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City Council Resolution 1980-05i .#, ~ . CJ EXTRACT OF MINUTES OF MEETING OF THE CITY COUNCIL OF THE CITY OF MONTICELLO, MINNESOTA Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Monticello, Minnesota was duly held at City Hall in said City• on Monday , the ?5th day of February , 1980, at x:30 o'clock p.m. Blonigen, Fair, Grimsmo, Maus, White and the following were absent: None Councilman Fair introducted the following written resolution and moved its adoption: The following Councilmen were present: RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF SAID PROJECT TO THE COMMISSIONER OF SECURITIES OF THE STATE OF MINNESOTA AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH SAID PROJECT The motion for the adoption of the foregoing resolution was duly seconded by Councilman White and upon vote being taken thereon the following voted in favor thereof: Blonigen, Fair, Grimsmo, Maus, White and the following voted against the same: None Whereupon said resolution was declared duly passed and adopted. f~ ~ ~, • RESOLUTION RECITING A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF SAID PROJECT TO THE COMMISSIONER OF SECURITIES OF THE STATE OF MINNESOTA AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH SAID PROJECT WHEREAS, (a) The purpose of Chapter 474, Minnesota Stat- utes, known as the Minnesota Municipal Industrial Development Act (the "Act") as found and determined by the legislature is to promote the welfare of the state by the active attraction and encouragement and development of economically sound indus- try and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment; (b) Factors necessitating the active promotion and development.of economically sound industry and commerce are the increasing concentration of population in the metropolitan areas and the rapidly rising increase in the amount and cost of governmental services required to meet the needs of the in- creased population and the need for development of land use which will provide an adequate tax base to finance these in- creased costs and access to employment opportunities for such population; (c) The City Council of the City of Monticello (the "City") has received from Monticello Scotwood Partnership a Minnesota Partnership (the "Company") a proposal that the City undertake to partially finance a Project hereinafter described, through the issuance of Revenue Bonds (which may be in the form of a single debt instrument} hereinafter referred to in this resolution as "Revenue Bonds" pursuant to the Act; (d) The City desires to facilitate the selec- tive development of the community, retain and improve its tax base and help provide the range of services and employment opportunities required by its population, and said Project will assist the City in achieving those objectives. Said Project will help to increase assessed valuation of the City and help maintain a positive relationship between assessed valuation and debt; (e) The Project to be partially financed by the Revenue Bonds is an approximately 36 unit motel to be owned by • • mpany and consists of the acquisition of land and the struction of the motel and related improvements thereon the City of Monticello and will result in the employmen additional persons to work within the new facilities; con- all in t of (f) The City has been advised by representa- tives of Company that conventional, commercial financing to pay the capital cost of the Project is available 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 Company has also advised this Council that with the aid of municipal financing, and its resulting low borrowing cost, the Project is economically more feasible; (g) A public hearing on the Project was held on 25 February 1980, after notice was published, and materials. made available for public inspection, all as required by Minne- sota Statutes, Section 474.01, Subdivision 7b at which public hearing all those appearing who desired to be heard, were heard. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Monticello, Minnesota, as follows: 1. The Council hereby gives preliminary approval to the proposal of Company that the City undertake the Project pur- suant to the Minnesota Municipal Industrial Development Act (Chapter 474, Minnesota Statutes), consisting of the acquisi- tion, construction and equipping of a motel within the City pursuant to Company's specifications and gives preliminary approval to a revenue agreement between the City and Company upon such terms and conditions with provisions for revision from time to time as necessary, so as to produce income and revenues sufficient to pay, when due, the principal of and interest on the proposed Revenue Bonds zn the principal amount of approximately $750,000 to be issued pursuant to the Act to finance the acquis:~tion, construction and equipping of said Project; and the City hereby undertakes preliminary to issue its Revenue Bonds in accordance with such terms and conditions; 2. On the basis of information available to this Council it appears, and the Council hereby finds, that said Project consititutes a Project within the meaning of Subdivision lb of Section 474.02 of the Act, that the Project furthers the purposes stated in Section 474.01, Minnesota Stautes; that the availability of the financing under the Act and willingness of the City to furnish such financing will be a substantial induce- ment to Company to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the develop- ment of economically sound industry and commerce, to assist in the prevention of the emergence of blighted and marginal land, -2- • • help prevent chronic unemployment, to help the City retain and improve its tax base and provide the range of employment opportunities required by its population, to help prevent the movement of talented and educated persons out of the state and to areas within the State where their services may not be as effectively used and to promote more intensive development and use of land within the City; 3. Said Project is hereby given preliminary approval by the City subject to the approval of the Project by the Commis- sioner of Securities, and subject to final• approval by this Council, Company, and the purchaser of the Revenue Bonds as to the ultimate details of the financing of the Project; 4. In accordance with Subdivision 7a of Section 474.01 Minnesota Statutes, the Mayor of the City is hereby authorized and directed to submit the proposal for the above described Project to the Commissioner of Securities, requesting her approval, and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary information as she may require; 5. Company has agreed and it is hereby determined that any and all costs incurred by the City in connection with the financing of the Project whether or not the Project is carried to completion and whether or not approved by the Commissioner will be paid by Company; 6. Briggs and Morgan, Professional Association, acting as bond counsel, is authorized to assist in the preparation and review of necessary documents relating to the Project, to consult with the City Attorney, Company and the purchaser of the Revenue Bonds as to the maturities, interest rates and other terms and provisions of the Revenue Bonds and as to the covenants and other provisions of the necessary documents and to submit such documents to the Council for final approval; 7. Nothing in this resolution or in the documents pre- pared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived from the Project or otherwise granted to the City for this purpose. The Revenue Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property cr funds of the City except the revenue and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holder of the Revenue Bonds shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Revenue Bonds or the inter- est thereon, or to enforce payment thereof against any property of the City. The Revenue Bonds shall recite in substance that the Revenue Bonds, including interest thereon, are payable -3- solely from the revenue and proceeds pledged to the payment. thereof. The Revenue Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation; 8. In anticipation of the approval by the Commissioner of Securities and the issuance of the Revenue Bonds to finance all or a portion of the Project, and in order that completion of the Project will not be unduly delayed when approved, the Company is hereby authorized to make such expenditures and advances toward payment of that portion of the cost of the Project to be financed from the proceeds of the Revenue Bonds as the Company considers necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the Revenue Bonds if and when delivered, 9. The actions of the City Staff in causing notice of the public hearing to be published and in describing the general nature of the project and estimating the principal amount of bonds to be issued to partially finance the Project and in preparing a draft of. the pro- posed application to the Commissioner of Securities, Stag of Minnesota, for approval of thc~ Project, which has been available for inspection by the public at the office of the City Administrator are in all re_,pects ratified and confirmed. Adapted by the City Council of the City of Monticello, Minnesota, this 25 th day of February 1980. Mayor ATTEST: r .- ~City Clerk • GATE OF MINNESOTA ~vUNTY OF WRIGHT CITY OF MONTICELLO I, the undersigned, being the .duly qualified and acting Clerk of the City of Monticello, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City duly called and held on the date therein indicated, insofar as such minutes relate to a resolution giving preliminary approval to a commercial facilities development project. WITNESS my hand and the seal of said City this 25th day of February lggp, . ~` ._< .k City C er (SEAL) _5_