RES 1983-99 - 000058221
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RESOLUTION NO. 99 — 1983
RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER
THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING THE
PROPOSAL TO THE MINNESOTA ENERGY AND ECONOMIC DEVELOPMENT
AUTHORITY FOR APPROVAL, AND AUTHORIZING PREPARATION OF
NECESSARY DOCUMENTS. (SRYWOOD MALL PROJECT)
BE IT RESCLVED 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 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 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 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.
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 finances these costs.
D. Skywood Mall, a Minnesota general partnership (the "Company "), has
advised the Council that it desires to renovate and construct a mall,
office building and hotel and related facilities and to acquire equipment
to be installed therein (the "Project ").
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.
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F. The City has been advised that conventional, commercial 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.
G. This Council has been advised by Piper, Jaffray & Hopwood,
Incorporated, of Minneapolis, Minnesota, and Miller Securities
Incorporated of Minneapolis, Minnesota, that on the basis of information
submitted to them and their discussions with representatives of the
Company 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, including the Project; the issuance of such bonds, notes or
other obligations by the City would be substantial inducement to the
Company 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 Company at a cost
presently estimated not to exceed $4,300,000.
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 Minnesota
Energy and Economic Development Authority (the "Authority ") and to the mutual
' agreement of this body, the Company 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. In accordance with Minnesota Statutes, Section 474.01, Subdivision 7(a),
the Mayor is hereby authorized and directed to submit the proposal for the
Project to the Minnesota Energy and Economic Development Authority for
approval of the Project. The Mayor, the City Clerk- Treasurer, the City
Attorney and other officers, employees and agents of the City are hereby
authorized to provide the Minnesota Energy and Economic Development Authority
with any preliminary information needed for this purpose and the City Attorney
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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 Minnesota Energy
and Economic Development Authority.
PASSED AND ADOPTED BY THE CITY COUNCIL OF 741E CITY OF FRIDLEY THIS 17741 DAY OF
OCTOBER, 1983.
WILLIAM J. NEE - R
ATTEST:
C
SIDNEY EY�C.. INMAN — CITY CLERK