HomeMy WebLinkAboutOrdinance 918Ordinance No. 918
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.
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 Minnesota partnership or
its designee (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 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
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 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 Securiti .es 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 ali
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.
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 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 an$1land effect from an after thirty
(30) days after its passage. /!`, /,~
First Reading: June 25, ]980
Second Reading: Jul y 17, ] 980
Offered by: He i ntz
Seconded by: Hentges
Date of Passage: Jul y ! 7, 1980
Beeretar y to t5~- Council