City Council Resolution 1983-93RESOLUTION NO. 1983 #93
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 Key Properties (the "Developer"), has
advised this City Council that it desires to acquire land and construct a
new building for industrial use thereon in the City (hereinafter referred to as
the "Project"); and
WHEREAS, the existence of the Project in the City will 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
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
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that the economic feasibility of operating the Project would be significantly
reduced, but that with the aid of municipal financing, and its resulting
lower borrowing cost, the Project is economically more 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
$650,000.00.
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 approved,
subject to approval of the Project by the Minnesota Energy and Economic
Development Authority 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, is payable solely from the revenues received from 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 Energy and Economic Development Authority for
approval of the Project. The Mayor and other officers, employees-and agents of
the City are hereby authorized to provide the Minnesota Energy and Economic
Development Authority 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 Energy and Economic Development Authority.
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.
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4. In accordance with Minnesota Statutes, Section 474.01, Subdivision
11, the City Clerk/Treasurer and other officers, employees and agents of the
City are hereby authorized and directed to encourage 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 Z'~~'~` day of ~~E~,~~ 1983.
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Arve A. Grimsmo, Mayor
Thomas A. Eidem '
City Administrator
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