Loading...
80-6329RtS 4 RESOLUTION NO. 6329 A RESOLUTION AUTHORIZING THE EXECUTION OF A PRELIMINARY AGREEMENT BY AND BETWEEN THE CITY OF RICHFIELD, HENNEPTN COUNTY, MINNESOTA, AND SIX FOLD REAL ESTATE .COMPANY RELATING TO THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS WHEREAS, the City of Richfield, Hennepin County, Minnesota (the "City") is an incorporated municipality authorized and em- powered by~the provisions of the Minnesota Municipal Industrial Development Act, Chapter 474; Minnesota Statutes, as amended (the "Act"), to issue its revenue bonds to finance the cost of the acquisition, construction and improvement of any properties, real or personal, used or useful in .connection with a revenue producing enterprise engaged in assembling, fabricating, manu- facturing, mixing, processing, storing, warehousing or distrib- uting any products of agriculture, forestry, mining or manufac- ture; and WHEREAS, the City proposes to issue its industrial develop- ment revenue bonds (which may be in the form of a single debt instrument or may be in one or more series or in part in the form of a note or notes and in part in the form of bonds, any of the foregoing being referred to herein as the "Bonds") pursuant to the provisions of the Act as then in effect to finance the cost of the construction and equipping of a facility (the "Project") to be located in the City and to be owned or leased from the City by Six Fold Real Estate Company, a Minnesota general partnership (the "Contracting Party") and to be .leased or subleased by the Contracting Party to Canteen Company of Minnesota, a Minnesota corporation, the principal shareholders of which are major part- ners of the Contracting Party (the "Company"), for use as a food processing plant; and WHEREAS, the Act declares that the welfare of the State of Minnesota requires the active promotion, attraction., encourage- ment, and development of economically sound industry and commerce through governmental acts to prevent, so far as possible, the em- ergence of blighted and marginal lands and areas of chronic unem- ployment, and the state has encouraged local government units to prevent such economic deterioration; and WHEREAS, the Contracting Party has represented to the City that the financing of the Project under the Act will encourage the Contracting Party to construct and equip the Projecb and that the Project will be more financially feasible with the aid of tax exempt financing; and WHEREAS, it is deemed motion and development of r i '.,,- the Project be undertaken ~ the Contracting Party has ~ the City that the proceeds revenue bonds of the City finance the Project, curre~ will be made available; and necessary and advisable for the pro- _ndustry and commerce in the City that it the earliest practicable date, and requested satisfactory assurances from of the sale of industrial development .n an aggregate amount sufficient to -tly estimated not to exceed $275,000, WHEREAS, the City deems it necessary and advisable that it take such actions as may be required under the Act as then in effect to authorize and issue industrial development revenue bonds to finance the cost of the Project, currrently estimated not to exceed $275,000; and WHEREAS, a form of ag Agreement" has been prepar has stated its willingness equipping of the Project a and, at the time of delive lease the Project to the C struction and equipping. of of the Project from the Ci ject from the City, or a 1 City, with respect to the going, or any other form o the Act, under which the C (directly or through-its n obligations executed and d thereunder) to make period cipal of, interest on and as and when the same shall contract ox agreement shal be xequired by the Act as as shall be mutually accep Party; and cement, designated as a "Preliminary d under which the Contracting Party to .arrange for the construction and d to enter into contracts therefor y of the bonds, to convey, grant or ty, and/or agree to complete the con- the Project, and to enter into a lease y, or a contract to purchase the Pro- an or financing agreement with the roject, or any combination of the fore- "reveiiue agreement", as defined in ntracting Party will be obligated tes or other secured or unsecured debt livered to evidence its obligations c payments sufficient to pay the prin- edemption premium, if any, on the bonds become due and payable, and such lease, contain such other provisions as may hen in effect and such other provisions able to the City and the Contracting .WHEREAS, the Act provides that no project shall be undertaken until the Commissioner of Securities has approved the Project, on the basis of such preliminary information as the Commissioner may require, as tending to further the purposes and policies of the Act; and ', - WHEREAS,.the Act provides that prior to submitting an appli- cation to the Commissioner', of Securities requesting approval of the Project, the City Council of the City shall conduct a public hearing on the proposal tol,undertake and finance the Project, no- tice of which hearing is to be published at least once"not less than 15 days nor more than~!,30 days prior to the date fixed for said hearing, in the official newspaper and a newspaper of gene- ral circulation of the City; and ~_.`, 2 WHEREAS, such public hearing was conducted on Monday, Octo- ber 13, 1980, at 7:00 o'clock P.M. at City Council Chambers, 6700 Portland Avenue South, duly noticed, and held in accordance with law, and as a result of said public hearing the City has determined to proceed with the Project; NOW, THEREFORE, Be it Resolved by the City Council of the City of Richfield, Hennepin County, Minnesota, as follows: Section 1. That this City Council hereby finds, upon the basis of information given it to~date, that the Project will promote, attract,. encourage and develop economically sound industry and commerce in the. City of Richfield, will prevent the emergence of blighted and marginal lands and areas of chronic unemployment in the City of Richfield, and will otherwise further the purposes of Section 474..01 of the Act. Section 2. That in order to provide for the construction and equipping of the Project in the City, with the resulting public benefits which will flow therefrom, it is deemed neces- sary and advisable that Bonds be issued in an amount sufficient to finance the Project, currently estimated not to exceed $275,000 and that the Preliminary Agreement hereinafter referred to be approved and executed for and on behalf of the City. Section 3. That the Preliminary Agreement by and between the Contracting Party and the City, substantially in the form and with the contents set forth in Exhibit A_ attached hereto, be and t:he same is hereby approved and authorized. Section 4. That the Mayor is hereby authorized and di- rected to execute, and the City Manager is hereby authorized to attest and to affix the seal of the City to, the Preliminary Agreement substantially in the form and with the contents set forth in Exhibit A attached hereto. Section 5. That in accordance with the Act, the Mayor is hereby authorized and directed to submit the proposal for the Project to the Commissioner of Securities for the Commissioner's approval. of the Project. The Mayor, City Attorney and officers, employees and agents pf the City are hereby authorized to pro- vide the Commissioner with any preliminary information he may require 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 i_s approved by the Com- missioner. Section 6. .That it is the present intent of the City to issue aiid sell Bonds in an amount sufficient to finance the costs of the Project, currently estimated not to exceed $275,000, subject to the execution of the Preliminary Agreement herein authorized, the. approval of the Project by the Commissioner - 3 - of Securities and the conditions specified in the Prelimin- ary Agreement. Provided, however, that the City may in its sole discretion withdraw its approval of the Project at any time if, in the judgment of the City Council, the public interest and the purposes of the Act would not be served thereby, and provided further that nothing in this Resolu- tion or the Preliminary Agreement shall be construed to constitute a legal obligation on the part of the City to issue the Bonds. I Section 7. That. all resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. i ~~,, Passed by the City Council of the City of Richfield this 13th day of October, 1980.- , I I . ~ I Donal J, Priebe Mayor i ATTEST: Sy 'a K. Bergh Acting City. erk