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<br /> WHEREAS, the City has been advised that conventional, commercial
<br />financing to pay the capital cost of the Project is available at such costs of
<br />borrowing that the economic feasibility of operating the Pro~ect would be
<br />significantly reduced, but that with the aid of municipal financing, and its resulting
<br />lower borrowing cost, the Project is economically more feasible; and
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<br /> WHEREAS, this Council has been advised by a representative of the
<br />Developer that on the basis of information submitted to them and their discussions
<br />with representatives of area financial institutions and po~tential buyers of tax-
<br />exempt bonds, industrial development revenue bonds of the City could be issued
<br />and sold upon favorabl~ rates and terms to finance the Project; and
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<br /> WHEREAS, the City is authorized by Minnesota Statutes, Chapter 474, to
<br />issue its revenue bonds to finance the cost, in whole or in part, of the acquisition,
<br />eonstruction~ reconstruction, improvement or extension of capital projects
<br />consisting of properties used and useful in connection with a revenue producing
<br />enterprise, such as that of the Developer, and the issuance of such bonds by the
<br />City would be a substantial inducement to the Developer to construct its facility in
<br />the City; and ..
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<br /> WHEREAS, on the basis of information given the City~o date, it appears
<br />that it would be in the best interest of the City to issue its industrial development
<br />revenue bonds under the provisions of Chapter 474 to finance the Project of the
<br />Developer in an amount presently estimated not to exceed $2,50(l,000.
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<br />NOW, THEREFORE, BE IT RESOLVED THAT:
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<br /> 1. The Project is hereby given preliminary approval by the City and the
<br />issuance of the revenue bonds for such purpose and in such amount approved,
<br />subject to approval of the Project by the Minnesota Energy and Economic
<br />Development Authority and to the mutual agreement of this body, the Developer
<br />and the initial purchaser of the bonds as to the details of the bonds and provisions
<br />for their payment. In all events, it is understood, however, that the bonds of the
<br />City shall not constitute a charge, lien or encumbrance legal or equitable upon any
<br />property of the City except the Project, and the bonds, when, as, and if issued,
<br />shall recite in substance that the bonds, including interest thereon, is payable
<br />solely from the revenues received from the Project and property pledged to the
<br />payment thereof, and shall not constitute a debt of the City;
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<br /> 2. In accordance with Minnesota Statutes., Section 474.01, Subdivisior~
<br />7a, the Mayor of the City is hereby authorized and directed to ~submit the proposal
<br />for the Project to the Minnesota Energy and Economic Development Authority for
<br />approval of the Project. The Mayor and other officers, empldyees and agents of
<br />the City are hereby authorized to provide the Minnesota Energy and Economic
<br />Development Authority with any preliminary information needed for this purpose,
<br />and the City Attorney is authorized to initiate and assist in the preparation of such
<br />documents as may be. appropriate to the Project, if it is approved by the Minnesota
<br />Energy and Economic Development Authority.
<br />
<br /> 3. The law 'firm of Holmes & Graven, Chartered, is authorized to act as
<br />Bond Counsel and to assist in the preparation and review of necessary documents
<br />relating to the Project and bonds issued in connection therewith. The Mayor, City
<br />Attorney, and other officers, employees and agents of the City are hereby
<br />authorized to assist BOnd Counsel in the preparation of such documents.
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