80-6258R14
RESOLUTION NO. 6258
RESOLUTION DETERMINING TO PROCEED WITH
A PROJECT AND ZTS FINANCING UNDER THE
MUNICIPAL INDUSTRIAL DEVELOPMENT ACT;
REFERRING THE PROPOSAL TO THE COMMISSIONER
OF SECURITIES FOR APPROVAL; AND AU'T'HORIZING
PREPARATION OF NECESSARY DOCUMENTS
BE IT RESOLVED by the City Council of the City of
Richfield,. Minnesota (the Municipality), as follows:
SECTION 1
Recitals and Findings
1. 1. This Council has received a proposal that the
Municipality undertake and finance a proposed project
under Minnesota Statutes, Chapter 474 (the Act),
consisting of the acquisition of land and the construction
and equipping thereon of an office building facility (the
Project) by a partnership to be formed by Charles W.
Erickson, Steven E. Wirth, Kathryn E. Wirth, Thomas E.
Erickson and Lyla S. Erickson {the Borrower), to be leased
by the Borrower to Corporate Travel-Twin Cities, Inc., a
Minnesota corporation, and others.
1.2. At a public hearing, duly noticed and held on
July 14, 1980, in accordance with the Act, all parties who
appeared at the hearing were given an opportunity to
express their views with respect to the proposal to
undertake and finance the Project. Based on such hearing
and such other facts and circumstances as this Council
deems relevant, this Council hereby finds, determines and
declares as follows:
(a) The welfare of the Sate of Minnesota
requires active promotion, attraction, encouragement and
development of economically sound industry and commerce
through governmental acts to prevent, so far as possible,
emergence of blighted lands and areas of chronic
unemployment, and the State has encouraged local
government units to act to prevent such economic
deterioration.
(b) The Project would further the general
purposes contemplated and described in Section 474.01 of
the Act.
{c) The existenc
the tax base of the Munici
District in which the Proj
increased opportunities fo
the Municipality and surro
{d) This Council
representatives of the Bor:
commercial financing to pa~
available only on a limite
of borrowing that the econ
the Project would be s ign i
the aid of municipal borro
borrowing cost, the Projec
(e) This Council
representatives of the Bor
discussions with potential
revenue bonds of the Munic
form of a commercial devel
could be issued and sold L
finance the Project.
(f) The Municip
issue its revenue bonds t
consisting of properties
with a revenue producing
Borrower, and the issuanc
Municipality would be a s
Borrower to acquire and c
of the Project would add to
ality, the County and School
ct is located and would provide
employment for residents of
nding area.
has been advised by
sower that conventional,
~ the cost of the Project is
i basis and at such high costs
>mic feasibility of operating
Eicantly reduced, but that with
wing, and its resulting lower
is economically more feasible.
has also been advised by
rower that on the basis of their
buyers of tax-exempt bonds,
ipality (which may be in the
opment revenue note or notes)
pon favorable rates and terms to
lity is authorized by the Act to
finance capital projects
sed and .useful in connection
nterprise, such as that of the
of such bonds by the
bstantial inducement to the
nstruct the Project.
ECTION 2
Determination to~,Proceed with the Pro-'iect
an
2.1. On the basis of information given the Municipality
to date, it appears that a.t would be desirable for the
Municipality to issue itsl revenue bonds under the
provisions of the Act to 'finance the Project in the
estimated total amount of', $7,500,000.
2.2. It is hereby de termlined to proceed with the Project
and its financing, and th'~~is Council hereby declares its
present intent to have th~,e Municipality issue its revenue
bonds under the Act to finance the Project.
Notwithstanding the foregoing, however, the adoption of
this resolution shall not be deemed to establish a legal
obligation on the par. t of the Municipality or its City
Council to issue or to cause the issuance of such revenue
-2-
r
bonds. All details of°such revenue bond issue and the I
provisions for payment thereof shall be subject to final
approval of the Project by the Minnesota Commissioner of
Securities and may be subject to such further conditions
as the Municipality may specify. The revenue bonds, if
issued, shall .not constitute a charge, lien or
encumbrance, legal or equitable, upon any property of the
Municipality, 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 property pledged to.
the payment thereof, and shall not constitute a debt of
the Municipality.
2.3. The form of the Application to the Cammissioner of .
Securities, with attachments, is hereby approved, and the
Mayor and City Manager are authorized to execute said
documents in behalf of the Municipality. ',
2.4. In accordance with Section 474.10, Subdivision 7a of
the Act, the Mayor and City Manager are hereby authorized
and directed to cause said Application to be submitted to
the Commissioner of Securities for approval of the
Project. The Mayor, City Manager, City Attorney and other
officers, employees and agents of the Municipality are
hereby authorized and directed to provide the Commissioner
with any preliminary information the Commissioner may need
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 Commissioner .
~gCTTC1T~T 3
General
3.1. If the bonds are issued and sold, the Municipality
will enter into a lease, sale or loan agreement or similar
agreement satisfying the reauirem~nnts of the Act fthe
Revenue Agreement) with the Borrower . The lease rentals ,
installment sale payments, loan payments or other amounts
payable by the Borrower to the Municipality under the
Revenue Agreement shall be sufficient to pay the
principal, interest and redemption premium, if any, on the
bonds as and when the same shall become due and payable.
3.2. The Borrower has agreed and it is hereby determined
that any and all direct and indirect costs incurred by the
Municipality in connection with this Project, whether or
not the Project is carried to completion, and whether or
-3-
not approved by th e Commissioner of Securities, and
whether or not the IY;unici ~ lity by resolution authorizes
the issuance of the bonds , will be paid by the Borrower
upon request. j
3.3. The Mayor and City Manager are directed, if the
bonds are issued and sold ,, thereafter to comply with the
provisions of Minnesota Stlatutes, Section 474.01,
Subd ivis ion 8 .
Passed by the City
14th day of July, 1980.
1 of the City of Richfield this
ATTEST:
Sy a K. ergh Ac g Cty'Clerk
o ald J. Prie Mayor