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HomeMy WebLinkAboutApr 26, 1982 (2) Official Proceedings *Public Hearing Columbia Heights City Council April 26, 1982 The hearing was called to order by Mayor Nawrocki at 7:30 pm. 1. Roll Call: Hovland, Petkoff, Hentges, Norberg, Nawrocki--present 2. Purpose of the Meeting: To approve the conversion of temporary financing to perm- anent financing with regard to Evenson's Industrial Development Revenue Bonds. 3.. Second Readin9 of Ordinance No.997 The revenue bonds addressed in this ordinance pertain to the shopping center facility in the downtown development and are in an amount presently estimated not to exceed $4,500,000. The construction of the shopping center facility started today, April 26th. Motion by Norberg, second by Hentges to waive the reading of the ordinance there being ample copies available to the public. Roll call: All ayes Ordinance No. 997 BEING AN ORDINANCE GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING THE PROPOSAL TO THE COMMISSIONER OF ENERGY, PLANNING AND DEVELOPMENT 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 publle 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. Pub] i¢ Hearing April 26, 1982 page 2 1.3. Other factors necessitating such action are the increasing concentration of population in urban and metropolitan areas; the consequent increase in the amount and cost of governmental services required in these areas; the energy crisis and energy cost escalation, and their contribution to unemployment, rising interest rates, balance of payments deficits and increased welfare payments to cover rising fuel costs and the increased costs of fuel intensive necessities; and the need for more intensive development and use of land to provide an adequate tax base to finance these costs. 1.4. The effect of these factors is intensified by the necessity of withdrawing land for public use for highways, parks and open space reserves, schools and playgrounds, and other public enterprises needed to sustain proper living conditions, communications, and mobility in an increasingly urban society. 1.5. A representative of Columbia Heights Mall, a Minnesota general partnership (hereinafter the "Applicant"), has advised this City Council (the "Council") that it desires to arrange the permanent financing for the acquisition of land within the Downtown C.B.D. Revitalization Project area and construction of a building or buildings and acquisition and install equipment therefor for use as a shopping center facility (hereinafter referred to as the "Project"). 1.6. 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. 1.7. 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. 1.8. 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. 1.9. 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 in an amount presently estimated not to exceed $4,500,000. 'Public Hearing April 26, 1982 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 in such amount approved, subject to approval of the Project by the Commissioner of Y, nergy, Planning and Development 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 7a, the l~ayor 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 a~ 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. First Reading: March 22, 1982 Second Reading: April 26, 1982 Offered by: Hentges Seconded by: Petkoff Roll Call: All ayes Date of Passage: April 26, 1982 Mayor Secretary to the Council 4. Second Reading of Ordinance No.998 The revenue bonds addressed in this ordinance pertain to the office facility in the downtown development and are in an amount presently estimated not to exceed $6,000, 000. Motion by Norberg, second by Petkoff to waive the reading of the ordinance there ample copies available to the public. Roll call: All ayes Ordinance No. 998 BEING AN ORDINANCE GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING THE PROPOSAL TO THE COMMISSIONER OF ENERGY, PLANNING AND DEVELOP MENT FOR APPROVAL, AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS being Public Hearing April 26, 1982 page 4 The City of Columbia Heights does ordain: 1. It is hereby found, det.ermined 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. 1.3. Other factors necessitating such action are the increasing concentration of population in urban and metropolitan areas; the consequent increase in the amount and cost of governmental services required in these areas; the energy crisis and energy cost escalation, and their contribution to unemployment, rising interest rates, balance of payments deficits and increased welfare payments to cover rising fuel costs and the increased costs of fuel intensive necessities; and the need for more intensive development and use of land to provide an adequate tax base to finance these costs. 1.4. The effect of these factors is intensified by the necessity of withdrawing land for public use for highways, parks and open space reserves, schools and playgrounds, and other public enterprises needed to sustain proper living conditions, communications, and mobility in an increasingly urban society. 1.5. A representative of Terry Evenson (hereinafter the 'Applieant~), has advised this City Council (the "Council:') that it desires to arrange the permanent financing for the acquisition of land within the Downtown C.B.D. Revitalization Project area and construction of a building of approximately 80,000 square feet and acquisition and installation of equipment therefor for use as an office facility (hereinafter referred to as the "Project"). 1.6. 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. Public Hearing April 26, 1982 page 5 1.7. 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. 1.8. 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. 1.9. 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 for the Project in an amount presently estimated not to exceed $6,000,000. 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 Energy, Planning and Development 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 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 Con',missioner. 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. Public Hearing April 26, 1982 page 6 First Reading: Second Reading: Offered by: Seconded by: Roll Call: Date of Passage: March 22, 1982 April 26, 1982 Hentges Hovland All ayes April 26, ]982 Secretary to the Council Mayor Councilman Norberg questioned the impact of both these ordinances, Number 997 and Number 998 on the City regarding the conversion of temporary financing to perm- anent financing. Adjournment Motion by Hentges, second by Norberg to adjourn the AIl ayes y/Anne Stude~qt, Cou~ecretary hearing at 7:50 pm. ,Rg~ll call:! Bruc~ G. Nawrocki, Mayor