RES 1981-83 - 00006290166
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WHEREAS, the purpose of Chapter 474, Minn co a statutes known as the Minnesota
Municipal Industrial Development Act ( the "Act), as found and determined by the
legislature, is to promote the welfare of the State of Minnesota (the "State ")
by the active attraction and encouragement and development of economically sound
industry and cclmlerce to prevent, so far as possible, the emergence of blighted
and marginal lands and areas of chronic unemployment; and
WHEREAS, factors necessitating the active promotion and development of
economically sound industtry and commerce are the increasing concentration of
population in the metropolitan areas, the rapidly rising increase in the amount
and cost of governmental services required to meet the needs of the increased
population and the need for development of land use which shall provide an
adequate tax base to finance these increased costs and access to unemployment
opportunities for such population; and
WHEREAS, the City Council (the "Council ") of the City of Fridley, Minnesota (the
"City "), has received from Winfield Developments, Inc. a Minnesota corporation
(the "Borrower "), a proposal that the City undertake to finance a Project (as
hereinafter described ) through the issuance of revenue bonds (the "bonds ")
pursuant to the Act; and
WHEREAS, the City desires to facilitate the selective development of the
community, retain and improve its tax base and help provide the range of
services and employment opportunities required by its population, and the
Project shall assist the City in achieving those objectives. The Project shall
help to increase assessed valuation of the City and help maintain a positive
relationship between assessed valuation and debt and enhance the image and
reputation of the City; and
WHEREAS, the Project to be financed by the bonds is the acquisition of land and
constructing and equipping of two office/warehouse /service centers to be used as
office /warehouse /service centers (the "Project ") and shall result in the
employment of additional persons to work within the new facilities; and
WHEREAS, the City has been advised by representatives of the Borrower 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 the borrower has also advised this Council that with the aid of municipal
financing and its resluting low borrowing cost the Project is economically more
feasible.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of Fridley?
Minnesota, as follows:
1. The Council hereby gives preliminary approval to the proposal of the
Borrower that the City undertake the Project pursuant to the Minnesota
Municipal Industrial Development Act, Chapter 474, Minnesota Statutes (the
"Act "), pursuant to the Borrower's specifications suitable for the
operations described above and to a revenue agreement between the City and
the Borrower upon such terms and conditions, with provisions for revision
from time to time as necessary, so as to produce income and revenues
sufficient to pay, when due, the principal of and interest on the proposed
bonds in the total principal amount of $4,000,000, to be issued pursuant to
the Act to finance the costs of the Project, and the agreement may also
provide for the entire interest of the Borrower therein to be mortgaged to
the purchaser of the bonds; the City hereby undertakes preliminarily to
issue its bonds in accordance with such terms and conditions.
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Page 2 — RESOLUTION NO. 83 - 1981
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2. On the basis of information available to this Council, it appears and the
Council hereby finds that the Project constitutes properties, real and
personal, used or useful in connection with one or more revenue - producing
enterprises engaged in any business within the meaning of Subdivision la of
Section 477.02 of the Act, that the availability of the financing under the
Act and willingness of the City to furnish such financing shall be a
substantial inducement to the Borrower to undertake the Project and that
the effect of the Project, if undertaken, shall be to encourage the
development of econimically sound industry and commerce, to assist in the
prevention of the emergence of blighted and marginal land, to help prevent
chronic unemployment, to help the City retain and improve its tax base and
provide to the range of service and employment opportunities required by
its population, to help prevent the movement of talented and educated
persons out of the State and to areas within the State where their services
may not be as effectively used, to promote more intensive development and
use of land within the City and to eventually increase the City's tax base.
3. The Project is hereby given preliminary approval by the City, subject to
the approval of the Project by the Commissioner of Securities and subject
to final approval by this Council, the Borrower and the purchaser or
purchasers of the bonds as to the ultimate details of the financing of the
Project.
4. In accordance with Subdivision 7a of Section 474.01, Minnesota statutes,
the Clerk-Treasurer of the City is hereby authorized and directed to submit
the proposal for the above - described Project to the Commissioner of
Securities, requesting the Commisssioner's approval, and other officers,
employees and agents of the City are hereby authorized to provide the
Commissioner with such preliminary information as the Commissioner may
require. Representatives of the City and Linquist & Vennum, as bond
counsel, are hereby authorized, in cooperation with the Borrower and the
Borrower's counsel, to initiate the preparation of a proposed loan
agreement, mortagage and such other documents as may be necessary or
appropriate to the Project so that, when and if the proposed project is
approved by the Commissioner and this Council gives its final approval
thereto, the Project may be carried forward expeditiously.
5. The Borrower has agreed and it is hereby determined that any and all costs
incurred by the City inconnection with the financing of the Project,
whether or not approved by the Commissioner, shall be paid by the Borrower.
b. Nothing in this resolution or in the documents prepared pursuant hereto
shall authorize the expediture of any municipal funds on the Project other
than the revenues derived from the Project or otherwise granted to the City
for this purpose. The bonds shall not constitute a charge, lien or
encumbrance, legal or equitable, upon any property or funds of the City
except the revenue and proceeds pledged to the payment thereof, nor shall
the City be subject to any liability thereon. The holder or holders from
time to time of the bonds shall never have the right to compel any exercise
of the taxing power of the City to pay the outstanding principal on the
bonds or the interest thereon or to enforce paymet thereof against any
property of the City. The bonds shall recite in substance that the bonds,
including interest theron, are payable soely form the revenue and proceeds
pledged to the payment thereof. The bonds shall not constitute a debt of
the City within the meaning of any constitutional or statutory limitation.
7. In anticipation of the approval of the Commissioner of Securities and the
issuace of the bonds to finance all or a portion of the Project and in
order that completion of the Project shall not be unduly delayed when
approved, the Borrower is hereby authorized to make such expenditures and
advances toward payment of that portion of the costs of the Project to be
financed from the proceeds of the bonds as the Borrower considers
necessary, including the use of interim, short -term financing, subject to
reimbursement from the proceeds of the bonds is and when delivered but
otherwise without liabiltiy on the part of the City.
PASSED AND ADMYTED BY WE CITY ODDS OF THE CITY OF FRIDLFY THIS 10TH DRAY OF
ADMSrs 1981.
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