Resolution - #80-146 - 10/28/1980

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(e) The Project to be financed by the Bond is an approxi- mately 30,000 square-foot office and warehouse building to be leased by the Borrower to certain tenants, including Altron, Inc., a Minnesota corporation engaged in the business of electronics manufacturing, for use by them as general office and warehouse space and consists of the construction of buildings and improvements thereon and the installation of equipment therein and will result in the employment of additional persons to work within the new facilities; (f) The City has been advised by representatives of the Borrower 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, but the Borrower has also advised this Council that with the aid of municipal financing and its resulting low borrowing cost the Project is economically more feasible. NOW THEREFORE, BE IT RESOLVED by the City Council (the "Council") of the City of Ramsey, Minnesota, as follows: 1. The Council hereby gives preliminary approval to the proposal of the B~orrower that the City undertake the Project pur- suant to the Act, consisting of the construction and equipping of facilities within the City pursuant to the Borrower's or his af- filiates' specifications suitable for the operations described above and to a revenue agreement between the City and the Borrower upon such terms and conditions with provisions for revision from time to time, as necessary, so as to produce income and revenues sufficient to pay, when due, the principal of and interest on the proposed Bond in the total principal amount of $1,000,000 to be issued pursuant to the Act to finance the construction and equipping of said Project, and said agreement may also provide for the entire interest of the Borrower therein to be mortgaged to the purchaser of the Bond; the City hereby undertakes preliminarily to issue its Bond in accordance with such terms and conditions; and the City requires that its Bond be sold to an institution experienced in evaluating the type of credit involved, capable of bearing the financial risk and purchasing for investment purposes; 2. On the basis of information available to this Council, it appears a~d the Council hereby finds that said Project consti- tutes properties, real and personal, used or useful in connection with one or more revenue-producing enterprises engaged in any business within the meaning of Subdivision la of Section 474°02 of the Minnesota Statutes, that the availability of~the financing under the Act and the willingness of the City to furnish such financing will be a substantial inducement to the Borrower