HomeMy WebLinkAboutResolution 74-31CITY OF COLUMBIA HEIGHTS
ADMINISTRATIVE OFFICES
· COLUMBIA HEIGHTS, MINNESOTA 55421
RESOLUTION #74-31
GIVING PRELIMINARY APPROVAL TO A PROJECT WITH BANK SHARES
INCORPORATED AND ITS SUBSIDIARY MARQUETTE STATE BANK OF COLUMBIA
HEIGHTS AND AUTHORIZING THE ISSUANCE OF REVENUE BONDS THEREFOR
UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING THE
PROPOSED DEVELOPMENT TO THE DEPARTMENT OF ECONOMIC DEVELOPMENT
FOR APPROVAL, AND AUTHORIZING THE PREPARATION OF NECESSARY
DOCUMENTS.
BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS, that
WHEREAS, the Minnesota Legislature has enacted Chapter 474 of the Minnesota
Statutes, which is cited as the "Municipal Industrial
Development Act", and
WHEREAS, Laws 1973, Chapter 288, to become effective August 1, 1974
amends the Act to authorize projects consisting of real or
personal properties used or useful in connection with a revenue
producing enterprise, or any combination of two or more such
enterpr'ises engaged in any business; and
WHEREAS, it is the purpose of the Act and the Legislature to promote
the general welfare in the State by encouraging the State of
Minnesota and local units of government to pursue the active
promotion, attraction, and development of economically sound
industry and commerce; to prevent the emergence of blighted
and marginal land; to prevent emergence of areas of chronic
unemployment; and to assist in more intensive development
and use of land and thereby providing an adequate tax base to
finance the increasing cost of government services brought about
by the increasing population in metropolitan areas; and
WHEREAS, Bank Shares Incorporates (hereinafter "Bank Shares"), a
Minnesota corporation, is the parent of Marquette State Bank
of Columbia Heights (hereinafter the "Bank"), a bank chartered
in the State of Minnesota and operating in Columbia Heights
for the past 39 years as the Columbia Heights State Bank; and
WHEREAS, Bank Shares and the Bank have proposed a Project wherein
Bank Shares would construct and equip a new bank building and
drive-in banking facility at 5250 Central Avenue Northeast,
Columbia Heights, Minnesota, which would be leased and operated by
the Bank, and
WHEREAS, Bank Shares and the Bank have proposed that t~e City undertake a
Project under the Municipal Industrial Development Act as amended
by Laws 1973, Chapter 288 and that Industrial Development Revenue
Bonds be issued for the purpose of financing the Project, including
certain incidental expenses at an estimated cost of $750,000; the
Project consisting of construction and equipping thereon a bank
building and drive-in banking facility on real property located
at 525~ Central Avenue Northeast, Columbia Heights, Minnesota, and
installing therein certain items of capital equipment; and the proposal
calls for the project to be leased by the City to Bank Shares and sub-
leased to the Bank upon rents to be fixed and revised from time to
t.i~me as necessary so as to produce income and revenues sufficient to
provide for the prompt payment of principal and interest on the bonds,
and the entire interest of the City in the~oject would be pledged
and mortgaged to a trustee for the benefit and security of the holders
of the bonds; and
WHEREAS, the City has been advised by representatives of Bank Shares and the Bank
that conventional, commercial financing to pay the capital cost of the
Project is available only on a limited basis and at such high costs that
the economic feasibility of operating the Project would be significantly
reduced; and further, that with the aid of municipal industrial develop-
ment financing, and its resulting low borrowing cost, the project is
economically more feasible and will result in a substantially larger
and more valuable project; and
WHEREAS, the proposed Project would increase the tax base of the City and
encourage retention and expansion of an established revenue producing
enterprise within the City; and Bank Shares and the Bank have represented
to the City that it is anticipated that additional employees would be
required by the business operations, thereby providing additional
opportunities foe employment to residents of the City; and
WHEREAS, said Project appears to satisfy the legislative objects, purposes
and requirements of Minnesota Statutes, Chapter 474 as amended; and
WHEREAS, the full faith and credit of the City will not have to be pledged
against payment of principal and interest on the Bonds, the City
will not have to be indemnified as to all reasonable and permitted
costs it might incur in dealing with the Project; and
WHEREAS, the Allison-Williams Company, b6ing familiar with the financial standing
of Bank Shares and the Bank, has indicated that the proposed project is
economically feasible and has stated its intent to purchase Industrial
Development Revenue to finance the Project upon terms and conditions
agreed upon and mutually satisfactory to the City, the Allison-Williams
Company and Bank Shares Incorporated.
N~W, THEREFORE, BE IT RESOLVED by the City Council of the City
of Columbia Heights:
0
That there has bean submitted to the Council a proposal
by Bank Shares and the Bank that the City undertake a
Project under the Minnesota Municipal Industrial Development
Act (Minnesota Statutes, Chapter 474, as amended), consisting
generally of constructing and equipping a bank building and drive-in
banking facitity on real property located at 5250 Central Avenue
Northeast, Columbia Heights, Minnesota, and installing therein
certain items of capital equipment.
The proposal calls for the Project to be leased by the City
to Bank Shares and in turn, sub-leased to the bank, upon rents
to be fixed and revised as necessary to provide for the prompt
payment of principal a~d of interest on bonds of the City to be
issued to finance the acquisition and construction of the Project.
The proposal calls for the entire interest of the City therein
to be pledged and mortgaged to a trustee for the benefit and
security of the holders of the bonds.
That on the basis of information furnished the Council, it
appears that the effect of the Project, if undertaken by the
City, will be to encourage and develop economically sound
industry and commerce thro.ugh the re~eBtion and expansion of
existi~ng business providing more intensive development and use
of land within the City and a more adequate and better balanced
tax base to finance increasi.ng amounts and costs of ~overnmental
services within the City, all of benefit to residents and tax-
payers of the City of Columbia Heights and other levels of
government in the area.
That the issuance of Industrial Development Revenue Bonds in the
approx.~mate amount of $750,000 to finance the Project referred
to above is hereby authorized and approved by the City, subject to the
approval of the Project by the Commissioner of Economic Development and
to the mutual agreement of this Council, Bank Shares and Allison-
Williams Company, as to the final details of the Project and
price, interest and terms of the bonds and subject to the Laws 1973,
Chapter 288 becoming effective on August 1, t974.
That in accordance with Section 474.01, Subdivision 7, the
President of the City Council and the City Clerk are hereby
authorized and directed to submit the proposal for the undertaking
to the Commissioner of Economic Development, requesting his approval
of the Project. The Mayor, City Clerk, City Attorney', and other
officers, employees and agents of the City are hereby authorized to
provide the Commissioner such preliminary information as he may require
for this purpose. The City Attorney is also authorized, in cooperation
with recognized bond counsel, to initiate preparation of such
documents as may be appreciated to the undertaking Zf it is
approved by the Commissioner in order that, when and if approved,
it may be carried forward expenditiously. (Provided, however, that
this resolution constitutes preliminary approval only of the Project
-4-
and in no way shall be interpreted so as to expose the City
of Columbia Heights to liability to. Bank Shares Incorporated or any
other party interested in this Project in the event this Project
~s not completed for any reason whatsoever).
Passed this 8th day of July, 1974.
Offered by: Land
Seconded by:
Roll Call:
Logacz
Lo§acz, Land
Nawrock i-a yes
Bruce G. Nawrocki, Mayor
Margo ~merson
Secretary Pro-tem
1 hereby certify that the above is a just and true copy of a
resolution passed by th¢~-City Counci~l of thezCity of Columbia Heights
on the 8th day of July, 1974.
City Clerk