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Res 1981 - 40 Determining to Proceed with a Project & Its Financing Under the Municipal Industrial Development Act; Referring the Proposal to the Commissioner of Securities for Approval; & Authorizing Preparation of Necessary DocumentsCERTIFICATION OF $4,500,000 INDUSTRIAL I( f MINUTES RELATING TO DEVELOPMENT REVENUE BONDS Issuer: City of Mendota Heights, Minnesota Governing Body: City Council 1 Kind, date, time and place of meeting: A regular meeting, held on July 7 , 1981, at 7:30 I o'cloc at the City Hall. Members present: Lockwood, Witt Members absent: Documents Attached: Minutes of said meeting (pages): MINUTES OF PUBLIC HEARING ON PROPOSED PROJECT RESOLUTION NO. 81-40 RESOLUTION DETERMINING TO PROCEED WITH A PROJECT AND ITS FINANCING UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE COMMIS- SIONER OF SECURITIES FOR APPROVAL; AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this' certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal?custody, from which they have been transcribed;•that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said obligations; and that said meeting was duly held by the governing body at the time and place and was, attended throughout by the members indicated above, pursant to call and notice of such meeting given as requirejd by law. WITNESS my handfficially as such recording officer this Z day of , 1981. I gnature Kathleen M. Swanson, City Clerk Title and Name (SEAL) • If The Mayor stated that this was the time and place fixed by Resolution No.81-35 of this Council, adopted on June 2 1981, for a public hearing on the proposal that the City undertake and finance a Project on behalf of Ryan Properties, a Minnesota corporation (the Borrower) pursuant to Minnesota Statutes, Chapter 474. The City Clerk presented an affidavit showing publication of the notice of public hearing at least once not less }than 15 nor more than 30 days prior to the date fixed for the public hearing, in the Suburban Sun being the official newspaper of the City and in the St. Paul Dispatch or Pioneer Press, being a newspaper of general circulation throughout the City. The affidavits were examined, found to be satisfactory and ordered placed on file with the City Clerk. The Mayor then opened the meeting for the public hearing -on the proposal to undertake and financelthe Project on behalf of the Borrower. The purpose of the hearing was explained, the nature of the Project and of the proposed revenue bonds were discussed, the draft copy of the Application to the Commissioner of Securities with i all attachments and exhibits were available, and all persons present who desired to do so were afforded an opportunity to express their views with respect to the proposal to undertake and finance.the Project, in response to which the following persons appeared, were recognized and made statements, summaries of which appear opposite their respective names: Name of Speaker • -Summary of Views none After all persons who wished to do so had statea- their views on the proposal, the Mayor declared the public hearing to be closed. After some discussion, motion for the following Resolution was made by Member RESOLUTION NO. 81-40 RESOLUTION DETERMINING TO PROCEED WITH A PROJECT AND ITS FINANCING UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE COMMISSIONER OF SECURITIES FOR APPROVAL;IAND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Mendota Heights, Minnesota (the Municipality), as follows: SECTION 1 Recitals and Findings 1.1. This Council has received a proposal that the Municipality finance a portion or all of the cosi of a proposed project under Minnesota Statutes, Chapter 474* (the Act), consisting of the acquisition of land{and the construction thereon of an office/warehouse/reconditioning center (the Project) by Ryan Properties, a Minnesota corporation (the Borrower), for lease by the Borrower to Sperry Corporation. ' 1.2. At a public hearing, duly noticed and held" on July 7 , 1981, in accordance with the Act, on the proposal to undertake and finance the Project, all parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal to undertake and finance the Project. Based on the public hearing and such other facts and circumstances as this Council deems relevant, 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 az 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 474.01 of the Act. .(c) The existence of the Project would add to the tax base of the Municipality, the County and,School District in which the Project is located and would provide increased opportunities for employment for residents of the Municipality and surrounding area. j (d) This Council has been advised by Juran & Moody, Inc, investment bankers and dealers in municipal bonds, 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 1 significantly reduced, but that with the aid of municipal borrowing, and its resulting lower borrowing cost, the Project is economically more feasible. i (e) This Council has also been advised!by Juran & Moody, Inc. that on the basis of their discussions with potential buyers of tax-exempt bonds, revenue bonds of the Municipality (which may be in the form of a commercial development revenue note or notes) could be issued and sold upon favorable rates and terms to finance the Project. (f) The Municipality is authorized by the Act to issue its revenue bonds to finance capital projects consisting of properties used and useful in connection with a revenue producing enterprise, such as that of the Borrower, and the issuance of such bonds by the 1 Municipality would be a substantial inducement to the Borrower to acquire and construct the Project. I SECTION 2 Determination to Proceed with the Project and its Financing 2.1. On the basis of the information given the Municipality to date, it appears that it would be desirable for the Municipality to issue its revenue bonds under the provisions of the Act to finance thelro.ject in an estimated total amount of $4,500,000. 2.2. It is hereby determined to proceed with the Project and its financing and this Council hereby declares its present intent to have the Municipality issue its revenue bonds under the Act to finance the Project. Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the Municipality or itis City 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 final approval of the Project by the Minnesota Commissioner of Y Securities and may be subject to such further conditions as the Municipality may specify. The revenue bonds, if issued, shall not constitute a charge, lien or r encumbrance, legal or equitable, upon any property of the Municipality, except the Project, and each bond,lwhen, 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 property pledged to the payment thereof, and shall not constitute a debt of the Municipality within the meaning of any constitutional or statutory limitation. 1 2.3. The Application to the Commissioner of Securities, with attachments, is hereby approved, and the Mayor and City Clerk are authorized to execute said documents in behalf of the Municipality. I 2.4. In accordance with Section 474.10, Subdivision 7a of the Act, the Mayor and City Clerk are hereby authorized and directed to cause the Application to be submitted to the Commissioner of Securities for approval of the Project. The Mayor, City Clerk, City Attorney and other officers, employees and agents of the Municipality are hereby authorized and directed to provide the Commissioner with any preliminary information the Commissioner may Meed for this purpose, and the City Attorney is authorized to initiate and assist in the preparation of such documents as may be" appropriate to the Project, if it is approved by the Commissioner. I SECTION 3 1 General 3.1. If the bonds are issued and sold, the Municipality will enter into a lease, sale or loan agreement or similar agreement satisfying the requirements of the Actl(the Revenue Agreement) with the Borrower. The lea-se�rentals, installment sale payments, loan payments or other, amounts payable by the Borrower to the Municipality under the Revenue Agreement shall be sufficient to pay thel principal, interest and redemption premium, if any, on the bonds as and when the same shall become due and payable. 3.2. The Borrower has agreed and it is hereby determined that any and all direct and indirect costs incurred by the Municipality in connection with this Project, whether or not the Project is carried to completion, and whether or not approved by the Commissioner of Securities, and whether or not the Municipality by resolution authorizes the issuance of the bonds, will be paid by the Borrower upon request. t 3.3. The Mayor and City Clerk are directed, if the bonds are issued and sold, thereafter to comply with the provisions of Minnesota Statutes, Section 474.01; Subdivision 8. Adopted this I* day of 1981. i Mayor Attest: City Clerk (SEAL) The motion for the adoption of the foregoing resolution was duly seconded by Member Losleben and upon vote being taken thereon, the following voted in favor thereof: Lockwood, Witt, Losleben,.Mertensotto and the following voted against the same: Hartman abstain whereupon the resolution was declared duly passed and adopted.