City Council Resolution 1985-17RESOLUTION 1985 #17
RESOLUTION GIVING PRELIMINARY APPROVAL TO
A PROJECT UNDER THE MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT, REFERRING THE PROPOSAL
TO THE MINNESOTA ENERGY AND ECONOMIC
DEVELOPMENT AUTHORITY FOR APPROVAL, AND
AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS
WHEREAS, the welfare of the State of Minnesota (the "State")
requires active promotion, attraction, encouragement and development
of economically sound industry and commerce through governmental acts
to prevent, so far as possible, emergence of blighted lands and areas
of chronic unemployment, and it is the policy of the State to facilitate
and encourage action by local government units to prevent the economic
deterioration of such areas to the point where the process can be reversed
only by total redevelopment through the use of local, state and federal
funds derived from taxation, with the attendant necessity of relocating
displaced persons and of duplicating public services in other areas;
and
WHEREAS, technological change has caused a shift to a significant degree
in the area of opportunity for educated youth to processing, transporting,
marketing, service and other industries, and unless existing and related
industries are retained and new industries are developed to use the
available resources of the City of Monticello (the "City"), a large
part of the existing investment of the community and of the State as
a whole in educational and public service facilities will be lost, and
the movement of talented, educated personnel of mature age to areas
where their services may be effectively used and compensated and the
lessening attraction of persons and businesses from other areas for
purposes of industry, commerce and tourism will deprive the City. and
the State of the economic and human resources needed as a base for providing
governmental services and facilities for the remaining population; and
WHEREAS, the increase in the amount and cost of governmental
services requires the need for more intensive development and use of
land to provide an adequate tax base to finance these costs; and
WHEREAS, a representative of Raindance Partnership, a Minnesota
general partnership (the "Developer"), has advised this City Council
that it desires to acquire the land and construct a new 33,000 square
foot supermarket and commercial retail facility (hereinafter referred
to as the "Project"). The project will be located at the Northeast
corner of the intersection of Pine Street and Sixth Street in the City
of Monticello; and
WHEREAS, the existence of the Project in the City wild contribute
to more intensive development and use of land to increase the tax base
of the City and overlapping taxing authorities and maintain and provide
for an increase in opportunities for employment for residents of the
City, including economically disadvantaged or unemployed individuals;
and
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esolution 1985 #17
'age 2
WHEREAS, the City has been advised that conventional commercial
financing to pay the capital cost of the Project is available at such
costs of borrowing that the economic feasibility of operating the Project
would be significantly reduced, and, therefore, the City finds that
but for the aid of municipal financing, and its resulting lower borrowing
cost, the Project would not be economically feasible; and
WHEREAS, this Council has been advised by a representative of
the Developer that on the basis of information submitted to them and
their discussions with representatives of area financial institutions
and potential buyers of tax-exempt bonds, industrial development revenue
bonds of the City could be issued and sold upon favorable rates and
terms to finance the Project; and
WHEREAS, the City is authorized by Minnesota Statutes, Chapter
474, to issue its revenue bonds to finance the cost, in whole or in
part, of the acquisition, construction, reconstruction, improvement
or extension of capital projects consisting of properties used and useful
in connection with a revenue producing enterprise, such as that of the
Developer, and the issuance of such bonds by the City would be a substantial
inducement to the Developer, to construct its facility in the City; and
WHEREAS, on the basis of information given the City to date,
it appears that it would be in the best interest of the City to issue
its industrial development revenue bonds under the provisions of Chapter
474 to finance the Project of the Developer in an amount presently estimated
not to exceed $1,500,000.
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The Project is hereby given preliminary approval by the City
and the issuance of the revenue bonds for such purpose and in such amount
is preliminarily approved, subject to approval of the Project by the
Minnesota Department of Energy and Economic Development and to the mutual
agreement of this body, the Developer and the initial purchaser of the
bonds as to the details of the bonds and provisions for their payment.
In all events, it is understood, however, that the bonds of the City
shall not constitute a charge, lien or encumbrance legal or equitable
upon any property of the City except the Project, and the bonds, when,
as, and if issued, shall recite in substance that the bonds, including
interest thereon, are payable solely from the revenues received form
the Project and property pledged to the payment thereof, and shall not
constitute a debt of the City.
2. In accordance with Minnesota Statutes, Section 474.01, Subdivision
7a, the Mayor of the City is hereby authorized and directed to submit
the proposal for the Project to the Minnesota Department of Energy and
Economic Development for approval of the Project. The Mayor and other
officers, employees and agents of the City are hereby authorized to
provide the Minnesota Department of Energy and Economic Development
with any preliminary information needed for this purpose, and the City
Attorney is authorized to initiate and assist in the preparation of
such documents as may be appropriate to the Project, if it is approved
by the Minnesota Department of Energy and Economic Development.
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Resolution 1985 #17
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3. The law firm of Holmes & Graven, Chartered, is authorized
to act as Bond Counsel and to assist in the preparation and review of
necessary documents relating to the Project and bonds issued in connection
therewith. The Mayor, City Attorney, and other officers, employees
and agents of the City are hereby authorized to assist Bond Counsel
in the preparation of such documents.
4. In accordance with Minnesota Statutes, Section 474.01, Subdivision
11, the City Administrator and other officers, employees and agents
of the City are hereby authorized and directed to encourage of the Developer
to provide employment opportunities to economically disadvantaged or
unemployed individuals. Such individuals may be identified by such
mechanisms as are available to the City, including a first source agreement
in which the Developer agrees to use a designated State employment office
as a first source for employment recruitment, referral, and placement.
Adopted this 15th day o-f =October, 1985.
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Arve A. Grimsmo, Mayor
Thomas A. Eidem
City Administrator
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