#273 10-20-80 Establish Industrial Commercial DevelopmentResolution #273.
October 20, 1980
Member Stockman introduced and read the following resolution and moved its adoption:
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 Develop-
ment 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 or alleviate chornic 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
1. TYPE OF FINANCING: Tax-exempt mortgage financing will be the only
type of tax-exempt industrial/commercial development financ-ng
available through the City. Industrial revenue bond financing
will not be approved subsequent to the adoption of this policy.
WHEREAS, the
City
Council of the City 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. TYPE OF FINANCING: Tax-exempt mortgage financing will be the only
type of tax-exempt industrial/commercial development financ-ng
available through the City. Industrial revenue bond financing
will not be approved subsequent to the adoption of this policy.
Valley Housing and Redevelopment Authority.
2. ELIGIBLE PROJECTS: (A) Projects located within redevelopment
areas created pursuant to State Statute 273; (B) Renovation
or removal for construction of new buildings in areas where
significant deterioration of buildings exist and where if
remedial action is not taken, the development of blight will
emerge; (C) Projects located on land where abnormal soil
conditions exist which require piling and other significant
soil corrections to permit building; (D) New utilization of
existing structures subject to the new use generating at least
twenty-five additional jobs over the previous use and where it
can be shown that the new use offers significant advantages to
the City over the previous use. Further, the building proposed
for reuse must either meet the requirements of currently existing
codes or obtain specific waivers from currently existing codes;
(E) Applications for tax-exempt industrial development mortgage
financing for housing purposes shall be referred to the Golden
Valley Housing and Redevelopment Authority.
Resolution #273 (continued)
3. CONDITIONS: (A) No action will be taken on any application
for tax-exempt financing until project in question is on
land which is properly zoned, any required waivers have been
granted, and the Council has taken action follwoing the public
hearing on any proposed platting of the property. An appli-
cation may be considered prior to the plan being reviewed by
the Building Board of Review; (B) Projects developed within
the following zoning classifications shall be eligible: business
and professional offices, light industrial, industrial, and
terminal warehousing. Uses exclusively described within the
commercial zoning classification shall not be approved for this
type of financing except for purposes of redeveloping exisitng
commercial properties as defined in Sections B and C of this
policy; (C) Under no circumstances will a tax-exempt enter-
prise be eligible for tax-exempt industrial mortgage financing;
(D) Only projects which can be developed without construction
of additional storm sewers shall be eligible; (E) Special
construction and built-ins suitable only to one industry or
business will not be included in the financing; (F) The final
decision as to whether to grant a specific propopnet tax-exempt
financing shall be fully discretionary of the City Council;
(G) The City Council reserves the right to deny any application
for the financing at any stage of the proceedings prior to
adopting the final resolution authorizing issuance of a tax-
exempt mortgage; (H) Mortgages must be placed within 12 months
of approval.
4. PROCEDURES: (A) All applicants shall supply information re-
quested in the tax-exempt mortgage request form; (B) Prior to
the City Council considering an application for tax-exempt
financing, the application shall be referred to the tax-exempt
financing review committee. The committee shall consist of one
representative each from the Building Board of Review, Board of
Zoning Appeals and Planning Commission. The committee shall
review each application to make the following findings: 1. Does
the proposed development require tax-exempt financing as a result
of poor soil conditions to make the proposed development com-
petitive with similar developments within the City? 2. Does
the proposed development offer significant advantages to the
City which would not be available otherwise which warrants this
project receiving tax-exempt financing over other projects?
The committee shall make this and such findings as it deems
necessary for it to prepare a recommendation to the City
Council as to whether this project should be granted tax-exempt
financing; (C) Within three weeks of a recommendation being
prepared by the tax-exempt financing committee, the City Council
will then determine of a public hearing should be called on this
application; (D) If the City Council calls a public hearing,
the public hearing as described in Minnesota State Statutes
474.01 Subdivision B shall be held no earlier than four weeks
following the Council meeting; (E) Notice of the time and place
of the hearing and stating the general nature of the project and
an esitmate of the principal amount of bonds or other obligations
to be issued to finance the project shall be published at least
once, not less than 15 days nor more than 30 days prior to the
date fixed for the hearing in the official newspaper and a news-
Resolution #273. (continued)
l
ROSE RY THO SEN, MAYOR
ATTEST:
MU
The motion for the adoption of the foregoing resolution was seconded by Member
Johnson and upon vote being taken thereon, the following voted in favor thereof:
Johnson, Mitchell, Stockman and Thorsen, and the'following voted against the same:
Anderson, whereupon said resolution was declared duly passed and adopted, signed
by the Mayor and her signature attested by the Clerk.
paper of general circulation of the municipality or redevelopment
agency. The notice shall state that a draft copy of the proposed
application to the Commissioner of Security, together with all
attachements and exhibits thereot, shall be available for public
inspection following the publication of such notice and shall
specify the place and times, where and when it will be so avail-
able. At the time and the place fixed for the public hearing,
the City Council shall give all parties who appear at the hearing
an opportunity to express their views with respect to the proposal
to undertake and finance the project. Following the completion of
the public hearing, the City Council shall adopte a resolution
determining whether or not to proceed with the project and its
financing and may thereafter apply to the Commissioner of Security
for approval of the project. The City Attorney's office shall be
responsible for publishing all necessary notices. A copy of the
application and all necessary documentation shall also be furnished
to the City Attorney's office for the review and approval; (F) The
applicant shall select at its expense qualified financial consul-
tants and/or underwriters 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 accom-
panied by the applicant's letter of intent and a financial analysis
by the underwriter regarding economic soundness of the applicant as
well as the financial strength of the applicant, feasibility of the
project and a tentative letter of commitment from the lending
institution.
5. COSTS: 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 pro-
vision, the applicant shall submit with the application a deposit
in the amount of $2,500. The City shall charge against said
deposit all 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. The City reserves the right to collect from the
applicant any additional costs which may be in excess of the
amount of the deposit.
l
ROSE RY THO SEN, MAYOR
ATTEST:
MU
The motion for the adoption of the foregoing resolution was seconded by Member
Johnson and upon vote being taken thereon, the following voted in favor thereof:
Johnson, Mitchell, Stockman and Thorsen, and the'following voted against the same:
Anderson, whereupon said resolution was declared duly passed and adopted, signed
by the Mayor and her signature attested by the Clerk.
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