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HomeMy WebLinkAbout7052 (Res.)1 457 • • • 0 • RESOLUTION NO. 7052 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 OT THE COMMISSIONER OF ENERGY, PLANNING AND DEVELOPMENT 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 prune the welfare of the ion and mind industry and state by casmerce toepreevent so fartive t as possible emergence ofgenent and obled t nf and marginal slands and areas of chronic unemployment; (b) Factors necessitating the active promotion and development of economically sound industry and emmeoe 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 opportunities for such population; (c) The City Council of the City of Stillwater, Minnesota ("the City") has received from Country House, Inc., as corporation organized under the laws of the State of Minnesota (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 facilitate the selective development of the community, retain and improve the tax base and help to provide the range of services and employment opportunities required by the population; and the Project will assist the City in achieving those objectives. The ion f the relatiodect will uship betweenpto increase ass assessed valuationsed and debttand oenhance the imagand e and reputation 1p upositive c®mity; (e) The Company is currently engaged in the business of owning and operating dairy product -convenience stores. The Project to be financed by the Revenue Bonds is a convenience store and gas station facility to be located in the City and consists of the acquisition of land and the construction of buildings and improvements thereon and the installation of equipment therein, and will result in the aployment of at least five additional persons to work within the new facilities; (f) The City has been advised by representatives of Company that conventional, commercial financing to pay the capital cost of the Project is available only on a limited basis and at such high costs of torrowing that the economic feasibility of operating the Project would be significantly reduced, but Company has also advised this Council that with the aid of nnirinn% financing, and its resulting low borrowing cost, the Project is economically more feasible; (g) Pursuant to a resolution of the City Council adopped on February 16, 1982, a public hearing on the Project was held on March 16, 1982, after notice was published, and materials made available for public inspection at City Hall, all as required by Minnesota Statutes, Section 474.01, Subdivision 7b at which public hearing all those appearing who so desired to speak were heard. (h) No public official of the City has either a direct or indiredt financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Stillwater, Minnesota, as follows: 1. The Oa ncil hereby gives preliminary approval to the proposal of Company that the City undertake the Project pursuant to the Mimssota Mnicipal Industrial Development Acf tc(t (Chapter pte within 474, Minnesota Statutes), consisting of the acquisition, construction and equipping the City pursuant to Copany's specification suitable for the operations described above and to a revenue agreement between the City and Ccepany upon such tens 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 Revenue Bonds in the total principal amount of approxinetely $200,000 to be issued pursuant to the Act to finance the acquisition, construction and equipping of the Project; and siad agreement nay also provide for the entire interest of Coopay therein jim narily to ibe ssueitsReved to the purchaser of the Revenue enue B ds in accordancesuch terms and and the conditions hereby takes pre 2. On the basis of information available to this Council it appears, and the Council hereby finds, that the Project constitutes properties, real and personal, used or useful Li connection with one or more revalue producing enterprises engaged in any business within the meaning of Sub- division 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 inder ment to Company to undertale the Project, and that the effect of the Project, if undertaken, will 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 present chrrric unemployment, to help the City retain and improve the tax base and to (continued on page 458) • 1 • 1 • (458 • • RFSOLUITON NO. 7052 - continued provide the range of service and employment opportunities required by the 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 eventually to increase the tax base of the commmity; 3. The Project is hereby given preliminary approval by the City subject to the approval of the Project by the Commissioner of Energy, Planning and Development, 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 Subdivision 7a of Section 474.01 Minnesota Statutes, the Mayor of the City is hereby authorized and directed to submit the proposal for the Project to the Commissioner of Energy, Planning and Development requesting his approval, and other officers, employees and agents of the City are hereby authorized to provide the Conmissioner of Energy, Planning and Development with such preliminary information as he may require; 5. Company 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 Camiissioner of Energy, Planning and Development will be paid by ComPanP: 6. Briggs and Morgan, Professional Association, acting as bond counsel, are 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 term and provisims of the Revenue Bonds 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 mmnicipal 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 subject to any liability thereon. The holder of the Revenue Bonds shall never have the right to compel any exercise of the taxing pager of the City to pay the outstanding principal on the Revenue 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, is payable solely from the revere and proceeds pledged to the payment thereof. The Revenue Bonds shall not constitute a debt of the City within the mewling of any constitutional or statutory limitation; 8. In anticipation of the approval by the Cc®issioner of Energy, Planning and Development, the issuance of the Revenue Bonds 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 expenditures and advances toward payment of that portion of the cost of the Project to be financed from the proceeds of the Revenue Bonds as Company considers necessary, including the use of interim, short-term financing, subject to 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 the Revenue Bonds to be issued to finance the Project and in preparing a draft of the proposed application to the Commissioner of Energy, Planning and Development, 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 notice of the hearing, are in all respects ratified and confirmed. Adopted by the City Council of the City of Stillwater, Minnesota, this 16th day of March, 1982. Published; March 23, 1982. Attest: �,...--aan. t �[e wwsii� City itlerk Mayor w# • • •