HomeMy WebLinkAbout5860 - ADMIN Resolution - City Council - 1977/10/03It
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(WIORI % {, 1977
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RESOLUTION N0. 5860
RESOLUTION AUTHORIZING ISSUANCE OF INDUSTRIAL REVENUE
BONDS. REQUESTING APPROVAL BY COMMISSIONER OF SECURITIES, AND
AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS PURSUANT TO
MUNICIPAL INDUSTRIAL DEVELOPMENT ACT
BE IT RESOLVED by the City Council of the City of St. Louis Park,
Minnesota as follows:
Section 1. Policy and Purpose.
1.01. For the purpose of promotion, attraction, encouragement
and development of economically sound commerce, preserving and developing
a tax base adequate to finance necessary public services, and encouraging
employment opportunities for the citizens of the City and surrounding area,
the City is authorized by the Municipal Industrial Development Act,
Minnesota Statutes, Chapter 474, as amended, to acquire and lease real
and personal property for use by a revenue-producing enterprise, to be
financed through the issuance of revenue bonds secured by the properties
and the rentals thus made available, or, alternatively, to issue revenue
bonds for the purpose of providing funds to be loaned to the enterprise
for acquisition of such property.
1.02. McGarvey Coffee Company, Inc. referred to herein as the
Company, is engaged in the roasting and processing of coffee and the
distribution of coffee and other food products,desires- to undertake a
Project in the City at a cost presently estimated at not more than
$2,000,000, to acquire, improve, and equip a facility formerly occupied
by Skippy Peanut Butter, Div. of Corn Products, Inc.
1.03. The Project would increase the level of economic activity
in the community, would provide additional employment opportunities, for
the citizens of the City and surrounding area, and would enhance the
reputation of the area as a desirable location for other suitable businesses.
1.04. The City is advised by representatives of the Company that
the project will be more feasible with the aid of municipal financing and
the resulting lower borrowing' cost, and the availability of financing
will be an inducement to the Company to undertake the Project in the City.
Section 2. Authorization.
2.01. Subject to approval of the Project by the Commissioner of
Securities of the State of Minnesota, and subject to the mutual agreement
of the City Council, the Company and the purchaser of the bonds as to the
details of an indenture, lease or loan agreement, and other documents
necessary to evidence the issuance of the bonds, the Project described
in Section 1 is approved and authorized and the issuance of revenue bonds
of the City in an amount not to exceed $2,000,000 is hereby authorized.
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2.02. The Mayor and City Manager and/or City Clerk are authorized
and directed to submit the Project for approval by the Commissioner of
Securities as tending to further the purpose and policies of the Municipal
Industrial Development Act, and to cause such information concerning the
Project to be submitted to the Commissioner as he shall require for this
purpose.
2.03. The City Attorney is hereby authorized to assist in the
preparation of necessary documents relating to the Project, and to consult
with the Company, the purchaser of the bonds and bond counsel as to the
maturities, interest rates and other terms and provisions of the bonds :',{
the covenants and other provisions of the lease or loan agreement and
indenture, and to submit such documents to the Council for final ,; yip, m '
2.04. Nothing in this resolution or in the dnctmients w,
pursuant hereto shall authorize the expenditure of any Binds on the Project
other than the revenues thereof or the proceeds of the bonds or other
funds granted to the City for this purpose. The bonds shall not constitute
a charge, lien or encumbrance, legal or equitable, upon any property or
funds of the City except the Project and the revenue pledged to the payment
thereof nor shall the City be subject to any liability thereon. No
bondholder shall ever have the right to compel any exercise of the taxing
power of the City to pay any such bonds or the interest thereon, nor to
enforce payment thereof against any property of the City except the Project.
Each bond shall recite in substance that the bond, including interest
thereon, is payable solely from the revenue pledged to the City within the
meaning of any constitutional or statutory limitation. It is understood
that all fees and costs incurred by the City in the issuance of said bonds,
including fees of bond counsel and the City Attorney, shall be the respons-
ibility of the Company whether or not the bonds are actually issued.
Adopted by the City Council October 3, 1977.
Attest:
GR.
ity Clerk
(friai.s4-4.-001_.-
Reviewed for administration: Approved as to form and legality:
cting City Manager
City Attorney