Res 1979 - 10 Setting Guidelines for the Issuance of Tax Exempt Industrial Development Financing by the City:�'. . . - .
� + ' CITY OF MENDOTA HEIGHTS • � � '
_ � . Dakota County, Minnesota ' - -
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� •• • RESOLUTION N0. 79-10 - " ' . , '
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RESOLUTION SETTING GUIDELINES FOR THE ISSUANCE�OF TAX � �
� EXEMPT INDUSTRIAL DEVELOPMENT FINANCING BY THE CITY
' WHEREAS, Minnesota Statutes permit the issuance of tax'exempt industrial
development bonds and loans (IDB's) in cases where construction o'f new fac-
ilities will increase a community's tax base, relieve unemployment, eliminate �
blight or threat of blight and provide a needed product or service�; and,.
WHEREAS, in some cases the City might not�be competitive in attracting •
or re'taining a desirable business or industry unless the City makes tax free
financing available; and:� ' ' �
. , . � • . .
' � WHEREAS,� the City may incur costs and expenses in staff time and professional'
� fees for the review of the application and other information supplied by an . �
applicant; and . � • � - - • � ' ` . _
WHEREAS, persons and firms seek a general framework within.which�they may .
be guided in requesting tax f'ree financing.��. . '... _ '
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- NOW THEREFORE BE IT RESOLVED by the City Council of the City of Men�.ota
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Heights : . . . ' - _ `
' , The following guidelines are established relating'to the acceptance,
�� consideration and approval of applications�for tax exempt industrial develop-
ment loans and bonds (IDB's). However,,applicants must understand•that not-
withstanding observance of these guidelines, the City Council may in•its sole
judgement reject an application.or that'the City Council may in its sole judge-
ment approve an application notwithstanding that one or,more guidelines�have
not been complied with. ' - � � ' ' ' ' , � '
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'• l. The facility must be one which might not locate or remain in
'�� � the City in the,absence of IDB_financing. .� _
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'' 2. The City will consider only new construction, expansion and'� -' +
acquisition of major equipment amounting to $250,000 or more ,
for each project. . ., � . - ' � � -
, ��• �J'-.- ' ., •`� ;'�t �,,, � ,�. � ,.� ' ., �
_ 3: �The�,project� must add s gri ficantly� to the City's tax'base, to
fr �employment opportunities-in�the Gi�ty, eliminate�or prevent blight
�� o'r provide,a rieecied•product<or service not available.to the City's
' � inhabitants.� � � � • � , �
- .�'r . . : , y . . , . - � � �.; ;� �. r .; _ { �.: ., .
. . ��, ri. :�+i,�i'- rs'" �" `4 "'-��-?�' _�!r` �1 �'"''�1p,$!"!3' . . •
' 4Y �,The; City will' rgene'ral"l.y be adve'rse .to financing special purpose
�- 'x type st`ructures�not adaptable to other.uses. ` "
5. The applicant will furnish reliable evidence as to its ability -
and resource capabilities relating to the finaricial aspects of �
, the project. ' `
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� . 6. The City reserves �he right to employ legal, accounting; appraisal, � ,,�
� � � � . financial.and other cansultants ta review the proposed finaizcing' �
and the cost shall be paid, together with administrative expense, � _�
� ' � by the applicant, whether or not�the City agrees=to finance the � ,
; '� ' - projeat ar whether or not it° is built. '•_ .
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,"' 7. The applicant �hall deposit $2,500.00 with the application and �� �
_ ' - the City shall be enti�led to use such funds for preliminary=� ` j �.
, .� expenses in connection with the project. Any unexpendecl balance
"�r_ � of such deposi�. sha11' be 'returnad to the appli.cant if -the projec�. ,�, �
' �' is aborted far any reason. If the�projec�.-is approved fihe City '
'' _� ' will allow said ex�enses to�became part o�,�the projected co�t ,
" � : ; � �inanced by the IDB:':�s . . - • . , . . . .
- S., Depencling on �he facts, the City may require -the applicant �o ``
t- - � establish and main�ain a significant equity in the structure'and ,
.�' to establish�'�iand maintain a reserve balance or deposit af securities '
. '- '� with or for the benefit of ,the` Ca.ty car lease insurance to protect .' ,
� . aga(inst {a�.l♦eas�re payirient�defau�lt. .�,�';•'�''� - � � - , ;
' f - . ' i�•i� C � �It�. 1 f i i - . ~ :'T '�� :� . �^ �`+ic'j a. # y 4�i +� ,�t' ' , '
' � 9. The company wi].l,guarantee,,payment of lease installment�'for the �
� - - ;� � . . � • t rt , : . � , ; - f , ;.� _ _
' � 3.ife af -the t�lease� and: maturit � o�; tiie loan ar of the bonds issued.
. � . ' . ' f C t tY�%r� \ iT��,�'Mi '�"'s'� •� ,.s7 .'+Y.iF{�h . ' y
. ' . .
�� .'10. ,The fair market rental,,yaiue for�general purposes�{not so�ely for .
' • , .. —'1'i . . i ,i.� t : i Y.�.. s.+r. l: aa ,�'„�t� # � ..: • r '
- , the��app �=i�ant,` s purpo'se'}�ymp st�' at�le,as�. jequal the annual principal . ,
. , amount of-the+loan�or 'bbnds::to- be:zasued�:�` �
,. , . � .
- �. 11. -,The applicant shall require a performance bond of �,he building' � ;
, � contracic�rs�equal ta 100$ of the con-�ract price.. in the event '.
- �. � �he TDB issue does not provide for 100� of the estimated construction
. " costs, the developerx sYza11 cleposit. witY� the trustee pr�or to the .
.� delivery of the issue, a sum sufficient ta complete payment',af the ' .
' estimated costs. Any balance remaining on�completian shall apply ' �
� ' � .� against future ren�.al payments� or �be �returned to the c1,�:veloper.
J� . � . . .
.- � �, 12. It is hereby expressad that the Czty would prefer �Iie applicant , ,�
• -' �.o use financing under' �.he martgage-note provi�ions of �.he 1.aw. t �
�' it shall be�unders�oad that in the event bond financing is �.he " -
�. � methad used, that �.he ap,plicant�and its bond underwriters shall -'.
� ' � hold harinless the City, its°offi.cers,.eansultants and agents for • - �
', � any alleged or actual violation of any securities 1aws,�s�.ate or �.
• � . ' �ederal, a.n connection with_the issuance af. bands.or 'loaris tpr the ��
�, _• = project. ,Tha City may"require a.sur,etyPband to assure this "hold
- , . . ' harmless" provision. Y _, ..- � ' .
' � 13: �Tn cansideration of the City's acting as a financing.conduit•in '
. - ` �he issuance af IDB's, the applicant shall pay ta -�he City from �.he �
,- � � bond proceeds a sum., equal to the following schedulec � � ,�
, � � I� of, �he par�value up to and including $500,000.00; ''
` " � af l�h.over $500,000 up to and including,$2r500J000.00; •s � , �
� � ' ` �a af l� for any amount;aver $2,500,000.00. ' ' _ . - .
. - whi:ch shall be used by ��he City �ar�genaral commercial and indnstrial -..
� ' � developmen�. purpose or for ariy other 7.egitimate city purpose. _ ,�
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Q'� . . .. , . . . . . '. . • '' � � ,� . .
. r ,The City_will allow the applicant to eriter the cost of this payment :
•- into the project cost for financing purposes. w .� "
• - - . ' " , ^ � • ' 1. • � � " " s .
' ' 14., The City�reserves the right to deny at.its discretion any application
• � � . -� that may appear in conflict or contrary to the intent of M.S.A. 474.�
-- - � .The'City's po"sition is that no applicant has a right to have the
' '� ,• City issue IDB's and in submitting„such an application, the applicant :
.� � � recognizes and accepts'that policy decision whether or not�these
• X'. `•- guidelines are followed in other respects. ' • . ''.
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�"� Adopted by the City Council,of the City of Mendota Heights, Minnesota, this �-
: `16th day of January, 1979. ' , , � , � �, ' ; • � .
• . , � ' . . , CITY COUNCIL .' , . � , , ' �
' � � r , CITY OF MENDOTA HEIGHTS � .� •�
_ - • �• , : e � , .
� _ -` - ., ' . � . ' B �._ ..,,¢� ¢, C�.��u"-p-O�C.). ' . .
. . . _ y �'Jtf� /o!
� ., . � � • - . , . Robert G. Lockwood . '
, 'i . ' , . � � ' � � - �. � : , Mayor . � p� � .
: . � ` _ . .
. � ATTEST:, • � " - ' • �
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� / G(.S'-L lc/ dt��� � . . , ° ` � , , � . � • �
' Mary� n DeLaRosa • . - . �� � _ `
� Deputy City Clerk , • - �• " � , • " .�'• - • � - • .
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