevelopment
Authority in achieving the redevelopment goals of the Lyndale-Hub-
Nicollet Redevelopment Project 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 basis and at such high costs of borrowing that
the economic feasibility of operating the Project would be signif-
icantly reduced, but that with the aid of municipal financing, and its
• resulting low borrowing cost, the Project is economically more feas-
ible.
' 1.5 This Council has been advised by Steinberg Financial Corpo-
ration, Minnesota investment .bankers, that on the basis of information
submitted to them and the discussions with representatives of .the
Company that the proposed Project is financially feasible and that
bonds or notes to finance all or part of the cost of the Project can
be successfully sold.
1.6 The City is authorized by Minnesota Statutes.,. Chapter 474,
to issue its revenue bonds or other .obligations. (the "Bonds") to
finance capital projects con fisting of properties used and useful in
connection with a revenue prpducing enterprise, such as that proposed
by the Company, and the issullance of such Bonds 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 in the principal
amount presently estimated t~ be approximately $9,850,000.
3. The Council declares that it is its present intent to issue
the Bonds, and the Project above referred to is hereby given prelimin-
ary approval by the City anld the issuance of Bonds for• such purpose
and in such amount approved, subject to approval of the Project by the
Department of Energy, Plann'ng and Development ("Department") of the
State of Minnesota and to the mutual agreement of this body, the
Company and the initial purchasers of the bonds as to the details of
the bond issue and provisio~} s for its payment. In all events, it is
understood, however, that tJhe Bonds shall not constitute a charge,
lien or encumbrance legal o~ equitable upon any property of the City
except -the Project, and each Bond, when, as and if issued, shall
recite in substance that tie bond,. including interest thereon, is
payable solely from the revenues received from the. Project and
properly pledged to the payment thereof, and does not constitute a
debt of the City within the meaning of any constitutional, charter or
statutory limitation thereon;
4. The form of Memorandum of Agreement now on file with the.
City Clerk 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 direct~d to execute the Memorandum of Agreement
in behalf of the City. j
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 tie Project to the Department for approval.
The Mayor,. City Manager, and other officers, employees, and agents of
the City and Messrs. LeFevere, Lefler,-Kennedy, O'Brien & Drawz, a
Professional Association, of Minneapolis, Minnesota, as bond counsel,
are hereby authorized to pro,ide the Department with any .preliminary
information needed for this purpose, and the City Attorney is author-
ized to initiate and assist in the preparation of such. documents as
may be appropriate to the Pr~bject, if it is approved by the Depart-
ment. ',
Passed by the City Council of the City o
this 16th day of .February, 1982.
_ /I
ohn
ATTEST:
i
ylv' K. Bergh, City Clem
_, ..
I
field, Minnesota,
Mayor