HomeMy WebLinkAboutOrdinance 1238CITY OF COLUMBIA HEIGHTS, MINNESOTA
ORDINANCE NO. 1238
ORDINANCE GIVING PRELIMINARY APPROVAL TO A
PROJECT UNDER MINNESOTA STATUTES, CHAPTER 469,
SECTIONS 469. 152-469. 165 AND AUTHORIZING
PREPARATION OF NECESSARY DOCUMENTS
WHEREAS, pursuant to and in accordance with the provisions of the Municipal
Industrial Development Act, Minnesota Statutes., Sections 469.152 to 469.1651
(including its predecessor, the "Act"), by appropriate action duly taken by the City
Council of the City of Columbia Heights (the "Issuer"), and in furtherance of the
purposes of the Act, the Issuer has issued its $5,000,000 Commercial Development
Revenue Bonds (Columbia Park Properties Project), Series 1985 (the "Series 1985
Bonds") to finance the cost of acquisition, construction, improving, and equipping
of certain facilities located within the corporate boundaries of the Issuer (which
facilities together with the land on which they are located, are hereinafter referred
to as the "Project"), owned by Columbia Park Properties, a Minnesota general
partnership (the "Company"); and
WHEREAS, the Company has requested that the Issuer issue refunding
revenue bonds for the purpose of paying the Series 1985 Bonds in advance of their
maturity, thereby reducing debt service costs to the Company; and
WHEREAS, pursuant to the Act, the Issuer is authorized to issue its revenue
bonds to refund bonds previously issued by it under authority of the Act;
THE CITY OF COLUMBIA HEIGHTS DOES HEREBY ORDAIN:
1. The issuance of refunding revenue bonds in the approximate principal
amount of $4,785,000 is hereby given preliminary approval by the Issuer, subject
to the mutual agreement of this body, the Company 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 Issuer shall not constitute a
charge, lien or encumbrance legal or equitable upon.any property of the Issuer
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 Issuer.
2. 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 bonds. The Mayor and other officers, employees and agents of the
City are hereby authorized to assist Bond Council in the preparation of such
documents.
3. The adoption of this Ordinance does not constitute a guarantee or £irm
commitment that the Issuer will issue the bonds as requested by the Company. The
Issuer retains the right in its sole discretion to withdraw from participation and
aeeordingiy not to issue the bonds, or issue the bonds in an amount less that the
amount referred to in paragraph 1 hereof~ should the Issuer at any time prior to
issuance thereof determine that it is in the best interest of the Issuer not to issue
the Bonds, or to issue the Bonds in an amount less than the amount referred to in
paragraph 1 hereof, or should the parties to the transaction be unable to reach
agreement as to the terms and conditions of any of the documents required for the
transaction.
First Reading:
February 24, 1992
Second Reading:
March 9, 1992
Motion:
Second:
Ruettimann
Peterson
Roll Call:
Ayes:
C]erkin,
Nawrocki
Nays: None
Ruettimann, Peterson, Murzyn
- absent