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Res 1979 - 42 Reciting a Proposal for a Commercial Facilities Development Project Giving Preliminary Approval to the Project Pursuant to the MN Municipal Industrial Development Act� 79-4�� RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO THE MINNESOTA • MUNICIPAL INDUSTRIAL DEVELOPP�lENT ACT AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF SAID PROJECT TO THE COMMISSIONER OF SECURITIES ,: � , 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,Develop- ment Act (the "Act") as found and determined by the legislature is to promote the welfare of the state by the active attraction and encouragement and development of economically sound industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment; (b) Factors necessitating the active promotion and development of economically sound industry and commerce -- are the increasing concentration of population in the metro- politan 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 Mendota Heights ("the City") has received from Richard B. Shaller, an individual and resident of the State of Minnesota, under the laws of the State of Minnesota (the "Borrower"), a proposal that the City undertake to finance a Project hereinafter de- scribed, through the issuance of Revenue Bonds (which may be in the form of a single debt instrument such as a note) pursuant to the Act; (d) The City desires to facilitate the selec- tive development of the community, retain and improve its tax base and help it provide the range of services and employment opportunities required by its population; and said Project will assist the City in achieving those objectives. Said Project will help to increase assessed valuation of the City and help maintain a positive relationship between assessed valuation and debt and enhance the image and reputation of the City; :� ``°�: - 2 - •(e) The Project to be financed by the Note is a� business office and warehouse facility to be located in the City of Mendota Heights at the northwest corner of Mendotal. Heights Road and Transport Drive in Mendota Heights Industrial Park and consists of the acquisition of land and the construc- tion of buildings and improvements thereon comprising 36,200 square feet and the installation of equipment therein, and� will result in the employment of additional persons to work within the new facilities�. Said Project will be leased to� Apsco Products Company and will serve as its corporate head- quarters; j f (f) The City has f�een advised by the Borrower that conventional, commercial financing to pay the capital cost o€ 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 the Borrower has also advised this Council that with the aid of municipal financing, and its resulting low borrowing cost, the Project is economically more feasible. • NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Mendota Heights, Minnesota, as follows: 1 l. The Counci� hereby gives preliminary approval to the proposal of the Borrower that the City undertake the Pro�ect pursuant to the Minnesota Municipal Industrial Development'Act (Chapter 474, Minnesota Statutes), consisting of the acquisi- tion, construction and equipping of facilities within the City pursuant to the Borrower's specifications suitable for the� operations described above and gives preliminary approval to a revenue agreement between the City and the Borrower upon such terms and conditions with provisions for revision from time to time as necessary, so as to produce income and revenues sufficient to pay, c�hen due, the principal of and interest on the proposed Revenue Bonds in the total principal amount of approximately $1,000,000 to be issued pursuant to the Act to finance the' acquisition, construction and equipping of said Project; and the City hereby undertakes preliminarily to issue its Reve�nue Bonds in accordance•with such terms and conditions; � 2. On the basis of information available to this Council it appears, and the Council hereby finds, that said Project constitutes properties, real and personal, used or useful�in connection with one or more revenue producing enterprises en- gaged in any business within the meaning of Subdivision la of Section 474.02 of the Act, that the availability of the � ,' - 3 - financing under the Act and willingness of the City to furnish such financing will be a substantial inducement to the Borrower to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the development of economi- cally sound industry and commerce, to assist in the prevention . of the emergence of blighted and marginal land, to help prevent chronic unemployment, to help the City retain and improve its �-� tax base and provide the range of services and employment oppor- tunities required by its 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 to eventt�ally increase the City's tax base; 3.. Said Project is hereby given preliminary approval by the City subject to the approval of'the Project by the Com= missioner of Securities, and subject to final approval by this Council, Borrower, and the purchaser of the Revenue Bonds as to the ultimate details of the financing of the Project; i �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 above described Project to the Commissioner of Securities, requesting his � approval, and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary information as he may require; � " 5. Borrower has agreed and it is hereby determ3.ned 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 Commissioner will be paid by Borrower;. j 6. Briggs and Morgan, Professional Association, actirig as bond counsel, is authorized to assist in the preparatiori and review of necessary documents relating to the Project,jto consult with the City Attorney; Borrower and the purchaser'of the Revenue Bonds as to the maturities, interest rates andf other terms and provisions 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 pre- pared pursuant hereto shall authorize the expenditure of ariy municipal funds on the Project other than the re.venues derived from the Project or otherwise granted to the City for thisi - 4 - purpose. fihe 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 :,��- power 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 Cityo The Revenue Bonds shall recite in substance that the Revenue Bonds,�including interest thereon, are payable solely from the revenue and proceeds pledged to the payment thereof. The Revenue Bonds shall not constitute a debt of the City within the meaning of �. any constitutional or statutory limitation; . 8. In anticipation of the approval by the Commissioner of Securities and 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, Borrower is hereby authorized to make such expenditures and advances toward payment of that portion of.the costs of the Project to be financed from the proceeds of the Revenue Bonds as Borrower considers necessary, including the use of interim, short-term financing, subject to reimbursement from the pro- ceeds of the Revenue Bonds if and when delivered but otherwise without liability on the part of the City. ,. Adopted by the City Council of the City;of Mendota Heights, Minnesota, this � day of �,��` + r 1979. t Mayor ; , f Attest: .. � �'.Z:LLiL.,t� rs._� Lity �ieric � i' . ' � ! � k v STATE OF MINNESOTA COUNTY OF UAK�TA CTTY OF MENDOTA HEIGHTS i � � ' � . �>.:� • I, the undersigned, being the duly qualified and acting Glerk of the City of Mendata Heights, Minnesota, D4 HEREBY CERTSFY that I have compared the attached and foregoing exiract of i�t.i.nu-�es wi.th the originaZ thereof on fi.�e in my office,�and that the same a.s a full, true and comp2ete transcript of the minutes of a meeting of the City Council of said City duly called and held on the date therein indicated, inso�ar as such minutes relate to a�resolution giving � � preliminary apprvval to a commercial facilities developmen,t project. �� ; WITNES& my hand and the seal of said City thzs �1� day of _����' —' 19 79 . , . • �. . ' City•Clerk . i ' . . , (sEAz.) . ' , ; < . . , t � �