HomeMy WebLinkAboutOrdinance 1104CITY OF COLUMBIA HEIGHTS
ORDINANCE NO. 110/~
BEING AN ORDINANCE GIVING PRELIMINARY
APPROVAL TO A PROJECT UNDER THE MUNICIPAL
INDUSTRIAL DEVELOPMENT ACT, REFERRING THE
PROPOSAL TO THE MINNESOTA ENERGY AND
ECONOMIC DEVELOPMENT AUTHORITY FOR AP-
PROVAL, 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 (the "State") requires
active promotion, 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 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 in.dustry, 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
facilities 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 Columbia Park Properties, a Minnesota
general partnership (the "Developer"), has advised this City Council that it
desires to construct an approximately 36,000 square foot office facility
(hereinafter referred to as the "Project"). The Project will be located at
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the northwest corner of the intersection of 40th Street and Central Avenue
N.E. in the City.
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, including
economically disadvantaged or unemployed individuals.
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, and, therefore, the City finds that but for the aid of
municipal financing, and its resulting lower borrowing cost, the Project
would not be economically 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 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
capital projects consisting of properties used and useful in connection with a
revenue producing enterprise, such as that of the Developer, and the
issuance of such bonds by the City would be a substantial inducement to the
Developer to construct its facility in the City; and
2. On the basis of information given the City to date, it appears {hat 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 Developer
in an amount presently estimated not to exceed $7,000,000 and to use the City's
allocation of authority granted pursuant to Minnesota Statutes, Section 474.18 to
issue private activity bonds for the Bonds.
3. The Project is hereby given preliminary approval by the City and the
issuance of the revenue bonds for such purpose and in such amount is preliminarily
approved, subject to approval of the Project by the Minnesota Department of
Energy and Economic Development, to the ability of the Issuer to obtain additional
allocation of authority to issue private activity bonds and to the mutual agreement
of this body, the Developer and the initial purchaser of the bonds as to the details
of the bonds and provisions for their payment. In all events, it is understood,
however, that the bonds of the City shall not constitute a charge, Uen or
encumbrance legal or equitable upon any property of the City except the Project,
and the bonds, when, as, and if issued, shall recite in substance that the bonds,
including interest thereon, are 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.
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4. In accordance with Minnesota Statutes, Section 474.01, Subdivision
~, the Mayor of the City is hereby authorized and directed to submit the proposal
for the Project to the Minnesota Department of Energy and Economic Development
for approval of the Project. The Mayor and other officers, employees and agents
of the City are hereby authorized to provide the Minnesota Department of EnergT
and Economic Development 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 Minnesota Department of Energy and Economic Development.
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, 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. In accordance with Minnesota Statutes, Section 474.01, Subdivision
11, the City Manager and other officers, employees and agents of the City are
hereby authorized and directed to encourage the Developer to provide employment
opportunities to economically disadvantaged or unemployed individuals. Such
individuals may be identified by such mechanisms as are available to the City,
including a first source agreement in which the Developer agrees to use a
designated State employment office as a first source for employment recruitment,
referral, and placement.
First Reading:
Second Reading:
Date of Passage:
April 22, 1985
May 28, 1985
May 28, 1985
Roll Call: Hovland, Petkoff, Peterson,
Anne Student, Cou-nc~-T1-Secreta~y
Nawrocki - aye~4C~/~l~n - nay/
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