RES 1983-48 - 00005708L
t
RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER
THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING THE
PROPOSAL TO THE COMMISSIONER OF ENERGY, PLANNING AND
DEVELOPMENT FOR APPROVAL AND AUTHORIZING PREPARATION OF
NECESSARY DOQ)NffNm (ELO ENGINlEZRING, INC. PROJECT)
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:
A. The welfare of the State of Minnesota (the "State ") requires active
promotion, attraction, encouragement and development of economically sound
industry and commerce through governmental actions 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 redevelopment
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.
B. Technological changes 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 servies 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.
C. 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.
D. Eugene R. Owczarzak and Louise A. Owczarzak, individuals residing in
the State of Minnesota (the "Borrowers "), have advised this City Council
that they desire to acquire land and an existing building located at 7702
Ranchers Road in the City, acquire and construct an addition connecting
said building to an existing building owned by the Borrowers and located
at 7770 Ranchers Road in the City, acquire, construct, renovate and
remodel both of said buildings and acquire and install equipment therein
and thereon (the "Project "). to be owned by the Borrowers, or a
partnership to be formed, and leased to ELO Engineering, Inc., a Minnesota
corporation, to be used as a manufacturing and warehouse facility.
E. 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.
Rri
Page 2 — Resolution No. 48 - 1983
91
F. The City has been advised that conventional, commercial financing to
pay the capital cost of the Project would be 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.
G. This Council has been advised by a representative of Piper, Jaf fray &
Hopwood Incorporated, in Minneapolis, Minnesota, investment bankers and
dealers in municipal bonds, that on the basis of information submitted to
them and their dicussion with representatives of the Borrowers 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.
H. 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, improvement,
betterment or extension of capital projects consisting of properties used
and useful in connection with a revenue producing enterprise, such as that
of the Borrowers; by issuance of such bonds, notes or other obligations by
the City would be a substantial inducement to the Borrowers 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 industrial 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 $2,000,000.
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 the State of Minnesota and to 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
except its interest in the Project, and each bond, note or other obligation
City
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 to 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.
1
1.
Page 3 — Resolution No. 48 - 1983
5. In accordance with Nimraa= Statutest Section 474.01, Subdivision 7a, the
Mayor is hereby authorized and directed to submit the proposal for the Project
to the Commissioner of the Department of Energy, Planning and Development of
the State of Minnesota 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 the Department of Energy, Planning and Development of the
State of Minnesota 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 Commissioner of the Department of Energy, Planning and Development of the
State of Minnesota.
PASSED AND ADOPTED BY THE CITY MJNCIL OF THE CITY OF FRIDLEY THIS 16T[i DAY OF
MAY, 1983.
ATTEST:
1
�` 1 � 91•
*ILLIAM J. MAYOR
92