RES 1979-57 - 0000672997
RESOLUTION NO. 57 -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 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 deterioration
1.2 Onan Corporation, a Delaware corporation (hereinafter, the Company),
engaged primarily in the manufacture and sale of electronic generating
equipment and engines, has advised this Council of its proposal to construct
and equip, on land now owned and occupied by the Company within the City,
a building designed and intended for use by the Company principally as a
service and training center (such building and equipment being hereinafter
referred to as the Project).
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 and aid in retaining within
the City a Company which employs many residents of the City.
1.4. The City has been advised by the Company that conventional,
commercial financing to pay the capital cost of the Project is available
only on a limited basis and that with the aid of municipal financing,
and its resulting low borrowing cost, the Project is economically feasible.
' 1.5 . This Council has been advised by the Company that on the basis of
their discussions with 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
substantial 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 development
revenue bonds in a principal amount up to $1,000,000 under the provisions
of Chapter 474 to pay a portion of the costs of the Project.
3. 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 and to the
mutual agreement of this Council, the company and the initial purchasers
of the bonds as to the details of the bonds and provisions 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 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 from the Project and property pledged to the payment
thereof, and shall not constitute a debt of the City.
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.
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RESOLUTION NO. 57 -1979 (continued) PAGE 2
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
Commissioner with any preliminary 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.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 23RD ,
DAY OF APRIL, 1979.
MAYOR - WILLIAM J. NEE
ATTEST:
CITY CLERK - MARVIN C._BRUNSELL
98
RESOLUTION NO. 57 -1979 (continued) PAGE 2
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
Commissioner with any preliminary 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.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 23RD '
DAY OF APRIL, 1979.
ATTEST:
CITY CLERK - MARVIN C` BRUNSELL
W"4 4Z01—
MAYOR - WILLIAM J. NEE
C
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