#035 03-19-79 Establish Development Tax Exampt Financing PoliciesResolution #35
March 19, 1979
Member Thorsen introduced and read the written resolution and moved its adoption:
A RESOLUTION ESTABLISHING INDUSTRIAL/COMMERCIAL DEVELOPMENT
TAX-EXEMPT MORTGAGE FINANCING POLICIES
WHEREAS, the Legislature for the State of Minnesota has in Chapter
474 of Minnesota Laws, authorized municipalities to issue Industrial/Commercial
Development Revenue Bonds and approve tax exempt mortgages; and,
WHEREAS, the Legislature has stated that the intent of the Municipal
Industrial Development Act is to promote, attract, and encourage economically
sound industrial and commercial development in order to:
1. Discourage emergence of blight and marginal lands,
2. Prevent of Alleviate chronic unemployment,
3. Preserve community and state investments in educational and
public service facilities, and
4. Encourage more intensive development and use of land to
provide an adequate tax base to finance the costs of public services;
and,
WHEREAS, the City Council of Golden Valley wishes to preserve and
expand the quality of commercial and industrial development and their associated
benefits in the City, and that the City Council is aware that Industrial/Commercial
Revenue Bond Financing may be beneficial to the City when used for certain
purposes.
THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF GOLDEN VALLEY,
that the following policies shall be established guiding the approval of
Industrial/Commercial Development Revenue Bonds and Tax Exempt Mortgages:
1. Tax exempt mortgage financing will be the only vehicle of
Tax Exempt Industrial/Commercial Development financing
approved by the City. Industrial Revenue Bond financing
will not be authorized subsequent to adoption of this policy.
2. The industrial or commercial project shall be compatible with
the overall development plans and objectives of the City and
of the neighborhood in which the project shall lie.
3. The project shall be of a nature that the City wishes to
attract, or an existing business the City wishes to have
expand within the City considering potential for employment,
incentive for further development, impact on City service
needs and support for industrial or commercial operations
currently located in the City.
4. The total aggregate amount of industrial development bonds
and/or exempt mortgages outstanding at any one time shall
not exceed 5% of the total assessed (taxable) valuation
of the City. Each project shall exceed Five Hundred
Thousand Dollars ($500,000) in cost.
5. The application cannot be considered by the City Council until
tentative City Code findings and requirements have been made
with respect to zoning, building plans, platting, streets
and utility services.
a) the applicant shall furnish a description of the project,
plat plan, rendering of proposed building, brief description
of the applicant and the proposed financing in such form
as shall be required at the time of application. Such
data is to be furnished to members of the City Council
and the City's staff for background information only.
6. The project shall be located within a tax increment financing
district as designated by the City Council in accordance with
Chapter 462 of Minnesota Laws.
7. When an applicant business is locating, relocating or expanding
in the City,, the following objectives shall be considered:
a) Increase the job opportunities and income potential for
persons within the City,
b) Increase the tax base to facilitate financing of public
services,
c) Encourage business to utilize local suppliers to the
greatest extent possible,
d) The direct benefit to the City's citizens,
e) Retention of employment which might otherwise leave the
community,
f) Competition with existing retail establishments will be
discouraged except for purposes of redevelopment.
g) Special construction and built-ins suitable only to one
industry or business will not be included in the
financing, and
h) No tax exempt enterprise shall be considered for Tax
Exempt Industrial Development Mortgage Financing.
8. The applicant shall select at its expense qualified financial con-
sultants and/or underwirters as well as legal counsel to prepare all
necessary documents and materials. The City Council may rely on
the opinion of such experts and the application shall be accompanied
by applicant's letter of intent and a financial analysis by the
underwriter regarding economic soundness of the applicant as well
as the financial consultant/underwriter opinion regarding the
financial strength of the applicant, feasibility of the project
and a tentative letter of commitment from the lending institution.
9. The applicant must not commence any part of the construction of the
project until there has been preliminary approval by the Council
of the application for financing.
10. The City Council reserves the right to deny any application for
financing at any stage of the proceedings prior to adopting
the final resolution authorizing issuance of a tax exempt mortgage.
11. The City is to be reimbursed, and held harmless, for and from any
out-of-pocket costs related to the actual or proposed issuance of
the financing. To assure compliance with this provision, the
applicant shall submit with the application a deposit in the
amount of $1,500. The City shall charge against said deposit
a11 administrative, legal, planning, fiscal, appraising and
any other expenses incurred by the City in connection with the
financing proposal whether or not the proposed financing is
completed.
12. All applicants shall supply information requested in the Tax
Exempt Mortgage request form. The application shall be completed
and submitted to the City at least two weeks fore Council's
initial review.
Robert R. Hoover, Mayor
ATTEST:
----
John rphy, City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by
Member Johnson and upon vote being taken thereon, the following members voted
in favor thereof: Anderson, Hoover, Johnson and Thorsen and the following
voted against the same: Stockman, whereupon said resolution was declared
duly passed and adopted, signed by the Mayor and his signature attested
by the City Clerk.
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