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City Council Resolution 1976-22CERTI~ CATION OF MINUTES RELATI TO $450,000 Corcial Development Revenu rotes Issuer: City of Monticello, r4innesota Governing Body: City Council Kind, date, time and place of meeting: A Wednesday, ~lovember 3, 1976, at Members present: Members absent• Documents Attached: Minutes of said meeting (pages): 1 ~ 3 0 M • meeting, held on o'clock P.M., at the City Hall RESOLUTION AUTHORIZING THE ISSUA*1CE OF COMMERCIAL DEVELOPMENT REVENUE NOTES, REQUESTIP,iG APPROVAL BY THE DEPARiME11T OF ECO*JOMIC DEVELOPMENT, AND AUTHORIZING THE PREFARATION OF NECESSARY DOCUMENTS PURSUANT TO THE MUPdICIPAL INDUSTRIAL DEVELOPP~4ENT ACT I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the bonds re- ferred to in the title of this certificate, certify that the docu- ments attached 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 said 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 docu- ments approved by the governing body at said meeting, so far as they relate to said bonds; and that said meeting was duly held by the governing body at the time and place and was attended through- out by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this 3~ ~ day of November , 1976 - .. ~.~/~ Signature Gary Wieber, City Administrator Name and Title /~~' • • Councilmember offered the following resolution and moved its adoption, which motion was seconded by Councilmember RESOLUTION AUTHORIZING THE ISSUANCE OF COMMERCIAL DEVELOPMENT REVENUE NOTES, REQUESTING APPROVAL BY THE DEPARTMENT OF ECONOMIC DEVELOPMENT, AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS PURSUANT TO THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT BE IT RESOLVED by the City Council of the City of Monticello, Minnesota, as follows: Section 1. Policy and Purpose. 1.01. For the purpose of promotion, attraction, encourage- ment and development of economically sound commerce, preserving and developing a tax base adequate to finance necessary public services, and encouraging employment opportunities for the citizens of the City, the City is authorized by the Municipal Industrial Development Act, Minnesota Statutes, Chapter 474, as amended, to acquire and lease real and personal property for use by a revenue-producing enterprise, or to loan funds directly to the enterprise to be used for such acquisition, said funds to be raised through the issuance of revenue bonds or notes of the City. 1.02. Hoglund and Larson, a Minnesota partnership (referred to herein as the Partnership) desires to undertake a Project in the City, at a total cost presently estimated at approximately $450,000, said Project to consist of the acquisition of real estate and construction thereon of a 44 unit motel- restaurant complex. 1.03. The Project would increase the level of economic activity in the City, would increase the tax base, and would pro- vide additional employment opportunities for residents of the City and the surrounding area. 1.04. The City is advised by representatives of the Partnership that with the aid of municipal financing, and the resulting lower borrowing cost, the Project would be significantly more feasible. The City is further advised by the Partnership that approval of municipal financing would be a significant induce- ment to the commencement of construction of the Project by tfe Partnership. 1.05. Juran ~ Moody, Incorporated of St. Paul, Minnesota, has advised that on the basis of information submitted to them and their discussions with representatives of the Corporation and other potential buyers of the notes, revenue notes of the City could in their opinion be issued and sold upon favorable rates and terms in the amount required to pay the cost of the Project. ~ ~?~ * ~ Section 2. Authorization. 2.01. Subject to approval of the Project by the Commissioner of Economic Development of the State of Minnesota, and subject to the mutual agreement of the City, the Partnership and the purchaser of the notes as to the details of an indenture, lease or loan agreement, and other documents necessary to evidence and effect the financing of the Project and the issuance of the notes, the issuance of revenue notes of the City in the amount of $450,000 is authorized to finance the costs of the Project. 2.02. The Mayor is authorized and directed to submit the Project for approval by the Commissioner of Economic Develop- ment as tending to further the purposes and policies of the Municipal Industrial Development Act, and to cause such information concerning the Project to be submitted to the Commissioner as he shall require for this purpose. 2.03. Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any funds on the Project other than the revenues thereof or the proceeds of the notes or other funds granted to the City for this purpose. The notes shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City nor shall the City be subject to any liability thereon. No noteholder shall ever have the right to compel any exercise of the taxing power of the City to pay any such notes or the interest thereon, nor to enforce payment thereof against any property of the City. Each note shall recite in substance that the note, including interest thereon, is payable solely from the revenue pledged to the payment thereof. No note issued hereunder shall constitute a debt of the City within the meaning of any constitutional or statutory limitation. 2.04. In anticipation of the approval by the Commissioner of Economic Development and the issuance of revenue notes to finance the Project, and in order that completion of the Project will not be unduly delayed when approved, the Partnership is hereby authorized to make such expenditures and advances toward payment of costs of the Project as it considers necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the revenue notes when delivered but otherwise without liability on the part of the City. Adopted by the Council this 3rd day of November, 1976. Approved : ~.S ~ ~~ ~•`z ~J~~. //,,// p.,,1~yj Mayor Attes w~ ' y ministrator ~ 9 ~~ Upon call of the roll, the following Councilmembers voted in favor: and the following were opposed: whereupon said motion was declared carried and the resolution duly adopted. ~9~c-~