Res 1979-138 9 r7
RESOLUTION NO 138 - 1979
A RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED
INDUSTRIAL DEVELOPMENT PROJECT BY SIMER PUMP COMPANY UNDER
THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AND AUTHORIZING SUB-
MISSION OF AN APPLICATION TO THE COMMISSIONER OF SECURITIES
FOR APPROVAL THEREOF
BE IT RESOLVED by the City Council of the City of Fridley Minnesota, as
follows:
1 . There has been presented to this Council a proposal by Simer Pump
Company, a Minnesota Corporation, (the "Company") , that the City
undertake a project pursuant to the Minnesota Municipal Industrial
Development Act (Minnesota Statutes, Chapter 474) for the renovation of
the Company s existing manufacturing facility and the acquisition.
construction and equipping of an addition to the existing facility (the
"Project" ) . Under the proposal , the Project will be owned by the
Company, and the Company will enter into a Loan Agreement with the City
upon such terms and conditions as are necessary to produce income and
revenues sufficient to pay when due the principal of and interest on up
to approximately $700,000 Industrial Development Revenue Bonds of the
City to be issued prusuant to said Chapter 474, Minnesota Statutes, to
provide monies for the renovation acquisition construction and
equipping of the Project and the City will pledge its interest in the
Loan Agreement to the bondholder, and the Company will mortgage the
Project to secure the bonds.
2. As required by said Chapter 474, Minnesota Statues this Council
conducted a public hearing on November 26, 1979 on the proposal to
undertake and finance the Project after publication in the official
newspaper and a newspaper of general circulation in the City of a notice
of the time and place of hearing , stating the general nature of the
Project and an estimate of the principal amount of the bonds or other
obligations to be issued to finance the Project and stating that a draft
copy of the proposed Application to the Commissioner of Securities,
together with all attachments and exhibits thereto shall be available
for public inspection at the office of the City Clerk, in the City Hall ,
Fridley Minnesota at all times between the hours of 8:00 a.m and 5:00
p.m. each day except Saturdays, Sundays, and holidays to and including
the day of hearing; and all parties who appeared at the public hearing
were given an opportunity to express their views with respect to the
proposal .
3 It is hereby found, determined and declared that the purpose of the
Project is and the effect thereof will be to promote the public welfare
by the attraction, encouragement and development of economically sound
industry, agriculture and commerce so as to prevent, so far as possible,
the emergence of blighted and marginal lands and areas of chronic
unemployment; the retention and development of industry to use the
available resources of the community, in order to retain the benefit of
its existing investment in educational and public service facilities, by
halting the movement of talented, educated personnel of mature age to
other areas and thus preserving the economic and human resources needed
as a base for providing governmental services and facilities; the more
intensive development of land available in the area; and the more
intensive development of land available in the area to provide a more
adequate tax base to finance the cost of governmental services in the
City, County and School District where the Project is located.
4. The Company has entered into preliminary discussions with Piper Jaffray &
Hopwood Incorporated as Underwriters, and Piper Jaffray & Hopwood,
Incorporated reported that the Project and the sale of bonds therefor are
feasible.
5. The Project is hereby given preliminary approval by the City subject to
approval of the Project by the Commissioner of Securities and subject to
final approval by this Council and by the purchasers of any bonds to be
issued and as to the ultimate details of the Project.
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Page 2 ---RESOLUTION NO. 138 - 1979
6. In accordance with Section 474.01 , Subdivision 7, Minnesota Statutes the
Mayor, City Manager, the City Clerk, and such other officers and
representatives of the City as may from time to time be designated are
hereby authorized and directed to submit the proposal for the Project to
the Commissioner of Securities and request her approval thereof, and the
Mayor, City Manager, the City Clerk, and other officers, employees and
agents of the City are hereby authorized to provide the Commissioner with
such preliminary information as she may require. The Company, Messrs.
Faegre & Benson as bond counsel , the Underwriters the City Attorney, and
other City officials are also authorized to initiate the preparation of a
proposed loan agreement , mortgage, 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.
7. The Company has agreed to pay any and all costs incurred by the City in
connection with the Project whether or not the Project is approved by the
Commissioner and whether or not the Project is carried to completion.
8. The Company is hereby authorized to enter into such contracts, in its own
name and not as agent for the City, as may be necessary for the
construction of the Project by any means available to it and in the
manner it determines without advertisement for bids as may be required
for the acquisition or construction of other municipal facilities, but
the City shall not be liable on any such contracts.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 3 RD DAY
OF DECEMBER 1979.
WILLIAM J. NEE AYOR
ATTEST:
AlAl d' ' ..-
CITY CLERK - MARVIN C. BRUNSELL