RES 1984-38 - 0000536852
RESOLUTION NO. 38 - 1984
RESOLUTION GIVING PRELIMINARY APPROVAL TO A PRWECT UNDER
MiE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING THE
PROPOSAL TO MME MINNESOTA ENEEGY AND ECONOMIC DEVELOPMENT
AUTHORITY FOR APPROVAL, AND AUTHORIZING PREPARATION OF
NECESSARY DOCUMENTS (LONGVIEW FIBRE 00.)
1 BE IT RESOLVED by the City Council (the "Council ") of the City of Fridley,
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 econanically 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. Longview Fibre Company, a Delaware corporation ( "Company "), has
advised the Council that it desires to undertake a project which consists
of the acquisition and installation of equipment for the printing,
scoring, dye cutting, folding, glueing and bundling of corrugated boxes,
and the construction of related building additions or modifications (the
"Project "), to be located at 5851 East River Road in the City.
E. The existence of the Project in the City will contribute to more
intensive development and use of land, thereby increasing the tax base and
employment opportunites in the City.
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Page 2 — Resolution No. 38 — 1984
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 Rainier National Bank of the
financial feasibility of the Project, as so undertaken with the assistance
of the City.
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, and the issuance of such obligations by
the City would be a 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 obligations (the
"Bonds ") under the provisions of Minnesota Statutes, Chapter 474, to finance
the Project in an amount presently estimated not to exceed $3,400,000.
3. The Project and the related financing thereof by the City are hereby given
preliminary approval and the issuance of the Bonds for such purpose and in
such estimated 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 the Council, the Company and the initial
purchasers of the Bonds, as to the details and provision for payment of the
Bonds. In all events, it is understood, however, that the Bonds shall not
constitute a debt of the City or a charge, lien or encumbrance, legal or
equitable, upon any property of the City except its interest in the Project
and each of the Bonds when, as and if issued shall recite in substance that it
is payable solely from the revenues received from the Project and property
pledged to the payment thereof.
4. In accordance with Minnesota Statutes, Section 474.01, Subdivision 7a, the
Mayor is hereby authorized and directed to submit the proposal for the Project
to the Authority for approval. The Mayor and other officers, employees and
agents of the City are hereby authorized to provide the Authority with any
preliminary information needed for this purpose and are further authorized to
initiate and assist in the preparation of such documents as may be appropriate
to the Project and the financing thereof.
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5. The adoption of this resolution by the Council does not constitute a
guarantee or a firm commitment that the City will issue the Bonds as requested
by the Company. The City retains the right in its sole discretion to withdraw
from participation and accordingly not issue the Bonds should the City
determine that it is in the best interest of the City not to do so or should
the parties to the transaction be unable to reach agreement as to the terms
thereof.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 26TH DAY OF
' MARCH, 1984.
r
LLIAM J. - MAYOR
ATTEST:
SIDNEY C. - CITY CLERK
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