Laserfiche WebLink
CASE # <br /> <br />INDUCEMENT RESOLUTION AUTHORIZING INDUSTRIAL REVENUE BONDS <br /> By: Cindy Sherman, Community Development Director <br /> <br />Background: Thc City's Economic Development consultant Mike Mulrooney, of Advance <br />Resources for Development Inc. has been working with a manufacturing company on relocating <br />to the City of Ramsey. The Company, Anderson & Dahlen (see attached profile), is planning to <br />construct an 80,000 to 120,000 square foot building in the AEC Energy Park at an estimated cost <br />of $5,000,000. The Company currently employs 110 people and is projecting that it will add 40 <br />to 50 new employees within two years following completion of the project. The Company is <br />planning to begin construction of the project in the Spring of 1999. The development of the <br />project in the City of Ramsey is contingent upon the approval of industrial revenue bond <br />financing fi:om the-City and the State of Minnesota~ Industrial revenue bonds' are a financing <br />mechanism authorized by Congress to provide' financing for manufacturing related companies at <br />tax exempt financing rates. Current rates for tax exempt financing for projects of this type are in <br />a range of 4.5 to 5.5 percent. In order to proceed with this type of financing the City Council is <br />requested to consider approval of an inducement resolution. The inducement resolution is the <br />first step in the process the Company must'complete to secure industrial revenue bond financing. <br />If the Council adopts the resolution then an application will be made to the State of Minnesota <br />for an allocation of industrial revenue bond financing. The intent is to make the application in <br />January of 1999 with approval expected in February. <br /> <br />Observations: Industrial revenue bonds are not general obligation bonds. They do not require a <br />referendum nor do they require a pledge of the full faith and credit of the community. <br /> <br />Recommendation: Staff recommends that the City Council adopt the attached resolution. <br /> <br />Council Action: <br /> <br />To adopt resolution 98-12-XXX reciting a proposal for an industrial development project and <br />taking official action with respect thereto and indicating preliminary intent to assist the financing <br />of the project pursuant to the Minnesota Munic. ipal Industrial Development Act. <br /> <br />7 <br /> <br />Review Checklist: <br /> <br />City Administrator <br />Economic Development Consultant <br /> <br />CC: 12/8/98 <br />g:\users\cindy~md&dah.do¢ <br /> <br /> <br />