RES 1985-89 - 00005230V9
A RESCLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED
INDUSHU& DEVELOPMENT REVENUE BOND PROTECT - COLUMBIA
PARR PROPERTIES
NCWr THEREFORE, ME IT RESOLVED by the City Council (the "Council ") of the City
of Fridley, Minnesota (the "City "), as follows:
1. It is hereby found, determined and declared as follows:
1.1 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 econamic 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.
1.2 Rk�chnological 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
econanic 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 requires the
need for more intensive development and use of land to provide an adequate tax
base to finance these costs.
1.4 Columbia Park Properties, a Minnesota general partnership (the
"Company "), has advised the Council that it desires to undertake a project
which consists of the acquisition of land and the construction thereon of
approximately 17,000 square feet of clinic and related medical facilities and
of an approximately 254 stall parking facility (the "Project "), to be located
at 6341 University Avenue, N.E., in the City.
1.5 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.
1.6 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.
Page 2 - Resolution No. 89 - 1985
2, on the basis of information given the City to date, it appears that it io
would be in the best interest of the City to issue its obligations (the
"Bonds ") , under the provisions of Minnesota Statutes, Chapter 474, to f inance
the Project in an amount presently estimated not to exceed $4,360,000.
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 compliance with the
requirements prescribed by Minnesota Statutes, Chapter 474, including without
limitation the approval of the Project by the Minnesota Department of Energy
and Economic Development, 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 f rom
the project and property pledged to the payment thereof.
4. 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 the terms
thereof.
PASSED AND ADOPTED BY THE CITY ODUNCIL OF THE CITY OF FRIDLEY THIS 21ST DAY OF
ocimm, 1985.
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ATTEST;