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City Council Resolution 1981-26 • CERTIFICATION OF MINUTES RELA`T'ING TO INDUSTRIAL DEVELOPMENT REVENUE BONDS Issuer: City of Monticello, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting, held on July 13 1981, at 7:30 o°clock P.M., at the City Hall. Members present: Arve A. Grimsmo, Fran Fair,. f':enneth Maus Members absent : Dan Blonigen, Phil White Documents Attached : Minutes of said meeting (pages): MINUTES OF PUBLIC HEARING ON PROPOSED PROJECT RESOLUTION N0. 26 RESOLUTION DETERMINING TO PROCEEL) WITH A PRC?_7ECT AND ITS FINANCING UNDEF? THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE COMMIS- SIONER OF SECURITIES FOR APPROVAh; AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents at:.tached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that :>aid documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approvFd by the governing body at said meeting, so far a:~ they relate to said obligations; and that said meeting woes ciuly held by the governing body at the time and place C~nd was attended throughout by the members indicated above, pursuant to ca].1 and notice of such meeting given as required by law. WITNESS my hand officially as such recording off:ic.er this ~t~lay of July 981. (SEAL ) ~.... Cam' Mi.gnature Gary Wieber, Administrator Name and Title .~h~;ry ~ ~ The Mayor stated that this was the time and plate for a public hearing on the pr. oposal that the City undertake and I: iY~iance a I~ro j ect on behalf of Monticello A.ssaciates, a Nlinnesota gen~a:a:L partnership (the Borrower) pursuant to Minnesota Statutes, Chapter 474. `.I`he City Adndnistrator presented an affidavit showing public~~,t:i~.m of the noti.cc: of public hearing at least once not less than 15 no.r rrM:~re tt~~ 30 clay> prior to the date fixed for the public hearing, in. t:he Montice.l~_o T:i~i-:~~;a, being t`le offic.ia.l n~~;~spapPx of the City and a newsl~ip~:r of general. circulate«n throughout. the City. The affidavit was f~x~:~rnincd., found to be satisf~~ctory and ordered placed on file with the City A~mini5trator. The f~!layor then opened the meeting for the public l:~ear~ing on the proposal t:o undertake and finance the Project on beY?~::il:f of the Borrowcr.. The purpo~>e of the he:~ in jt was explained, the naturF: o:f:~ the Project and of the proposed revE:r~ue bonds were discussed, the dr<_ift. copy of the Application to the= C'ainnissioner of Securities with a._~1 att:<~chments and exhibits were avail~:~bl e, and all persons present whca dr-sired to do so were affoa°ded an oplxartunity to express their views wit:.h respect to the proposal fio undertake and finance the Project, in resp~anse to which the following persor~s appeared, were recognized, A and made stat~ents, summaries of which ear opposite their- respective names: Name of Speaker Summary of Views After al.l persons who wished to do so had stated their views on the proposal, the Mayor declared the public hearing to be closed. After some discussion, motion for the following Resolution was made by Member Fran F,ai_~ • RESOLUTION N0. 26 RESOLUTION DETERMIPdING TO PROCEED WITH A PROJECT AND ITS FINANCING UNDER THE MUNICIk'P,L IIVDUSTRIAIG DEVELOPMENT ACT; REFERRING THE PR.OF'OSA:L 'I'0 THE COMMISSIONER OF SECURITIES FOR AJ?F'ROVAL; AND AU'.PHOI?:CZING PREPARATION OF NECESSAFrY DOCUMENTS BE IT RESOLVED by the City Council of the City of Mon~t:icello, Minnesota (tYie Municipality), as follows: SECTION l Recitals and Findin~~s l.l. This Council has received a proposal. `,that the Municipality finance a portion or all of t:he cost of a proposed project under Minnesota Statut~rs, Chapter 474 (the Act), consisting of the acquisition cif land and thc= construction thereon of a building (the Project) by Monticello Associates, a Minnesota general. partners~iit~ (the Borrower), for lease as office and warehotase facilities. 1.2. At a public hearing, duly noticed avid held on 1981., in accordance with the Act, on the proposa to undertake and finance t:he Froject, a1.1 parties who appeared at the hearing were r.Jiven an opportunity to express their views with rE~spect to the proposal to undertake and finance the Project. Based on the public hearing and such other facts and circumstances as triis Council deems relevant, this Council. hereby finds, determines and declares as follows: (a) The welfare of the State of M:ir~nesota requ~'.res active promotion, attraction, encouragement and development of economically sound industr~,a and commerce through governmental acts to prevent, so f:ar as possible, emercJence of blighted lands and areas of chronic unemployment, and the State of Minnesota has encouraged local government units to act to prevent: such economic deterioration. (b} The Project would further the c3eneral purposes contemplated and described in Section 474.01 of the Act. t i • (c) The existence of the Project. would add to the tax base of the Municipality, the County and School District in which the Project is located and would provide incrfased opportunities for employment for residents of the l~.unicipality and surrounding area. (d) This Council has been advised by representatives of the Borrower and Miller & Schroeder Municipal. :a, Inc., investment bankers and ~~lealers in municipal bonds, that conventional, commercial financing to pay the cost of the Project is availa.bl.e only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced, but that- with the aid of municipal borrowing, and its resulting lower borrowing cost, the Project is economically more feasible. (e) This Council has also been advised by the Borre~wer and Miller & Schroeder Municipal::>, Inc., that on the basis of their discussions with potential buyers of tax-exempt bonds, revenue bonds of the r%ur~~icipality (which may be in the form of a commercial devel.oF:~ment revenue note or notes) could be issued and sold u~:>on favorable rates and terms to finance the Project. (f) The Municipality is author.i:,ed by the Act to is:~ue its revenue bonds to finance capit::.a:l. projects consisting of properties used and useful ,n connection with a revenue producing enterprise, such as that of the Borrower, and the issuance of such bonds key t;.he Municipality would be a substantial ind~.~cEament to the Borrower to acquire and construct the Pro:;ject. SECTION 2 Determination to Proceed with the Project and its Financ.in~ 2.1. On the basis of the information given the Municipality to date, it appears that it ~aouad be desirable for the Municipality to issue its :revenue bands under- the provisions of the Act to finance the Project in an estimated total amount of $575,000. 2.2. Lt is hereby determined to proceed with the Project and its financing and this Council hereby declares its present intent to have the Municipality i:~sue its revenur_~ bonds under the Act to finance the Project. Notwith- standing the foregoing, however, the adoption of this resolution shall not be deemed to establish a legal • obligation on the part of the Municipality or' its City Council to issue or to cause the issuance of. such revenue bonds. All details of such revenue bond issue and the provisions for payment thereof shall be sLrbject to final approval of the Project by the Minnesota Commissioner of Securities and may be subject to sucYl :Further conditions as the Municipality may specify. The revenue bonds, if issued, shall not constitute a charge, lien or encum- brance, legal or equitable, upon any property of the Municipality, except the Project, and Bach be>nd, when, as and if issued, small recite in substance that. the bond, including interest thereon, is payable solely from tl•ie revenues received from the Project and property pledged to the payment thereof, and shall not constitute a debt of the Municipality within the meaning of any constitutional. or statutory limitation. 2.3. The Application to the Commissioner of Securities, with attachments, is hereby approved, and the Mayor and City Administrator are authorized to execute said documents in behalf of the Municipality. 2.4. In accordance with Section 474.10, ~>ubdivision 7a of the Act, the Mayor and City Administratc:~r are hereby authorized and directed to cause the App:>lication to be submitted to the Commissioner of Securit:ie~s for approval of the Project. The Mayor, City A,dmini:;trator, City Attorney and other officers, employees ~a.nd, agents of the Municipality are hereby authorized and cirected to pravicie the Commissioner with any preliminary information the Commissioner may need for this purpose, ar,d the City Attorney is authorized to initiate and as~~ist in the preparation of such documents as may be appropriate to the Project, if it is approved by the Commissioner. SECTION 3 General 3.1. I:E the bonds are issued and sold, the Municipality will enter into a lease, sale or loan agreement or similar agreement satisfying the requirements of t:he Act (the Revenue Agreement) with the Borrower. Thee lease rentals, installment sale payments, loan payments c5r other amounts payable by the Borrower to the Municipality under the Revenue Agreement shall be sufficient to Ezay the principal, interest and redemption premium, if any, on the bonds as and when the same shall become due and payable. 3.2. The Borrower has agreed and it is ;~ereby determined that any and all direct and indirect costs incurred by the Munic:ipality in connection with this Project, whether or not the Project is carried to completion, and whether or not approved by the Commissioner of Secuz-:ities, and whether or not the Municipality by resolution authorizes the issuance of the bonds, will be paid by the Borrower upon request. 3.3. The Mayor and City Administrator ar.e directed, if the bands are issued and sold, thereafter to comply with the provisions of Minnesata Statutes, 5ec:tion 474.01, Subdivision 8. Adopted this 13th day of J 1 ~_ 198~,,.~~ "~ Mayo r Attest : C.~(~ ~~_ Ci y tid inistrator ( SEA1: ) The motion for the adoption of she for.ego.ing resolution was duly secorrded by Member Kenneth Maus and upon vote being taken thereon, the following voted in favor thereof : Arne A. Grimsmo, Kenneth Maus, Fran, 1?air and the following voted against the same: whereupon the resolution was declared duly passed and adopted.