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HomeMy WebLinkAbout6696 (Res.)• • 109, . • RESOLUTION NO. 6696 RISOLUEION RECITIM A PROPOSAL FOR AN INDUSTRIAL FACILITIES DEVEI.OPMEN'E PROJECT GIVING PIE.IMIINARY APPROVAL TO TIE PROJECT PUFSUANE 10 THE M I N ESOTA MUNICIPAL INDUSTRIAL DEVELOP- MENT ACE AUIlIDRIZING 1HE SIBMISSION OF AN APPLICATION FOR APPROVAL OF SAID P%UECr TO THE COM4SS10t>ER OF SECURITIES OF THE STATE OF MINNESOTA AND AUTEIORIXQNG THE PREPARATION OF NECESSARY DOCU,ENMS AND MATERIALS IN cOAIECITON WITH SAID PFDJECT. WiHERE/5, (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 economically sound industry and coerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment; (b) Factors necessitating the active promotion and development of economically sound industry and camerce 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 greens to employment opportunities for such population; WHEREAS, (c) The City Council of the City of Stillwater ("the City") has received from Oscar L. Kern, a resident of Stillwater, Minnesota (the 'Borrower") a proposal that the City assist in financing a Project hereinafter described, through the issuance of Revere 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 facilitate the selective development of the caomnity, retain and improve its tax base and help it provide the range of services and euployment 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; (e) The Borrower is currently engaged in the business of graphic arts and silk screen process printing. The Froject to be financed by the Revere Bonds is a screen process printing facility to be located in the City and leased to Press On, Incorporated and consists of the construction of building and improvements to a facility presently owned by the Borrower and the installation of equipment therein as an addition to a facility presently caned by the Borrower, and will result in the employment of ten additional persons to work within the new facilities; (f) The City has been advised by representatives of the Borrower that conventional, --� co®ercial financing to pay the capital cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced, but the Borrower has also advised this Council that with the aid of szmicipal financing, and its resulting low borrowing cost, the Project is ecowmically more feasible; (g) The City, pursuant to Minnesota Statutes, Section 474.01, Subdivision 7b, did place a notice, 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 Cmpany that the City finance the Project hereinbefore described by the issuance of the Revenue Bonds, 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 25, 1979, 7:30 o'clock P. M., at which public hearing all persons who appeared were given an opportunity to express their views with respect to the proposal. WON, 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 the Borrower that the City undertake the Project pursuant to the Minnesota Municipal Industrial Development Act (Chapter 474, Minnesota Statutes), consisting of the acquisition, construction and equipping of facilities within the City pursuant to the Borrower's specifications suitable for the operations described above and gives preliminary approval to a revenue agreement between the City and the Borrower upon such terms and conditions with provisions for revision from time to time as necessary, so as to produce incase and revenues sufficient to pay, when due, the principal of and interest on the proposed Revere Bonds in the total principal amount of approximately $1,000,000 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 terns 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 meaning of Subdivision 1 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 a substantial inducement to the Borrower to undertake the Project, and that the effect of the Project, if undertaken, will (continued on Page 110) • • '410 a • r Rh50LurlQ NO. 6696 - continued be to encourage the development of economically sound industry and commerce, to assist in the prevention 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 employ- ment opportunities requires by its population, to help prevent the movement of talented and educated persons out of the state and to areas within the State where their services may not be as effectively used, to promote more intensive development and use of land within the City and to eventually increase the City's tax base; 3. The 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, the Borrower 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 Cxumissiener of Securities, requesting the Caomisssiouer' s approval, and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary information as the Commissioner may require; 5. The Borrower has agreed and it is hereby determined that any and all costs incurred by the City in connection 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 the Borrower. 6. Briggs and Morgan, Professional Association, acting as bond counsel, is authorized to assist in the preparation and review of necessary documents rleating to the Project, to consult with the City Attorney, the Borrower and the purchaser of the Revenue Bonds as to the maturities, interest rates and other tense and provisions of the Revenue Bonds and as to the covenants and other provisi ns of the necessary doamants and to submit such documents to the Council for final approva-; 7. Nothing in this resolution or in the doaements prepared pursuant hereto Shall authorize the expenditure of any municipal funds on the Project other than the revenues derived from the Project or otherwise granted to the City for this purpose. The Revenue Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City except the revenue and proceeds pledged to the payment thereof, nor shall the City be abject to any liability thereon. The holder of the Revenue Bonds shall never have the right the It Bonds any exercise of the taxing parer of the City to pay the outstanding principalof the City. The or the interest thereon, or to enforce payment thereof against any property Revenue Honda shall recite in substance that the Revenue Bonds, including interest thereon, are payable solely from the revenue and proceedspledged to the payment thereof. The Revenue Bonds shall not constitute a debt of the City within the meaning of any constitutional os statutory limitation; 8. In anticipation of the approval by the Commissioner of Securities and the issuance of the Revalue Bonds to finance all or a portion of the Project, and in order that completion of the Project will not be unduly delayed .ten approved, the Borrower is hereby authorized to make such expenditures and advances toward payment of that portion of the costs of the Project to be financed from the proceeds of the Revenue Bonds as the Borrower considers necessary, in- cluding the use of interim, short -tenor financing, subject to the reimbursement from the proceeds of the Revenue Bonds if and when 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 bads to be issued to finance the Project and in preparing a draft of the proposed application of the Coomassianer of Securities, State of Minnesota, for approval of the Project, which Fos been available for inspection by the public at the City Hall from and after the publication of notice of the hearing, are in all respects ratified and confirmed. Adopred by the City Council of the City of Stillwater, Minnesota, this 25th day of September, 1979. Published: 9-28-79 Attest: City, Cleric Mayor r Ne r O • 1 •