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Res 1980 - 86 Giving Preliminary Approval to a Project Under the Municipal Industrial Development Act; Referring the Proposal to the Commissioner of Securities for Approval; & Authorizing Preparation of Necessary DocumentsCouncilmember Mertensotto offered the following resolution and moved its adoption, which motion was seconded by Councilmember Hartmann RESOLUTION NO. 80-86 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE COMMISSIONER OF SECURITIES FOR APPROVAL; AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Mendota Heights, Minnesota (the "City"), as follows: SECTION 1 Recitals and Findings 1.1 This Council has received a proposal that the City finance a proposed project under Minnesota Statutes, Chapter 474 (the "Acts% consisting of the acquisition of land and the construction and equipping thereon of a light industrial building (the "Project") •by Gayle Brodil or a partnership or other entity presently in existence or to be formed by him (the "Borrower") to be leased to Carl A. Anderson, Inc. of Minnesota. 1.2. .At a public hearing, duly noticed and held on September 16, 1980, 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 such 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 as possible, emergence of blighted lands and areas of chronic unemployment, and the State 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 City, the County and the 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 a representative of 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 that on the basis of their discussions with investment bankers, underwriters or buyers of tax-exempt bonds, revenue bonds of the City 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 or useful in connection with a revenue producing enterprise, such as that of the Borrower, and the issuance of such bonds by the City would be a substantial inducement to the Borrower to acquire and install the Project. SECTION 2 Preliminary Approval of Project 2.1. On the basis of information given the City to date, it appears that it would be in the best interest of the City to issue its revenue bonds under the provisions of the Act to finance the Project in .an amount not exceeding $2,500,000. 2.2 It is hereby determined to proceed with the Project and its financing and the Project is hereby given preliminary approval by the City and the issuance of revenue bonds of the City (which may be in the form of a industrial or commercial development revenue note or notes) in such amount as hereby approved, subject to the approval of the Project by the Commissioner of Securities, the fulfillment of such other conditions as the City may require with respect to the issuance of its revenue bonds in connection with the Project, and the mutual agreement of this Council and the Borrower as to the details of the revenue bonds and provisions for their payment. In all events, it is understood, however, that the revenue bonds of the City shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, except the Project, and each revenue bond, when, as and if issued, 'shall recite in substance that the revenue 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 City. 2.3. The form of the Application to the Commissioner of Securities, with attachments, is hereby approved, and the Mayor and City Clerk are authorized to execute said documents on behalf of the City. 2.4. In accordance with Section 474.10, Subdivision 7a, of• the Act, the Mayor is hereby authorized and directed to submit the proposal for undertaking the Project to the Commissioner of Securities requesting approval of the Project. The Mayor•, City Clerk, City Attorney and other officers, employees and agents of the City are hereby authorized and directed to provide the Commissioner with any preliminary information the Commis- sioner may need for this purpose, and the City Attorney is also authorized, in cooperation with Winthrop, Weinstine & Sexton, Saint Paul, Minnesota, as bond counsel, to initiate preparation of such documents as may be appropriate to the Project in order that, if it is approved by the Commissioner, it may be Carried forward expeditiously. SECTION 3 General 3.1. If the revenue bonds are issued and sold, the City will enter into a lease, sale or loan agreement or similar agreement satisfying the requirements of the Act (the "Revenue Agreernent") with the Borrower. The lease rentals, installment sale payments, loan payments or other amounts payable by the Borrower to the City under the Revenue Agreement shall be sufficient to pay the principal, interest and redemption premium, if any, on the revenue bonds as and when the- same shall become due and payable. .3.2. All commitments of the City expressed herein are subject to the cotadition tliat within twelve 02-) months from the date of adoption of this resolution (or such other date as shall be mutually satisfactory to the City and the Borrower) the City and the Borrower shall have agreed to mutually acceptable terms and conditions of the Revenue Agreement, the revenue bonds and of the other instruments and proceedings relating to the revenue bonds, and their issuance and sale. 3.3• If the events set forth herein do not take place within the time set forth above or any extension thereof and the revenue bonds are not sold within such tirne, this resolution shall expire and be of no further force or effect. The Borrower has agreed and it is hereby determined that any and all direct and indirect costs incurred by the City 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 City by,resolution authorizes the issuance of the revenue bonds, will be paid by the Borrower upon request, 3.4. The Mayor is directed, if the- revenue bonds are issued and sold, thereafter to comply with the provisions of Minnesota Statutes, Section 474.01, Subdivision 8. Adopted by the Council this 1 day of ��Ti3r� 1980. Approved: AW Mi6 ',�X'Ub4 Mayor Attest: Cit Jerk •� (SEAL) �- 'Uponcall of the roll, the vote on said motion was as follows: In Favor Hartmann - X Lockwood X Losleben Mertensotto X Witt • U •. Absent Not Voting