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RES 1986-43 - 000048160£0 RESOLUTION NO. 43 — 1986 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROTECT UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF ENERGY AND ECONOMIC DEVELOPMENT FOR APPROVAL AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS (WINFIELD DEVELOPMENTS, INC.) BE 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 pranotion, 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. 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 requires the need for more intensive development and use of land to provide an adequate tax base to finance these costs. 1.4 Winfield Developments, Inc., a Minnesota corporation (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 an approximately 55,000 square foot multi— tenant industrial /commercial facility (the "Project ") , to be located in the southeast quadrant of the intersection of 73rd Avenue and University Avenue in the City. Page 2 - Resolution No. 43 - 1986 W-1 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 has been advised by the Company and on that basis hereby finds that conventional, commercial financing to pay the capital cost of the Project is available at such costs of borrowing that the Project would not be economically feasible and would not be undertaken but for the availability of industrial development bond financing therefore. 1.7 This Council has been advised by Miller & Schroeder Financial, Inc., Minneapolis of the financial feasability 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 Proj ect. 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, 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. 1.9 The City has been advised by O'Connor & Hannan, Minneapolis, Minnesota, who shall act as bond counsel to the City with respect to the ' Project, that the Project constitutes a "project" within the meaning of Minnesota Statutes, Chapter 474. 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 $3,000,000. 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 Department of Energy and Economic Development (the "Department ") 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 7a, the Mayor is hereby authorized and directed to submit the proposal for the Project to the Department for approval. The Mayor and other officers, employees and ' agents of the City are hereby authorized to provide the Department 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. 1 Page 3 - Resolution No. 43 - 1986 01r12 5. The adoption of this resolution by the Council does not constitute a guarantee or a firm committment 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 19TH DAY OF MAY, 1986 VV 4-4t' ry WILLIAM J. V MAYOR ATTEST: SHIRLEY A. HAAPALA CS CLERK