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RES 1979-57 - 0000672997 RESOLUTION NO. 57 -1979 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING THE PROPOSAL TO THE COMMISSIONER OF SECURITIES FOR APPROVAL, AND AUTHORIZING EXECUTION OF A MEMORANDUM OF AGREEMENT AND PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of Fridley, Minnesota, as follows: 1. It is hereby found, determined and declared as follows: 1.1. The welfare of the State of Minnesota 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 the state has encouraged local government units to act to prevent such economic deterioration 1.2 Onan Corporation, a Delaware corporation (hereinafter, the Company), engaged primarily in the manufacture and sale of electronic generating equipment and engines, has advised this Council of its proposal to construct and equip, on land now owned and occupied by the Company within the City, a building designed and intended for use by the Company principally as a service and training center (such building and equipment being hereinafter referred to as the Project). 1.3. The existence of the Project in the City would significantly increase the tax base of the City, County, and school district in which the City is located, and would provide opportunities for employment for residents of the City and surrounding area and aid in retaining within the City a Company which employs many residents of the City. 1.4. The City has been advised by the Company that conventional, commercial financing to pay the capital cost of the Project is available only on a limited basis and that with the aid of municipal financing, and its resulting low borrowing cost, the Project is economically feasible. ' 1.5 . This Council has been advised by the Company that on the basis of their discussions with potential buyers of tax - exempt bonds, industrial development bonds of the City could be issued and sold upon favorable rates and terms to finance the Project. 1.6. The City is authorized by Minnesota Statutes, Chapter 474, to issue its revenue bonds to finance capital projects consisting of properties used and useful in connection with a revenue producing enterprise, such as that of the Company, and the issuance of such bonds 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 industrial development revenue bonds in a principal amount up to $1,000,000 under the provisions of Chapter 474 to pay a portion of the costs of the Project. 3. The Project is hereby given preliminary approval by the City and the issuance of bonds for such purpose and in such amount approved, subject to approval of the Project by the Commissioner of Securities and to the mutual agreement of this Council, the company and the initial purchasers of the bonds as to the details of the bonds and provisions for their payment. In all events, it is understood, however, that the bonds shall not constitute ' a charge, lien or encumbrance legal or equitable upon any property of the City except the Project, and each bond, when, as and if issued, shall recite in substance that the bond, including interest thereon, is payable solely from the revenues from the Project and property pledged to the payment thereof, and shall not constitute a debt of the City. 4. The form of Memorandum of Agreement relating to the issuance of revenue bonds of the City to finance the cost of the Project is hereby approved and the Mayor and City Manager are hereby authorized and directed to execute the Memorandum of Agreement in behalf of the City. • RESOLUTION NO. 57 -1979 (continued) PAGE 2 5. In accordance with Minnesota Statutes, Section 474.10, Subdivision 7, the Mayor is hereby authorized and directed to submit the proposal for the Project to the Commissioner of Securities for his approval of the Project. The Mayor, City Clerk- Treasurer, City Manager, City Attorney and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with any preliminary information he may need for this purpose, . and the City Attorney is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project, if it is approved by the Commissioner. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 23RD , DAY OF APRIL, 1979. MAYOR - WILLIAM J. NEE ATTEST: CITY CLERK - MARVIN C._BRUNSELL 98 RESOLUTION NO. 57 -1979 (continued) PAGE 2 5. In accordance with Minnesota Statutes, Section 474.10, Subdivision 7, the Mayor is hereby authorized and directed to submit the proposal for the Project to the Commissioner of Securities for his approval of the Project. The Mayor, City Clerk - Treasurer, City Manager, City Attorney and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with any preliminary information he may need for this purpose, . and the City Attorney is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project, if it is approved by the Commissioner. PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 23RD ' DAY OF APRIL, 1979. ATTEST: CITY CLERK - MARVIN C` BRUNSELL W"4 4Z01— MAYOR - WILLIAM J. NEE C 1