RES 1979-58 - 00006732RESOLUTION NO. 58 -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 the City 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 Bureau of Engraving, Inc. a Minnesota corporation (hereinafter,
the Company), has advised this Council of its proposal to acquire certain
land within the City and construct and equip thereon one or more buildings
(such land, building, and equipment being hereinafter referred to as the
Project), for use by the Industrial Division of the Company in the manufacture
of printed circuit boards and electronic devices.
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.
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 at such high costs of borrowing that the
economic feasibility of operating the Project would be significantly
reduced, but that with the aid of municipal financing, and its resulting
low.borrowing cost, the Project is economically more feasi.ble.
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 ity 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 $7,500,000 under
the provisions of Chapter 474 to finance the Project.
3. The project is hereby given preliminary approval by the City
and the issuance of bonds for such purpose and in such amount approved,
subject to approval of the Project by the Commissioner of Securities and
to the mutual agreement of this Council. the Company and the initial
purchasers of the bonds as to the details of the bonds and provisions
for their payment. In all events, it is understood, however, that the
bonds shall not constitute a charge, lien or encumberance legal or equitable
upon the property of the City except the Project, and each bond,when
as and if issued, shall recite in substance that the bond, including interest
thereon, is payable solely from the revenues thereof, and shall not constitute
a debt of the City.
4. The form of Memorandum of Agreement relating to the issuance
of revenue bonds of the City to finance the cost of the Project is hereby
approved and the Mayor and City Manager are hereby authorized and directed
to execute the Memorandum of Agreement in behalf of the City.
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RESOLUTION 58 -1979 (CONTINUED) PAGE 2
5. In accordance with Minnesota Statutes, Section 474.10, Subdivision
7, The Mayor is hereby authorized and directed to submit the proposal
for the Project to the Commissioner of Securities for his approval of
the Project. The Mayor, City Clerk- Treasurer, City Manager, City Attorney
and other officers,employees and agents of the City are hereby authorized
to provide the Commissioner with any preliminary information he may need
for this purpose, and the City Attorney is authorized to initiate and
assist in the preparation of such documents as may be appropriate to the 1
Project, if it is approved by the Commissioner.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 23RD
DAY OF APRIL 1979.
MAYOR - WILLIAM J. NEE
ATTEST:
CITY CLERK - MARUIN C.'$ UNk SELL