HomeMy WebLinkAboutResolution 77-86CITY
OF
CITY OF COLUMBIA HEIGHTS
590 40th AVe. N. E.
C-~ta_He.,gh st~MN 5 52[21
(612) 788- 9221
"SERVICE IS OUR BUSINESS"
RESOLUTION ~77-86
RESOLUTION GIVING PRELIMINARY APPROVAL TO
A PROJECT UNDER THE MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT, REFERRING THE PROPOSAL TO
THE COMMISSIONER OF SECURITIES FOR APPROVAL,
AND AUTHORIZING EXECUTION OF A MEMORANDUM
OF AGREEMENT AND PREPARATION OF NECESSARY
DOCUMENTS
BE IT RESOLVED by ~he City Council of the City of Columbia Heights,
Minnesota, as follows:
1. It is hereby found, determined and declared as follows:
1.1
The welfare of the State of Minnesota 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 the state has encouraged local government units
to act to prevent such economic deterioration.
1.2
Midland Cooperatives, Incorporated, a Minnesota cooperative
corporation (hereinafter, the Company), has advised this Council
of its desire to acquire land within the City and to construct
and equip one or more buildings thereon (such land, buildings
and equipment being hereinafter referred to as the Project), for
use by the Company as a headquarters and office facility.
1.3
The existence of the Project within the City would increase the
tax base of the City, County and school district in which the City
is located, and would provide opportunities for employment for
residents of the City and surrounding area.
1.4
The City has been advised 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 signifi-
cantly reduced, but that with the aid of municipal financing, and
its resulting low borrowing cost, the Project is economically
more feasible.
1.5
This Council has been advised that revenue bonds of the City could
be issued and sold upon favorable rates and terms to finance the
Project.
Bruce G. Nawrocki, Mayor
E. "Sebe" Heintz, Councilmember Waiter Logacz, Councilmember
Gayle R. Norberg, Councilrnember Kennth E. Hentges, Councilmember
EQUAL OPPORTUNITY EMPLOYER
1.6
The City is authorized by Minnesota Statutes, Chapter 474, to
issue its revenue bonds to finance capital projects consisting of
properties used and useful in connection with a revenue-producing
enterprise, such as that of the Company, and the issuance of such
bonds by the City would be a substantial inducement to the Company
to construct its facility within the City.
2o
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 revenue
bonds under the provisions of Chapter 474 to finance the Project of
the Company at a cost presently estimated to be approximately
$4,500,000.
The Project above referred to is hereby given preliminary approval
by the City and the issuance of bonds for such purpose and in an
amount not exceeding $4,800,000 approved, subject to approval of
the Project by the Commissioner of Securities and to the mutual
agreement of this body, the Company and the initial purchasers of
the bonds as to the details of the bond issue 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 each bond, when, as, and if issued, shall recite in substance
that the bond, 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.
The form of Memorandum of Agreement relating to the issuance of
revenue bonds of the City to finance the cost of the Project is
hereby approved and the Mayor and City Manager are hereby authorized
and directed to execute the Memorandum of Agreement in behalf of
the City.
Se
Offered by:
Seconded by:
Roll Call:
In accordance with Minnesota Statutes, Section 474.01, Subdivision
7, the Mayor and City Manager are authorized and directed to submit
the proposal for the Project to the Commissioner of Securities for
his approval of the Project. The Mayor, City Manager, City Attorney
and other officers, employees and agents of the City are hereby
authorized to provide the Commissioner with any preliminary infor-
mation he may need for this purpose, and the City Attorney is
authorized to initiate and assist in the preparation of such docu-
ments as may be appropriate to the Project, if it is approved by
the Commissioner.
Hentges ~
Norberg
All Ayes
Bruce G. Nawrocki, Mayor
Secretary