Res 77 - 39 Reciting a Proposal for an Industrial Development Project Giving Preliminary Approval to the Project Pursuant to the MN Municipal Industrial Development Act., . `'i�if^ �.
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RESOLUTION NO. 77-�
RESOLUTION RECITING A PROPOSAL
FOR AN INDUSTRIAL DEVELOPMENT PROJECT
GIVING PRELIMINARY APPROVAL TO THE PROJECT
PURSUANT TO THE MINNESOTA MUNICIPAL
INDUSTRIAL DEVELOPMENT�ACT
AUTHORIZING THE SUBMISSION OF AN APPLICATION
FOR APPROVAL OF SAID PROJECT TO THE
COMMISSIONER OF ECONOMIC DEVELOPMENT
OF THE STATE OF MINNESOTA
AND AUTHORIZING THE PREPARATION OF
NECESSARY DOCUMENTS AND MATERIALS
IN CONNECTION WITH SAID PROJECT
WHEREAS,
(a) The purpose of Chapter 474, Minnesota
Statutes, know as the Minnesota Municipal Industrial
Development Act (hereinafter called "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 economically sound industry and commerce to
prevent so far as possible the emergence of blighted and
-• marginal lands and areas of chronic unemployment and to
aid in the development of existing areas of blight, marginal
land and persistent unemployment;
(b) A primary factor necessitating the active
promotion and development of economically sound industry'
and commerce is the technological change in traditional
industries of the state, the effect of which is to shift
the area of opportunity for educated youth to other indus-
tries. Unless existing and related industries are retained
and new industries are developed to use the available re-
sources in each community, a large part of the existing in-
vestment of these communities and of the state as a whole
in educational and public service facilities will be lost.
The movement of talented, educated personnel of mature age
to areas where their services may be effectiveZy used and
compensated, and the lessening attraction of persons and
business from other areas for purposes of industry and
commerce, will deprive the community and the state of the
economic and human resources needed as a base for providing
governmental sexvices and facilities for the remaining
population. Access to employment opportunities for the
population also necessitates such promotion and development;
(c) The City Council of the City of Mendota
Heiqhts has received from;Cray Research, Inc., a Delaware
corporation (hereinafter referred to as "Company") a proposal
that the City undertake the financing of a Project herein-
after described through the issuance of one or more Industrial
Development Revenue Bonds pursuant to the Act;
(d) The City of Mendota Heights desires to
facilitate the selective development of the community to
retain and improve its tax base and to help it provide the
range of services and employment opportunities required by its
population and said Project will assist the City in achieviz�g
that objective. Said Project will help to increase the
assessed valuation of the City and help maintain a positive
relationship between assessed valuation and debt and enhance
the image and reputation of the City;
(e) The Company is enga.ged in the business
of building, programming and selling computers for use in •
various business applications. The Project to be financed
in whole or in part by the proposed Industrial Development
Revenue Bonds is the acquisition of land in the City of Men-
dota Heights and the construction thereon and equipping
of a building of approximately 65,000 square feet (including
basement area) to serve as the Company's corporate head-
quarters, a facility for systems testing and research and
development (the �latter consisting primarily of computer
programming) and a facility for final distribution of the
computer system. Ultimately, approximately 160 persons
will be engaged to work within �the. •facility. �.
(f) The City has been advised by representa-
tives of the 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 the Project would be significantly
reduced, but the Company has also advised this Council that
with the aid of municipal financing, and its resulting low
borrowing cost, the Project is economically mo're feasible.
NOW, THEREFORE, BE IT RESOLVED by the City Council
of the City of Mendota Heights, Minnesota, as follows:
l. 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 acquisition, construction and equipping of facilities
in the City pursuant to the Company's specifications suitable
for the operations described above under a revenue agreement
between the City and the Company upon such terms and condi-
tions, with provisions for revision from time to time as
necessary, so as to produce incc�me and revenues sufficient to
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pay, when due, the principal of and interest on proposed
Industrial Development Revenue Bonds of the City in the
total principal amount of not to exceed $2,000,a00 to be
issued pursuant to the Ac't to finance the acquisition,
construction and equipping of said Project. Said Revenue
Bonds may also be issued in the form of a single interim
and/or long term note to a bank or other financial institu-
tion. Said proposal may also provide for the City's entire
interest in the Project, if any, and its rights under the
r�venue agreement to be mortgaged and assigned to a trustee
for the Revenue Bonds or, if a single note is issued, the
purchaser therof. The City hereby undertakes preliminar�ly
to issue its Revenue Bond(s) in accordance with such terms
and conditions;
2. On the basis of information available to this �
Council it appears, and the Council hereby finds, that said
Pro.ject constitutes properties, real and personal, used or
useful in connection with one or more revenue producing
enterprises engaged in any business within the meaning of
Subdivision 1 of Section 474.02 of the Act, that the avail-
ability of the financing under the Act and willingness of
the City to furnish such financing will be a substantial .
inducement to the Company to undertake the Project and locate
in the City, and that the effect of the Project, if undertaken,
wil.l be to encourage the development of economically sound in-
dustry and commerce, to assist in the prevention of the emer-
gence of blighted and marginal land, to help prevent chronic
unemployment, to help the City improve its tax base and pro-
vide a range of services and employment opportunities�, 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 effectively used, to promote more
intensive development and use of land within the City and to
increase the tax base of the Ci.ty and the School District in
which the City is Iocated;
3. Said Project is hereby given preliminary
approval by the City subject to the approval of t.he Project
by the Commissioner of Economic Development and subject to
final approval by this Council, the purchaser of the Revenue
Bond(s), and the Company as to the ultimate details of the
Project;
4. In accordance with Subdivision 7 of Section
474.01, Minnesota Statutes, the Mayor of the City is here-
by authorized and directed to submit the proposal for the
above described Project to the Commissioner of Economic
Deveiopment requesting his approval, and other officers,
employees and agents of the City are hereby authorized
to provide the Commissioner with such preliminary infor-
mation as he may require;
5. The Company has agreed and it is hereby
determined that any and all costs incurred by the City
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in connection with the acquisition and financing of the
Project, whether or not the Project is carried to completion
and whether or not approved by the Commi.ssionez, will be
paid by the Company;
6. Briggs and Morgan, Professional Association,
the City's bond counsel, is authorized to assist in the.prep-
a�ration and review of necessary documents reYating to the
financing of the Project, to consult with the City Attorney,
the Company and the purchaser of the Revenue Bond(s) as to
the maturities, interest rates and other terms and provisions
of the Bond(s) and as to the covenants and other prov�sions•��
of the necessary documents, to submit such documents to the
Council for final approval and to initiate the Project, in
order that when and if approved, it may be carried forward
expeditiously;
7. 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
derived from the Project or otherwise granted to the City
for this purpose. The Revenue Bond(s) shall not constitute
a charge, lien or encumbrance, 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. No bondholder shall
ever have the right to compel any exercise of the taxing
power of the City to pay any such Revenue Bond(s) or the
interest�thereon, or to enforce payment thereof against any
property of the City except the Pro�ect. Each�Reveriue Bond
shall recite in substance that the Revenue Bond, including
interest thereon, is payable solely from the revenue pledged
to the payment thereof. No Revenue Bond issued hereunder
shall constitute a debt of the City within the meaning of
any constitutional or statutory limitation;
8. In anticipation of the approval by the Com-
missioner of Economic Development and of the issuance of
the Revenue Bond(�) to finance all or a}�ortion 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 �he costs of the Project to be
financed from the proceeds of the Revenue Bond(s) as the
Company considers necessary, including the use of interim,
short-term financing, subject to reimbursement from the
proceeds of the Revenue Bond(s) if and when delivered but
otherwise without liability on the part of the City.
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Adopted by the �ity Council of the City of Mendota
Heights, Minnesota, this 7th day of June, 1977.
Attest:
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Mayor •
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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, Minne-
sota, 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 complete transcript of the minutes of a meeting of
the City Council of said City duly called and held on the
date therein indicated, insofar as such minutes relate
to a resolution giving preliminary approval to an indus-
trial development project.
WITNESS my hand and the seal of said City this
day of , 1977.
ss
City Clerk
City of Mendota Heights
Dakota County, P�linnesota
RESOLUTION NO. 77-37
RESOLUTION ORDERING CONSTRUCTION OF STREET
IMPROVF.MENTS ON A PART OF COLESHIRE LANE
AND SOMERSET ROAD AND PREPARATION OF PLANS
AND SPECIFICATIONS THEREFOR
(IPQPROVEMENT NO. 77, PROJECT NO. 2)
WHEREAS, a public hearing was held on the 7th day of June, 1977, at
7:30 o'clock P.M. at the City Hall in the City of Mendota Heights,
Minnesota, pursuant to resolution adopted by the City Council of the
City of Mendota Heights on May 17, 1977, on the question of the pro-
posed construction of the following described improvements:
The construction of street improvements consisting of the
acquisition of easements and the grading, stabilization,
drainage and bituminous surfacing on Somerset Road between
Coleshire Lane and Emerson Avenue and Coleshire Lane between
Dorset Road and Hingham Circle.
WHEREAS, due publication of the notice of public hearing on said pro-
posed construction has been attended to, and
WHEREAS, mailed notice of said hearing has been mailed more than 10
days before the date of said hearing to the owners of each parcel
situated within the area proposed to be assessed, all in accordance
with the applicable Minnesota Statutes, and
WHEREAS, the City Engineer reported that the proposed improvements
and construction thereof were feasible and desirable and further re-
ported on the proposed costs of said improvements and construction
thereof, and
WHEREAS, the area proposed to be assessed for said improvements is
situated within the City of Mendota Heights in Dakota County, Minnesota,
and is more particularly described as follows:
All properties which abut on Somerset Road between
Coleshire Lane and Emerson Avenue and Coleshire Lane
between Dorset Road and Hingham Circle.
- WHEREAS, the City Council then proceeded to hear all persons interested
in said improvements and all persons were afforded an opportunity to
present their views and objections to the making of said improvements.
NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City
of Mendota Heights, Minnesota, as follows:
1) That it is advisable, feasible, expedient and neces-
sary that the City of Mendota Heights construct the above
described improvements, and it is hereby ordered that said
improvements be made.
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2) That the City Engineer be and is hereby instructed
to proceed with the preparation of the necessary plans
and specifications for said improvements.
3) That the above-described improvements shall be com-
bined with and carried out as a part of the improvements
heretofore ordered entitled "construction of street im-
provements on Emerson Avenue between Dodd Road and
Delaware Avenue."
4) That hereafter said improvements as so combined shall
be known and designated as Improvement No. 77, Project No.
2.
Adopted by the City Council of the City of Mendota Heights this 7th
day of June, 1977.
ATTEST:
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CITY COUNCIL
CITY OF MENDOTA HEIGHTS
By 1����►.��`� �a��.
Robert G. Lockwood, Mayor