Res 78 - 117 Extract of Minutes of Meeting of the City Council of MH (11/21/1978)Extract of Minutes of Meeting of the
City Council of the City of Mendota Heights, Minnesota
Pursuant to due call and notice thereof, a regular
meeting of the City Council of the City of Mendota Heights,
Minnesota was duly held at City xall
said City on Tuesdav , the 21st day of November, 1978, at
7:30 0' clock p M.
The following Councilmen were present:
in �
Mayor R. Lockwood, Councilmen D. Huber, J. Losleben, C. Mertensotto, R. Wahl
and the following were absent:
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Councilman r�osleben
None
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introduced and
read the following written resolution and moved its adoption:
RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED
INDUSTRIAL DEVELOPMENT PROJECT, AUTHOR2ZING THE
SUBMISSION OF AN APPLICATION TO THE COMMISSTONER
OF SECURITIES FOR APPROVAL THEREOF AND AUTHORIZING
THE PREPARATION OF DOCUMENTS AND MATERIALS
� IN CONNECTION WITH THE PROJECT
The motion for the adoption of the foregoing resolution
was duly seconded by Councilman r2ertensotto , and
upon vote being taken thereon the following voted in favor thereof:
Mayor Lockwood, Councilmen Huber, Losleben, Mertensotto and Wahl.
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
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RE50LUTION GIVTNG PRELIMTN�RY APPROVAL TO A PROPOSED
INDUSTRIAL DEVELOFMENT PRnJECT, AUTHORTZING THE
SUBMTSSION �F AN APPLICATTON TO THE COMMISSIONER
OF SECURITIE� FOR APPROVAL THEREOF AND AUTHORIZTNG
THE PREPARATION OF DOCUMENTS AND MATERIALS
IN CONNECTTQN WITFi THE PROJECT
BE IT RESOLVED by the City Caunci.l o£ the City af
Mendota Heights, Minnesota, as follows:
l. On June 7, 1977, there was presented to this
Council a proposal �hat the City undertake a project pursuant to
the Minnesota Municipal. Industrial,Development Act, Chapter 474,
Minnesata S�.atutes (the "Act"}, consisting of the acquisition of
l.and and the construction of a corpora�e headquarters and certain
other facilities therean in the City to be used by Cray Research,
Inc., a Delaware corporation (the "Company"}, aZl as more fully
described in Resolution No. 77-39 adopted by this Council on said
date, which gave approval to the financing of such faci.lities
under the Act and the i�suance of bands therefor by the City up
to an amount of $2,004,000. On Apri1 4, 1.978r there was presented
to �.his Council a proposal �o supplement Resolution No. 77-39 by
madi�ying certain characteristics of the Project, as set forth
therein, and by limiting the principal amount of bonds authorized
to be issued for the Project to 51,000,000. On May 16, 1978,
this Cauncil gave final approval ta the is�uance�of $l,Ofl0,000
City of Mendota Heights Tndustrial Development Revenue Bonds
(Cray Research, Inc. Project}, 5eries 1978 (the iiSeries 19'78
Bonds"), and the execution�and delivery of certain documents in
connectian therewith, 2here now has been presented to this
Council a proposal by the Gampany under the Act to finance certain
costs of the Prajec� nat financed fram the proceeds of th�: Series
1978 Bonds and to acquire certain real property adjacent to the
Project and related thereto. Under the proposal, the City will
issue up to approximately $650,000 of its Industrial Development
Revenue Bonds pursuant to the Act to finance the Project.' The
Company will retain title to the Project and the site thereaf
and, pursuant to a loan agreement, wi11 pay amaunts su�ficient to
pay the principal of and interest on any Boncls issued, The Bonds
and the Company's obligations undex the Ioan agreement wi1�. be
secured by a mortgage of the Project and site thereof to the
Trustee. The Bonds shall be issued in accordance with the Act,
and shal.l provide that �.he Bond� are payabl.e solely from amounts
received by the City pursuant to the loan agreement and other
property pledged to their payment. The Bonds �ha7.l not be a
general obligatian af the C�.ty or be payab3.e �ram anX other
property or funds o� the City.
2.
the purpose
promote the
development
It is hereby found, determined and dec�.ared that
of �he Project is and the effect thereof wi11 be to
public welfare by the attraction, encouragement and
of econamic�.11y sound industry and commerce so as to
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prevent, so far as possible, the emergence of blighted and marginal
lands and areas of chronic unemplayment; the development of
3,ndustry to use the availabie resource� of the community, in
order to retain the benefit of its existing investment in educa-
tional and public service �acilities, by ha2ting the mavement of
talented, educated personnel o£ mature age to other areas and
thus preservzng the econamzc and human resources needed as a base
for providing governmental services and facilities; and the more
, intensi.ve develapment of 1.and available in. the area to pravide an
adequate tax base to finance the increase in the amount and cost
of govern�tental services provided by the City; the County and the
School District in which the Ci.ty is lacated. .
� . 3. Preliminary approval. of the Praj�ct is hereby .
� rea�firmed by the City, subject to (i) approval o� the Project by
the Minnesota Commissianer'af Securities and {ii} apprc�val of
�" thi� Council, the Company and Dougherty, Dawkins, Strand & Ekstrom, •
.._v�._._ _._. Incorporated, a� Underwriter j af the ul.timate details of the
� Project and the terms of the Bonds, �and (iii) approval. o� Faegre �-�"'��.1. �. ....
.� & Bensori, as B�nd Coun�el,.of the legality af the Bonds. � •.
4. The underwriter has £urnished this Council with a
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�«M ' 'letter that the Prciject"is�feasible and indicating an intent to ' .
„� purchas� the Bonds. The Mayor and City C1erk are hereby authorized
� and directed to submit to the Cammissianer of Securiti.es an �
" Appl.ication for approval of the Project, together with the letter -
. of intent necessary to cc�mplete•such Application. The Mayor and
City Cl.erk and oiher o�ficers, employc�es and agents o� the City .
.�_.__,__._, .�. are hereby authorized to pravide the Commissioner with such
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preliminary in�armation as he may request.
5. The Company has agreed and it is hereby determined
tha� any and a].l casts incurred by the City in connection with
the financing a� the Praject wal.I be paid by �he Company.
6. Messrs. �'`aegre & Benson, as Band Counsel for this
issue, are authariaed to prepare drafts o� documents relating,to
the Bonds far review by the City Attorney and consideration by
thi� Council.. .
Attest:
City Clerk
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Mayar
K ,� R r
. .� , ' .
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' STATE OF MINNESOTA )
) SS.
COUNTY OF DAKOTA )
I, the undersigned, being the duly Qualified and acting
City Clerk of the City of Mendota Heights, Minnesota, do hereby
certify that the attached extract of minutes of a reaular meetinc�
of the City Council of the City held November 21, 1978, is a ful1,
true and correct transcript therefrom insofar as the same relates
to certain Industrial Development Revenue Bonds of the City.
WITNESS My hand officially and seal officially as said
City Clerk this 29th day of November, 1978.
(Seal)
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.�G-�z��� y%%
Ci Clerk