HomeMy WebLinkAboutApr 6, 1981 (2)OFFICIAL PROCEEDINGS--PUBLIC HEARING
COLUMBIA HEIGHTS CITY COUNCIL
APRIL 6, 1981
Mayor Nawrocki called the hearing to order at 7:51 pm.
This hearing is the continuation of the public hearing recessed March 23, 1~81.
1. Roll Call
Logacz, Heintz, Norberg, Hentges, Nawrocki--present
Purpose of the Meetin9
The preliminary approval regarding issuance of Industrial Development Revenue Bonds
for purchase of land and construction of building. This hearing is in regard to the
Office Center Facility.
Second Readin9 of Ordinance No. 946
Motion by Heintz, second by Hentges 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 regualr council meeting.
Ordinance No. 946
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
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.
Public Hearing
April 6, 1981
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 adecuate tax base to finance these costs.
1.4. A representative of Terry ]~venson (hereinafter the "Applicant"),
has advised this City Council (the "Council") that he desires to acquire land
within the Downtown C.B.D. ltevitalizetion Project area and construct a
building of approximately 80,000 square feet 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 Project is available at such costs of
borrowint~ that the economic feasibility of operating the Pro,jeer 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
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 ]~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-
itel projects consisting of properties used and useful in eormeetion 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. In accordance with Minnesota Statutes, Section 474.01, Subdivision
?a, the Mayor of the City is hereby authorized and directed to submit the proposal
Public Hearing
April 6, 1981
page 3
for the Project to the Commissioner of Securities for her approve] 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 Commissioner.
5. The law fLrm of Holmes & Graven, Chattered, 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 tn 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 ~ueh
documents.
6. This ordinance shall be in full~~er7and
tyforee
(30) days ~ter its passage.
First Reading:
Mayor
February 23, 1981
Second Reading: April 6, 1981
Offered by: Hentges
Seconded by: Heintz
Date of Passage: April 6, 1981
Roll Call: All
L-
/ /
[;eeretar'to the Council
ayes
4. Adjournment
Motion by Heintz, second by Hentges to &djourn the hearing.
Adjourned at 7:53 pm.
-Anne--Student, C~'5'nci 1
Secretary
Roll call: All ayes
Bruce G. Nawrocki, Mayor