RES 1982-46 - 00005976ABSOLUTION RECITING A PROPOSAL FOR AN INDUSTRIAL
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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 mergence of blighted
and marginal lands and areas of chronic unemployment;
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;
WHEREAS, the City Council of the City of Fridley (the "City) has received
from G. W. Paschke Properties, a sole proprietorship (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
hereinafter referred to in this resolution as "Revenue Bonds" pursuant to the
Act;
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 cammmity.
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 an
approximately 17,350 sq. ft. light industrial facility to be located in the
City and leased to various industrial tenants 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.
WHEREAS, the City has been advised by representatives of 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 Company has also advised this Council that with the aid of municipal
financing and its resulting low borrowing cost, the Project is economically
more feasible;
WHEREAS, pursuant to a resolution of the City Council adopted on May 17, 1982,
a public hearing on the Project was held on June 7, 1982, after notice was
published and materials made available for public inspection at the City Hall,
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;
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 irvii.a -riv r,enofit financir'l.y from the Projec*
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NOW, 7 MRMRE, BE IT RESMVED by the City Council of the City of Fridley,
Minnesota, as follows:
1. The Council hereby gives preliminary approval to the proposal of Company
that the City undertake the Proiect pursuant to the Minnesota Municipal
Industrial Development Act (unapter 474, Minnesota statutes), consisting of
the acquisition, construction and equipping of facilities within the City
pursuant to Company'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 $700,000 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 Bands; and the City hereby undertakes preliminarily
to issue its Revenue Bads 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 Commissioner of Energy, Planning and
Development (the "Commissioner "), 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 Statutes,
the Mayor of the City is hereby authorized and directed to submit the proposal
for the Project to the Commissioner requesting his approval and other
officers, employees and agents of the City are hereby authorized to provide
the Commissioner with such preliminary information as he 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 will be
paid by the Company whether or not the Project is carried to completion and
whether or not approved by the Canmdssioner;
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, Company and the purchaser of the Revenue
Bads 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 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
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 Bonds shall never
have the right to compel any exercise of the taxing power of the City to pay
the outstanding principal on the Revenue Bands or the interest thereon, or to
.r.. VLl Jayiu JL "1 Leor against any property of the City. The Rev�,...e
shall recite in substance that the Revenue Bands, including interest thereon,
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is payable solely from the revenue and proceeds pledged to the payment
thereof. The Revenue Bards 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 issuance of th
Revenue Bands 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 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 Company considers necessary, including the use of
interim, short -term financing, subject to reimbursement from the proceeds of
the Revenue Bands if and when delivered but otherise without liability on the
part of the City;
9. The actions of the City Clerk-jTreasurer in causing public notice of the
public hearing and in describing the general nature of the Project and
estimating the principal amount of the Revenue Bands to be issued to finance
the Project and in preparing a draft of the proposed application to the
Commissioner for approval of the Project) which has been available for
inspection by the public at the City Hall from and of ter the publication of
notice -of the hearing, are in all respects ratified and confirmed.
PASSED AMID ADOPTED BY THE CITY OOUNCIL OF THE CITY OF FRIDLEY THIS 7TH DAY OF
JUMP 1982.
ATTEST:
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