HomeMy WebLinkAboutResolution 79-02CITY OF CiTY OF COLUMBIA HEIGHTS
590 40th Ave. NJ E. ii '
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"SERVICE IS OUR BUSINESS"
RESOLUTION NO. 79-2
RESOLUTION GIVING PRELIHINARY APPROVAL TO A PROJECT OR PROJECTS UNDER THE
HUNICIPAL INDUSTRIAL DEVELOPHENT ACT, REFERRING THE PROPOSAL TO THE
COHHISSIONER OF SECURITIES FOR APPROVAL, AND AUTHORIZING PREPARATION OF
NECESSARY DOCUHENTS
BE IT RESOLVED by the City Council of the City of Columbia Heights, Hinnesota,
as follows:
1.t
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 it is the policy of
the State of Minnesota to facilitate and encourage action by local govern-
ment 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.
1.2
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 Columbia Heights (hereinafter the 'lCity'J), a large part of the
existing investment of the community and of the state as a whole in educa-
tional and publicservice 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,
1.3
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.
1.4
The Columbia Heights Development Consortium, a joint venture of Landmark
Development of Columbia Heights and Northeast Development of Columbia Heights
or affiliates thereof familiar with the problems and potentials of the
Bruce G. Nawrocki, Mayor
E. "Sebe" Heintz, Councilmember Walter Logacz, Councilmember
Gayle R. Norberg, Councilmember Kenneth E. Hentges, Councilmember
EQUAL OPPORTUNITY EMPLOYER
Columbia Heights central business district (hereinafter the "Developer"),
has advised this Council that it desires to bring about the acquisition
and construction of certain lands and one or more structures with respect
thereto and to acquire and install equipment therefor with respect thereto
as usable facilities for the carrying on of certain productive commercial
activity of various types (hereinafter referred to collectively as the
"Project" or separately as the "Projects").
1.5 The existence of the Project or Projects 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.
1.6 The City has been advised that conventional, commercial financing to pay
the capital cost of the Project or Projects is available'at such costs of
borrowing that the economic feasibility of developing the Project or Projects
would be significantly reduced, but that with the aid of municipal financing,
and its resulting low borrowing cost, the Project or Projects are economically
more feasible, and therefor more likely to occur.
1.7
This Council has been advised by representatives of the Developer that on
the basis of information submitted to them and their discussions with potential
buyers of tax-exempt obligations, industrial development revenue bonds of the
City could be issued and sold upon favorable rates and terms to finance the
Project or Projects.
The City is authorized by Minnesota Statutes, Chapter 474, to issue its
revenue bonds, in the form of one or more debt instruments (the "Notes") and/or
other obligations (the "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 contemplated by the Developer,
and the issuance of such Notes or Bonds by the City would be a substantial
inducement to the Developer to construct its facility in the City.
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 Notes
or Bonds under the provisions of Chapter 474 to finance the Project or
Projects of the Developer at an as yet undetermined cost, presently estimated
not to exceed $10,000,000.
The Project or Projects above referred to is and are hereby given preliminary
approval by the City and the issuance of Notes or Bonds for such purpose
and in such amount approved, subject to approval of the Project or Projects
by the Commissioner of Securities and to the mutual agreement of this body,
the Developer and the initial purchasers of the Notes or Bonds as to the
details of the bond issue and provisions for their payment. In all events,
it is understood, however, that the Notes or Bonds of the City shall not
constitute a charge, lien or encumbrance legal or equitable upon any property
of the City except the revenues and property pledged to the payment thereof
and constituting all or a portion of the Project or Projects and each Note
or Bond, when, as, and if issued, shall recite in substance that the Note
or Bond, including interest thereon, is payable solely from the revenues and
property pledged to the payment thereof, and shall not constitute a debt of
the City.