Loading...
HomeMy WebLinkAboutJun 25, 1980OFFICIAL PROCEEDINGS SPECIAL MEETING OF THE MAYOR AND THE CITY COUNCIL CITY OF COLUMBIA HEIGHTS, MINNESOTA JUNE 25, 1980 The me~ting was called to order by Mayor Nawrocki at 8:13 Roll Call: Logacz, Heintz, Hentges, Nawrocki--present No[berg--Absent PURPOSE OF THE MEETING 1.ORDINANCES AND RESOLUTIONS a. First reading of ordinances regarding the sale of general obligation bonds for the redevelopment of the City's central business district. Mayor Nawrocki explained to those in attendance some of the history of the Downtown area. When it started to deteriorate the question was frequently asked as to why someone didn't do something. The problems were clearly visible and the businessmen and residents were concerned. Tonight's meeting is the fruition of many years of work to turn around the decay and develop the area for the benefit of all of the residents of the City. Nawrocki went on to explain that about one year ago the plan was near completion and the work for redevelopment was all ready to begin. It was halted when one of the developers withdrew from the proposal. HRA spent the last year searching for a new developer and tonight's meeting is the result of those efforts. Nawrocki explained that the meeting the night before this one covered the details of the project, Tonight's meeting will briefly cover some of the same information and then go on to give specifics of the plan in summary form and the ordinances for various bonding involved in funding. The Mayor welcomed the people at the meeting, thanked them for coming and encouraged them to ask any questions and make their comments at the end of the presentations by the developers. He explained ordinances normally take two readings, Considering the nature and importance of the subject matter the Council has scheduled both of these readings as public hearings. The next hearing is July 7, 1980 at 8:00 in John Murzyn Hall. Robert Bocwinski, City Manager, introduced the hearing's participants in the order that they would appear. 1. Presentation of information by first developer--Watson Centers,Inc. Watson Centers,Inc. proposes to construct the following: A five-story, 80,000 square foot, office building to be located on the east side of Central Avenue between Gould Avenue and 40th Avenue. A 350 stall parking ramp will be located adjacent to this building on the same site. An 80,000 square foot commercial center to be located on the east side of Central Avenue between 4Oth Avenue and 41st Avenue. Len Donohue, representative of Watson Centers,Inc., said the shopping center will be designed to meet everyday needs of the citizen: a grocery store, a drug store and ancillary shops. The building will face Central Avenue and will have access from 40th Avenue and 41st Avenue. SPECIAL MEETING JUNE 25, 1980 page 2 It, also, will be heavily landscaped particularly in the back and there will be a buffer zone behind the center. The parking lot will be large enough to accommodate 400 cars. Time schedule for completion of the shopping cente~ section of the Downtown Development project: financing should be completed by ~eptember 1980; construction should begin November 1980 with completion in the Fall of 1981. Mr. Donohue explained the layout of the office building. It will be located between Gould Avenue and 40th Avenue. The building is to be five stories high with an attached parking ramp. The ramp will accommodate 350-400 vehicles and there will be no charge. The lower-level tenant is the Northeast State Bank who will also have a drive-in facility. A law firm and a realtor have made committments to be tenants. The second level or plaza level will be occupied by a first-class restaurant of about 10,000 feet. This level will use the outside plaza for seating when weather permits.lt will have access from Gould Avenue and limited parking. 2.Presentation of information by second developer--P.J.GAUGHAN,INC. P.J.Gaughan,lnc. proposes to construct the following: A total of 216 housing units divided into two groups, 132 condominiums that would be for sale. These condominiums would be built in two buildings and the price range would be from $54,000 to $77,000. They would be built on the north and the south sides of 41st Avenue. Eighty-four units will be designated for apartment development and the monthly rent will be in the range of $300.00 to $500.00. All of the housing units will be accommodated with underground parking, elevators, inside trash collection and elegant lobbies and social areas. Mr. Jim Holmes, an attroney retained by the HRA, reviewed the major elements of redevelopment contracts presented to the Council last evening. He informed the Council that his firm would serve as bond council if it decides to issue bonds for this project. Mr. Holmes explained that tax increment financing is the method being utilized to finance this project. He further explained that the City Council insisted the developers give certain guarantees for the financing so there would be no element of risk that could be put back on the City. The negotiations with the developers have been long and extensive. It was explained that the major task of the City is to acquire the land and prepare it for the developers. This could include demolition of the existing facilities and relocation, if there are to be any moved; moving of utilities and, in certain cases, fill in some basements that remain. The retail portion of the development would be built over 41st Avenue and necessitate re-routing this street. This procedure wou]d require special funding that would be realized from assessments imposed on the developers. Another public improvement that would be included in this area is a parking ramp that would be paid for by the City from a portion of the bond monies and from a federal grant. The developers must submit their final construction plans to the City Council for its inspection as it has final veto power. SPECIAL MEETING JUNE 25, 1980 page 3 The timetable for the land preparation and construction to commence is as follows: April 1, ]981 the HRA must deliver the land to the developers; thirty days from that date construction must commence; the developers have from twelve to thirty-six months to complete construction. The commercial facility must be complete in eighteen months, the housing facility must have one buildin~ completed in twelve months. All of the others must follow on line and the entire construction must be completed in three years. There are a number of guarantees included in the agreement to insure the bonds ~ill be paid by the development itself, rather than by taxes. Some of these guarantees are: sufficient insurance carried by the developer for any destruction; by Augustl,each developer must present letters from financial institutions stating that they have sufficient funds to proceed; the property must remain with developers chosen by the City Council. In case of default by the developers the HRA is able to take back the property. October 1, 1980 is the deadline for all of the requirements to have been met; the developers must have the financing available, the City must have acquired all of the property and the letters of credit are in. In the event of the absence of any one of these requirements any of the parties involved may choose to terminate. Roger Jensen, Executive Director of HRA, explained the estimated project expenditures and revenues for the Downtown Development. Persuant with statute the HRA must provide the finance plan. Jensen presented the general obligation sale figures. He, also, gave the figures for some of the work that will be done for land acquisition, fixture removing, relocation, demolition and site improvement such as the parking ramp, landscaping and utility work. Other topics Roger Jensen spoke to were the monies for professional services fees and financing costs. Phil Chenoweth, the City's Fiscal Consultant, presented his analysis of the financial feasibility of the project as it related to tax increment financing. He told the audience that the City has always had a good credit rating and now that the bond rates are reasonable again at 7% the bonds will be sold. Mr. Chenoweth suggests the bonds should mature by the year 2002. He feels that the City has a very marketable project and a very feasible project. The bonds should sell as the City of Columbia Heights is a good, sound city. Mr. Walter Hartman, of the technical advisory and research staff of the League of Minnesota Cities has completed an indepth examination of the proposed project as it relates to the tax increment financing process. He felt the project was exceptionally innovative and may be used as a model in Minnesota, as well as, nationally. The budget, timing and financing were examined by his firm and found that the project was highly feasible. He suggested that Columbia Heights has a very competent staff. 3.Robert Bocwinski, City Manager, explained that since the time frame of the project is critical he would give the schedule for the hearings and considerations by the City Council. At the first public hearing the Council was asked to consider the first reading of five ordinances dealing with the bond issues. SPECIAL MEETING JUNE 25, 1980 page 4 July 2, 1980. The City will have to publish all ordinances and resolutions in the official city newspaper and a second paper that has wide city circulation. July 7, 1980 at 8:00 in Murzyn Hall a public hearing ~or the second reading of the ordinances on the general obligation bond, apartment bond, ~nd a condominium bond. Also, the Council will be asked to adopt a resolution calling for public bids for the general obligation bonds. July 17, 1980 at 8:00 in the City Council Chambers a public hearing for the second reading and adoption of an office bond ordinance and a shopping center bond ordinance. duly 23, 1980, on or about this date the City will publish notices calling for bids on the general obligation bond. August 6, 1980, effective date of the three ordinances; the general obligation bond ordinance, the apartment bond ordinance and the condominium bond ordinance. August 11, 1980 at 7:00 . The City will open bids for the general obligation bond. There will be a regularly scheduled City Council meeting at 8:00. August 16, 1980. The effective date of the office bond ordinance and the shopping center ordinance. Mr. Jim Holm explained to the audience the basic differences in the types of bonds. Some residents voiced concerns for a possible sewer system problem and additional traffic congestion that could result from this project. Nawrocki advised them a study is being done and the preliminary reports confirm there probably would be no problem that could not be handled. The Traffic Commission is studying the potential increase in traffic and its recommendations will be incorporated in the proposal. Additional questions dealt with possible projects being planned at this time for the west side of Central Avenue. There are none presently but, it was suggested by Nawrocki that development could be a likely spin-of from this project. One resident wondered why the people cannot vote on this project. Nawrocki explained that the residents have always had the option to veto any action of the Council and that action can be forced to a vote by petition. He welcomed anyone to contact the City Attorney at their convenience for the specifics for this action. A citizen asked for the actual starting date of the project. Roger Jensen said the contract with the developers cites April l, 1981, but, if the land preparation and acquisition is completed earlier construction can commence. It was noted the selling price of the condominiums had changed since last year. Mr. Jensen advised that there was a different developer now. Maintenance problems of rental property was discussed. Roger Jensen said the developers have the obligation to maintain the buildings. Nawrocki suggested that there are potential maintenance problems with every type of housing, whether it be rental or owner-occupied. He felt that it should be considered that more maintenance codes will be coming law as we see more of these types of housing coming into being. SPECIAL MEETING JUNE 25, 1980 page 5 Nawrocki cited that some of the positive results from this project is a broader tax base, additional housing and an increase in job opportunities for 300 to 400 people. Motion_by Heintz, seconded by Hentges to waive the reading of Ordinance #9-15 ~here being ample copies for the public and with the notations and corrections noted and with the proposed amendments of the City Attorney. Roll Call: All ayes Motion by Heintz, seconded by Hentges to waive the reading of Ordinance #9-16 there being ample copies for the public and with the notations and corrections noted and with the proposed amendments of the City Attorney. Roll Call:All ayes Motion by Hentges, seconded by Heintz to waive the reading of Ordinance #9-17 there being ample copies for the public and with the notations ant corrections noted and with the proposed amendments of the City Attorney. Roll Call: All ayes Motion by Hentges, seconded by Heintz to waive the reading of Ordinance #9-18 there being ample copies for the public and with the notations and corrections noted and with the proposed amendments of the City Attorney. Roll Call: All ayes Motion by Heintz, seconded by Hentges to waive the reading of Ordinance #9-19 there being ample copies for the public and with the notations anc corrections noted and with the proposed amendments of the City Attorney. Roll Call: All ayes Motion by Heintz, seconded by Hentges to waive the reading of the resolution in reference to Ordinance #9-18, hereafter, referred to as The Columbia Heights Office Associates resolution, there being ample copies for the public. Roll Call: All ayes Motion by Heintz, seconded by Hentges to adopt the resolution calling for a public hearing on a proposal to undertake and finance an industrial development project (Columbia Heights Office Associates). Roll Call: All ayes Motion by Heintz, seconded by Hentges to waive the reading of the resolution in reference to Ordinance #9-18 hereafter referred to as the Columbia Heights Center resolution. SPECIAL MEETING JLINE 25, 1980 page 6 Roll Call: All ayes Motion by Heintz, seconded by Hentges to adopt the resolution calling for a public hearing on a proposal to undertake and finance an industrial development project (Columbia Heights Center~. Roll fall: All ayes Ordinance No. 915 BEING AN ORDINANCE PROVIDING FOR PUBLIC SALE OF $8,175,000 GENERAL OBLIGATION TAX INCREMENT BONDS OF 1980 The Ci~-y of Columbia Heights does ordain:' 1. It is hereby found, determined and declared that this City should issue $8,175,000 General Obligation Tax Increment Bonds of 1980 (the "Bonds") pursuant to Minnesota Statutes S 462.585, to defray the public redevelopment cost of Downtown C.B.D. Revitalization Project, a "redevelopment project" pursuant to Minnesota Statutes S 462.411 et seq. 2. Ehlers and Associates, Inc., bond consultants to the City, has presented to this Council a form of Official Notice of Bond Sale for the Bonds to be sold and issued, and a form of abbreviated Notice of Bond Sale for publication, which are attached hereto, and which are hereby approved. This Council shall meet at the time and place specified in the form of the Official Notice of Bond Sale hereinafter contained for the purpose of opening and considering sealed bids for, and awarding the sale of said $8,175,000 General Obligation Bonds of 1980. 3. Each and all of the terms and provisions of the following form of Official Notice of Bond Sale are hereby adopted as attached hereto as Exhibit A as the terms and conditions of said bonds and of the sale thereof. 4. This ordinance shall be in full force and effect from and after thirty (30) days after its passage. Mayor First Reading: Second Reading: Offered by: Seconded by: Roll Call: Date of Passage: June 25, 1980 Secretary to the Council EXHIBIT A TERMS AND CONDITIONS FOR RECEIPT OF BIDS AND AWARD OF SALE $8,175,000 GENE~RAL OBLIGATION TAX INCREMENT BONDS, SERIES 1980 - CITY OF COLUMBIA HEIGHTS, MINNESOTA The City Council of the City of Columbia Heights, Minnesota, will meet at City Hall in Columbia Heights, Minnesota, on the llth day of August, 1980, at 7:00 p.m., C;D.T., to receive, open and consider bids for and award the sale of $8,175,000 General Obligation Tax Increment Bonds, Series 1980 (the "Bonds"). No bids will be opened and no bonds will be sold in the event that the Ordinance Providing for Public Sale of $8,175,000 General Obligation Tax Increment Bonds of 1980, to be adopted July 7, 1980 does not become effective on August 6, 1980. PURPOSE The Bonds will be issued for the purpose of providing funds for a redevelopment project within the City, in accordance with the provisions of Minnesota Statutes, Chapters 273,462 and 475. .DATE~ TYPE~ DENOMINATION~ MATURITIES AND REDEMPTION The Bonds will be dated September 1, 1980, will be issued as negotiable investment securities, in bearer form, with attached interest coupons, will be in the denomi- nation of $5,000 each unless designated otherwise by the purchaser within 48 hour~ of award of sale, and will mature on March 1 in the following years and amounts: Year Amount Year Amount 1983 $ 10,000 1991 $425 1984 $ 10,000 1992 475 1985 --- 1993 525 1986 140,000 1994 550 1987 190,000 1995 650 1988 250,000 1996-2001 700 1989 300,000 2002 100 1990 350,000 000 000 000 ,000 ,000 ,000 000 Bonds maturing in 1991 and later years will be subject to redemption and prepayment at the option of the City in inverse order of serial numbers on March 1, 1990, and any interest payment date thereafter, at the following prices plus accrued interest to the date of redemption: Redemption Date Redemption Price March. 1, 1990- September 1, 1993 March 1, 1994 - September 1, 1998 March 1, 1999 and thereafter par plus 2% par plus 1.5% par PAYING AGENT Principal and interest will be made payable at a suitable bank in the United States recommended by the purchaser and approved by the City Council, and the City will pay the customary charges for this service provided that such recommendation is received within 48 hours after the sale, and the City Council will select the paying agent if the re_commendation is not approved. . INTEREST PAYMENT DATES, RATES Interest will be payable semiannually on each March I and September I, eom- mencing March 1, 1981. All bonds of the same maturity must bear interest at a single uniform rate from date of issue to maturity, not exceeding 12% per annum, expressed as an integral multiple of 5/100 of 1% per annum, represented by a single set of coupons. No rate of any maturity may be lower th~the highest rate carried by any of the preceding maturities. DELIVERY The City will furnish without cost to the purchaser and within 40 days after award of sale, the printed and executed Bonds, the legal opinion referred to below, and the usual no-litigation certificate. Delivery will be made without cost to the purchaser at the place of the purchaser's choice. Payment of the Bonds must be made in funds immediately available to the City on the date of delivery. LEGAL OPINION An opinion as to the validity of the Bonds and the tax exempt nature of the interest thereon will be furnished by Holmes & Graven, Chartered, of Minneapolis, Minnesota. The legal opinion will be printed on the Bonds at the request of the purchaser. The legal opinion will state that the Bonds are valid and binding general obligations of the City. TYPE OF BID AND AWARD Sealed bids for not less than $8,060,000 and accrued interest on the principal sum of $8,175,000 must be mailed or delivered to the undersigned and must be received prior to the time of said meeting. Bidders must bid for all or none of the Bonds. Each bid must be unconditional and must be accompanied by a cashier's check or bank draft in the amount of $163,500, payable to the City Clerk-Treasurer, to be retained by the City as liquidated damages if the bid is accepted and the bidder fails to comply therewith. The bid authorizing the lowest net interest cost, determined by the addition of any discount to and the deduction of any premium from the total interest on all Bonds from their date to their stated maturity, will be deemed the most favorable. The net effective rate on all Bonds may not exceed 12% per annum. In the event that two or more bids state the lowest net interest cost, the sale of the Bonds will be awarded by lot. The City reserves the right to reject any and all bids, to waive informalities in any bid, and to adjourn the sale. CUSIP NUMBERS The City will assume no obligation for the assignment or printing of CUSIP numbers on the Bonds or for the correctness of any numbers printed thereon, but will permit such printing to be done at the expense of the purchaser, if the purchaser waives any extension of the time of delivery caused thereby. Information f~r bidders and bidding forms may be obtained from the undersi~ned or .from Ehlers and Associates, Inc., 507 Marquette Avenue, Minneapolis, Minnesota 55402, telephone 612-339-8291, Financial Specialists. BY ORDER OF THE CITY COUNCIL NOTICE OF BOND SALE $8,175,000 GENERAL OBLIGATION TAX INCREMENT, SERIES 1980 CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTICE IS HEREBY GIVEN that the City. Council of the City of Columbia Heights, Minnesota, will meet in Columbia Heights, Minnesota, on the llth day of -August, 1980, at 7:00 p.m., C.D.T., to receive, open and consider sealed bids for and award the saJe of $8,175,000 General Obligation Tax Increment Bonds, Series 1980 (the "Bonds"). In the event that the Ordinance Providing for Public Sale of $8,175,000 General Obligation Tax Increment Bonds of 1980 adopted July 7, 1980 does not become effective on August 6, 1980, no bids will be opened and no bonds will be sold. The Bonds will be issued for the purpose of providing funds for a redevelopment project within the City. The Bonds will be issued as bearer bonds, in the donomination of $5,000 each, will be dated as of September 1, 1980, and will mature seriaJ_ly on March I in the following years and amounts: Year Amount Year Amount 1983 $ 10,000 1991 $425,000 1984 $ 10,000 1992 475,000 1985 --- 1993 525,000 1986 140,000 1994 550,000 1987 190,000 1995 650,000 1988 250,000 1996-2001 700,000 1989 300,000 2002 100,000 1990 350,000 Interest will be payable semiannually on each March 1 and September 1, com- mencing March 1, 1981. Bonds maturing in 1991 and later years shall be subject to redemption and prepayment on March 1, 1990, and any interest payment date thereafter at the following prices plus accrued interest: Redemption Date Redemption Price March 1, 1990 - September 1, 1993 March 1, 1994 - September 1, 1998 March 1, 1999 and thereafter par plus 2% par plus 1.5% par An opinion as to the validity of the Bonds and the tax-exempt nature of the interest thereon will be furnished by Holmes & Graven, Chartered, of Minneapolis, Minnesota. Copies of a statement of Terms and Conditions for Receipt of Bids and Award of Sale and additional information may be obtained from the undersigned or from Ehlers and Associates, Inc., 507 Marquette Avenue, Minneapolis, Minnesota 55402, telephone: 612-339-8291, Financial Specialists. Dated: , 1980. BY ORDER OF THE CITY COUNCIL Ordinance No. 916 BEING AN ORDINANCE GIVING PRELIMINARY APPROVAL TO A PROJECT AND AUTHORIZING THE ISSUANCE OF-HOUSING DEVELOPMENT REVENUE BONDS THEREFOR UNDER MIN- NESOTA STATUTES, CHAPTER 462C, AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS The City of Columbia Heights does ordain: Preamble WHEREAS, the Minnesota Legislature has enacted Laws 1980, Chapter 306 as codified in Minnesota Statutes, Chapter 462C (the Act), under which the City is authorized to establish a housing plan (Housing Plan) and program (Housing Program) for financing Housing Developments by the issuance of revenue bonds; and WHEREAS, in enacting the Act, the Legislature determined that provision, maintenance and preservation of an adequate housing stock in conjunction with the removal of blight within redevelopment projects is necessary to preservation of the quality of life in a major metropolitan city and is therefore a public purpose; and WHEREAS, Gaughan Land, Inc. (the Developer), has indicated an interest and desire to acquire land in the Downtown C.B.D. Revitalization Project Area in the City, and to construct and equip thereon $4 residential living units available for rental and facilities related thereto (the Project), and the Project, as proposed, is to be planned and completed as part of the Housing Program in accordance with the Act; and WHEREAS, the City has been advised by representatives of the Developer that conventional, commercial financing to pay the capital cost of the Project has not been obtained, is available only on a limited basis and is not available upon terms and conditions which are affordable by the Developer so that the economic feasibility of acquiring, constructing, equipping and operating the Project would be significantly impaired; however, the Developer has also advised the City that the use of municipal financing and the lower borrowing cost resulting therefrom will materially increase the economic feasibility of the Project and will constitute a substantial inducement to the Developer to undertake the Project; and WHEREAS, the City has been advised by representatives of the Developer that conventional, commercial financing is likely not to be available to the potential purchasers of the residential living units available for rental on terms and conditions affordable by them so that the economic feasibility of purchasing such units would be significantly impaired, but that the use of municipal financing and the lower borrowing cost resulting therefrom would make such units available on terms and conditions affordable by them; and WHEREAS, the Developer has proposed that the City issue and sell its Housing Development Revenue Bonds (the Bonds) pursuant to the Act and other applicable laws for the purpose of financing the Project, including certain incidental expenses thereto, in the approximate principal amount of $4,000,000 and loan the proceeds realized upon the sale of the Bonds to the Developer, pursuant to a revenue agreement wherein the Developer will be obligated to acquire, construct and equip the Project, to apply the proceeds of the Bonds solely to the payment of costs thereof end to make payments under the revenue agreement-at the time and in the amounts sufficient to provide for the prompt payment of principal of and interest on th_e Bonds and all costs and expenses of the City incidental to the issuance and sale of the Bonds; the proposal further provides that the Project will -be mortgaged and a security interest therein granted and the City's right and interest in the revenue agreement assigned for the benefit and security of the holders from time to time of the Bonds; and WHEREAS, the Project is located within the Downtown C.B.D. Revitali- zation Project Area and is consistent with and will forward the public purposes of the City in creating the Downtown C.B.D. Revitalization Project Area; and WHEREAS, the full faith and credit of the City will not be pledged or responsible for the Project or the payment of the principal of and interest on the Bonds; and WHEREAS, the undertaking of the Project has been considered by the Housing and Redevelopment Authority in and for the City of Columbia Heights (the Authority) and the Authority has transmitted and recommended the proposal for financing the Project for review and consideration by the Council; and WHEREAS, the Council has been advised that the Bonds in the approximate principal amount of $4,000,000 may be sold on terms and conditions satisfactory to the City and the Developer. The City of Columbia Heights does ordain as follows: 1. The undertaking of the Project and the issuance of the Bonds pursuant to the Act and other applicable laws in the approximate amount of $4,000,000 to finance the costs thereof, all as referred to above, is hereby authorized and approved by the City, subject to the agreement of the City, the Developer and the Underwriter on the detaLled terms and conditions on which the Project will be financed and the Bonds will be issued, sold and secured. 2.. The City Attorney and all City personnel, in consultation with the Developer and the Underwriter and Holmes & Graven, as bond counsel, are authorized to prepare the Housing Plan, the Housing Program, the revenue agreement and other documents necessary and appropriate for the planning, completion and financing of the Project and to submit them to the Council for approval. 3. This ordinance shall be in full force and effect from and after thirty (30) days after its passage. First Reading: Second Reading: Offered by: Seconded by: Roll Call: Date of Passage: June 25, 1980 Mayor Secretary to the Council Ordinance No. 917 BEING AN ORDINANCE GIVING PRELIMINARY APPROVAL TO A PROJECT AND AUTHORIZING THE ISSUANCE OF _HOUSING DEVELOPMENT REVENUE BONDS THEREFOR UNDER MIN- NESOT.4 STATUTES, CHAPTER 462C, AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMI~NTS The City of Columbia Heights does ordain: Preamble WHEREAS, the Minnesota Legislature has enacted Laws 1980, Chapter 306 as codified in Minnesota Statutes, Chapter 462C (the Act), under which the City is authorized to establish a housing plan (Housing Plan) and program (Housing Program) for financing Housing Developments by the issuance of revenue bonds; and WHEREAS, in enacting the Act, the Legislature determined that provision, maintenance and preservation of an adequate housing stock in conjunction with the removal of blight within redevelopment projects is necessary to preservation of the quality of life in a major metropolitan city and is therefore a public purpose; and WHEREAS, Gaughan Land, Inc. (the Developer), has indicated an interest and desire to acquire land in the Downtown C.B.D. Revitalization Project Area in the City, and to construct and equip thereon 132 living units under condominium ownership and facilities related thereto (the Project), and the Project, as proposed, is to be planned and completed as part of the Housing Program in accordance with the Act; and WHEREAS, the City has been advised by representatives of the Developer that conventional, commercial financing to pay the capital cost of the Project has not been obtained, is available only on a limited basis and is not available upon terms and conditions which are affordable by the Developer so that the economic feasibility of acquiring, constructing, equipping and operating the Project would be significantly impaired; however, the Developer has also advised the City that the use of municipal financing and the lower borrowing cost resulting therefrom will materially increase the economic feasibility of the Project and will constitute a substantial inducement to the Developer to undertake the Project; and WHEREAS, the City has been advised by representatives of the Developer that conventional, commercial financing is likely not to be available to the potential purchasers of the condominium units on terms and conditions affordable by them so that the economic feasibility of purchasing such units would be si~o-nificantly impaired, but that the use of municipal financing and the lower borrowing cost resulting therefrom would make such units available on terms and conditions affordable by them; and WHEREAS, the Developer has proposed that the City issue and sell its Housing Development Revenue Bonds (the Bonds) pursuant to the Act and other applicable laws for the purpose of financing the Project, including certain incidental expenses thereto, in the approximate principal amount of $9,000,000 and loan the proceeds realized upon the sale of the Bonds to the Developer, pursuant to a revenue agreement wherein the Developer will be obligated to acquire, to construct and equip the Project, to issue Housing Development Revenue Bonds (the Bonds) in the approximate amount of $9,000,000 to provide mortgage financing for individual condominium purche~ers, to apply the proceeds of the Bonds solely to the payment of costs thereof and to make payments, under the revenue agreement at the time and-in the amounts sufficient to provide for the prompt payment of principal of and interest on the Bonds and all costs and expenses of the City incidental to the issuance and sale of the Bonds; the proposal further provides that the Project will be mortgaged and a security interest therein granted and the City's right and interest in the revenue agreement assigned for the benefit and security of the holders from time to time of the Bonds; and WHEREAS, the Project is located within the Downtown C.B.D. Revitali- zation Project Area and is consistent with and will forward the public purposes of the City in creating the Do~mtown C.B.D. Revitalization Project Area; and II~HEREAS, the full faith and credit of the City will not be pledged or responsible for the Project or the payment of the principal of and interest on the Bonds; and WHEREAS, the undertaking of the Project has been considered by the Housing and Redevelopment Authority in and for the City of Columbia Heights (the Authority) and the Authority has transmitted and recommended the proposal for financing the Project for review and consideration by the Council; and WHEREAS, the Council has been advised that the Bonds may be sold on terms and conditions satisfactory to the City and the Developer. The City of Columbia Heights does ordain as follows: 1. The undertaking of the Project and the issuance of the Bonds pursuant to the Act and other applicable laws in the approximate amount of $9,000,000 to finance the costs thereof together with mortgage financing for individual condominium purchasers in the approximate amount of $9,000,000, ail as referred to above, is hereby authorized and approved by the' City, subject to the agreement of the City, the Developer and the Underwriter on the detailed terms and conditions on which the Project will be financed and the Bonds will be issued, sold and secured. 2. The City Attorney and all City personnel, in consultation with the Developer and the Underwriter and Holmes & Graven, as bond counsel, are authorized to prepare the Housing Plan, the Housing Program, the revenue agreement and other documents necessary and appropriate for the planning, completion and financing of the Project and to submit them to the Council for approval. 3. This ordinance shah be in full force and effect from and after thirty (30) days after its passage. M ay or First Reading: Second Reading: Offered by: Seconded by: Roll Call: Date of Passage: June 25, 1980 Secretary to the Council Ordinance No. 918 BEING AN ORDINANCE GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIPAL ~I_~qDUSTRIAL DEVELOPMENT ACT, REFERRING THE PROPOSAL TO THE COMMISSIONER OF SECURITIES FOR APPROVAL, AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS The City of Columbia Heights does ordain: 1. It is hereby found, determined and declared as follows: 1.1. The welfare of the State of Minnesota requi,~es active promo- tion, 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 government 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 p.-ocessing, transporting, marketing, service and other industries, and unless e)dsting and related industries are retained and new industries are developed to use the available resources of the City of Columbia Heights (the "City"), a large part of the existing investment of the community and of the state as a whole in educational and public service 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 governmenta] services and facil- ities 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. Columbia Heights Office Associates, a Minn~ota partnership or its designee (hereinafter the "Applicant"), has advised thi~ City Council (the "Council") that it desires to acquire land and construct a building or buildings and acquire and install equipment therefor for use as an office facility (hereinafter referred to as the "Project"). 1.5. The existence of the Project 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 Prgject is available at such costs of borrowi~tg that the economic feasibility of operating the Project would be significantly reduced, but that with the aid of municipal financing, and its resu]ting low borrowing cost, the Project are economically more feasible. 1.7. This Council has been advised by representatives of Dougherty, Dawkins, Strand & Ekstrom Incorporated, as placement agent, that on the basis of information submitted to them and their discussions with represen- tatives of area financial institutions and potential buyers of tax-exempt bonds, industrial development revenue bonds of the City could be issued and sold upon favorable rates and terms to finance the Project. 1.8. The City is authorized by Minnesota Statutes, Chapter 474, to issue its revenue bonds to finance the cost, in whole or in part, of the acquisition, construction, reconstruction, improvement or extension of cap- ital projects consisting of properties used and useful in connection with a revenue producing enterprise, such as that of the Applicant, and the issuance of such bonds by the City would be a substantial inducement to the Applicant to construct its facility in the City. 2. 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 revenue bonds under the provisions of Chapter 474 to finance the Project of the Applicant at a cost presently estimated not to exceed $6,100,000. 3. The Project above referred to is hereby given preliminary approval by the City and the issuance of bonds for such purpose and in such amount approved, subject to approval of the Project by the Commissioner of Securities and to the mutual agreement of this body, the Applicant 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. 4. Dougherty, Dawkins, Strand & Ekstrom Incorporated, being familiar with the Project and the marketability of industrial development revenue bonds, has advised the Council that in its opinion the bonds in the approximate principal amount of $6,100,000 may be sold on terms and conditions satisfactory to the City and the Developer. 5. In accordance with Minnesota Statutes, Section 474.01, Subdivision 7a, the Mayor of the City is hereby authorized and directed to submit the proposal for the Project to the Commissioner of Securities for her approval of the Project. 2 The Mayor, Clerk, Treasurer and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with any preliminary infor- mation she may need for this purpose, and the City Attorney is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project, if it is approved by the Commissioner. ~ 6. The law firm of Holmes & Graven, Chartered, is authorized to act as Bond Counsel hnd to assist in the preparation and review of necessary documents relating to the Project and bonds issued in connection therewith. 7. This ordinance shah be in full force and effect from and after thirty (30) days after its passage. First Reading: Second Reading: Offered by: Seconded by: Date of Passage: Mayor Secretary to the Council Ordinance No. 919 BEING AN ORDINANCE GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT~ REFERRING THE I~ROPOSAL TO THE COMMISSIONER OF SECURITIES FOR APPROVAL, AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS The City of Columbia Heights does ordain: 1. It is hereby found, determined and declared as follows: 1.1. The welfare of the State of Minnesota requires active promo- tion, attraction, encouragement and development of economically sound industry and commerce through governmental acts to prevent, so far as pc~sible, 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 government 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 (the "City"), a large part of the existing investment of the community and of the state as a whole in educational and public service facilities will be lost, and the movement of talented, educated personnel of mature age to areas where t'heir 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 facil- ities 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. Columbia Heights Center, a Minnesota partnership or its desig- nee (hereinafter the "Applicant"), has advised this City Council (the "Council") that it desires to acquire land and construct a building or buildings and acquire and install equipment therefor for use as a shopping center facility (hereinafter referred to as the "Project"). 1.5. The existence of the Project 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 Pr.oject is available at such costs of borrowfng that the economic feasibility of operating the Project would be significantly reduced, but that with the aid of municipal financing, and its resulting low borrowing cost, the Project are economically more feasible. 1.7. This Council has been advised by representatives of Dougherty, Dawkins, Strand & Ekstrom Incorporated, as placement agent, that on the basis of information submitted to them and their discussions with represen- tatives of area financial institutions and potential buyers of tax-exempt bonds, industrial development revenue bonds of the City could be issued and sold upon favorable rates and terms to finance the Project. 1.8. The City is authorized by ~innesota Statutes, Chapter 474, to issue its revenue bonds to finance the cost, in whole or in part, of the acquisition, construction, reconstruction, improvement or extension of cap- ital projects consisting of properties used and useful in connection with a revenue producing enterprise, such as that of the Applicant, and the issuance of such bonds by the City would be a substantial inducement to the Applicant to construct its facility in the City. 2. 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 revenue bonds under the provisions of Chapter 474 to finance the Project of the Applicant at a cost presently estimated not to exceed $5,635,000. 3. The Project above referred to is hereby given preliminary approval by the City and the issuance of bonds for such purpose and in such amount approved, subject to approval of the Project by the Commissioner of Securities and to the mutual agreement of this body, the Applicant 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, ~h~l 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. 4. Dougherty, Dawkins, Strand & Ekstrom Ineorporated, being familiar with the Project and the marketability of industrial development revenue bonds, has advised the Council that in its opinion the bonds in the approximate principal amount of $5,635,000 may be sold on terms and conditions satisfactory to the City and the Developer. 5. In accordance with Minnesota Statutes, Section 474.01, Subdivision 7a, the Mayor of the City is hereby authorized and directed to submit the proposal for the Project to the Commissioner of Securities for her approval of the Project. The Mayor, Clerk, Treasurer and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with any preliminary infor- mation she may need for this purpose, and the City Attorney is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project, if it is approved by the Com missioner. 6. The law firm of Holmes & Graven, Chartered, is authorized to act as Bond Counsel_and to assist in the preparation and review of necessary documents relating to the-Project and bonds issued in connection therewith. 7. This ordinance shall be in full force and effect from and after thirty (30) days after its passage. First Reading: Second Reading: Offered by: Seconded by: Date of Passage: Mayor Secretary to the Council RESOLUTION NO. 80- RESOLUTION CALLING FOR A PUBLIC HEARING ON A PROPOSAL TO UNDERTAKE AND FINANCE AN INDUSTRIAL DEVELOPMENT PROJECT ' '.~N£REAS, a reD.resenta_tive of Columbia Heiohts Office Assoc|ates Minnesota partnership (the "Partnership"), has presented th~s City Council (the "Council") with information eoneerning a proposed project within the City of Columbia Heights (the "City"); and WHEREAS, a representative of the Partnership requested that the City of Columbia Heights resolve to issue industrial development bonds or notes and has presented to the City a form of preliminary ordinance concerning such issuance with a request that such preliminary ordinance, heretofore published as Ordinance No. 918, be considered for adoption at the next regular meeting of the Council or at a special meeting of the Council; BE IT RESOLVED THAT, 1. The City will conduct a public hearing on the proposal to undertake and finance the industrial development project or projects described in the Notice of Public Hearing attached hereto as Exhibit A (the "Notice") and incorporated herein by reference; 2. The Clerk of the City is hereby authorized to cause the Notice, or a notice in substantially the same form as the Notice, to be published not more than thirty (30) nor less than fifteen (15) days before the date fixed in the Notice as the date of the hearing, in the official newspaper and a newspaper of general circulation of the City of Columbia Heights. Passed this 25th day of June, 1980. Mayo~ Offered by: Seconded by: RoLl Ca]]: Secretary to the Council RESOLUTION NO. 80-~4 RESOLUTION CALLING FOR A PUBLIC HEARING ON A PROPOSAL TO UNDERTAKE AND FINANCE AN INDUSTRIAL DEVELOPMENT PROJECT - '.~/HEREAS, a rep.resenta_tive of Columbia Heights Off. Jce Associates Minnesota partnership (the "Partnership"), has presented this City Council (the "Council") with information concerning a proposed project within the City of Columbia Heights (the "City"); and WHEREAS, a representative of the Partnership requested that the City of Columbia Heights resolve to issue industrial development bonds or notes and has presented to the City a form of preliminary ordinance concerning such issuance with a request that such preliminary ordinance, heretofore published as Ordinance No. 918, be considered for adoption at the next regular meeting of the Council or at a special meeting of the Council; BE IT RESOLVED THAT, 1. The City will conduct a public hearing on the proposal to undertake and finance the industrial development project or projects described in the Notice of Public Hearing attached hereto as Exhibit A (the "Notice") and incorporated herein by reference; 2. The Clerk of the City is hereby authorized to cause the Notice, or a notice in substantially the same form as the Notice, to be published not more than thirty (30) nor less than fifteen (15) days before the date fixed in the Notice as the date of the hearing, in the official newspaper and a newspaper of general circulation of the City of Columbia Heights. Passed this 25th day of June, 1980. Mayor Offered by: He[ntz Seconded by: Hentges Roll Calh All ayes Secretary to the Council EXHIBIT A NOTICE OF PUBLIC HEARING ON A PROPOSED PROJECT AND THE ISSUANCE OF INDUSTRIAL- DEVELOPMENT REVENUE BONDS UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, MINNESOTA STATUTES, CHAPTER 474, AS AMENDED THE CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTICE IS HEREBY GIVEN that the governing body of the City of Columbia Heights, Minnesota (the ~City"), will meet on July 17, 1980, at 8:00 p.m. at City offices in Columbia Heights, Minnesota, for the purpose of conducting a public hearing on a proposal that the City issue its revenue bonds under the Municipal Industrial Development Act, Minnesota Statutes, Chapter 474, as amended, in order to finance the cost of a project. The proposed project will consist of the acquisition of land within the City and the construction thereon of a building or buildings and the acquisition and installation of equipment therefor for use as an office facility to be owned by Columbia Heights Office Associates, a Minnesota partnership, for use in the partnership's business. The estimated total amount of the proposed bond issue is $6,100,000. The bonds shall be limited obligations of the City and the bonds and interest thereon shall be payable solely from the revenues pledged to the payment thereof, except that such bonds may be secured by a mortgage and other encumbrance on the project. No holder of any such bond shall ever have the right to compel any exercise of the taxing power of the City of Columbia Heights to pay the bonds, or the interest thereon, nor to enforce payment against any property of the City except the project. A draft copy of the proposed application to the Minnesota Commissioner of Securities for approval of the project, together with all attachments and exhibits thereto, is available for public inspection at the City offices. All persons interested may appear and be heard at the time and place set forth above. [ Date of Publication] BY ORDER OF THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS RESOLUTION NO. 80= 35 RESOLUTION CALLING FOR A PUBLIC HEARING ON A PROPOSAL TO UNDERTAKE AND FINANCE AN INDUSTRIAL DEVELOPMENT PROJECT WHEREAS, a representative of Columbia Heights Center, a Minnesota partnership (the "Partnership"), has presented this City Council (the "Council") with information concerning a proposed project within the City of Columbia Heights (the "City"); and WHEREAS, a representative of the Partnership requested that the City of Columbia Heights resolve to issue industrial development bonds or notes and has presented to the City a form of preliminary ordinance concerning such issuance with a request that such preliminary ordinance, heretofore published as Ordinance No. 919, be considered for adoption at the next regular meeting of the Council or at a special meeting of the Council; BE IT RESOLVED THAT, 1. The City will conduct a public hearing on the proposal to undertake and finance the industrial development project or projects described in the Notice of Public Hearing attached hereto as Exhibit A (the "Notice") and incorporated herein by reference; 2. The Clerk of the City is hereby authorized to cause the Notice, or a notice in substantially the same form as the Notice, to be published not more than thirty (30) nor less than fifteen (15) days before the date fixed in the Notice as the date of the hearing, in the official newspaper and a newspaper of general circulation of the City of Columbia Heights. Passed this 25th day of June, 1980. Mayor Offered by: Heintz Seconded by: Hentges Roll Call: A11 ayes Secretary to the Council EXHIBIT A NOTICE OF PUBLIC HEARING ON A PROPOSED PROJECT AND THE ISSUANCE OF INDUSTRIAL- DEVELOPMENT REVENUE BONDS UNDER THE MUNICIPAL INDUSTRIAL DEYB.LOPMENT ACT, MINNESOTA STATUTES, CHAPTER 474, AS AMENDED THE CITY OF COLUMBIA HEIGHTS, MINNESOTA NOTICE IS HEREBY GIVEN that the governing body of the City of Columbia Heights, Minnesota (the ~City"), will meet on July 17, 1980, at 8:00 p.m. at City offices in Columbia Heights, Minnesota, for the purpose of conducting a public hearing on a proposal that the City issue its revenue bonds under the Municipal Industrial Development Act, Minnesota Statutes, Chapter 474, as amended, in order to finance the cost of a project. The proposed project will consist of the acquisition of land within the City and the construction thereon of a building or buildings and the acquisition and installation of equipment therefor for use as an office facility to be owned by Columbia Heights Office Associates, a Minnesota partnership, for use in the partnership's business. The estimated total amount of the proposed bond issue is $6,100,000. The bonds shall be limited obligations of the City and the bonds and interest thereon shall be payable solely from the revenues pledged to the payment thereof, except that such bonds may be secured by a mortgage and other encumbrance on the project. No holder of any such bond shall ever have the right to compel any exercise of the taxing power of the City of Columbia Heights to pay the bonds, or the interest thereon, nor to enforce payment against any property of the City except the project. A draft copy of the proposed application to the Minnesota Commissioner of Securities for approval of the project, together with all attachments and exhibits thereto, is available for public inspection at the City offices. All persons interested may appear and be heard at the time and place set forth above. [ Date of Publication] BY ORDER OF THE CITY COUNCIL OF THE CITY OF COLUMBIA HEIGHTS SPECIAL MEETING dUNE 25, 1980 page ~ ~ Motion by Heintz, seconded by Hentges to issue a building permit to Bauer Construction,Inc. for Lot 77, Block 5, Reservoir Addition. Roll Call: All ayes Motion by Heintz, seconded by Hentges to adjourn. Roll Call: All ayes Adjournment: I1:05 Bruc~ unC~ Secretary ~-~