80-6281R37
RESOLUTION N0. 6281
RESOLUTION GIVING PRELI;IIpLgRY APPROVAL TO A
PROJECT UYDER THE PNNICIPAL INDUSTRIAL
DEVELOPPIENT ACT: REFERRING THE PROPOSAL TO
THE COMPIISSIONER OF SECURITIES FOR APPROVAL;
AND AUTlIORIZING EYECUTION OF A 1`IEMORANDU;~1 OF
AGREEMENT AND. PREPy~TION OF NECESSARY DOCL'iIENTS
PlinnesotalT SOLVED By the City Council of the Cit
as follows: Y of Richfield,
1• It is hereb
Y found, determined and
declared as follows:
1.1 Ttre welfare of the State of "' _
tion, attraction Minnesota requires active
industr ~ encouragement and development of economical) promo-
y and commerce through governmental acts to
possible, emergency' of bli titecl Y sound
ment g lands and areas of pchronic unemploys
and the state has encouraged-local
prevent such economic deterioration.. government u
nits to act to
1.2 The S & hi Com pan
"Com an 1 Y, a Minnesota corporation
P Y ), has advised this Council of its
improve land and to (hereinafter the
for and the expansioncofsaruct and e ui desire to acquire and
q p thereon additional facilities
to Lyndale Hardware retail hardware store facilit
hardware and related for use in its business of Y to be leased
products (the "project„)- the retail sale of
1.3 The existence
cantly increase the tax
in which the City is
employment for residents
1.4 The City has been advised b
commercial financing to pay the ca italthe Coinpan~, that conventional,
able only on a limited basis and aP cost of the Project is avail-
the economic feasibilit such high costs of borrowin
icantly reduced Y °f operating the Project would g that
resultin ~ but that with the aid of munici al be si
g low borrowin P financin gnif-
ible. g cost, the Project is ecanomicall g' and its
Y more feas-
1•5 This Council has
pals, Inc.
been advised by Miller & Schroeder Munici-
investment bankers
submitted to them and the ' that on the
Company that bonds discussions basis of information
or notes with representatives of .the
Project can be to finance all or
successfully sold Part of tiiP cost of the
or notes. and that it will purchase
such bonds
of the Project within the City would sigriifi-
base of the City, County and school
located, and would provide o district
of the City and surroundin PP°rtunities for
g area.
1.6 The City is authorized
to issue its revenue bonds or
finance capital projects consisti.
connection .with a revenue product
Company, and the issuance of suct
stantial inducement to the Company
City.
2. On the basis of inforn
presently appears that it would be
issue its industrial development r
Chapter 474 to finance the Projec
estimated to be approximately $1,5
~y Minnesota Statutes, Chapter 474,
ther obligations (the "Bonds") to
g of properties used and useful in
ng .enterprise, such as that of the
Bonds by the City would be a sub-
to construct the Project within the
ition given the City to date', it
in the best interest of the City to
venue Bonds under the provisions of
of the Company at a cost presently
0,000.
3. The Council declares that it is its present intent to issue
the Bonds, and the Project is hereby given preliminary 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 Commissioner of
Securities 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 bocid issue and provisions for its payment. In all
events, ~it is understood, however.,ithat 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
.properly pledged to the payment
debt of the City within the meani
......statutory limitation thereon.
ereof, and shall not constitute a
of any constitutional, charter or
4. The form of Memorandum of
of the Bonds to finance the cost
and the Mayor and City Clerk are
execute the Memorandum of Agreement
5. In accordance with P1in
Subdivision 7A, the rlayor and City
to submit the proposal for the Pro
ities for approval: The Mayor,
Attorney and other officers, emplc
Messrs. LeFevere, Lefler, Pearson,
are hereby authorized to provide the
information needed for this purpose
ized to initiate and assist in thi
may be appropriate to the Project,
signer.
Passed by the City Council of
of August, 1980,
ATTEST:
Sy1vi~K. Bergh Ac `ting City
s~
Agreement relating to the issuance
~f the Project is hereby approved,
hereby authorized and directed to
in behalf of the City.
iesota Statutes, Section 474.01,
Clerk are authorized and directed
ject to the Commissioner of Secur-
City Clerk, City Manager, City
yees, and agents of the City and
O'Brien & Drawz, as bond counsel,
Commissioner with any preliminary
and the City Attorney its author-
preparation of such documents as
if it is approved by the Commis-
the City of Richfi`eYd this 25th day
~>
~~
onald J. Priebe y