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HomeMy WebLinkAbout1979-208 CCRMember Celia Scott introduced the following resolution and moved its adoption: RESOLUTION NO. 79-208 RESOLUTION RELATING TO THE AUTHORIZATION AND ISSUANCE OF REVENUE BONDS OF THE CITY UNDER MINNESOTA STATUTES, CHAPTER 474, FOR THE PURPOSE OF FINANCING A PROJECT THEREUNDER; AND AUTHORIZING AN APPLICATION BY THE CITY TO THE MINNESOTA COMMISSIONER OF SECURITIES WHEREAS, the Legislature of the State of Minnesota in Minnesota Statutes, Chapter 474, as amended (the Act), has found and declared that the welfare of the State requires active promotion, attraction, encourage- ment and development of economically sound industry and commerce through governmental acts to prevent, so far as possible, emergence of blighted lands and areas of chronic unemployment; has authorized municipalities to issue revenue bonds to finance, in whole or in part, the cost of the acquisition, construction, reconstruction, improvement and betterment of projects, including any properties, real or personal, used or useful in connection with a revenue producing enterprise engaged in any business; and has authorized municipalities to enter into "revenue agreements as defined in the Act, with any person, firm, or public or private corporation or federal or state governmental subdivision or agency (the Contracting Party) providing for the payment by the Contracting Party of amounts suffi- cient to provide for the prompt payment of principal and interest on the revenue bonds; and WHEREAS, it has been proposed that the City issue its revenue bonds, pursuant to the authority of the Act, in an amount not exceeding in aggre- gate principal amount $1,000,000, to finance, in part, the costs of the construction of a new building of approximately 52,000 square feet, on land located within the City, and the acquisition and installation therein of certain equipment (all such properties being hereinafter referred to as the Project), and to make the proceeds of the sale of those revenue bonds available to Medtronic, Inc., a Minnesota corporation (the Company), which will agree to pay the City amounts sufficient to pay promptly the principal of and interest on the revenue bonds, and will agree to cause the Project to be constructed. The Project is presently estimated to cost approximately $4,300,000; and WHEREAS, the City has been advised that conventional, commerical 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 scope of the Project or the economic feasibility of operating the Project would be significantly reduced, but that with the aid of municipal financing, and its resulting low borrowing costs, the Project can be constructed as designed and its operation is economically more feasible; and WHEREAS, this Council has been advised by Dain, Kalman Quail, Incorporated (the Underwriters), the proposed underwriters of the revenue bonds described herein, that revenue bonds of the City could be issued and sold upon favorable rates and terms to finance the Project; and WHEREAS, there has been presented to this Council a form of Memorandum of Agreement relating to the issuance of revenue bonds of the City to finance costs of the Project; and RESOLUTION NO. 79 -208 WHEREAS, as required by Minnesota Statutes, Section 474.01, Subdivision 7b, this Council, pursuant to a resolution adopted on July 23, 1979, called and held a public hearing on the proposal to undertake and finance the Project, and notice of the time and place of the hearing, and stating the general nature of the Project and an estimate of the principal amount of bonds to be issued to finance the Project, was published at least once not less than fifteen days nor more than thirty days prior to the date fixed for the hearing, in the official newspaper of the City and a newspaper of general circulation of the City, and a draft copy of the proposed application to the Minnesota Commissioner of Securities, together with all attachments and exhibits thereto, was available for public inspection following the publication of such notice at the place and times set forth in the notice; and WHEREAS, all parties who appeared at the public hearing were given an opportunity to express their views with respect to the proposal to undertake and finance the Project, and this Council has heard and considered the views expressed at the public hearing and the information submitted to the City by the Company and the Underwriters. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that: 1. On the basis of information given the City to date, and the views expressed at the public hearing, it is found and determined that the Project furthers the purposes stated in Minnesota Statutes, Section 474.01, and that it would be in the best interest of the City to issue its industrial development revenue bonds under the provisions of the Act to finance, in part, costs of the Project in an amount not to exceed $1,000,000 (the Bonds). 2. The Project is hereby given preliminary approval by the City and the issuance of the Bonds for such purposes approved. The Bonds shall not be issued until the Project has been approved by the Commissioner of Securities as provided by the Act and until the City, the Company and the Underwriters have agreed upon the details of the Bonds and provisions for their payment. 3. If the Bonds are issued and sold, the City will enter into a lease, mortgage, direct or installment sale contract, loan agreement, take or pay or similar agreement, secured or unsecured, satisfying the requirements of the Act (the Revenue Agreement) with the Company. The amounts payable by the Company to the City under the Revenue Agreement will be sufficient to pay the principal, interest and redemption premium, if any, on the Bonds as and when the same shall become due and payable. 4. The form of Memorandum of Agreement is approved and the Mayor and City Manager are authorized to execute the Memorandum of Agreement, with such changes as the City Attorney may approve, on behalf of the City. RESOLUTION NO. 79 -208 5. In accordance with the Act, the Mayor and City Manager are hereby authorized and directed to submit the proposal for the Project to the Minnesota Commissioner of Securities for her approval of the Project. The Mayor, City Manager, City Clerk, City Attorney and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with any preliminary information she 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 to the Project. 6. The City will comply with all of the provisions of the Act, including Minnesota Statutes, Section 474.01, Subidivision 8, in the issuance of the Bonds and the financing of the Project. 7. In all events, it is understood, however, that the revenue bonds of the City shall not constitute a charge, lien, or encumbrance, legal or equitable, upon any property of the City except the Project, if it becomes the property of the City, and from the revenues received from the Project and property pledged to the payment thereof, and shall not constitute a debt of the City. 1 11 September 10, 1979 Date Mayo ATTEST CMrk The motion for the adoption of the foregoing resolution was duly seconded by member Bill Fignar and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Bill Fignar, Gene Lhotka, and Celia Scott; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted.