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HomeMy WebLinkAbout6311 - ADMIN Resolution - City Council - 1979/07/16JULY 16, 1979 6d RESOLUTION NO. 6311 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 DOCU- MENTS 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: f r 1 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. 1.2 Fred G. Anderson, Inc., a Minnesota corporation (hereinafter the "Company"), has advised this Council of its desire to acquire and improve land and construct and equip thereon an office building of approximately 60,000 square feet for use as its corporate headquarters, retail showroom, and warehouse facility (the "Project") within the City, to be operated by the Company in its business of the warehousing and sale of paint, wallpaper and home decorating supplies at wholesale and retail. 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 a representative of Miller & Schroeder Municipals, Inc., investment bankers and dealers in municipal bonds, that on the basis of information submitted to them and their discussions with representatives of the Company, Industrial Development Revenue Bonds can be successfully issued and sold by the City to finance 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 bonds under the provisions of Chapter 474% to finance the Project of the Company at a cost presently estimated to be approximately $2,500,000. ‘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 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 LeFevere, Lefler, Pearson, O'Brien & Drawz as bond counsel and other officers, employees, and agents of the City are hereby authorized to provide the Commissioner with any preliminary information he may need 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. Attest: Adopted by the City Council July 16, 1979. afil ity Clerk Revi-'med fol administration: Approved as to form and legality: ,.),"___Aop///z anage City ttorne