RES 1981-129 - 000063711
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r45OLUITION ND. 129 1981
RESC,UPICN GIVING PRELIMINARY APPROVAL TO A PROJECT
UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT,
REFERRING THE PROPOSAL TO THE COMMISSIONER OF
SECURITIES FOR APPROVAL, AND AUTHORIZING PREPARATION
OF MOCESSim DD U ENTS (73RD AVENUE PARMRSHIP)
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fridley,
Anoka County, Minnesota (the "City"), as follows:
1. It is hereby found, determined and declared as follows:
I.I. The welfare of the State of Minnesota (the "State ") 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 it is the policy of the State to facilitate
and encourage action by local government units to prevent the economic
deterioration of such areas to the point where the process can be
reversed only by total redevelopment through the use of local, state
and federal furls derived from taxation, with the attendant necessity
of relocating displaced persons and of duplicating public services in
other areas.
1.2. Technological change has caused a shift to a significant degree
in the area of opportunity for educated youth to processing,
transporting, marketing, service and other industries, and unless
existing and related industries are retained and new industries are
developed to use the available resources of the City, a large part of
the existing investment of the community and of the State as a whole
in educational and public service facilities will be lost, and the
movement of talented, educated personnel of mature age to areas where
their services may be effectively used and compensated and the
lessening attraction of persons and businesses from other areas for
purposes of industry, commerce and tourism will deprive the City and
the State of the economic and human resources needed as a base for
providing governmental services and facilities for the remaining
population.
1.3. The increase in the amount and cost of governmental services
required the need for more intensive development and use of land to
provide an adequate tax base to finance these costs.
1.4. 73rd Avenue Partnership, a Minnesota partnership (the
"Company "), has advised this City Council that it desires to acquire
land, acquire and construct a building thereon and acquire and install
equipment therefor (the "Project" as a commercial office building
facility.
1.5. The existence of the Project in the City will contribute to more
intensive development and use of land to increase the tax base of the
City and overlapping taxing authorities and maintain and provide for
an increase in opportunities for employment for residents of the City.
1.6. The City has been advised that conventional, commercial
financing to pay the capital cost of the Project is available at such
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.
1.7. This City Council has been advised by a representative of Gopher
Securities, Inc. of Minneapolis, Minnesota and /or Dupree & Company,
Inc. of Lexington; Kentucky, 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 revenue bonds, notes or other
obligations of the City could be issued and sold upon favorable rates
and terms to finance the Project.
D'(1 1.8. The City is authorized by Minnesota Statutes, Chapter 474, to
issue its revenue bonds, notes or other obligations to finance the
cost, in whole or in part, of the acquisition, construction,
reconstruction, improvement or extension of capital projects
consisting of properties used and useful in connection with a revenue
producing enterprise, such as that of the Company; the issuance of
such bonds, notes or other obligations 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, notes or other obligations under the
provisionss of Chapter 474 to finance the Project of the Company at a cost
presently estimated not to exceed $1,950,000.00.
3. The Project is hereby given preliminary approval by the City and the
issuance of bonds, notes or other obligations for such purpose and in such
amount is hereby 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, notes or other
obligations as to the details of the bond issue and provisions for their
payment. In all events, it is understood, however, that the bonds, notes
or other obligations 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, note or other obligation when, as, and if issued
shall recite in substance that the bond, note or other obligation,
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.
4. In accordance with Minnesota Statutes, Section 474.01, Subdivision 7
(a), the Mayor is hereby authorized and directed to submit the proposal
for the Project to the Commissioner of Securities for approval of the
Project. The Mayor, the City Clerk, the City Attorney and other officers,
employees and agents of the City are hereby authorized to provide the
Commissioner of Securities with any preliminary information needed 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 Comnissioner of Securities.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 23RD
DAY OF NOVEMBER, 1981.
WILLIAM NEE - MAYOR
A7TEW:
SIDNEY�C. II�II+IPII - CITY CLERK
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