City Council Resolution 1984-45RESOLUTION 1984 #45
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 Washington Business Center West (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
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
elution 1984 #45
e 2
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
$800,000.00.
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.
Resolution 1984 #45
Page 3
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 15th day of October, 1984 .
Co. ~}
Arve A. Grimsmo, Mayor
Thomas A. Eidem
City Administrator
EXHIBIT B
NOTICE OF PUBLIC HEARING ON A PROPOSED
PROJECT UNDER THE MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT, MINNESOTA STATUTES,
CHAPTER 474, AS AMENDED
THE CITY OF MONTICELLO, MINNESOTA
NOTICE IS HEREBY GIVEN that the governing body of the City
of Monticello, Minnesota (the "City"), will meet on October 15,
1984, at 7:30 P.M., at the City offices in Monticello, Minnesota,
for the purpose of conducting a public hearing on a proposal
that the City issue its Revenue Bonds under the Municipal Industrial
Development Act, Minnesota Statutes, Chapter 474, as amended,
in order to finance the cost of a project. The proposed project
will consist of acquiring land and constructing a new building
for industrial use thereon of not less than 25,000 square feet
to be owned by Washington Business Center West, for use in its
business. The proposed project will be located at the southwest
intersection of Washington Avenue and Lauring Lane in Monticello,
Minnesota. The estimated total amount of the proposed issue
is $800,000.00. The Bonds shall be a limited obligation of
the City, and the Bonds and interest thereon shall be payable
solely from the revenues pledged to the payment thereof, except
that such Bonds may be secured by a mortgage and other encumbrance
on the project. No holder of any such Bond shall ever have
the right to compel any exercise of the taxing power of the
City of Monticello to pay the Bonds, or the interest thereon,
nor to enforce payment against any property of the City except
the project.
A draft copy of the proposed application to the Minnesota
Energy and Economic Development Authority for approval of the
project, together with all attachments and exhibits thereto,
is available for public inspection at the City offices.
All persons interested may appear and be heard at the time
and place set forth above.
Dated: October 3, 1984
BY ORDER OF THE CITY COUNCIL
OF THE CITY OF MONTICELLO
By
Thomas A. Eidem
City Administrator