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87-113 - 11-04 Approve Bonds Graco Inc Prepare Necessary DocumentsResolution 87-113 November 4, 1987 Member Thompson introduced the following resolution and moved its adoption: RESOLUTION GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF REVENUE BONDS ON BEHALF OF GRACO INC.; AUTHORIZING THE 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 Findings 1.1. The City has heretofore issued its $6,000,000 Industrial Development Revenue Bonds (Graco Inc. Project), Series 1982 (the Series 1982 Bonds) under and pursuant to Minnesota Statutes, Chapter 474, as amended (now recodified at Minnesota Statutes, Sections 469.152 to 469.165, and, as so recodified, the Act), and lent the proceeds thereof to Graco Inc., a Minnesota Corporation (the Borrower) to finance a corporate/administrative office facility located at 4050 Olson Memorial Highway in the City. There are $6,000,000 in principal amount of Series 1982 Bonds outstanding on the date hereof. 1.2. This Council has received a proposal from the Borrower that the City issue its revenue bonds under the Act to refund the Series 1982 Bonds, as authorized by Section 469.155 Subdivision 12 of the Act. 1.3. On the basis of information provided to this Council by the Borrower, and such other facts and circumstances as this Council deems relevant, this Council hereby finds, determines and declares as follows: (a) This Council has been advised by representatives of the Borrower that the issuance of the revenue bonds to refund the outstanding Series 1982 Bonds will reduce total debt service charges to the Borrower, thereby promoting the public purposes and legislative objectives of the Act by providing substantial inducement for the continuation of the commercial operations of the Borrower in the City. (b) This Council has also been advised by representatives of the Borrower that on the basis of their discussions with potential buyers of tax-exempt bonds, revenue bonds of the City could be issued and sold upon favorable rates and terms to refund the outstanding Series 1982 Bonds. (c) The project financed with the proceeds of the Series 1982 Bonds was approved by the Commissioner of the Minnesota Department of Energy, Planning and Development as required by the Act. (d) The City is authorized by the Act to issue its revenue bonds to refund the Series 1982 Bonds. SECTION 2 Determination to Proceed 2.1. On the basis of the information given the City to date, it appears that it would be desirable for the City to issue its revenue bonds under the provisions of the Act to refund the Series 1982 Bonds. Resolution 87-113 - Continued November 4, 1987 2.2. It is hereby determined to proceed with the refunding and this Council hereby declares its present intent to have the City issue its revenue bonds under the Act to refund the Series 1982 Bonds. Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the City or its City Council to issue or to cause the issuance of such revenue bonds. All details of such revenue bond issue and the provisions for payment thereof shall be subject to final approval thereof by this Council and may be subject to such further conditions as the City may specify. The revenue bonds, if issued, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, except the revenues specifically pledged to the payment thereof, and each bond, when, as and if issued, shall recite in substance that the bond, including interest thereon, is payable solely from the revenues and property specifically pledged to the payment thereof, and shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 2.3. The Mayor, City Clerk, City Attorney and other officers, employees and agents of the City are hereby authorized and directed to initiate and assist in the preparation of such documents as may be appropriate to the issuance of the revenue bonds and the refunding of the Series 1982 Bonds. SECTION 3 General 3.1. If the bonds are issued and 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 of, and interest and redemption premium, if any, on the bonds as and when the same shall become due and payable. 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 the issuance of the revenue bonds and the refunding of the Series 1982 Bonds, whether or not the City authorizes the issuance of the revenue bonds, will be paid by the Borrower upon request. 3.3. The Mayor and City Clerk are directed, if the bonds are issued and sold, thereafter to comply with the provisions of Section 469.154, Subdivisions 5 and 7 of the Act. Mary E. Aerson, Payor p ATTEST: Shirley 41s6n, City Clerk Resolution 87-113 - Continued November 4, 1987 The motion for the adoption of the foregoing resolution was seconded by Member Bakken and upon a vote being taken thereon, the following voted in favor thereof: Anderson, Bakken, Johnson, Stockman and Thompson; 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.