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HomeMy WebLinkAbout6685 (Res.)• • 101\` • ofiN v RESOLUTION NO. 6685 RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF SAID PROJECT TO THE COMMISSIONER OF SECURITIES OF THE STATE OF MINNESOTA AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH SAID PROJECT. WHEREAS, (a) 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 economi- cally sound industry and commerce to prevent so far as possible the energene of blighted and marginal lands and areas of chronic unemployment; (b) Factors necessitating the active promotion and development of economically sound industry and coerce 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 oppor- tunities for such population; (c) The City Council of the City of Stillwater ("the City") has received from Spirit of St. Croix I and Spirit of St. Croix II, limited partnerships organized under the laws of the State of Minnesota (collectively, 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; (d) The City desires to facilitiate the selective development of the community, retain and improve its tax base and help it provide the range of services and employment opportunities required by its population; and said Project will assist the City in achieving those objectives. Said 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 City; (e) Company is currently engaged in the business of development. The Project to be financed by the Revenue Bonds is an office and warehouse facility to be located in the City and consists of the acquisiton of land and the construction of buildings and improvements thereon and the installation of equipment therein, and will result in the employment of addi- tional persons to cork within the new facilities; (f) The City has been advised by representatives of Company that conventional, commercial finessing to pay the capital cost of the Project is avilable only on a limited basis and at such high casts 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 mnntsipal financing, and its resulting low borrowing cost, the Project is econom- ically more feasible; (g) Pursuant to a resolution of the City Coundil adopted on August 21, 1979, a public hearing on the Project was held on September 11, 1979, 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 at said hearing so desired to speak were head; (h) The City, pursuant to Minnesota Statutues, Section 474.01, Subdivision 7b (Laws 1979, Chapter 306, Section 10) did place a entice, a copy of which with proof of publication is on file in the office of the City Clerk, of the public hearing on the proposal of the Company that the City finance the Project hereinbefore described by the issuance of its Note, said hearing to be held to determine whether it is in the best interest of the City to proceed with the Project and the City did conduct a public hearing pursuant to said Notice on September 11, 1979, at 7:30 o'clock p. m., at which hearing all persons who appeared at the hearing were given an opportunity to express their views with respect to the proposal. MCW, THEREFORE, BE IT RESOLVED by the City Council of the City of Stillwater, Minnesota, as follows: 1. The Council hereby gives preliminary approval to the proposal of Company that the City undertake the Project pursuant to the Minnesota Mnicipal Industrial Development Act (Chapter 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 gives preliminary approval 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 proposed Revenue Bonds in the total principal amount of approximately $1,900,000 to be issued pursuant to the Act to finance the acquisition, construction and equipping of said Project; and the City hereby undertakes preliminarily to issue its Revenue Bonds 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 said Project constitutes properties, real and personal, used or useful in connection with one or more revenue producing enterprises engaged in any business within the (continued on page 102) • • • • .4 O2 s RESOLUTION J. 6685 - continued meaning of Subdivision la 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 substantial inducement be to Company to undertake the Project, and that the effect of the Project, if undertaken, to encourage the development of economically sound industry and coerce, to assist in the pre- vention of the emergence of blighted and marginal land, to help prevent chronic unemployment, to help the City retain and improve its tax base and provide the range of services and employment opportunities required by its population, to help prevent the novenae of talented and educated persons out of the State and to areas within the State where their services may rot be as effect- ively used, to promote more intensive development and the use of land within the City and to eventually increase the City's tax base; 3. Said PROJECT IS HEREBY given preliminary approval by the City subject to the approval of the Project by the Commissioner of Securities, 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 Subdivison 7a of Section 474.01 Minnesota Statutes, the Mayor of the City is hereby authorized and directed to submit the proposal for the above described Project to the Commissioner of Securities, requesting the Commissioner's approval, and other officers employees and agents of the City are hereby authorized to provide the Commissioner with such pre- liminary information as the Commissioner may require; 5. Company has agreed and it is hereby determined that any and all costs incurred by the City in canection with the financing of the Project whether or not the Project is carried to completion and whether or not approved by the Commissioner will be paid by Company; 6. Briggs and Morgan, Professional Association, acting as bond counsel, is 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 Bonds as to the maturities, interest rates and other tens and provisions of the Revenue Honda 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 finds on the Project other than the revalues derived from the Project or otherwise granted to the City for this purpose. The Revenue Bonds shall not constitute a charge, lien or encuthrance, legal or equitable, upon any property or funds of the City except the revalue 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 taming power of the City to pay the outstanding principal on the Revalue Bonds or the interest thereon, or to enforce payment thereof against any property of the City. The Revenue Bonds shall recite in substance that the Revenue Bonds, including interest thereon, are payable solely from the revalue and proceeds pledged to the payment thereof. The Revenue Bonds shall not constitute a debt of the Citywithin the meaning of any constitutional or statutory limitation; 8. In anticipation of the approval by the Commissioner of Securities and issuance of the Revenue Bends 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 expendtitures and advances toward payment of that portion of the costs of the Project to be financed from the proceeds of the Revenue Bonds as Cczpay considers necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the Revere Bonds if ad who delivered but otherwise without liability on the part of the City; 9. The actions of the City Clerk in causing public notice of the public hearing and in describing the general nature of the Project and estimating the principal amount of bonds to be issued to finance the Project and in preparing a draft of the proposed application to the Commissioner of Securities, State of Minnesota, for approval of the Project, which has been available for inspection by the public at the City Hall from and after the publication of notide of the hearing, are in all respects ratified and confirmed. Adopted by the City Council of the City of Stillwater, Minnesota, this llth day of September, 1979. Published: September 17, 1979 Attest: pQ w.r-<.y/ e. de-t`-rt C. Ctity Clerk Mayor /me • 1 • •