RES 1979-30 - 0000667140
RESOLUTION NO. 30 - 1979
RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER
THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING THE
PROPOSAL TO THE COMMISSIONER OF SECURITIES FOR APPROVAL,
AND AUTHORIZING EXECUTION OF A MEMORANDUM OF AGREEMENT
AND PREPARATION OF NECESSARY DOCUMENTS
BE IT RESOLVED by the City Council of the City of Fridley, Minnesota, as
follows:
1. It is hereby found, determined and declared as follows:
1.1. The welfare of the State 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 deterio-
ation.
1.2. Farmers Union Grain Terminal Association, a Minnesota cooperative
corporation (hereinafter, the Company), has advised this Council of its desire
to construct and equip one or more buildings or building additions to be used by the
Company in connection with its existing facility in the City (such construction
and equipment being hereinafter referred to as the Project), for use by the
Company in its processing of flaxseed, sunflower seed and soybeans.
1.3. The existence of the Project in the City would significantly increase
the tax base of the City, County and school district in which the City is
located, and would provide opportunities for employment for residents of the
City and surrounding area.
1.4. The City has been advised that conventional, commercial financing to
pay the capital cost of the Project is available only on a limited basis and
at such high costs of borrowing that the economic feasibility of operating
the Project would be significantly reduced, but that with the aid of municipal
financing, and its resulting low borrowing cost, the Project is economically
more feasible.
1.5. This Council has been advised by a representative of Dain, Kalman
& Quail, Incorporated, of Minneapolis, Minnesota, investment bankers and
dealers in municipal bonds, that on the basis of information submitted to
them and their discussions with representatives of the Company and potential
buyers of tax - exempt bonds, industrial development bonds of the City could be
issued and sold upon favorable rates and terms to finance the Project.
1.6. The City is authorized by Minnesota Statutes, Chapter 474, to issue
its revenue bonds to finance capital projects consisting of properties used
and useful in connection with a revenue producing enterprise, such as that
of the Company, and the issuance of such bonds by the City would be a sub-
stantial inducement to the Company to construct its facility in the City.
2. On the basis of information given the City to date, it appears that
it would be in the best interest of the City to issue its industrial develop-
ment revenue bonds under the provisions of Chapter 474 to finance the Project
of the Company at a cost presently estimated to be approximately $6,000,000.
3. The Project above referred to 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 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 provisions for their
payment. In all events, it is understood, however, that the bonds of the
City 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
property pledged to the payment thereof, and shall not constitute a debt of
the City.
i
Resolution No. 30 - 1979 Continued
Page 2
4. The form of Memorandum of Agreement relating to the issuance of
revenue bonds of the City to finance the cost of the Project is hereby
approved and the Mayor and City Manager are hereby authorized and directed
to execute the Memorandum of Agreement in behalf of the City.
5. In accordance with Minnesota Statutes, Section 474.10, Subdivision 7,
the Mayor is hereby authorized and directed to submit the proposal for the
Project to the Commissioner of Securities for his approval of the Project.
The Mayor, City Clerk- Treasurer, City Manager, City Attorney and other officers,
employees and agents of the City are hereby authorized to provide the Commis-
sioner with any preliminaty information he 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.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 26TH DAY OF FEBRUARY,
1979.
ATTEST:
CITY CLERK - MARUIN C. BRUNSELL
V _� MAYOR - WILLIAM J. `^