Agenda - Council - 07/08/1997 - Laserfiche WebLink

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PARABODY EXPANSION By: Ryan R. Schroeder CASE Background: For the past few years, staff has been working with Parabody, a local manufacturer of fitness equipment, on a possible expansion of their facility on Sunfish Lake Boulevard. The company had completed their current building in 1989, with the assistance of Industrial Revenue Bond financing authorized by the City of Ramsey. At this time, Parabody is requesting consideration of a similar action for a potential expansion during 1998. Their intent is to refinance the current loan and to provide for additional capital to provide for an estimated 40,000 square foot addition to their current facility. The addition to their current facility could increase to 100,000 square feet. The company will reach a decision on whether to add 40,000 or 100,000 square feet by November 15, 1997. Enclosed for your consideration is a resolution provided by the Parabody counsel (as well as a draft public hearing notice) passage of which will allow for the scheduling of a public hearing to consider the Industrial Revenue Bond program. This is a competitive program within the State of Minnesota (and all states in that each state receives a pool of funding authority from the federal government). Therefore,'adoption of this resolution only allows for Parabody to apply to the pool. It does not guarantee that funding will be available to them. It should also be noted that if funding is secured ultimately through this mechanism, the full faith and credit of the City of Ramsey is not impacted by the bonds. In other words, if the issuer defaults, bond holders cannot look to the City of Ramsey to reimburse any shortfalls. It should further be noted, however, that with an issuance of this type the marketplace assumes that the authorizing City does conduct some due diligence prior to placing its name on the bonds. The action requested at this point, however, is that the Council authorizes Parabody to make the application and provides a mechanism to schedule a public hearing which would likely take place within the next month. Passage of this action must take place prior to the first of the year in order to allow Parabody to compete for the funding. Council Action: ,tO ~ Motion to adopt Resolution #97-07_~ relating to a project under the Municipal Industrial Development Act, giving the project preliminary approval subject to apublic hearing. Reviewed by: City Administrator /jmt ParaBod. doc