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WHEREAS, the City has been advised that conventional, com- <br />mercial financing to pay the capital cost of the Project is available <br />at such costs of borrowing that the conomic feasibility of operating the <br />Project would be significantly reduced, but that with the aid of munici- <br />pal financing, and its resulting lower borrowing cost, the Project is <br />economically more feasible; and <br /> <br /> WHEREAS, this Council has been advised by a representative <br />of the Developer that on the basis of information submitted to them and <br />their discussions with representatives of area financial institutions and <br />potential buyers of tax-exempt bonds, industrial development revenue bonds <br />of the City could be issued and sold upon favorable rates and terms to <br />finance the Project; and <br /> <br /> WHEREAS, the City is authorized by Minnesota Statutes, <br />Chapter 474, to issue its revenue bonds to finance the cost, in whole <br />or in part, of the acquisition, construction, reconstruction, improve- <br />ment or extension of capital projects consisting of properties used <br />and useful in connection with a revenue producing enterprise, such as <br />that of the Developer, and the issuance of such bonds by the City would <br />be a substantial inducement to the Developer to construct its facility <br />in the City; and <br /> <br /> WHEREAS, on the basis of information given the City to date, <br />it appears that it would be in the best interest of the City to issue its <br />industrial development revenue bonds under the provisions of Chapter 474 <br />to finance the Project of the Developer in an amount presently estimated <br />not to exceed $2,500,000. <br /> <br />NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL, CITY OF RAMSEY, ANOKA <br />COUNTY, STATE OF MINNESOTA, as follows: <br /> <br /> l) That the Project is hereby given preliminary approval by <br />the City and the issuance of the revenue bonds for such purpose and in <br />such amount approved, subject to approval of the Project by the Minnesota <br />Energy and Economic Development Authority and to the mutual agreement of <br />this body, the Developer and the initial purchaser of the bonds as to <br />the details of the bonds and provisions for their payment. In all <br />events, it is understood, however, that the bonds of the City shall not <br />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 <br />if issued, shall recite in substance that the bonds, including interest <br />thereon, is payable solely from the revenues received from the Project <br />and property pledged to the payment thereof, and shall not constitute <br />a debt of the City. <br /> <br /> 2) That in accordance with Minnesota Statutes, Section 474.01, <br />Subdivision 7a, the Mayor of the City is hereby authorized and directed to <br />submit the proposal for the Project to the Minnesota Energy and Economic <br />Development Authority for approval of the Project. The Mayor and other <br />officers, employees and agents of the City are hereby authorized to pro- <br />vide the Minnesota Energy and Economic Development Authority with any <br /> <br /> <br />