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HomeMy WebLinkAboutResolution 79-02CITY OF CiTY OF COLUMBIA HEIGHTS 590 40th Ave. NJ E. ii ' (612) 788.9221' "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.