80-001
,
Member Keeler introduced the following resolution and moved its
. adoption:
RESOLUTION NO.
1-80
RESOLUTION GIVING PRELIMINARY APPROVAL TO
A PROJECT UNDER;THE MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT, REFERRING THE PROPOSAL
TO THE COMMISSIONER OF SECURITIES FOR
APPROVAL, AND AUTHORIZING PREPARATION OF
NECESSARY DOCUMENTS
BE IT RESOLVED by the City Council of the City of Sh6rewood,
, Minnesota, as follows: .
.
.
1.
It'is hereby found, idetermined and declared as follows:
1.1. The welfare of the State of Minnesotarequi res act:ive'
promotion, attracti~n, encouragement and development of
economically sound industry and commerce through governmental
acts to prevent, so far as pogsible, emergence of blighted
lands and areas of chronic unemployment, and it is the policy
of the State of Minnesota to facilitate and encourage action
by local government ,units to prevent the economic deterioration
of, such areas to the point where the process c~n b€rev~rsed
only by total redevelopment through the use of, loc'al, state
and federal funds derived from taxation, with the attendant
necessity of relocating displaced persons and of duplicating
public..services in qther areas.
1. 2. Technological ,change hciscaused a shift to a significant
degree in the area qf opportunity for educated youth to
processing, transpor;ting, marketing, service and other
industries, and unless existing and related industries are
retained and new inqustries are developed to use the available
resources of the City of Shorewood (the "City"), a large part
of, the existing investment of the community and of the state
as a whole in educational.and public service facilities will
be lost, and the movement of talented, educated personnel of
mature age t~,areas where the~r services may be effectively
used and compensated and the lessening' attract,ionof persons
and businesses from,other\areas for purposes of industry,
commerce and tourism will deprive the City and the State of
the economic and human'. reSOUI:ces needed as abase for providing
governmentalservice.s and facilities for the remaining population.
1.3. The increase in the amount and cost of governmental
services requires the need for more, intensive development 'and
use of land to provide an adequate tax base to finance these
costs.
1 -
.
1.4. Romain-Undestad, a Minnesota general Rrtrtnership formed
or to be formed (hereinafter the "Applicant '), has advi,sed
this City Council (the "Council") that it,desires to acquire
and construct a building and acquire and install equipment
therefor (hereinafter referred. to as the "Project") for use
as a professional office building.
1.5. The existence of the Project in the City will contribute
to more intensive development and use of land to increase the
tax base of the City and overlapping taxing authorities and
maintain and provide for an increase in opportunities for
employment for residents of the City.
1.6. The City has'been advised that conventional, commercial
financing to pay the capital cost of the Project is available
at such costs of bbrrowing that the aconomic feasibility of
operating the Proj~ct would be significantly reduced, but that
with the aid of muhicipa1 financing, and its resulting low
borrowing cost, the Project is economically more feasible.
1.7. This Council has been advised by a representative of The
Towle Company of Minneapolis, Minnesota, mortgage investment
bankers, that on the basis of information submitted to them
and their discussipns with representatives of area financial ,
institutions and potential buyers of tax-exempt bonds" commercial
developmentrevenu~ bonds of the City could be issued and sold
upon favorable rates and terms to finance the Project.
.'
.
.
1.8. The City iskuthorized by Minnesota Statutes, Chapte~ 474,
to is~ue its reven~ebonds to finance the cost, in whole. or in
part, of the acquisition, construction, reconstruction, improve-
ment or extension of capital projects consisting of properties
used and useful in, connection with a revenue producing enterprise,
such as that of th~ Applicant, and the issuance of such bonds
by the City would be a substantial inducement to the Applicant
to construct its facility in the City.
2. On the basis of information given the City to date, it appears
that it would be in the best interest of the City to issue its
commercial development revenue bonds under the provisions of
Chapter 474 to finance the Project of the Applicant at a cost
'presently estimated not, to exceed $1,000,000.
3. The Project above referred to is hereby given preliminary approval
by the City and the issiJance of bonds for such purpose and in such
amount approved,. subject to approval of the Project by theCommisst.oner
of Securities and to the mutual agreement of this body, the.A.ppltcant
and the initial purchasers of the bonds as to the details of t.he bond
issue 'and provisions for their payment. In all events, it is
understood, however, that the bonds of the City shall notconsl:itute
a charge, lien ore.ncumbrance legal or equitable upon any property
of the Ci ty except 'the Pro jeet, .and each bond, when, as, and if issued,
shall recite in subs'tanee that the bond, including interest thereon,
Is payable sole1! from the revenues received from the Project and
property pledged to the payment thereof, and shall not constitute
a debt of the City.
- 2 -
'.
4.Wh'ereas, The Towle Company" being fami1iar\\7ith the Pro ject
and the marketability of 'com'Olerclal deve,l..opmehtrevenue bond~, has
cidvi sed the Counc i 1. that i,n i'ts 'opi nion the honds in the aplwoximn t c
principal amount of $1,000,000 m'ay,be spld on terms and c9i1ditions
satisfactory to the City and the Developer.
S. r'o accordance with, Minnesot/a Statutes '"Section 474.01, Sub-
'divi~lc)n, 7a, the Mayor of, ShoreWood: is hf;!.ret?y authori2:~danddirected
to submit the pr<J,posalfor the P,ioject to,it1fe ~oml1}i-$~i9TH~r, or' ,
Securities for her approval of the' Projeyt<~The ~layor, Glerk-
Administrator and other officers, ~mployees and ~gent~ of the Ci,ty
are hereby authorized to provide ttte Commissi'OneriwU;h any : . ,'.
preliminary infor~ation she mar need for tij~s, ,purpose;, .and the City
Attorney is authorized in cooper.:it;ip1}wi th ~9~~'~S,& Graven, bond.. '
counsel, to initiate anp assist irtthe pr~pa,r'at:ic>n oisuch documents
,as may be appropriate to the Project, ifit is apprqved by the
Commissioner.
Mayor
. Attest:
.
~
C1~rk~Administrat6r
- 3 -