Agenda - Council - 02/26/1979 - Laserfiche WebLink

Home

construction and installation thereon of.buildings and improve- ments, and will result in the temporary employment of addi- tional persons to work in and about said Project, and the permanent addition to new housing for persons employed in the City and the metropolitan area, and the addition of some additional permanent jobs; (g) The City Council has been advised by repre- :~entatives of the Company that conventional, commercial financing to pay the entire capital cost of the Project ~s ava~lab].e 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 the Company has also advised this Council that with the aid of municipal financing, and its resulting low borrowing cost, the Project is economial ly feasible; (h) R~per, Jaffray & Hopwood, Incorporated, invest- ~ent bankers, have advised that on the basis of information submitted to them and their discussions with representatives of the Company, such bonds could in their opinion be issued and sold upon favorable rates and terms in the amount to pay all or a.portion of the cost'of undertaking the Project, and that any required equity investments can reasonably be expected to be available; (i) Brings and Morgan, Professional Association, Bond Counsel, have advised the 'City of the legality and tax-exempt features of the financing .assistance requested. NOW, THEREFORE, BE tT RESOLVED by the City of Ramsey, Minnesota, as follows: 1. The City hereby gives preliminary approval to the proposal of Company that the City undertake financing assis- tance to the Project pursuant ot th~'Minnesota Municipal In- dustrial Development Act (Chapter 474, Minnesota Statutes), consisting of construction and improvement of facilities within the City pursuant to specifications approved by the Company suitable for the operations described under revenue agreements between the City and the Company upon such terms and conditions with provisions for revision from time to time as necessary, so as to produce income an~ revenues sufficient to pay, when due, the principal amount of up to approximately $8,000,000 to be issued in one or more series pursuant to the Act to finance all or a part of the acquisition, construction and improvement of said Project; and said proposal may also provide for the entire interest of City herein to be pledged and mortgaged to the