#523 05-21-73 Approval Municipal Industrial Development ActResolution No. 523
May 21, 1973
Member Bix introduced the following resolution and MOVED its adoption:
RESOLUTION
GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER
THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING
THE PROPOSAL TO THE DEPARTMENT OF ECONOMIC DEVELOP-
MENT FOR APPROVAL, AND AUTHORIZING PREPARATION OF
NECESSARY DOCUMENTS.
BE IT RESOLVED, by the Village Council of the Village of Golden Valley,
Minnesota, as follows:
1. (a) The welfare of the State of Minnesota requires active promotion,
attraction, encouragement and development of economically sound industry and
commerce through governmental acts, and the state has encouraged local govern-
ment units to promote such ecomonic development.
(b) Jewelmont Corporation, a Minnesota corporation, (hereinafter
"Jewelmont"), engaged primarily in the revenue-producing enterprise of manu-
facturing and wholesaling of jewelry, has asked the Council in behalf of the
Village of Golden Valley, to undertake a project in their behalf, consisting
generally of the acquisition of certain real property within the Village and
construction thereon of one or more buildings suitable and to be used initially
for:,manufacture, warehousing and distributing products of manufacture,
primarily jewelry and scientific equipment, and related items, to be leased
by the Village to Jewelmont.
(c) Acquisition of the proposed project would add significantly to
the tax base of the Village and overlapping taxing authorities.
(d) The operations of Jewelmont are such that it normally employs
in responsible positions college and high school students and women, some on
long-term, part-time ba, s, and the Village includes a substantial number of
such students and women who would find this employment suited to their
particular needs.
(e) This Council has been advised that the economic feasibility of
the project, and therefore its continued existence as a resource of the Village,
would be improved by the issuance of tax-exempt revenue bonds of the Village.
(f) This Council has been advised that a reputable investment banking
firm and dealer in municipal bonds has found, on the basis of information
submitted to it and its discussions with representatives of Jewelmont and
potential buyers of municipal bonds, that revenue bonds of the Village could
be issued and sold upon favorable rates and terms to finance the project.
(g) The Village is authorized by Minnesota Statutes, Chapter 474,
to issue its revenue bonds to acquire and finance projects consisting of
properties used and useful in connection with revenue producing enterprises,
such as that of Jewelmont, and the issuance of such bonds by the Village would
be a substantial inducement to Jewelmont to locate the project within the
Village.
Resolution No. 523 May 21, 1973
2. On the basis of information given the Village to date, it appears
that it would be in the best interest of the Village to issue its industrial
development revenue bonds under the provisions of Chapter 474 to finance the
capital project of Jewelmont at a cost presently estimated to require issuance
of revenue bonds in the principal sum not exceeding $800,000.00.
3. The project above referred to is hereby given preliminary approval
by the Village, subject to approval of the project by the Commissioner of
Economic Development and to the mutual agreement of this body, and Jewelmont
and the initial purchasers of the bonds as to the details of the bond issue
and provisions for their payment. In all event, it is understood, however,
that the bonds of the Village shall not constitute a charge, lien or encumbrance
legal or equitable upon any property of the Village 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 rentals received from the project
and property pledged to the payment thereof, and shall not constitute a debt of
the Village.
4. In accordance with Minnesota Statutes, Section 474.01, Subdivision 7,
the Village Manager is hereby authorized and directed to submit the proposal for
the project to the Commissioner of Economic Development, for his approval of
the project. The Village Manager, Village Clerk, Village Attorney, and other
officers, employees and agents of the Village are hereby authorized to provide
the Commissioner with any preliminary information he may need for this purpose,
and the Village 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.
Attest:
'Village Clerk
The motion for the adoption of the foregoing resolution was seconded by Member
Ulstad, and upon vote being taken thereon the following voted in favor thereof:
Bix, Hoover, Moberg, and Ulstad; and the following voted against the same:
Riggs, whereupon said resolution was declared duly passed and adopted, signed
by the Mayor and his signature attested by the Clerk.
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