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HomeMy WebLinkAboutApr 6, 1981Official Proceedings--Public Hearing Columbia Heights City Council April 6, 1981 Mayor Nawrocki called the hearing to order at 7:37 pm. This hearing is for the continuation of the public hearing recessed March 23, 1981. 1. Roll Call Logacz, Heintz, Norberg, Hentges, Nawrocki--present 2. Purpose of the Meeting The preliminary approval regarding issuance of Industrial Development Revenue Bonds for purchase of land and construction of building. The City Manager spoke to the ordinance under consideration at this hearing. He explained that it relates to the Shopping Center Complex in the Downtown Deve- lopment Project. 3. Second'Reading of Ordinance No. 945 Motion by Norberg, second by Heintz to waive the reading of the ordinance there being ample copies available to the public. Roll call: All ayes This ordinance had its first reading at the February 23rd regular council meeting. Councilman Norberg inquired if there is a developer for this project. The City Manager told the Council that HRA has received two ~onditional letters of credit from Mr. Terry Evenson who had indicated he wishes to construct a shopping center and office building complex. Roger Jensen, Director of HRA, gave a brief history of what has transpired with Terry Evenson in recent months and recapped what is known about his plans for development. The Mayor and Council members reviewed, with bond counsel, liability if this project does not materialize. It is under- stood that if this development is not realized the adminlnstrative costs and other costs will be borne by the developer. An agreement between the City and the developer regarding costs is on file in the City Attorney's office. Ordinance No. ~45 BEING AN ORDINANCE GFFING 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 es 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 area~ Public Hearing April 6, 1981 page 2 1.2. Technological change l~s caused a shift to a significant de~ree 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 hum~.n 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. A representative of Terry Evenson (hereinafter the 'Applicant~), has advised this C!ty Council (the "Council") that he 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 (herein~ter 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 ts 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.?. This Council has been advised by a representative of the Developer that on the basis of information submitted to them and their 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 4'/4, 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. Public Hearing April 6, 1981 page 3 3. The Project above referred to is hereby given preliminary approval by the City and the issuance of bonds for such purpose and tn such amount approved, subject to approval of the Project by the Commissioner of Securities and to the mutual agreement of this boo~, the Applicant and the initial purchasers of the bonds az 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 tn 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. tn accordance with .Minnesota Statutes, Section 474.01, Subdivision ?a, 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 preUminary infor- mation she may need for this purpose, and the City Attorney is authorized to' initiate and assist in the preparation of such documents az 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 u 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 ~uch documents. full force and after thirty 6. This ordinance shall be in effe~ct frond (30) days after its passage..~~~/~. / Mayor First Reading: February 23, 1981 Seeond Readtng: April 6, 1981 Offered by: Heintz Seconded by: Hentges Date of Passage: April 6, 1981 Roll Call: All ayes ecretary to the ~cLl Public Hearing April 6, 1981 page q 4. Adjournment Motion by Heintz, second by Logacz to adjourn the hearing. Adjourned at 7:50 pm. '-Anne~Studen't, Counc~TT Secretary Roll call: All ayes