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#82-027 03-16-82 Establish Industrial Commercial Development268 Resolution 82-27 March 16, 1982 Member Johnson introduced and read the following resolution and moved its adoption: RESOLUTION ESTABLISHING INDUSTRIAL/COMMERCIAL DEVELOPMENT TAX-EXEMPT MORTGAGE FINANCING POLICIES AND PROCEDURES 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 or 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 associate 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; NOW, 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: Privately placed tax-exempt mortgage financing will be preferred type of tax-exempt industrial/commercial development financing available through the City. The public sale of industrial revenue bonds will be limited to companies with assets of $5,000,000, subject to approval of the City Council. 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; 1 1 1 Resolution 82-27 - Continued March 16, 1982 269 L9 D. New or modified 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. Expansion of an existing business located in Golden Valley where: 1) the expansion increases employment of personnel in Golden Valley by 25% or 25 employees whichever is greater; and 2) the expansion eliminates or improves any existing adverse impact on the neighborhood; F. Applications for tax-exempt industrial development mortgage financing for housing purposes shall be referred to the Golden Valley Housing and Redevelopment Authority for its action. 3. Conditions: A. No action will be taken on any application for tax-exempt financing until the project in question is on land which is properly zoned, any required waivers or conditional use permits have been granted; and the Council has taken action following the public hearing on any proposed platting of the property. An application may be considered prior to the plan being reviewed by the Building Board Review; B. Projects developed within the following zoning classifications shall be eligible: busines 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 existing commercial properties as defined in Sections 2A and 2B of this policy; C. Under no circumstances will a tax-exempt enterprise 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. The final decision as to whether to grant a specific proponent tax-exempt financing shall be fully discretionary with the City Council. F. 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; G. Financing must be placed within 12 months of preliminary approval by the City Council; H. The developer shall provide the City, no later than April 1st of each year, with a report setting forth the remaining balance of outstanding tax-exempt financing. 270 Resolution 82-27 - Continued 4. Procedures: March 16, 1982 A. All applicants shall supply a completed application on the form provided by the City. With the application form, the applicant will submit an executed developer's agreement and a $3,500 deposit for City expenses. B. Upon receipt of the application, the City Manager will refer it to the appropriate City department and the City Attorney for comments. C. 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 determine eligibility. D. The City Attorney shall prepare all necessary resolutions to be approved by the City Council and shall be responsible for publishing the necessary notices. E. Within three weeks of a recommendation being prepared by the tax- exempt financing committee, the City Council will then determine if a public hearing should be called on this application. F. If the City Council calls a public hearing the public hearing as described in Minnesota State Statute 474.01, Subdivision B, shall be held no earlier than four weeks following the Council meeting. G. Notice of the time and place of the hearing and containing the information required by statute 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 newspaper of general circulation in the City. H. The applicant will deliver to the City Manager prior to publication of the notice a copy of the application to be submitted to the State of Minnesota with all necessary exhibits which will be kept on file by the City Clerk for review by all interested parties prior to the public hearing. A copy of the application and exhibits will be forwarded to the City Attorney for his review prior to the public hearing. The City Attorney will provide the City Council with his comments regarding the adequacy of the application and the developer's selection of bond counsel prior to or at the public hearing. I. 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 adopt a resolution determining whether or not to proceed with the project and its financing and may thereafter apply to the Commissioner of Securities for approval of the project (the "inducement resolution"). 1 1 Resolution 82-27 - Continued March 16, 1982 271 71 J. The applicant shall select at its expense qualified financial consultants 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 accompanied 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 feasibility letter regarding placement of the tax-exempt financing. K. After approval by the state and securing a firm commitment for sale of the bonds, the City Council shall adopt a final bond resolution. 5. Costs: The City is to be reimbursed, and held harmless, for and from any out -off 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 $3,500 and an exeucted developer's agreement in the form provided by the City. The City shall charge against said deposit all administrative, legal, planning, fiscal, appraising and any other expenses (which will include a $750 processing charge to be paid to the City) 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. ATTEST: .�� IM/ A,. -p 6, The motion for the adoption of the foregoing resolution was seconded by Member Mitchell and upon a vote being taken thereon, the following voted in favor thereof: Anderson, Johnson, Mitchell, Stockman and 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 Deputy City Clerk.