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HomeMy WebLinkAbout7787 (Res.) ~ r ~ . - RESOLUTION NO. 7787 GIVING PRELIMINARY APPROVAL TO A PROJECT AND FINANCING UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL OEVELOPMENT ACT BE IT RESOLVED by the City Council of the City of Stillwater, Minnesota (the City) as follows: Section 1. Recitals and Findings. 1.1 This Council has received a proposal that the City finance a portion or all of the cost of a proposed project under Minnesota Statutes, Sections 469.152 through 469.165 (the Act), consisting of the construction and equipping of an approximately 40,000 square foot manufacturing facility in the City (the Project) by Incstar Corporation (the Borrower). The Project is located at 1951 Northwestern Ave. in the City. 1.2 After due consideration this Council hereby finds, determines and declares as follows: (a) The welfare of the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental acts to prevent, so far as possible, emergence of blighted lands and areas of chronic unemployment, and the State of Minnesota has encouraged local government units to act to prevent such economic deterioration. (b) The Project would further the general purposes contemplated and described in Section 469.152 of the Act. (c) The existence of the Project would add to the tax base of the City, the County and School District in which the Project is located and would provide increased opportunities for employment for residents of the City and surrounding area. (d) This Council has been advised by the Borrower that conventional, commercial financing to pay the 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 that with the aid of municipal borrowing, and its resulting lower borrowing cost, the Project is economically more feasible. (e) This Council has also been advised by the Borrower that on the basis of its discussions with potential buyers of tax-exempt bonds, revenue bonds of the City (which may be in the form of an industrial development revenue note or notes) could be issued and sold upon favorable rates and terms to finance the Project. (f) The City is authorized by the Act to issue its revenue bonds to finance capital projects consisting of properties used and useful in connection with a manufacturing enterprise, such as that of the Borrower, 1 ~ . . , , ,~ r and the issuance of the bonds by the City would be a substantial inducement to the Borrower to construct and equip the Project. Section 2. Approvals and Authorizations. 2.1 On the basis of the information given the City to date, it appears that it would be desirable for the City to issue its revenue bonds in an amount not to exceed $6,000,000 under the provisions of the Act, in one or more series, to finance the Project. f' 2.2 The Council hereby determines to proceed with the Project and its financing, and hereby declares its present intent to have the City issue its revenue bonds under the Act to finance the Project, in an amount not to exceed $6,000,000 subject to the public hearing requirements of Minnesota Statues, Section 469.154, and Section 146(f) of the Code, and local zoning requirements, and to the approval of the Project by the Minnesota Department of Trade and Economic Development. Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to establish a legal obligation on the party of the City or this Council to issue or to cause the issuance of such revenue bonds. All details of such revenue bond issue and the provisions for payment thereof shall be subject to the mutual agreement of this Council, the Borrower and the purchaser or purchasers of the revenue bonds and such further conditions as the City may specify, such agreement and specification on the part of the City to be evidenced by a resolution of this Council authorizing the issuance of the revenue bonds on the terms and conditions agreed upon and authorizing the execution of necessary documents. In all events, it is understood that the revenue bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the revenues pledged to payment of such revenue bonds, and each bond, when, as and if issued, shall recite in substance that the bond, including interest thereon, is payable sOlely from the revenues received from the Project and any property pledged to the payment thereof and shall not constitute a debt of the City within the meaning of any constitutional, statutory or charter limitation. 2.3 A public hearing on the issuance of the revenue bonds will be held on Tuesday, September 8, 1987, at 7:00 P.M. at the City Hall. The Clerk is authorized and directed to publish the notice attached hereto in the official newspaper of the City once at least 14 days prior to the hearing date. Adopted this 18th day of August, 1987. ,msr, ~ ~~ ~-_/ CITY CLER ~an~."',.,.c. o 2