Loading...
RES 1982-72 - 00006044138 �. :::: •• i r x• r.iigi,, elpepp BE IT RESOLVED by the City Council (the "Council') of the City of Fridley, Anoka County, Minnesota (the 'City'), as follows: 1. It is hereby found, determined and declared as follows: I.I. the welfare of the State of Minnesota (the "State') 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 it is the policy of the State to facilitate and encourage action by local government units to prevent the economic deterioration of such areas to the point where the process can be reversed only by total redevelopanent through the use of local, state and federal funds derived from taxation, with the attendant necessity of relocating displaced persons and of duplicating public services in other areas. 1.2. Technological change has caused a shift to a significant degree in the area of opportunity for educated youth to processing, transporting, marketing, service and other industries, and unless existing and related industries are retained and new industries are developed to use the available resources of the City, a large part of the existing investment of the community and of the State as a whole in educational and public service facilities will be lost, and the movement of talented, educated personnel of mature age to areas where their services may be effectively used and compensated and the lessening attraction of persons and businesses from other areas for purposes of industry, commerce and tourism will deprive the City and the State of the economic and human resources needed as a base for providing governmental services and facilities for the remaining population. 1.3. The increase in the amount and cost of governmental services requires the need for more intensive development and use of land to provide an adequate tax base to finance these costs. 1.4. William B. Kuether, an individual residing in the State of Minnesota (the "Borrower "), has advised this City Council that it desires to acquire land, acquire and construct a building thereon and acquire and install equipment therein (the "Project') to be owned by the Borrower and leased to Kuether Distributing Company, a Minnesota corporation (the "Lessee ") to be utilized as a beer distribution facility. 139 Page 2 — Resolution No. 72 - 1982 1.5. The existence of the Project in the City will contribute to more intensive development and use of land to increase the tax base of the City and overlapping taxing authorities and maintain and provide for an increase in opportunities for employment for residents of the City. 1.6. The City has been advised that conventional, oommercial financing to pay the capital cost of the Project is available at such 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 feasible. 1.7. This Council has been advised by a representative of Miller Securities, Inc., in Minneapolis, Minnesota, investment bankers and dealers in municipal bonds, that on the basis of information submitted to them and their discussions with representatives of the Borrower and potential buyers of tax - exempt bonds, industrial development revenue bonds, notes or other obligations of the City could be issued and sold upon favorable rates and terms to finance the Project. 1.8. The City is authorized by Minnesota Statutes, Chapter 474, to issue its revenue bonds, notes or other obligations to finance the cost, in whole or in part, of the acquisition, construction, reconstruction, impravement, betterment or extension of capital projects consisting of properties used and useful in connection with a revenue producing enterprise, such as that of the Borrower; the issuance of such bonds, notes or other obligations by the City would be a substantial inducement to the Borrower to construct its facility in the City. 2. On the basis of information given the City to date, it appears that it would be in the best interest of the City to issue its commercial development revenue bonds, notes or other obligations under the provisions of Minnesota Statutes, Chapter 474, to finance the Project of the Borrower at a cost presently estimated not to exceed 52,0001000. 3. The Project is hereby given preliminary approval by the City and the issuance of bonds, notes or other obligations for such purpose and in such amount is hereby approved, subject to approval of the Project by the Commissioner of Energy, Planning and Development and to the mutual agreement of this body, the Borrower and the initial purchasers of the bonds, notes or other obligations as to the details of the bond issue and provisions for their payment. In all events, it is understood, however, that the bonds, notes or other obligations of the City shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except its interest in the Project, and each bond, note or other obligation when, as and if issued shall recite in substance that the bond, note or other obligation, including interest thereon, is payable solely from the revenues received from the Project and property pledged to the payment thereof and shall not constitute a debt of the City. 4. Preliminary approval of the Project given by the City Council in no way constitutes acceptance by the City of any obligation or liability which may arise from the carrying out of the Project. The Borrower is responsible for any and all obligations and liabilities which may arise from the carrying out of the Project. 140 Page 3 — Resolution No. 72 - 1982 5. In accordance with Minnesota Stafiit?G, Section 474.01, Subdivision 7a, the Mayor is hereby authorized and directed to submit the proposal for the Project to the Commissioner of Energy, Planning and Development for approval of the Project. The Mayor, the City Clerk- Treasurer, the City Manager, the City Attorney and other officers, employees and agents of the City are hereby authorized to provide the Commissioner of Energy, Planning and Development with any preliminary information needed 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 Project, if it is approved by the Camnissioner of Energy, Planning and Development. PASSED AND ADOPPID BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 137H DAY OF SEPTEMBER, 1982. M"141l't ' _ WILLIAM J. NEEF MAYOR SIDNEY C-.J INMAN - CITY CLERK 1 11