RES 1981-84 - 00006292X68
FMMU loM aD. 84 - 1981
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WHEFtEA.S, 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
WWH Properties, a general partnership organized under the laws of the State of
Minnesota ( "the Company") a proposal that the City assist in financing a Project
hereinafter described, through the issuance of a Revenue Bond or Bonds or a
Revenue Note or Notes hereinafer 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 maintian a positive
relationship between assessed valuation and debt and enhance the image and
-reputation of the community; and
W SFAS, the Project to be financed by the Revenue Bonds is an approximately
4z ,000 square foot industrial facilty to be located in the City and leased to
Pride Machine Inc. and American Mold 6 Engineering Co. and consists of the
ao�juisiticn of land and the construciton 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 Company that
conventional, commercial financing to pay the captial 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 Company also advised this Council that with the aid of municipal financing,
and its resulting low borrowing cost, the Project is economically more feasible;
and
WHEREAS, pursuant to a resolution of the City Council adopted on July 20, 1981_,
a public hearing on the Project was held on August 10, 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 heard; 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.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Fridley,
Minnesota, as follows:
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Page 2 — REsDLUrION NO. 84
1. The Council hereby gives preliminary approval to the proposal of Company
that the City undertake the Project pursuant to the Minnesota Municpal
Industrial Development Act (Chapter 474, Minnesota Statutes), consisting of
the acguisition, construction and equipping of facilities within the City
pursuant to Carpany'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 Revenue Bonds in the total
principal amount of approximately $1,250,000 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 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 1 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 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 within 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 Commission of Securities and Real Estate,
and subject to final approval by this Council, 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 Statues, the
Mayor of the City is hereby authorized and directed to submit the proposal
for the Project to the Commissioner of Securities, requesting her approval,
and other officers, employees and agents of the City are hereby authorized
to provide the Comnisssioner with such preliminary information as she 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 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;
7. Nothing in this resolution or in the documents prepared pursuant hereto
shall authorized 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 consititute 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
Revenue Bands shall never have the right to compel any exercise of the
taxing power of the City to pay the outstanding principal on the Revenue
Bonds or the interest thereon, or to enforce payment thereof against any
property of the City. The Revenue Bands 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;
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Page 3 , RESD UPICN NO. 84
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, Company is hereby authroized 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 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.
MM Alm ADOP= By Ma CITY COMML OF M CP1R OF FMLRY THIS 10TH DAY OF
ADGHSPF 1981.
ROM- . NEE
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