Resolution - #79-08 - 02/12/1979

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1.5. This ~ouncil has also been advised by representa- tives of the Borrower that on the basis of their discussions with potential buyers of tax-exempt bonds, industrial development ~evenue bonds of the Municipality could be issued and sold upon favorable rates and terms to finance the Project. 1.6. The Municipality is authorized by Minnesota Stat- utes, Chapter 474, as amDnded (the Act), to issue its revenue bonds to finance capital projects consisting of properties used and useful in connection with a revenue producing enterpFise, such as that of the Borrower, and the issuance of such bonds by the Muni- 'cipalJty wou].d be a substantial inducement to the Borrower to construct the Project. 2. On the basis of information given the Municipality to date, ].t appears that it would be in the best interest of the Muni- cipality to issue its industrial development revenue bonds under the provisions of the ~ct to finance the Projec~ of the Borrower at a cost presently estimated to be approximately $600,000. 3. The Project is hereby given preliminary approval by the ~unicipslity and the issuance of bonds for such purpose and in such ~,ount approved, subject to the approval of the Project by the Commissioner of Securities and to the mutual agreement of this Council and the Borrower as to the details of the bond issue and provisions for their payment. In all events, it is understood, however, that %be bonds of the Municipality shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the Municipality, except the Project, and each bond, when, as and if issued, shall recite in substance that the bond, including interest thereon, is payable solely from the revenues received from the Project and property pledged to the payment thereof, and shall not constitute a debt of the Municipality. 4. The form of Memorandum of Agreement relating to the issuance of revenue bonds of the Municipality to finance the cost of the Project is hereby approved and the Mayor and City Clerk are hereby authorized and directed to execute the Memorandum of Agree- ment in behalf of the ~unJcipality. 5. In accordance with Section 474.01, Subdivision 7a of the Act, the ~ayor is hereby authorized and directed to submit an Application for the Project to the Commissioner of Securities for his approval of the Project. The Mayor, City Clerk, City Attorney and other officers, employees and agents of the Municipality are hereby authorized and directed to provide the Commissioner with any preliminary information he may need for this purpose, and the City Attorney is authorized to-initiate and assist in the preparation of such documents as may be appropriate ~o the Project, if it is approved by the Commissioner.