City Council Resolution 1985-13RESOLUTION 1985 #13
RESOLUTION
GRANTING PRELIMINARY
APPROVAL TO A PROPOSED INDUSTRIAL
DEVELOPMENT PROJECT
BY RAINDANCE PARTNERSHIP
UNDER THE MUNICIPAL
INDUSTRIAL DEVELOPMENT
ACT AND AUTHORIZING
APPLICATION FOR BOND
ISSUANCE AUTHORITY THEREFOR
BE IT RESOLVED by the City Council of the City of Monticello,
Minnesota, as follows:
1. There has been presented to this Council a proposal
by Raindance Partnership, a Minnesota general partnership (the "Partnership")
that the City undertake and finance a project pursuant to the Minnesota
Municipal Industrial Development Act, Minnesota Statutes, Chapter 474
(the "Act"), generally consisting of the acquisition, construction and
equipping of an approximately 33,000 square foot commercial and retail
building on Lots 1 through 10, Block 15, south and east of the railroad
track and Highway 25 in the City of Monticello, to be owned by the Partnership
and leased to various tenants (the "Project"). Under the proposal,
the Partnership would enter into a revenue agreement with the City upon
such terms and conditions as are necessary to produce income and revenue
sufficient to pay when due the principal of and interest on up to approximately
$1,500,000 Industrial Development Revenue Bonds of the City to be issued
pursuant to the Act, to provide moneys for the acquisition, construction
and installation of the Project; and the City would pledge its interest
in the revenue agreement to secure the Bonds.
2. Subject to the limitations expressed in paragraphs
six and seven below, the City hereby expresses its preliminary intention
to issue bonds in the maximum aggregate principal amount of up to approximately
$1,500,000 to finance the Project.
3. The City Administrator and other City officials and
the Partnership are authorized and directed to prepare and submit an
application to the Minnesota Department of Energy and Economic Development
for an allocation of $1,500,000 of bond issuance authority for the Project
pursuant to the Act. The Partnership shall pay to the City the required
application deposit of $15,000, representing one percent of the requested
allocation, and the City shall submit such $15,000 deposit with the
application to the Department. At such time as the deposit, or any
part thereof, is refunded to the City by the Department, the City shall
remit the amount so refunded to the Partnership.
4. Pursuant to the Act, this Council shall conduct a public
hearing on the proposal to undertake and finance the Project.
SOLUTION 1985 #13
ge 2
The City Administrator, the Partnership and Holmes & Graven, as Bond
Counsel, are hereby authorized and directed to establish the date and
time of such hearing, to prepare and make available a draft application
to the Minnesota Energy and Economic Development Authority for approval
of the Project and related materials, and to cause notice of the hearing
to be published as required by the Act.
5. The Partnership shall pay any and all costs incurred
by the City in connection with the Project whether or not the Project
receives necessary additional approvals, whether or not the Project
receives an allocation of bond issuance authority, and whether or not
the Project is carried to completion.
6. The adoption of this Resolution does not institute
a guarantee or a firm commitment that the City will issue the Bond as
requested by the Partnership. The City retains the right in its sole
discretion to withdraw from participation, and accordingly not to issue
the Bond, or to issue the Bond in an amount less than $1,500,000, should
the City at any time prior to the issuance thereof, determine that it
is in the best interest of the City not to issue the Bond, or should
the parties to the transaction be unable to reach agreement as to the
terms and conditions of any of the documents required for the transaction.
7. All commitments of the City expressed herein are subject
to the conditions that by December 31, 1985, the City and the Developer
shall have agreed upon mutually acceptable terms and conditions of the
loan agreement, the Bond, and of the other instruments and proceedings
relating to the Bond and their issuance and sale. If the events set
forth herein do not take place within the time limits set forth above,
or any extension thereof, and the Bonds are not sold within such time,
this Resolution shall expire and be of no further effect.
Adopted this 12th day of August, 1985.
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Thomas A. Ei em
City Administrator
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Arve A. Grimsmo, Mayor