HomeMy WebLinkAbout6310 - ADMIN Resolution - City Council - 1979/07/16JULY 16, 1979
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RESOLUTION NO. 6310
RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT
UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT;
REFERRING THE PROPOSAL TO THE COMMISSIONER
OF SECURITIES FOR APPROVAL: AUTHORIZING
EXECUTION OF A MEMORANDUM OF AGREEMENT
AND PREPARATION OF NECESSARY DOCUMENTS
BE IT RESOLVED by the City Council of the City of St. Louis
Park, Minnesota, as follows:
1. It is hereby found, determined and declared as follows:
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1.1 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, emergency of blighted lands and areas of chronic
unemployment, and the state has encouraged local government units to
act to prevent such economic deterioration.
).2 CKR Development Company, a Minnesota general partnership
(hereinafter the "Company"), has advised this Council of its desire to
acauire and improve land and construct and equip thereon an office
building of approximately 25,000 square feet to be leased by the
Company to Minnesota Rubber Company, a Minnesota Corporation for use
as the corporate headquarters of Minnesota Rubber Company (the
"Project") within the City, to be operated by Minnesota Rubber Company
in its business as a job supplier of precise molded parts.
1.3 The existence of the Project within the City would
significantly increase the tax base of the City, County and school
district in which the City is located, and would provide opportunities
for employment for residents of the City and surrounding area.
1.4 The City has been advised that conventional, commercial
financing to pay the capital 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 financing, and its resulting low
borrowing cost, the Project is economically more feasibile.
1.5 This Council has been advised by Northwestern National Bank
of Minneapolis, that on the basis of information submitted to them and
their discussions with representatives of the Company that it will
undertake to purchase the obligation of the City issued in and of the
Project.
1.6. The City is authorized by Minnesota Statutes, Chapter 474,
to issue its revenue bonds to finance capital projects consisting of
properties used and useful in connection with a revenue producing
enterprise, such as that of the Company, and the issuance of such
bonds by the City would be a substantial inducement to the Company to
construct its facility within the City.
2. 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
industrial development revenue ponds under the provisions of Chapter
474 to finance the Project of the Company at a cost presently
estimated to be approximately $1,500,000.
3. The Project above referred to is hereby given preliminary
approval by the City and the issuance of bonds for such purpose and in
such amount approved, subject to approval of the Project by the
Commissioner of Securities of the State of Minnesota and to the mutual
agreement of this body, the Company and the initial purchasers of the
bonds as to the details of the bond issue and provisions for their
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payment. In all events, it is understood, however, that the 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
bond, when, as and if issued, shall recite in substance that the bond,
including interest thereon, is payable solely from the revenues
received from the Project and properly pledged to the payment thereof,
and shall not constitute a debt of the City within the meaning of any
constitutional, charter or statutory limitation thereon.
4. The form of Memorandum of Agreement relating to the issuance
of revenue bonds of the City to finance the cost of the Project is
hereby approved, and the Mayor and City Manager are hereby authorized
and directed to execute the Memorandum of Agreement in behalf of the
City.
5. In accordance with Minnesota Statutes, Section 474.01,
Subdivision 7A, the City Manager is hereby authorized and directed to
submit the proposal for the Project to the Commissioner of Securities
for his approval. The Mayor, City Clerk, City -Manager, City Attorney
and other officers, employees, and agents of the City and Messrs.
LeFevere, Lefler, Pearson, O'Brien & Drawz, as bond counsel, are
hereby authorized to provide the Commissioner with any preliminary
information needed 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.
Adopted by the City Council July 16, 1979.
Attest:
f44141)411041:‘"A44141--
Approyd
for
si.ent Pf`o Tem
Reviewed as to prm and legality:
�Ci y Manager / City/Attorney