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Res 78 - 95 Reciting a Proposal for an Office Warehouse Development Project Approving the Project Pursuant to the MN Municipal Industrial Development ActSTATE OF MINNESOTA COUNTY OF DAKOTA CITY OF MENDOTA HEIGHTS Resolution No. 78-95 RESOLUTION RECITING A PROPOSAL FOR AN � J OFFICE WAREHOUSE DEVELOPMENT PROJECT APPROVING THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AND 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 RELATED MATTERS IN CONNECTION WITH SAID PROJECT WHEREAS, (a) The request of ..Esslinger & .Co.., Inc., a P7inne- sota corporation (hereinafter "Company") for assistance in financing its main office -warehouse building in Mendota Heights (hereafter "Project") warrants the support of the City of Mendota Heights, because (i) the reduction of costs of the Company, at no cost to the City, will allow the reduction of costs in the facility; (ii) the City has an interest in availability of commercial services to area residents; (iii) the City's tax base will be strengthened; (iv) job opportunities will be generated by the Project; (v) finan- cing of other projects in the Twin City area is commonly accommodated by.municipalities in the metropolitan area; (vi) the proposed financing will be with one or more financial institutions, and will not involve any public distribution of bonds. (b) The purpose of Chapter 474, Minnesota Statutes, known as the Minnesota Municipal Industrial Development Act (here- inafter called "Act") as found and determined by the legislature is to promote the welfare of the state by the active attraction, encouragement and development of economically sound development proposals. (c) The City Council has received from the Company a proposal, which proposal is outlined in a letter, a copy of which is attached hereto as Exhibit A, that the City assist in the financing of the Project through the issuance of a Revenue Bond, which may be in the form of a note or notes (the "Note") pursuant to the Act. 2. On the basis of information available to this Council it appears, and the Council hereby finds, that said Project consti- tutes property used or useful in connection with one or more revenue producing enterprises engaged in any business within the meaning of Subdivision la of Section 474.02 of the Minnesota Statutes, that the availability of the financing under the Act and willingness of the City of -furnish such financing -will be -of substantial bene- fit to the Company in completing the Project, and that the effect of the Project, if undertaken, will be to encourage economically sound development, will help to provide the range of services, including office and warehouse services, and employment opportuni- ties required by the population of Mendota Heights, will help to 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 and to eventually increase the City's tax base. 3. Said Project is hereby given approval by the City subject to the approval of the Project by the Commissioner of Securities and subject to final approval by this Council and the Company of the Note to be issued and as to the ultimate details of financing the Project. 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. The Company has agreed and it is hereby determined that any and all cost incurred by the City in connection with the Project, whether or not the Project is carried to completion and whether or not approved by the Commissioner, will be paid by the Company. 5. Briggs and morgan, Professional Association, Bond Counsel, is authorized in consultation with the City's Fiscal Con- sultant and Attorney and any other necessary parties to assist in the preparation and review of necessary documents relating to the Project, and to consult with the Company and the purchaser of the Revenue Bond as to the maturities, interest rates and other terms and provisions of the Note and the covenants and other provisions of the necessary documents and to submit such documents to the Council for final approval. 6. Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the -Project other than the revenues thereof or the pro- ceeds of the Revenue Note or other funds granted to the City for this purpose. The Note shall not constitute a charge, lien or -3- ."',�n-cumbrance, legal or equitable, upon any property or funds of the City except the Project and the revenue pledged to the payment thereof nor shall the City be subject to any liability thereon. The Noteholder shall never have the right to compel any exercise of the taxing power of the City to pay the Note or the interest thereon, nor to enforce payment thereof against any property of the City except the Project. The Note shall recite in substance that the Note, including interest thereon, is payable solely from the revenue pledged to the payment thereof. No Note issued hereunder shall constitute a debt of the City within the meaning of any constitutional or statutory limitation. -- 7. It is understood that the financing of the Project by use of a Note under the Minnesota Municipal Industrial Development Act shall be subject to and contingent upon the subdividing of the property of which the parcel upon which the project is to be constructed is a part under the applicable City ordinances and the conforming of the use thereon with the applicable requirements of the City Zoning Ordinance. 8. In anticipation of the approval by the Commissioner of Securities and the issuance of the Revenue Note to finance a portion of the Project, and in order that completion of the Project will not be unduly delayed when approved, the Company 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 Note as the Company considers necessary, including the use of interim, short-term financing, subject to reimbursement.from the proceeds of..the Revenue Note when and if 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 S"I PT. , 1978. CITY COUNCIL CITY OF MENDOTA HEIGHTS By "_qt,, -Ac oCG­C� Robert G. Lockwood Mayor ATTEST: 1 7 - � Kathleen M. Swanson City Clerk STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF MENDOTA HEIGHTS I, the undersigned, being the duly qualified and acting Clerk of the City of Mendota Heights, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and ccuplete transcript of the minutes of a meeting of the City Council of said City duly called and held on the date therein indicated, irisofar•a:s such, minutes relate to a resolution giving preliminary approval to a commercial development project. WITNESS my hand and the seal of said City this day of , 1978. City Clerk ( SEAL)