RES 1984-83 - 00005484167
RESOLUTION GIVING PRELIMINARY APPROVAL TO A PRWECT UNDER
THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT,
REFERRING THE PROPOSAL TO THE MINNESOTA ENERGY AND
ECONOMIC DEVELOPMENT AUTHORITY FOR APPROVAL AND
AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS (NORTH
' FREEWAY INVESTORS)
BE IT RESOLVED by the City Council (the "Council") of the City of Fridley,
Anoka County, Minnesota, (the "City "), as follows:
1. It is hereby found, determined and declared as follows:
A. 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 funds derived from taxation,
with the attendant necessity of relocating displaced persons and of
duplicating public services in other areas.
B. 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.
C. The increase in the amount and cost of governmental services requires
the need for more intensive development and use of land to provide an
adequate tax base to finance these costs.
D. North Freeway Investors (the "Company ") , has advised the Council that
it desires to undertake a project which consists of acquisition of land
and the construction thereon of two single story office buildings and
related service facilities, including one building of approximately 90,000
square feet and one building of approximately 60,000 square feet (the
"Project ") , to be located immediately south of Interstate 694 and east of
East River Road, in an area generally known as Burlington Northern
Industrial Center in the City.
E. The existence of the Project in the City will contribute to more
intensive development and use of land, thereby increasing the tax base and
employment opportunities in the City.
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F. 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 Project would be unfeasible and that but for the aid of
municipal financing and its resulting low borrowing cost the Project would
not be undertaken.
G. This Council has been advised by Dougherty, Dawkins, Strand & Yost of
the financial feasibility of the Project, as so undertaken with the
assistance of the City, or of its intention to purchase commercial or
industrial revenue obligations of the City to finance the Project.
H. 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, betterment or extension of capital projects consisting of
properties used and useful in connection with a revenue producing
enterprise, including the Project; and the issuance of such 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 obligations (the
"Bonds ") under the provisions of Minnesota Statutes, Chapter 474, to finance
the Project in an amount presently estimated not to exceed $7,500,000.
3. The Project and the related financing thereof by the City are hereby given
preliminary approval and the issuance of the Bonds for such purpose and in
such estimated amount is hereby approved, subject to approval of the Project
by the Minnesota Energy and Economic Development Authority (the "Authority ")
and to the mutual agreement of the Council, the Company and the initial
purchasers of the Bonds as to the details and provision for payment of the
Bonds. In all events, it is understood, however, that the Bonds shall not
constitute a debt of the City or a charge, lien or encumbrance, legal or
equitable, upon any property of the City except its interest in the Project
and each of the Bonds when, as and if issued shall recite in substance that it
is payable solely from the revenues received from the Project and property
pledged to the payment thereof.
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 Authority for approval. The Mayor and other officers,
employees and agents of the City are hereby authorized to provide the
Authority with any preliminary information needed for this purpose and are
further authorized to initiate and assist in the preparation of such documents
as may be appropriate to the Project and the financing thereof.
5. The adoption of this resolution by the Council does not constitute a
guarantee or a firm commitment that the City will issue the Bonds as requested
by the Company. The City retains the right in its sole discretion to withdraw
from participation and accordingly not issue the Bonds, should the City
determine that it is in the best interest of the City not to do so or should
the parties to the transaction be unable to reach agreement on terms thereof.
F
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169
6. The City and the Company are aware that pending or future federal and
Minnesota Legislation, including without limitation amendments to Section 103
of the Internal Revenue Code of 1954, as amended, Laws of Minnesota 1984,
Chapter 582 may impair or eliminate the ability of the City to issue the Bonds
on a tax exempt basis. Such legislation may impose restrictions with which
the Project cannot comply or a limit on the volume of industrial revenue bonds
which the City may issue which may be less than the proposed amount of the
Bonds. This resolution does not constitute an allocation by the City of any
volume limit which may be imposed by such legislation. The Council retains
the sole discretion to issue revenue bonds for other projects within any
volume limit and to determine not to allocate to the Project any portion of
any such volume limit.
PASSED AND ADOPTED BY THE CITY COUNCII, OF THE CITY OF FRIDLEY THIS 16TH DAY OF
JULY, 1984.
ATTEST:
WILLIAM J. V MAYOR