RES 1981-121 - 00006357E
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RESOLUTION NO. 121 - 1981
A RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL
FACILITIES DEVELOPMENT PROJECT GIVING PRELIMINARY
APPROVAL TO THE PROJECT PURSUANT TO THE MINNESOTA
MUNICIPAL INDUSTRIAL DEVECE14E r ACT AUTHORIZING THE
SUBMISSION OF AN APPLICAITON FOR APPROVAL OF SAID
PROJECT TO THE COMMISSIONER OF SECURITIES OF THE STATE
OF MINNESOTA AND AUTHORIZING THE PREPARATION OF
NECESSARY DOCUPGR S AND MATERIALS WITH SAID PROJECT
(FERLING, FRUAM & NYBO)
WHEREAS, 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; and
WHEREAS, 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; and
WHEREAS, the City Council of the City of Fridley (the "City ") has received
from Fehling, Fehling & Nybo, a general partnership organized under the
laws of the State of Minnesota (the "Company ") a proposal that the City
assist in the financing a Project hereinafter described, through the
issuance of a Revenue Bond or Bonds or a Revenue Note or Notes hereinafter
referred to in this resolution as "Revenue Bonds" pursuant to the Act; and
WHEREAS, the City desires to facilitate the selective development of the
community, retain and improve the tax base and help to provide the range
of services and employment opportunities required by the population; and
the Project will assist the City in achieving those objectives. The
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 community; and
WHEREAS, the Company is currently engaged in the business of owning and
developing real estate. The Project to be financed by the Revenue Bonds
is a multi - tenant office building containing approximately 300,000 square
feet to be located in the City and consists 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
additional persons to work within the new facilities; and
WHEREAS, the City has been advised by representatives of 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 feasibiltiy of operating the Project would be
significantly reduced, but the Company has also advised this Council that
with the aid of municipal financing, and its resulting loan borrowing cost,
the Project is economically more feasible; and
WHEREAS, pursuant to a resolution of the City Council adopted on September
28, 1981, a public hearing on the Project was held on October 19, 1981,
after notice was published, and materials made available for public
inspection at the Civic Center, all as required by Minnesota Statutes,
Section 474.01, Subdivision 7b at which public hearing all those appearing
who so desired to speak were hear; and
WHEREAS, no public official of the City has either a direct or indirect
financial interest in the Project nor will any public official either
directly or indirectly benefit financially from the Project.
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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 the
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 the Company's specifications suitable for the
operations described above and to a revenue agreement between the City and
the 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 principle and interest on the Revenue
Bonds in the total principle amount of approximately $1,975,000 to be
issued pursuant to the Act to finance the acquisition, construction and
equipping of the Project; and said agreement may also provide for the
entire interest of the Company therein to be mortgaged to the purchaser of
the Revenue Bonds; and the City hereby undertakes preliminarily to issue
its Revenue Bonds in accordance with such terms and conditions;
2. On the basis of information available to this Council it appears, and
the Council hereby finds, that the 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 Project furthers the
purposes stated in Section 474.01, Minnesota Statutes; that the
availability of the financing under the Act and willingness of the City to
furnish such financing will be a substantial inducement to the 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 the tax base and to provide the range of service and
employment opportunities required by the 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 wthin the City and
eventually to increase the tax base of the community;
3. The Project is hereby given preliminary approval by the City subject
to the approval of the Project by the Commissioner of Securities and Real
Estate, and subject to final appoval by this Council, the Company, and the
purchaser of the Revenue Bonds 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 Project to the Commissioner of Securities and
Real Estate, requesting her approval, and other officers, employees and
agents of the City are hereby authorized to provide the Commissioner with
such preliminary information as she may require;
5. The 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 the Canpany;
6. Briggs and Morgan, Professional Association, acting as bond counsel,
and First Corporate Services, Inc., investment bankers, are authorized to
assist in the preparation and review of necessary documents relating to
the Project, to consult with the City Attorney, the Company and the
purchaser of the Revenue Bonds as to the maturities, interest rates and
other terms and provisions of the Revenue Bonds and as to the covenants
and other provisions of the necessary documents and to submit such
documents to the Council for final approval;
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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 Revenue Bonds shall not
constitute a charge, lien or encumberance, 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 Revenue Bonds shall never have the right to
compel any exercise of the taxing power of the City to pay the outstanding
principle on the Revenue Bonds or the interest thereon, or to enforce
payment thereof against any property of the City. The Revenue Bonds shall
recite in substance that the Revenue Bonds, including interest thereon, is
payable solely from the revenue and proceeds pledged to the payment
thereof. The Revenue Bonds 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 Revenue Bonds to finance all or a portion of the
Project, and in order that completion of the Project will not be unduly
delayed when approved, the 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 Revenue Bonds as the
Company considers necessary, including the use of interim, short -term
financing, subject to reimbursement from the proceeds of the Revenue Bonds
if and when delivered but otherwise without liability on the part of the
City.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY, MINNESOTA,
THIS 26TH DAY OF OCTOBER, 1981.
ATTEST:
SIDNEY C. 11MW - CITY CLERK
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