HomeMy WebLinkAboutMay 4, 1981Official Proceedings
Special Meeting
Columbia Heights City Council
May 4, 1981
The meeting was called to order by Mayor Nawrocki at 10:O1 pm.
i. Roll Call: Logacz, Heintz, Norberg, Hentges, Nawrocki--present
2. Purpose of the Meeting: First reading of Ordinance No. 951, being an ordinance
giving preliminary approval to a project under the Municipal Industrial Development
Act, referring the Proposal to the Commissioner of Securities for approval, and
authorizing preparation of necessary documents ( Columbia Heights Mall), and to
establish a public hearing at which time there will be a second reading of Ordinance
No.951 and consideration of its adoption.
Motion by Heintz, second by Norberg that the reading of the Ordinance be waived there
being ample copies available to the public. Roll call: All ayes
Ordinance No. 951
BEING AN ORDINANCE GMNG PRELIMINARY
APPROVAL TO A PROJECT UNDER THE MUNICIPAL
INDUSTRIAL 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 requires 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 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 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 facil-
ities for the remaining population.
Special Meeting
May 4, 198}
page 2
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. A representative of Columbia Heights Mall (hereinafter the
"Applicant"), has advised this City Council (the "Council") that it desires to
acquire land within the Downtown C.B.D. Revitalization Project area 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 Project is available at such costs of
borrowing 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 is economically more feasible.
1.7. This Council has been advised by a representative of the
Applicant that on the basis of information submitted to it and its discussions
with representatives 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-
itsd 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 $4,500,000.
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.
Special Meeting
May 4, 1981
page 3
4. 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 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 information needed 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.
5. 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. The Mayor,
Clerk-Treasurer, City 'Attorney, and other officers, employees and agents of the
City are hereby authorized to assist Bond Counsel in the preparation of such
documents.
6. This ordinance shall be in full force and effect from and after thirty
(30) days after its passage.
Mayor
Secretary to the Council
First Reading:
Second Reading:
Date of Passage:
Roll Call:
May 4, 1981
The Council was advised by the City Attorney that the call for the public hearing
on regarding the second reading of the Ordinance is in the form of a resolution.
Motion by Heintz, second by Hentges to waive the reading of the resolution there
being ample copies available to the public. Roll call: All ayes
A point of clarification was made by the City Manager regarding the starting time
of the public hearing, as stated in the resolution, it should correctly read 7:30 pm.
RESOLUTION NO. 8]-25_
RESOLUTION ESTABLISHING THE DATE FOR A
PUBLIC HEARING ON A PROPOSAL TO UNDERTAKE
AND FINANCE A PROJECT UNDER MINNESOTA
STATUTES, CHAPTER 474
WHEREAS, the Minnesota Municipal Industrial Development Act, Minnesota
Statutes, Sections 474.01 e._~t seq. (the "Act"), authorizes the issuance of revenue
bonds to finance projects; and
Special Meeting
May 4, 1981
page 4
WHEREAS, the term "project" is defined by Section 474.02, subdivision l&,
of the Act to include "any properties, real or personal, used or useful in connection
with a revenue producing enterprise"; and
WHEREAS, a representative of Columbia Heights Mall (the "Develope.r") has
presented this City Council with information concerning a proposed project (the
"Project") to be acquired and constructed within the City of Columbia Heights (the
"City"); and
V;HEREAS, the Developer has requested that the City resolve to issue
revenue bonds pursuant to the Act to finance the Project and has presented to the
City a form of preliminary ordinance concerning such issuance with a request that
much preliminary ordinance, attached hereto as Exhibit A, be considered for
adoption by the City Council of the City; and
WHEREAS, Section 474.01, subdivision 7b, of the Act provides that the City
Council must conduct a public hearing on any proposal to undertake and finance a
project; and
WHEREAS, Section 474.01, subdivision ?b, of the Act provides that notice of
the time and place of such public hearing and stating the general nature of the
project and an estimate of the principal amount of bonds or other obligations to be
issued to finance the project must be published at least once not less than fifteen
(15) days nor more than thirty (30) days prior to the date fixed for the public
hearing in the official newspaper of the City and a newspaper of general
circulation in the City; and
WHEREAS, Section 474.01, subdivision ?b, of the Act provides that the
notice must state that a draft copy of the proposed application (the "Application")
to the Commissioner of Securities of the Securities Division of the Department of
Commerce of the State of Minnesota for approval of the Project, together with all
attachments and exhibits, is on file with the City and available for public inspec-
tion; and
WHEREAS, the Developer has presented to the City a form of public notice,
attached hereto as Exhibit B, with a request that the City Council establish a date
for a public hearing on the proposal to undertake mud finance the Project and to
authorize publication of the form of public notice provided by the Developer;
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The City Council of the City will conduct a public hearing on the
proposal to undertake and finance the Project on the 26th day of May, 1981.
2. The City Manager is hereby authorized to cause a public notice,
substantially in the form of the notice attached hereto as Exhibit B, to be published
in the official newspaper of the City and a newspaper of general circulation in the
City.
3. The City Manager is hereby authorized and directed to have available
for public inspection in the offices of the City a draft copy of the proposed
Application, together with all attachments and exhibits thereto.
Special Meeting
May 4, 1981
page 5
Offered by: Heintz
Seconded by: Hentges
Roll Call: All ayes
Bruce G. Nawrocki, Mayor
Jo-Anne Student, Council Secretary
It was noted by Councilman Norberg that in the Ordinance No.951, page 2, Subsection
4 the Commissioner of Securities is referred to by gender. He desires that the lang-
uage in this paragraph be revised and the City Attorney was so directed.
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 May 26, 1981, at 7:3¢ 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 Dev'elopment 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 a
shopping center to be owned by Columbia Heights MaLl for use in its business. The
estimated total amount of the proposed bond issue is $4,500,000. 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.
Special Meeting
May 4, 1981
page 6
AU 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
CERTIFICATION OF MINUTES RELATING TO THE
RESOLUTION ESTABLISHING THE DATE FOR A
PUBLIC HEARING ON A PROPOSAL TO UNDERTAKE
AND FINANCE A PROJECT UNDER MINNESOTA
STATUTES, CHAPTER 474
City: Columbia Heights
County: Anoka
State: Minnesota
Governing body: City Council
Meeting:
A meeting of the City Council of the City of Columbia Heights, held
on the 4 day of May , 1981, at 8:00 p.m., in the City of
Columl~ia Heights, Minnesota.
Council members present: Logacz, Heintz, Norberg, Hentges, Nawrocki
Council members absent: None
Documents: A copy of a resolution adopted by the City Council of the City of
Columbia Heights at said meeting.
Certification:
I, John E. Schedler, Clerk-Treasurer of the City of Columbia Heights,
Minnesota, do hereby certify the following:
Attached hereto is a true and correct copy of a resolution on file and of
record in the offices of the City of Columbia Heights, which resolution was
adopted by the City Council of the City of Columbia Heights, Minnesota, at the
meeting referred to above. Said meeting was a regular meeting of the City
Council, was open to the public, and. was held at the time and place at which
meetings of City Council are regularly held. Council MemberHe~ntz moved the
adoption of the attached resolution. The motion for adoption of the attached
resolution was seconded by Council Member Hentges.A vote being taken on the
motion, the following voted in favor of the resolution:
Logacz, Heintz, Norberg, Hentges, Nawrocki
and the following voted against the resolution:
None
Special Meeting
May 4, 1981
½age 7
Whereupon said resolution was declared duly passed and adopted. The attached
resolution is in full force and effect and no action has been taken by the City
Council of the City of Columbia Heights which would in any way alter or amend
the attached resolution.
Witness my hand offieially as the Clerk-Treasurer of the City of Columbia
Heights, Minnesota, this. ii day of May , 1981.
(0
Exhibit A attached to this
Exhibit B attached to this
posed project.
Both of these exhibits appear
John E. Seh~dler
Clerk-Treasure
resolution is Ordinance No.951.
resolution is notice of public hearing on
this pro-
in these minutes.
IMPORTA~
This Application must be submitted to Commissioner in triplicate.
*******************************************************************
STATE OF MINNESOTA
DEPARTMENT OF COMMERCE, SECURITIES DIVISION
APPLICATION
For Approval of Municipal Industrial Revenue Bond Project
Date:
To: Minnesota Department of Commerce Securities Division
Metro Square Building
St. Paul, Minnesota 55101
The governing body of the City of Columbia Heights, Minnesota, hereby
applies to the Commissioner of the State of Minnesota, Department of Commerce,
Securities Division, for approval of a proposed Municipal Industrial Development
Revenue Bond issue, as required by Section 1, Subdivision 7, Chapter 474,
Minnesota Statutes.
We have entered into preliminary discussions with:
FIRM: Columbia Heights Mall
ADDRESS: 3550 Lexington North
Suite 104
STATE: Minnesota 55112
Minnesota partnership
CITY: St. Paul
State of Ineorporation:
Attorney: Steve Swartz
Special Meeting
May 4, 1 981
page 8
Address: Mas]on, Edelman, Borman, Brand & MeNulty, Suite 1800 Midwest
Plaza West Building, Minneapolis, Minnesota
This firm is engaged primarily In (nature of business): real estate develop-
ment
The funds received from the sale of the Industrial Revenue Bonds will be
used to (general nature of project): acquire ]and and construct a building or
buildings thereon and acquire and install equipment in connection therewith for use
as a shopping center.
It will be located in: Columbia Heights, Minnesota
The total bond'issue will not exceed approximately $4,500,000 to be applied
toward payment of costs now estimated as follows:
Cost Item
Land Acquisition and Site Development
Construction Contracts
Equipment
Architectural and Engineering Fees
Legal Fees and Administrative Costs
Interest during Construction
Reserve
Discount
Letter of Credit Fee
Amount
$ 50,000
3,166,000
247,500
112,000
42,500
495,000
247,500
90,000
49,500
It is presently estimated that construction will begin on or about August 1,
1981, and will be completed on or about August 1, 1982. When completed, there
will be approximately one hundred and fifty (150) new jobs created by the project
at an annual payroll of approximately $1,800,000 based upon currently prevailing
wages. The tentative loan (lease) term is 3 years, commencing August 1, 1981.
The borrower will own the project.
The following exhibits are furnished with this application and are incorpo-
rated herein by reference:
An opinion of bond counsel that the proposal constitutes a project
under Minnesota Statutes, Chapter 474.02.
A copy of the city council ordinance giving preliminary approval for
the issuance of its revenue obligations.
A comprehensive statement by the municipality indicating how the
project satisfies the public purpose of Minnesota Statutes, Chapter
474.02.
A letter of intent to purchase the bond issue or a letter confirming
the feasibility of the project from a financial standpoint.
A statement, signed by the Mayor, to the effect that upon entering
into the revenue agreement, the information required by Minnesota
Statutes, Section 474.01, Subd. 8 will be submitted to the Department
of Economic Development.
e
A statement signed by the Mayor, that the project does not include
any property to be sold or affixed to or consumed in the production of
property for sale, and does not include any housing facility to be
rented or used as a permanent residence.
Special Meeting
May 4, 1981
page 9
A statement signed by the Mayor that a public hearing was conducted
pursuant to Minnesota Statutes, Section 474.01, Subd. 7b. The
statement shall include the date, time and place of the meeting and
that all interested parties were afforded an opportunity to express
their views.
8. A copy of the notice of publication of the public hearing.
We, the undersigned, are duly elected representatives of the City of Columbia
Heights, Minnesota, and solicit your approval of this project at your earliest
convenience so that we may carry it to a final conclusion.
Signed by: (Principal'Officers)
This approval shall not be deemed to be an approval by the Commissioner or the
State of the feasibility of the project or the terms of the lease to be executed or
the bonds to be issued therefor.
Date of approval:
Commissioner of Securities
Minnesota Department of.E~ommeree
MAYOR'S STATEMENT CONCERNING A PROPOSED PROJECT
UNDER MINNESOTA STATUTES, CHAPTER 474
The undersigned, being the duly qualified and acting Mayor of the City of
Columbia Heights, Minnesota (the "City"), certifies that the City Council of the
City (the "Council") has been provided by representatives of Columbia Heights Mall
(the "Developer") with certain information concerning a proposed Project under the
Minnesota Municipal Industrial Development Act, Minnesota Statutes, Chapter 474.
On the basis of such information the Council, by ordinance adopted ,
1981 (the "Preliminary Ordinance"), has given preliminary approval to the proposed
Project and the financing thereof by the issuance of a revenue obligation or
obligations of the City. The following are factors considered by the Council in
determining to give preliminary approval to said Project:
1. The Project consists generally of:
Acquisition of land and construction of a building or buildings
and the acquisition and installation of equipment therefor for use as a
shopping center.
2. The bond counsel of the City is of the opinion that the Project
constitutes a "project" within the meaning of Minnesota Statutes, Section
474.02, Subdivision la.
3. Based on an estimated total cost of acquisition and construc-
tion of approximately $4,500,000 it is the opinion of the Council that the
Project, when completed, will add significantly to the commercial and
industrial tax base of the City and the County and School District in which
the Project is located.
Special Meeting
May 4, 1981
page l0
4. Representatives of the Developer estimate that, as a result of
the acquisition, construction and installation of the Project, the Project will
generate employment opportunities for approximately one hundred and fifty
(150) persons (in addition to those currently employed by the Developer), in
the City and the surrounding area. The Council is concerned about the level
of unemployment in the City and surrounding area and the resulting
movement of persons to other areas where jobs are more plentiful, and
believes that the existence of the Project in the City would help alleviate
those problems.
5. Representatives of the Developer estimate that the acquisi-
tion, construction and installation of the Project will result in an additional
payroll of approximately $1,800,000, based on currently prevailing wages.
The Council believes that a substantial percentage of that additional payroll
will be spent on housing, food and other goods and services in the City and
surrounding area, thus benefiting the local housing industry and local
merchants.
6. The Council has reviewed the preliminary plans and drawings
for the Project (which have also been reviewed by the City Engineer) and
believes that the Project, when completed, will be compatible with present
and projected development in its area.
7. Nothing has come to the attention of the Council to indicate
that the proposed financing of the Project by the City would adversely and
unfairly affect any other business enterprise located in the City.
8. Pursuant to the Preliminary Ordinance of ., 1981, the
City will comply with the requirements of Minnesota Statutes, Section
474.01, Subd. 8.
9. The Project does not include any property to be sold or affixed
to or consumed in the production of property for sale, and does not include
any housing facility to be rented or used as a permanent residence.
10. A public hearing was called on , 1981,
at City offices in Columbia Heights, Minnesota, at 7:30 p.m., central time,
pursuant to Minnesota Statutes, Section 474.01, Subd. 7b, to consider the
proposal that the City undertake and finance the Project. All interested
parties were afforded an opportunity to ~/~ress the~e7 /
Mayor
Adjournment
Motion by Norberg, second
Roll call: All ayes
by Heintz to adjourn the meeting at
10:06 pm.
'A~nne S[udent,'~ouncil Secre
tary
Bruce G.
Nawrocki,
Mayor
3Y' ~W
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