RES 1979-73 - 00006767133
Resolution No. 73 -1979
RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED INDUSTRIAL
DEVELOPMENT PROJECT TO BE CONSTRUCTED AND FINANCED UNDER THE
MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, AUTHORIZING THE
SUBMISSION OF AN APPLICATION TO THE MINNESOTA COMMISSIONER OF
SECURITIES FOR APPROVAL THEREOF AND AUTHORIZING THE PREPARATION
OF DOCUMENTS AND MATERIALS IN CONNECTION WITH THE PROJECT
BE IT RESOLVED by the City Council of the City of Fridley, Minnesota,
as follows:
1. There has been presented to this City Council a proposal that the
City undertake a project pursuant to the Minnesota Municipal Industrial
Development Act, Chapter 474, Minnesota Statutes, as amended (the "Act ")
consisting of the acquisition of land in the City and the construction thereon
of an expanded parts and service departments and body shop for Win Stephens
Datsun North, Inc. (the "Project "). Under the proposal, a partnership to
be formed under the laws of the State of Minnesota consisting of Barbee
Company, a Minnesota partnership, to own a controlling interest therin, and
another partnership, individual or corportation yet to be determined, to
own a minority interest therin (the "Partnership "), will enter into a loan
agreement (the "Loan Agreement ") with the City whereby the City agrees to
issue and sell its $675,000 Industrial Development Revenue Bond (the "Bond ")
to partially finance the Project and to loan the proceeds of such sale
to the Partnership which agrees to construct the Project. The Loan Agreement
will require the Partnership to pay amounts sufficient to pay the principal
of and interest on the Bond. The Bond will be issued and sold to an
institutional investor or investors, as a tax exempt mortgage financing,
and will be secured by a mortgage on the Project. The Partnership will
retain title to and ownership of the Project and will lease the Project
to Win Stephens Datsun North, Inc. (the "Company ") under lease terms
sufficient to provide for the payment of principal of and interest on the
Bond. The interest of the Partnership in the lease and the interest of the
City in the Loan Agreement will be assigned to the holder of the Bond as
additional security for the Bond. The Bond will be issued and sold in
accordance with the Act and will provide that the Bond is payable
solely from amounts received by the City pursuant to the Loan Agreement
and other property pledged to its payment. The Bond will not be a general
obligation of the City or be payable from any other property or funds of
the City.
2. There has also been presented to this City Council a form of
Application to the Minnesota Commissioner of Securities, for approval of the
Project and the increased employment and payrolls to result therefrom.
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 a.nd
commerce; the development of industry to use the available resources of
the City, in order to retain the benefit if its existing investment in
educational and public service facilities; the promotion of employment
opportunities in the City; and the more intensive development of land
available in the area to provide an adequate tax base to finance the
increase in the amount and cost of governmental services provided by the
City, the county and the school district in which the City is located.
3. The Project is hereby given preliminary approval by the City,
subject to (i) approval if the Project by the Minnesota Commissioner of
Securities and (ii) approval of this City Council, the Partnership, the
Company and the institutional investor or investors of the ultimate
' details of the Project and the terms of the Bond.
4. The Partnership and the Company are undertaking to make arrange-
ments with an institutional investor or investors for the purchase of the
Bond. Upon receipt of a letter of intent to purchase the Bond or a letter
relating to the feasibility of issuing and selling the Bond, the City
Manager and the City Clerk are hereby authorized and directed to submit
the Application to the Minnesota Commissioner of Securities for approval
of the Project, substantially in the form presented at this meeting,
together with the letter of intent to purchase or a letter of feasibility
for the sale of the Bond a nd the Statement Concerning a Proposed Project,
substantially in the form presented at this meeting. The City Manager
and the City Clerk and other officers, employees and agents of the City
are hereby authorized to provide the Minnesota Commissioner of Securities
with such preliminary information as he may request and are hereby
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Resolution No. 73 -1979 (Continued)
authorized and directed to execute the Memorandum of Agreement sub-
stantially in the form presented at this meeting.
5. The Partnership and the Company have 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 Minnesota Commissioner of Securities;
whether or not the Project is carried to completion; and whether or not
the Bond or operative instruments are executed.
6. The Partnership and the Company are hereby authorized to enter into
such contracts as may be necessary for the construction of the Project
by any means available to them and in the manner they determine without
advertisement for bids as may be required for the construction or acquisi-
tion of other municipal facilities.
7. Mackall, Crounse & Moore, acting as bond counsel, is authorized
to assist in the preparation and review of all documents relating to the
Project; to consult with the City Attorney, the Company and the purchaser
of the Bond as to the maturity, interest rate and other provisions of the
necessary documents; and to submit such documents to this City Council for
final approval.
ADOPTED BY THE CITY OF FRIDLEY THIS 21ST DAY OF MAY, 1979.
ATTEST:
CITY CLERK - MARVIN BR SELL
MAYOR - W IAM J. NEE
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