Res 78 - 137 Proposal for a Commercial Facilities Development Project Giving Preliminary Approval to the Project Pursuant to the MN Municipal Industrial Development ActRESOLUTION RECITING A PROPOSAL FOR A
COMMERCIAL FACILITIES DEVELOPMENT PROJECT
GIVING PRELIMINARY APPROVAL TO THE PROJECT
PURSUANT TO THE MINNESOTA
MUNICIPAL INDUSTRIAL DEVELOPMENT ACT
AtJTHORIZING THE SUBMISSION OF AN APPLICATION
FOR APPROVAL OF SAID PROJECT T� THE
COMMISSIONER OF SECURITIES
OF THE STATE OF MINNESO'I'A
� 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
Development 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 economi-�
cally sour�d 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 gopulation 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 developnent of
land use which will provide an adequate tax base to finance�
these increased costs and access to employment opportunities
for such population;
j (c) The City Council of the City of Mendota
Heights ("the City") has received from The Northland Company, a
corporation organized under the laws of the State of Minnesota
(the "Company") a proposal that the C,ity undertake to finance
alProject hereinafter clescribed, 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;
I
i (d) The City desires to facilitate the selec-
�,� tive development of the comr,iunity, 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
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Project will help to increase assessed va].uation of the City
and help maint�in a positive relationship between assessed
valuation and debt and enhance the image and reputation of the
City; •
(e) The Project to be f inanced by the Note is
a business office and related facility to be located in the
� City of Mendota Heights at the Northeast corner of Mendata
Heights Road and Pilot Knob Road in Mendota Heights Industrial
Park and consists of the acquisition of land and the
construction of buildings and improvements thereon comprising
31,500 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 Comserv Corporation and will serve as its corporate
headquarters;
(f) The City has been advised by representa-
tives of Company that conventional, commercial financing to
pay the capital 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 signi-
ficantly reduced, but Company 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. The Council hereby gives preliminary approval to the
proposal of Company that the City undertake the Project
pursuant to the Minnesota Municipal Industrial Development Act
(Chapter 474, Minnesota Statutes), consisting of the acqui-
sition, construction and equipping of facilities within the
City pursuant to Company's specifications suitable for the
operations described above and gives preliminary approval to a
revenue agreement between the City and Company 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, when due, the principal of and interest on the
proposed Revenue Bonds in the total principal amount of
approximately $1,100,000 to be issued pursuant to the Act to
tinance the acquisition, construction and equipping of saic�
Project; and the City hereby undertakes preliminarily to issue
its Revenue Bonds in aGcordance 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
financing _under the Act and willingness of the City to furnish
such financing will be a substantial inducement to Company to
undertake the Project, and that the effect of the Project, if
undertaken, will be to encourage the deyelopment of
economically sound industry and comm�rce, to assist i.n 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 opportunities 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 effectiv�ly used, to promote more intensive
development and use of land within the City and to eventually
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, Company, and the purchaser of the Revenue Bonds as to
the ultimate details of the financing of the Project;
4. In accordance with Subdivision 7a of Section 474.01
Minnesota Statutes, the Niayor of the City is hereby authorized
and directed to submit the proposal for the above described
Project to the Commissioner of Securities, requesting his ap-�
proval, and other officers, employees and agents of the City
are hereby authorized to provide the Comnissioner with such
preliminary infor�ation as he may require;
5. Company has agreed and it is hereby determined that
any and all costs incurred by the City in connection with the
financiny of the Project wh�ther or not the Project is carried
to completion and whether or not approved by the Commissioner
will be paid by Company;
6. Briggs and Morgan, Professional Association, acting
as bond couns�l, is authorized to assist in the preparation
and review of necessary documents relating to the Project, to
� consult with the City Attorney, Company and the purchaser of
the Revenue Bonds as to the maturities, interest rates and
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 docunents pre-
pared pursuant hereto shall authorize the expenditure of any
municipal funds on the Project other than the revenues derived
from the Project or otherwise granted to the City for this
purpose. The Revenue Bonds shall not constitute a charge,
lien or encumUrance, 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 City. 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,
Company is hereby authorized to rnake 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 Company 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 tiie part of ttie City. '
Adopted by the City Council of the City of Mendota
Heights, Minnesota, this �_ day of ,/Q�,n/..-e� , 1978.
–t=f– oL'-l4� � ��',c.vG�lr�_.—
Mayor
Attest:
� �: ��' C�2Q.J
' �� City Clerk
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STATE (�F MINNES'I'OA
COUNTY pF DAKflTA
CITS.' OF MENDOTA HEIGHTS
I, t3�e unc3ers igned , be ing the duly qual i f ied and
acting �e�of the City af Mendata Heights, Minnesata, Dt3 .
HEREBY CERTIFY that�i have compared the a�.tached and foregoing
extract of minu�es.with th�e orig�.nal thereaf an file in my
offi.ce, and that the same is a full, true and comp].ete .
transcript of the minut�s of a meeting of �he City Council of
said City duly called and held on the date therein indicated,
insafar as �uch minutes relate to a resolution qiva.ng . �,
preliminary approval to a commercial facilities development
project. • �
WITNESS my hand and �he seal of said City this �
day of �t�.��-n.�Q�z.� , 197$.
(�EAL)
/ � ( a�c�...�
� � City Clerk .
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