Res 78 - 31 Extract of Minutes of Meeting of the City Council of MH (4/4/1978)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 in
said City on , the yt�h day of April, 1978, at
7: 30 O'clock —.M.
The following Councilmen were present:
and the following were absent:
Councilman introduced and
read the following written resolution and moved its adoption:
RESOLUTION SUPPLEMENTING RESOLUTION NO. 77-39
GIVING PRELIMINARY APPROVAL TO A PROPOSED
INDUSTRIAL DEVELOPMENT PROJECT, AUTHORIZING THE
SUBMISSION OF AN APPLICATION TO THE COMMISSIONER
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
and
upon vote being taken thereon the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
RESOLUTION SUPPLEMENTING RESOLUTION NO. 77-39
GIVING PRELIMINARY APPROVAL TO A PROPOSED
INDUSTRIAL DEVELOPMENT PROJECT, AUTHORIZING THE
SUBMISSION OF AN APPLICATION TO THE COMMISSIONER
OF SECURITIES FOR APPROVAL THEREOF AND AUTHORIZING
THE PREPARATION OF DOCUMENTS AND MATERIALS
IN CONNECTION WITH THE PROJECT
BE IT RESOLVED by the City Council of the City of
Mendota Heights, Minnesota, as follows:
1. On June 7, 1977, there was presented to this Council
a proposal that the City undertake a project pursuant to the
Minnesota Municipal Industrial Development Act, Chapter 474,
Minnesota Statutes (the "Act"), consisting of the construction of
a corporate headquarters and certain other facilities in the City
to be used by Cray Research, Inc., a Delaware corporation (the
"Company"), all as more fully de.-.rik--d in Resolution No. 77-39
adopted by this Council on said date which gave approval to the
financing of such facilities under the Act. The proposal has
been revised in certain respects and, as presently planned, the
facilities to be constructed and financed under the Act will
consist of a building of approximately 25,000 square feet to
serve as the Company's corporate headquarters and as a facility
for programming operations (the "Project"). Under the proposal,
the Company will enter into a loan agreement whereby the Company
agrees to construct the Project and the City agrees to issue up
to approximately $1,000,000 Industrial Development Revenue Bonds
of the City pursuant to the Act to finance the Project. The
Company will retain title to the Project and the site thereof and
the loan agreement will require the Company to pay amounts suffi-
cient to pay the principal of and interest on any Bonds issued.
The City will assign its interest in the loan agreement to a
Trustee for the bondholders to secure the Bonds. The Bonds and
the Company's obligations under the loan agreement will be secured
by a mortgage of the Project and site thereof to the Trustee.
The Bonds shall be issued'i.n accordance with the Act, and shall
provide that the Bonds are payable solely from amounts received
by the City pursuant to the loan agreement and other property
pledged to their payment. The Bonds shall not be a general
obligation of the City or be payable from any other property or
funds of the City.
2. There has been presented to this meeting a form of
Application to Commissioner of Securities for approval of the
Project setting forth the estimated costs of the Project and the
increased employment and payrolls to result therefrom. It is
hereby found, determined and declared that the purpose of the
Project is and the effect thereof will be to promote the public
welfare by the attraction, encouragement and development of
economically sound industry and commerce so as to prevent, so far
as possible; the emergence of blighted and marginal lands and
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areas of chronic unemployment; the development of industry to use
the available resources of the community, in order to retain the
benefit of its existing investment in educational and public
service facilities, by halting the movement of talented, educated
personnel of mature age to other areas -and thus preserving the
economic and human resources needed as a base for providing
governmental services and facilities; and the more intensive
development of land available in the area to provide an adequate
_ tax base to finance the increase in the amount and cost of govern-
mental services provided by the City, the County and the School
District in which the City is located.
3. Preliminary approval of the Project is hereby
reaffirmed by the City, subject to (i) approval of the Project by
the Minnesota Commissioner of Securities and (ii) approval of
this Council, the Company and Dougherty, Dawkins, Strand & Ekstrom,
Incorporated, as Underwriter, of the ultimate details of the
Project and the terms of the Bonds.
4. The underwriter has furnished this Council with a
letter that the Project is feasible and indicating an intent to
purchase the Bonds. The Mayor and City Clerk are hereby authorized
and directed to submit to the Commissioner of Securities an
Application for approval of the Project, substantially in the
form presented to this meeting, together with the letter of
intent necessary to complete such Application. The Mayor and
City Clerk and other officers, employees and agents of the City
are hereby authorized to provide the Commissioner with such
preliminary information as he may request.
5. Messrs. Faegre & Benson, as bond counsel for this
issue, are authorized to prepare drafts of documents relating to
the Bonds for review by the City Attorney and consideration by
this Council.
Attest:
11 City Clerk
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Mayor
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 regular meeting
of the City Council of the City held April 4, 1978, is a full, true
and correct transcript therefrom insofar as the same relates to
the $1,000,000 Industrial Development Revenue Bonds of the City.
WITNESS My hand officially and seal officially as said
City Clerk this 4th day of April, 1978.
(Seal)
s
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City Clerk