Agenda - Council - 05/24/2005 - Laserfiche WebLink

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RESOLUTION NO. RESOLUTION RECITING A PROPOSAL FOR AN INDUSTRIAL DEVELOPMENT PROJECT, TAKING OFFICIAL. ACTION WITH RESPECT THERETO INDICATING PRELIMINARY INTENT TO ASSIST THE FINANCING OF THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AND CALLING FOR A PUBLIC HEARING ON THE PROJECT (KILKENNY, LLC/SIGN-ZONE PROJECT) WHEREAS, ( ) The purpose of Minnesota Statutes, Sections 469.152 through 469.165 known as the Minnesota Municipal Industrial Development Act (the "Act") as found and determined by the 1,3gislaturc is to promote the welfare of the state by the active attraction and encouragement and development of economically sound industry and commerce to prevent-so far as possible the rm~ergence of blighted and marginal lands'and areas of chronic unemployment; () Factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration Of population in the .metropolitan areas and the rapidly rising increase in the amount and cost of governmental services required to meet the needs ol; the increased population and the need for development of land use which will provide an adequate tax base to finance these increased costs and access to employment opporttmities for such population; ( ) ]'he City Council of the City of Ramsey, Minnesota (the "City") has received a proposal l'rom Kilkenny, LLC (the "Company") and Sign-Zone, Inc. ("Sign-Zone"), that the City assist in financing a Project hereinafter described, through the issuance of revenue bonds in the approximate principal amount of $3,835,000 (hereinafter referred to in this resolution as "Revenne Bonds") pursuant to the Act; ( ) The City desires to facilitate the selective development of the community, retain and improve the tax base and help to provide the range of services and employment opportunities required by the population; and the Project will assist the City in achieving those objectives. The Project will help to increase tax capacities of the City and surrounding area and help maintain a po:4itive relationship between tax capacities and debt and enhance the image and reputation of the colnmumty; () The Project to be financed by the Revenue Bonds is the acquisition and renc, w~tion of' an approximately 109,000 square foot existing manufacturing facility located at 6400 Bunker Lake Boulevard in the City to be owned by the Company and leased to Sign-Zone and will result in the creation of up to 125 employment opportunities within the facility. ( ) The City has been advised by representatives of the Company that conventional, commercial financing to pay. the capital cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced; i 770:~33 v I -101-