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83-042 - 05-03 Approve Municipal Industrial Development ActResolution 83-42 May 3, 1983 Member Stockman introduced the following resolution and moved its adoption: RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE COMMISSIONER 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 (the "City"), as follows: SECTION 1 Recitals and Findinos 1.1. This Council has received a proposal that the City finance a proposed project under Minnesota Statutes, Chapter 474 (the "Act"), consisting of the acquisition of land and an existing industrial building thereon, and the renovation and equipping thereof, which building is located in the City at 6100 Olson Memorial Highway (the "Project") by Hayes Enterprises, a Minnesota general partnership, or a partnership to be formed by it (the "Borrower"). 1.2. At a public hearing, duly with the Act, on the proposal to who appeared at the hearing were with respect to the proposal to such hearing and such other fact relevant, this Council hereby fi noticed and held on May 3, 1983, in accordance undertake and finance the Project, all parties given an opportunity to express their views undertake and finance the Project. Based on s and circumstances as this Council deems nds, 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 governmental 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 the School District in which the Project is located; would provide increased opportunities for employment for residents of the City and the surrounding area. (d) This Council has been advised by a representative of the Borrower that conventional, commercial 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) The City is authorized by the Act to issue its revenue bonds to finance capital projects consisting of properties, real and/or personal, used or useful in connection with a revenue producing enterprise, such as that of the Borrower, and the issuance of such bonds by the City would be substantial inducement to the Borrower to acquire and install the Project. Resolution 83-42 - Continued May 3, 1983 SECTION 2 Prelim, inar _A"roval of Project 2.1. On the basis of information given the City to date, it appears that it would be in the best interest of the City to issue its revenue bonds under the provisions of the Act to finance the Project in an amount not exceeding $2,700,000.00. 2.2. It is hereby determined to proceed with the Project and its financing. Preliminary approval of the Project and the issuance of revenue bonds of the City (which may be in the form of a commercial development revenue note or notes) in such amount as hereby approved is hereby granted by the City, subject to the approval of the Project by the Commissioner of Energy, Planning and Development, the fulfillment of such other conditions as the City may require with respect to the issuance of its revenue bonds in connection with the Project, and the mutual agreement of this Council and the Borrower as to the details of the revenue bonds and provisions for their payment. In all events, it is understood, however, that the revenue bonds of the City shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, except the Project, and each revenue bonds, when, as and if issued, shall recite in substance that the revenue bond, 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. 2.3. The form of the Application to the Commissioner of Energy, Planning and Development, with attachments, is hereby approved, and the Mayor and City Recorder -Treasurer are authorized to execute said documents on behalf of the City. 2.4. In accordance with Section 474.01, Subdivision 7a, of the Act, the Mayor is hereby authorized and directed to submit the proposal of undertaking the Project to the Commissioner of Energy, Planning and Development, requesting approval of the project. The Mayor, City Clerk, City Attorney and other officers, employees and agents of the City are hereby authorized and directed to provide the Commissioner with any preliminary information the Commissioner may need for this purpose, and the City Attorney is also authorized, in cooperation with bond counsel to be approved by the City, to initiate preparation of such documents as may be appropriate to the Project in order that, if it is approved by the Commissioner, it may be carried forward expeditiously. SECTION 3 General 3.1. If the revenue bonds are 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 revenue bonds as and when the same shall become due and payable. Resolution 83-42 - Continued May 3 , 1983 3.2. 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 Commissioner of Energy, Planning and Development, and whether or not the City by resolution authorizes the issuance of the revenue bonds, will be paid by the Borrower upon request. 3.3. The Mayor is directed, if the revenue bonds are issued and sold, thereafter to comply with the provisions of Minnesota Statutes, Section 474.01, Subdivision 8. Rosemary Tho rs , fl a ATTEST: 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, 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 City Clerk.