81-6469R113
RESOLUTION N0. 6469
RESOLUTION GIVING PRELIh1INARY APPROVAL TO A
PROJECT UNDER THE MUNICIPAL INDUSTRIAL
DEVELOPh1ENT ACT: REFERRING TILE PROPOSAL TO
THE COh1h1ISSI0NER OF SECURITIES FOR. APPROVAL;
AND AUTIiORIZING EXECUTION OF A h1EMORANDUh1 OF
AGREEPIENT AND PREPARATION OF NECESS~IR1' DOCUhIENTS
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 hinnesota 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 Richfield State Agency, Inc., a Minnesota corporation
(hereinafter the "Company"), has advised this Council of its. desire to
.acquire and improve land and to construct and. equip thereon additional
facilites for and the expansion and remodeling of its existing facil-
ities for use in ,its business of the leasing of commercial properties
for banking and other uses (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
employment for residents of the City and surrounding area, and would
significantly assist the City and its Housing and Redevelopmeht
Authority in achieving. the development goals of the LHN Redevelopment
Project Area.
1.4 The City has been advised by the Company that conventional,
commercial financing to pay the capital cost of the lsroject 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 Juran & hloody,,Inc., St.
Paul, Pinnesota, investment bankers, that on the basis of information
submitted 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 (the "Bonds") to
finance capital projects co sisting of properties used and useful in
connection with a revenue p~~roducing enterprise, such as that of the
Company, and- the issuance o~ such Bonds by the City would be a sub=
stantial inducement to the Company to construct the Project within the
City.
2. On the basis of information given the City to date and the
public hearing on the Project held on this 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 esti-
mated to be approximately $9'I,000,000.
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 land the issuance of Bonds for such purpose
and in such .amount approved , subject to approval of the Project by the
Commissioner of Securities and Real Estate of the State of Tinnesota
and to the mutual agreement' of this body, the .Company and the initial
- purchasers of the Bonds as ''to the details of the Bond and provisions
-l 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~lof 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 properly pledged to the payment thereof,
and the Bonds shall not constitute a debt of the City within the mean-
ing of any constitutional,l, charter or statutory limitation thereon.
4. The form of Piemorandum of Agreement relating to the issuance
of the Bonds to finance th~,e cost of the Project is hereby approved.
The Mayor and City Planage'~r are hereby authorized and directed to
execute the Plemorandum of Agreement in behalf of the City.
S. In accordance with Minnesota Statutes, Section 474.01,
Subdivision 7A, the hlayor and City Manager are authorized and directed
to submit the proposal for the Project to the Commissioner of
Securities for approval. The Mayor, City Manager „City Clerk, City
Attorney and other officers, employees, and agents of the City and
Messrs. LeFevere, Lefler,'~Kennedy, O'Brien & Drawz, A Professional
Association, as bond counsel, are hereby authorized to provide the
Commissioner with any preliminary information needed for this purpose,
and the City Attorney isliauthorized to initiate and assist. in the
preparation of such documeti~ts as may be appropriate. to the Project, if
it is approved by the Commissioner.
Passed by the City Cd,uncil of the (;ity of Richfield t 2
f
day of July, 1981.
ATTEST:
Sy a K. Bergh City C~ k
~~,
o d J. Prie Mayor