Loading...
HomeMy WebLinkAbout6521 (Res.)RESOLUTION NO. 6521 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER CHAPTER 474, MINNESOTA STATUTES, REQUESTING APPROVAL BY THE COMMISSIONER OF SECURITIES, AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Stillwater, Minnesota as follows: Section 1. Policy and Purpose. 1.01 For the purpose of promotion, attraction, encourage- ment and development of economically sound commerce, preventing the emergence of blighted and marginal lands and areas of chronic un- employment, preserving the existing investment of the community in facilities for public service and preserving a tax base adequate to finance such service, the City is authorized by the Municipal Industrial Development Act, Minnesota Statutes, Chapter 474, to issue its revenue bonds and use the proceeds to acquire land and - construct and equip improvements thereon for business purposes, or to loan the proceeds to any person to be used for such purpose. 1.02 Cub, Inc. (hereinafter referred to as the Obligor) has proposed to construct and equip a 40,000 square -foot supermarket in the City (the "Project"), and has requested that the City authorize the issuance of revenue bonds in an amount not to exceed $1,000,000 to finance a portion of the Project costs. 1.03 The construction of the Project would add to the tax base of the City, would increase employment and the level of economic activity in the community, and would enhance the reputation of the City as a desirable location for people and business. The City is advised by the Obligor that conventional commercial financing of the capital cost of the Project is available only on a limited basis and at such a cost that the capacity of the Project to achieve the above purposes would be reduced, but that with the aid of munici- pal financing and the resulting lower borrowing cost, the Project is economically more feasible, and the availability of such financing would be a substantial inducement to the Obligor to undertake the Project in the City. Section 2. Authorization. 2.01 Subject to approval of the Project by the Commissioner of Securities of the State of Minnesota, and subject to the mutual agreement of the City Council, the Obligor and the purchaser of the bonds as to the details of the bonds and other documents necessary to evidence and effect the construction of the Project and the is- suance of the bonds, the Project described in Section 1 is approved and authorized, and the issuance of revenue bonds of the City, in one or more series, is authorized to finance a portion of the Project costs up to $1,000,000. 2.02 The Mayor is authorized and directed to submit the Project for approval by the Commissioner of Securities as tending to further the purposes and policies of the Municipal Industrial Development Act, and to cause such information concerning the Project to be submitted to the Commissioner as he shall require for this purpose. 2.03 Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any funds of the City on the Project other than the revenues thereof or the proceeds of the bonds or other funds granted to the City for this purpose. The bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City nor shall the City be subject to any liability thereon. No bondholder shall ever have the right to compel any exercise of the taxing power of the City to pay any such bonds or the interest thereon, nor to enforce payment thereof against any property of the City. Each bond shall recite in substance that the bond, including interest thereon, is payable solely from the revenue pledged to the payment thereof, and no bond issued hereunder shall constitute a debt of the City within the meaning of any constitutional or statu- tory limitation. 2.04 In anticipation of the approval by the Commissioner of Securities and the issuance of revenue bonds to finance the Project, and in order that completion of the Project will not be unduly delayed when approved, the Obligor is hereby authorized to make such expenditures and advances toward payment of costs of the Project as it considers necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the revenue bonds when delivered but otherwise without liability on the part of the City. Adopted by the Council thisllth day of July, 1978. Approved: Attest: Acting City Clerk Publish---7-17-78 Mayor Ai- I1113%11 (Jr Evening Gazette, July 17, 1978 STILLWATER EVENING GAZETTE STATE OF MINNESOTA +ss. COUNTY OF WASHINGTON Phil Easton, being duly sworn. on oath says he is and during all the times herein stated has been the Publisher and Printer of the newspaper known as Stillwater Evening Gazette and has full knowledge of the facts herein stated as follows: (1) Said newspaper is printed in the English language in newspaper format and in column and sheet form equivalent in printed space to at least 900 square inches. (2) Said newspaper is a daily and is distributed Monday through Friday of each week, except holidays. (3) Said newspaper has 25% of its news columns devoted to news of local interest to the community which it purports to serve and does not wholly duplicate any other publication and is not made up entirely of patents, plate matter and advertisements. (4) Said newspaper is circulated in and near the municipality which it purports to serve, has at least 500 copies regularly delivered to paying subscribers, has an average of at least 75% of its total circulation currently paid or no more than three months in arrears and has entry as second-class matter in its local post -office. ( 5 ) Said newspaper purports to serve the City of Stillwater and surrounding area in the County of Washington and it has its known office of issue in the City of Stillwater in said county, established and open during its regular business hours for the gathering of news, sale of advertisements and sale of subscriptions and maintained by the publisher or persons in his employ and subject to his direction and control during all such regular business hours at which said newspaper is printed. (6) Said newspaper files a copy of each issue im- mediately with the State Historical Society. (7) Said newspaper is made available at single or subscription prices to any person, corporation, partnership or other unincorporated association requesting the newspaper and making the applicable payment. (8) Said newspaper has complied with all the foregoing conditions for at least one year preceding the day or dates of publication mentioned below. (9) Said newspaper has filed with the Secretary of State of Minnesota prior to January 1, 1966 and each January 1 thereafter an affidavit in the form prescribed by the Secretary of State and signed by the Publisher and sworn to before a notary public stating that the newspaper is a legal newspaper. He further states on oath that the printed. Ae9.9 i.!3 , Qfl.11Qo. 6521/ City of Stillwater. hereto attached as a part hereof was cut from the columns of said newspaper, and was printed and published therein in the English language, once each week, for One .X XCeXdays; that it was first so published on l0 , the 17th day of . 11.111-3. 19 78and was thereafter printed and published on every re to and including the day of 19.'7.. and that the following is a printed copy of the lower case alphabet from A to Z, both inclusive, and is hereby acknowledged as being the size and kind of type used in the composition and publication of said notice, to wit: abcdefgh i jkl mnopgrstuvwxyz Subscribed and sworn to before me this 17 th day of ..Y.uty 19.7.8. Notarial Seal) GUDRUN MEYERS Notary public. Washington County, Minnesota. My Commission Expires May 17, 1981. G o Printers Fee $ Received Payment 19 STILLWATER EVENING GAZETTE By RESOLUTION NO. 6521 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJFCT UNDER CHAPTER 474, MINNESOTA STATUTES, REQUESTING APPROVAL BY THE COMMISSIONER OF SECURITIES, AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Stillwater, ! Minnesota as follows: Section 1. Policy and Purpose. 1.01 For the purpose of promotion, attraction, encouragement and development of economically sound commerce, preventing -the emergency of blighted' and marginal lands and areas of chronic unemployment, preserving the existing investment of the community in facilities for public service and preserving a tax base adequate to finance such service, the City is authorized by the Municipal Industrial Development Act, Min- nesota Statutes, Chapter 474, to issue its revenue bonds and use the proceeds to acquire land and con- struct and equip improvements thereon for business purposes, or to loan the proceeds to any person to be used for such purpose. • 1.02 Cub, Inc. (hereinafter referred' to as the Obligor) has proposed to construct and equip a 40,000 square - foot supermarket in the City (the "Project"), and has requested that the City authorize the issuance of - revenue bonds in an amoufit,not toe exceed S1,130 ,000 to finance a portion of the Project costs. 1.03 The construction of the project,4 would add to the tax base of the City, would increase employment and the level of eCeiriOrtit activity in there community, and would enhance the reputation of the City as a' desirable location for people and business. The City is advised by the Obligor that conventional commercial financing of the capital cost of the Project available only on a limited basis and ' at Such a cost that the capacity of the Project to achieve the above purposes would be reduced, but that with teed aid of municipal ,financing and the resulting lower borrowing cost, the f Project is economically more feasible, and the availability of such financing would be a substantial in- ducement to the Obligor to undertake the Project -in the City. Section 2. Authorization. 2.01 Subject to approval of the Project by the Commissioner of Securities of the State of Minnesota, and subject to the mutual agreement of the City Council, the Obligor and the purchaser of the bonds as to the details of the bonds and other documents necessary to evidence and effect the construction of the Project and the issuance of the bonds, the Project desctibed in Section 1 is ap- proved and authorized, and the issuance of revenue bonds of the City, in one or more series, is authorized to finance a portion of the Project costs up to 51,000,000. 2.02 The Mayor is. authorized and directed to submit the Project for approval by the Commissioner of Securities as tending to further the purposes and policies of the Municipal Industrial Development Act, and to cause such information concerning the Project to be submitted to the Commissioner as he shall require for this purpose. Th..,'50iu tlan or n the c.C_—nrts ar^Cared pur5�art r•er C--To s-5.1 au'h0r:'ie the expenditure of any turfs of the C ty on the Pro ect other than'ne revenues thereof or 'ne proceeds of the bonds Or other funds granted to the City for this purpose. The DonstS Shall not Constitute a charge, lien or encumbrance, legal or equitable. upon any property or funds Of the City nor shall the City be Subject to any liability thereon. NO bondholder shag/ ever have the right to compel any exercise of the taxing power of The City TO pay any Such bonds or the interest thereon, nor to enforce Payment thereof against any property Of the City. Each bond shall recite in substance that the bond, including interest thereon, is payable solely Front the revenue pledged to the payment thereof, and no bond issued hereunder shall constitute a debt of the City within the meaning of any constitutional or statutory {imitation, 2.04 In anticipation of the approval by the Commissioner of Securities and the issuance of revenue bonds tp finance the Project, and in order that completion of the Project will not be unduly delayed when approved, the Obligor is hereby authorized to make Such expenditures and advances toward payment of costs of the PrajeCt as it considers neCeSsary, including the use of interim, short- term financing, subject to relrn- bursement from the proceeds of the revenue bonds when delivered but Otherwise without liability on the part _Of The City. Adopted by the Council this llth day of July, 1978. Approved: David Junker Mayor Attest: Dorothy Schnell Acting City Clerk 7/17