RES 1978-126 - 00007245207
RESOLUTION NO. 126 - 1978
A RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL FACILITIES
DEVELOPMENT PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT
PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT
ACT AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR APPROVAL
OF SAID PROJECT TO THE COMMISSIONER OF SECURITIES OF THE
STATE OF MINNESOTA AND AUTHORIZING THE PREPARATION OF NECESSARY
DOCUMENTS AND MATERIALS IN CONNECTION WITH SAID PROJECT
WHEREAS,
(a) The purpose of Chapter 474, Minnesota 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 by the
active attraction and encouragement and development of economically sound
industry and commerce to prevent so far as possible the emergence of blighted
and marginal lands and areas of chronic unemployment;
(b) Factors necessitating the active promotion and development of
economically sound industry and commerce are the increasing concentration of
population in the metropolitan areas and 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 will provide
an adequate tax base to finance these increased costs and access to employment
opportunities for such population;
(c) The City Council of the City of Fridley ( "the City ") has received
from the Perlman- Rocque Company (North), a corporation organized under the laws
of the State of Minnesota (the "Company ") a proposal that the City undertake to
finance a Project hereinafter described, through the issuance of revenue bonds
in the form of a single debt instrument (the "Note ") pursuant to the Act;
(d) The City desires to facilitate the selective development of the
community, retain and improve its tax base and help it provide the range of
services and employment opportunities required by its population; and said
Project will assist the City in achieving those objectives. Said Project will
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;
(e) The Project to be financed by the Note is a distribution center
for the warehousing and distribution of food products and restaurant supplies
to be located in the City of Fridley, consisting of the acquisition of land
and the construction of buildings and improvements thereon and the installation
of equipment therein, and will result in the employment of approximately 50
persons to work within the new facilities;
(f) The City has been advised by representatives of Company 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 Company has also advised this Council that with the aid of municipal financing,
and its resulting low borrowing cost, the Project is economically more feasible.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Fridley,
Minnesota, as follows:
1. The Council hereby gives preliminary approval to the proposal of
Company that the City undertake the Project pursuant to the Minnesota Municipal
Industrial Development Act (Chapter 474, Minnesota Statutes), consisting of the
acquisition, construction and equipping of facilities within the City pursuant
to Company's specifications suitable for the operations described above and to
a revenue agreement between the City and Company 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 Note in the total principal amount of approximately $2,500,000
to be issued pursuant to the Act to finance the acquisition, construction and
equipping of said Project, and said agreement may also provide for the entire
interest of Company therein to be mortgaged to the purchaser of the Note; and
the City hereby undertakes preliminarily to issue its Note in accordance with
such terms and conditions;
Resolution No. 126 - 1978 (Continued) Page 2
2. On the basis of information available to this Council it appears,
and the Council hereby finds, that said 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 474.02 of the Act, that the availability of the financing under the
Act and willingness of the City to furnish such financing will be a substantial
inducement to Company to undertake the Project, and that the effect of the
Project, if undertaken, will be to encourage the development of economically
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 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. Said 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, Company, and the purchaser of the
Note as to the ultimate details of the financing of the Project;
4. In accordance with Subdivision 7a of Section 474.01 Minnesota
Statutes, the Mayor of the City is hereby authorized and directed to submit
the proposal for the above described Project to the Commissioner of Securities,
requesting his approval, and other officers, employees and agents of the City
are hereby authorized to provide the Commissioner with such preliminary
information as he may require;
5. Company has agreed and it is hereby determined that any and all
costs incurred by the City in connection with the financing of the Project
whether or not the Project is carried to completion and whether or not approved
by the Commissioner will be paid by Company;
6. Briggs and Morgan, Professional Association, acting as bond '
counsel, is authorized to assist in the preparation and review of necessary
documents relating to the Project, to consult with the City Attorney, Company
and the purchaser of the Note as to the maturities, interest rates and other
terms and provisions of the Note and as to the covenants and other provisions
of the necessary documents and to submit such documents to the Council for
final approval;
7. Nothing in this resolution or in the documents prepared pursuant
hereto shall authorize the expenditure 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 Note 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 of the Note shall never have the
right to compel any exercise of the taxing power of the City to pay the
outstanding principal on the Note or the interest thereon, or to enforce payment
thereof against any property of the City. The Note shall recite in substance
that the Note, including interest thereon, is payable solely from the revenue
and proceeds pledged to the payment thereof. The Note shall not constitute a
debt of the City within the meaning of any constitutional or statutory limitation;
8. In anticipation of the approval by the Commissioner of Securities
and the issuance of the Note to finance all or a portion of the Project, and in
order that completion of the Project will not be unduly delayed when approved,
Company 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 Note as Company considers necessary, including the use of interim,
short -term financing, subject to reimbursement from the proceeds of the Note if
and when delivered but otherwise without liability on the part of the City.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 18th DAY OF DECEMBER, 1978.
/ �
MAYOR - WILLIAM J. NEE
TEST:
CITY CLERK - MARVIN C. NSELL