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#82-020 03-16-82 Approve Minnesota Municipal Industrial DevelopmentResolution 82-20 March 16, 1982 2 5 1 Member Stockman introduced and read the following resolution and moved its adoption: RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE DEPARTMENT OF ENERGY, PLANNING AND DEVELOPMENT FOR APPROVAL; AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota, as follows: Section 1. Recitals and Findings. 1.01. This Council has received a proposal that the City finance a portion of the cost of a proposed project under Minnesota Statutes, Chapter 474 (the Act), consisting of the acquisition of land, the construction of a building and acquisition of equipment to be used by Graco, Inc. (the Borrower), as an office building. 1.02. At a public hearing, duly noticed and held on March 16, 1982, in accordance with the Act, on the proposal to undertake and finance the Project, all parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal. Based on such hearing and such other facts and circumstances as this Council deems relevant, this Council hereby finds, determines and declares as follows: (a) The welfare of the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce through govermmnental acts to prevent, so far as possible, emergence of blighted lands and areas of chronic unemployment, and the State has encouraged local government units to act to prevent such economic deterioration. (b) The Project would further the general purposes contemplated and described in Section 474.01 of the Act. (c) The existence of the Project would add to the tax base of the City, the County and School District in which the Project is located and would provide increased opportunities for employment for residents of the City and surrounding area. (d) This Council has been advised by representatives of the Borrower that conventional, commerical financing to pay the cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced, but that with the aid of municipal borrowing, and its resulting lower borrowing cost, the Project is economically more feasible. (e) This Council has also been advised by the Borrower, that on the basis of their discussions with potential buyers of tax-exempt obligations, that the City's Industrial Development Revenue Note in a principal amount not exceeding $6,500,000 (the Note) could be issued and sold upon favorable rates and terms to finance the Project. (f) The City is authorized by the Act to issue said Note to finance the Project, and the issuance of such Note by the City would be a substantial inducement to the Borrower to acquire and construct the Project. 252 Resolution 82-20 - Continued March 16, 1982 Section 2. Preliminary Approval of the Project 2.01. On the basis of information given the City to date, it appears that it would be desirable for the City to issue its Industrial Development Revenue Note under the provisions of the Act to finance the Project, in an amount not exceeding $6,500,000. 2.02. It is hereby determined to proceed with the Project and its financing and the Project is hereby given preliminary approval by the City and the issuance of the Note in such amount is hereby approved, subject to the approval of the Project by the Department of Energy, Planning and Development, the fulfillment of such other conditions as the City may require with respect to the issuance of the Note in connection with the Project, and the mutual agreement of this Council and the Borrower as to the details of the Note and provisions for its repayment. In all events, it is understood, however, that the Note shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, except the Project, and that when, as and if issued, shall recite in substance that the Note, including interest thereon, is payable solely from the revenues received from the Project and property pledged to the payment thereof, and shall not constitute a debt of the City. 2.03. The form of the Application to the Department of Energy, Planning and Development with attachments, is hereby approved, and the Mayor and the City Clerk are authorized to execute said documents in behalf of the City. 2.04. In accordance with Section 474.10, Subdivision 7a of the Act, the Mayor and the City Clerk are hereby authorized and directed to cause said Application to be submitted to the said Department for approval of the Project. The Mayor, the City Clerk, the City Attorney and other officers, employees and officers of the City are hereby authorized and directed to provide the Department with preliminary information the Department may need for this purpose, and the City 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. Section 3. General. 3.01. If the Note is issued and sold, the City will enter into a lease, sale or loan agreement or similar agreement satisfying the requirements of the Act (the Revenue Agreement) with the Borrower. The lease rentals, installment sale payments, loan payments or other amounts payable by the Borrower to the City under the Revenue Agreement shall be sufficient to pay the principal, interest and redemption premium, if any, on the Note as and when the same shall become due and payable. 3.02. The Borrower has agreed and it is hereby determined that any and all direct and indirect costs incurred by the City in connection with this Project, whether or not the Project is carried to completion, and whether or not approved by the Department of Energy, Planning and Development, and whether or not the City by resolution authorizes the issuance of the Note, will be paid by the Borrower upon request. 3.03. The Mayor and City Clerk are directed, if the Note is issued and sold, thereafter to comply with the provisions of Minnesota Statutes, Section 474.01, Subdivision 8. Resolution 82-20 - Continued 1 ATTEST: March 16, 1982 253 os ary ayor The motion for the adoption of the foregoing resolution was seconded by Member Johnson and upon a vote being taken thereon, the following voted in favor thereof: Anderson, Johnson, Mitchell and Stockman, and the following abstained: Thorsen, and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted, signed by the Mayor and her signature attested by the City Clerk. 1 1