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HomeMy WebLinkAbout1981-051 CCRMember Gene Lhotka introduced the following resolution and moved its adoption: RESOLUTION NO. 81 -51 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED INDUSTRIAL DEVELOPMENT PROJECT BY FEDERAL LUMBER COMPANY UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AND AUTHORIZING SUBMISSION OF AN APPLICATION TO THE COMMISSIONER OF SECURITIES FOR APPROVAL THEREOF BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, as follows: 1. There has been presented to this Council a proposal by Federal Lumber Company, a Minnesota corporation (the "Company that the City undertake and finance a project pursuant to the Minnesota Municipal Industrial Develop- ment Act, Minnesota Statutes, Chapter 474 (the "Act generally consisting of the acquisition, construction, and equipping, on land presently owned by the Company within the Municipality, of an office and warehouse facility (the "Project Under the proposal, the Project facilities will be owned by the Company, and the Company will enter into a revenue agreement with the City upon such terms and conditions as are necessary to produce income and revenues suffi- cient to pay when due the principal of and the interest on up to approximately $1,500,000 Industrial Development Revenue Bonds of the City to be issued pursuant to the Act, to provide monies for the acquisition, construction and installation of the Project; and the City will pledge its interest in the revenue agreement to secure the bonds. 2. As required by the Act, this Council conducted a public hearing on February 23, 1981 on the proposal to undertake and finance the Project after publication in the official newspaper and a newspaper of general circulation in the City of a notice setting forth the time and place of hearing; stating the general nature of the Project and an estimate of the principal amount of bonds or other obligations to be issued to finance the Project; stating that a draft copy of the proposed Application to the Commissioner of Securities, together with all attachments and exhibits thereto, is available for public inspection at the office of the City Clerk, in the City Hall, at all times between the hours of 8:30 a.m. and 4:30 p.m. each day except Saturdays, Sundays and holidays to and including the day of hearing; and stating that all parties who appear at the public hearing shall have an opportunity to express their views with respect to the proposal. The draft application to the Commissioner of Securities, together with all attachments and exhibits thereto, was on file and available for public inspection at the place and times set forth in the notice. 3. It is hereby found, determined and declared that the Project furthers the purposes stated in Section 474.01 of the Act in that the purpose of the Project is and the effect thereof will be to promote the public welfare by the attraction, encouragement and development of economically sound industry and commerce so as to prevent, so far as possible, the emergence of blighted and marginal lands and areas of chronic unemployment; the retention and develop- ment of industry to use the available resources of the community, in order to retain the benefit of its existing investment in educational and public service facilities; by halting the movement of talented, educated personnel of mature age to other areas and thus preserving the economic and human resources needed as a base for providing governmental services and facilities; and the more intensive development of land available in the area to provide a more adequate tax base to finance the cost of governmental services in the Municipality, county and school district where the Project is located. RESOLUTION NO. 81 -51 4. The Company has entered into preliminary discussions with North- western National Bank of Minneapolis, as financial consultant and the financial consultant has reported that the Project and the sale of bonds therefor are feasible. 5. The Company has agreed to pay any and all costs incurred by the City in connection with the Project whether or not the Project is approved by the Commissioner of Securities and whether or not the Project is carried to completion. 6. The Project is hereby given preliminary approval by the City sub- ject to approval of the Project by the Commissioner of Securities and subject to final approval by this Council and by the purchasers of any bonds to be issued as to the ultimate details of the Project and as to the terms of the bonds. 7. In accordance with Section 474.01, Subd. 7 of the Act, the Mayor, the City Manager and such other officers and representatives of the City as may from time to time be designated are hereby authorized and directed to submit the proposal for the Project to the Commissioner of Securities and request her approval thereof, and the Mayor, the City Manager and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary information as she may require. The Company, Messrs. Faegre Benson as bond counsel, the City Manager, the City Attorney, and cther City officials are also authorized to initiate the preparation of a prcposed loan agreement and such other documents as may be necessary or appropriate to the Project so that, when and if the proposed Project is approved by the Commissioner and this Council gives its final approval thereto, the Project may be carried forward expeditiously. 8. The Company is hereby authorized to enter into such contracts, in its own name and not as agent for the City, as may be necessary fcr the construc- tion of the Project by any means available to it and in the manner it determines without advertisement for bids as may be required for the acquisition or construc- tion of other municipal facilites, but the City shall not be liable on any such contracts. February 23, 1981 Date Mayor ATTEST: i Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Tony Kuefler and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Tony Kuefler, Gene Lhotka, and Celia Scott; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted.