Loading...
#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. 1 1