HomeMy WebLinkAbout6359 - ADMIN Resolution - City Council - 1979/09/171
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RESOLUTION NO, 6359
SEPTEMBER 17, 1979
RESOLUTION GIVING PRELIMINARY APPROVAL
TO A PROPOSED INDUSTRIAL DEVELOPMENT
PROJECT BY LELAND E. GOTTSTEIN AND MARY GOTTSTEIN
UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT,
AUTHHORIZING THE SUBMISSION OF AN APPLICATION TO THE
COMMISSIONER OF SECURITIES FOR APPROVAL THEREOF AND
AUTHOF.IZING THE PREPARATION OF DOCUMENTS AND
MATERIALS IN CONNECTION WITH THE PROJECT
Resolved by the City Council of the City of St. Louis
Park, Minnesota, as follows:
1. There has been presented to this Council a proposal
by Leland E. Gottstein and Mary Gottstein, individuals residing
in the City of St. Louis Park, Minnesota (the "Borrowers"), that
the City undertake a project pursuant to the Minnesota Municipal
Industrial Development Act (Minnesota Statutes, Chapter 474), to
provide financing for the acquisition and construction in the
City of a building to be used as an office and warehouse facility,
and the acquisition and installation of equipment therefor,
together with any site improvements required in relation thereto
(hereinafter called the "Project"). Under the proposal, the
Project will be owned by the Borrowers. The Borrowers will enter
into a loan agreement with the City upon such terms and conditions
as are necessary to produce income and revenues sufficient to
pay, when due, the principal of and interest on up to approximately
$1,400,000 Industrial Development Revenue Bond of the City to be
issued pursuant to said Chapter 474, Minnesota Statutes, to
provide monies for the Project, and the City will pledge its
interest in the loan agreement to secure the bonds.
2. As required by said Chapter 474, Minnesota Statutes,
this Council conducted a public hearing on September; 17 , 1979,
on the proposal to undertake and finance the Project, after
publication in the official newspaper and a newspaper of general
circulation in the City of a notice of the time and'place of
hearing, stating the general nature of the Project and an estimate
of the principal amount of bonds or other obligations to be
issued to finance the Project and stating that a draft copy, of
the proposed Application to the Commissioner of Securities,
together with all attachments and exhibits thereto, shall be
available for public inspection at the office of the City Clerk,
Monday through Friday, from 8 a.m. to 4:30 p.m. to and
including the day of hearing; and all parties who appeared at the
public hearing were given an opportunity to express their views
with respect to the proposal.
3. It is hereby found, determined and declared that
the purpose of the Project is and the effect thereof will be to
promote the public welfare by the attraction, encouragement and
development of economically sound industry,, agriculture and
commerce so as to prevent, so far as possible, the emergence of
blighted and marginal lands and areas of chronic unemployment;
the retention and development of industry to use the available
resources of the community in order to retain the benefit of its
existing investment in educational and public service facilities,
by halting the movement of talented, educated personnel of mature
age to other areas and thus preserving the economic and human
resources needed as a base for providing governmental services
and facilities; and the more intensive development of land avail-
able in the area to provide amore adequate tax base to finance
the cost of governmental services in the City, County and School
District where the Project is located.
4. The Project is hereby given preliminary approval by
the City subject to approval of the Project by the Commissioner
of Securities and subject to final approval by this Council and
by the purchasers of any bonds to be issued as to the ultimate
details of the bonds and the Project.
5. In accordance with Section 474.01, Subd. 7a, Minnesota
Statutes, the Mayor, the City Manager, the City Clerk, and such
other officers and members of the City as may from time to time
be designated are hereby authorized and directed to submit an
Application for approval of the Project to the Commissioner of.
Securities and request her approval thereof, and the Mayor, the
City Manager, the City Clerk, and other officers, employees and
agents of the City are hereby authorized to provide the Commissioner
with such preliminary information as she may require. The
Borrowers, Messrs. Faegre & Benson as bond counsel, the City
Attorney, and other City officials are also authorized to initiate
the preparation of a proposed loan agreement and such other
documents as may be necessary or appropriate to the Project so
that, when and if the proposed Project is approved by the Com-
missioner and this Council gives its final approval thereto, the
Project may be carried forward expeditiously.
6. The Borrowers have agreed to pay any and all costs
incurred by the City in connection with the Project whether or
not the Project is approved by the Commissioner and whether or
not the Project is carried to completion and to indemnify the
City, its officers and employees from all liability which the
City and any officers and employees may incur in connection with
the Project or the issuance and sale of the bonds.
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7. The Borrowers are hereby authorized to enter into
such contracts, in their own names and not as agent's for the
City, as may be necessary for the acquisition and construction of
the Project by any means available to them and in the manner they
determine without ,advertisement for, bids as may be required •for
the acquisition or construction of other municipal facilities,
but the City shall not be -liable on any such contracts.
Adopted by the City Council September 17, 1979.
Attest:
ay -or
inistration: Appryed as to form and legality:
City Attorney