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HomeMy WebLinkAbout1979-092 CCR Member Tony Kuefler introduced the following resolution and moved its adoption: RESOLUTION NO. 79 -92 RESOLUTION AUTHORIZING THE ISSUANCE OF REVENUE BONDS PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIA DEVELOPMENT ACT RE L UESTING Q APPROVAL BY THE COMMISSIONER OF SECURITIES AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota as follows: Section 1. Policy and Purpose. 1.01 For the purpose of promotion, attraction, encouragement and develop ment of economically sound commerce, the preservation and development of a tax base adequate to finance necessary public services, and the encouragement of employment opportunities for the citizens of the City, the City is authorized by the Municipal Industrial Development Act, Minnesota Statutes, Chapter 474 (the "Act to acquire and lease real and personal property for use by a revenue producing enterprise, or to loan funds directly to the enterprise to be used for such acquisition, said funds to be raised through the issuance of revenue bonds of the City the interest on which is exempt from federal and state income taxes. 1.02 Minnesota Municipal Leasing Corporation, a nonprofit corporation organized under the laws of the State of Minnesota (the "Corporation desires to undertake a project in the City, at a total cost presently estimated at approximately $800,000, comprising the acquisition and installation of data processing equipment (the "Project to be operated by the Corporation as a revenue producing enterprise through the lease thereof to Local Government Information Systems (LOGIS), an organization of local government units formed pursuant to Minnesota Statutes 471.59 to provide data processing service to such units. 1.03 The Project would increase the level of economic activity in the City, would increase the City's capability, and the capability of each member of LOGIS, of providing necessary governmental services, thus aiding and promoting development, which in turn would increase the tax base in the City and the surrounding area, and would provide additional employment opportunities for residents of the City and surrounding area. 1.04 The Corporation has advised the City that conventional commercial financing for the cost of the Project is available only on a limited basis and at interest rates which decrease the economic feasibility of the Project; and that tax exempt revenue obligation financing pursuant to the Act would substantially increase the economic feasibility of the Project, and would be a significant inducement to the establishment of the Project in the City by the Corporation. RESOLUTION NO. 79 -92 1.05 The Corporation has proposed that the City issue its revenue bonds pursuant to the Act to finance the cost of the Project, and has also advised the City that Dain, Kalman Quail, Incorporated, in Minneapolis, Minnesota, and associates (the "Underwriter has agreed to purchase or provide others to purchase revenue bonds of the City issued in such amount for such purpose. Section 2. Authorization. 2.01 Subject to approval of the Project by the Commissioner of Securities of the State of Minnesota as required by law, and subject to the mutual agreement of the City, the Corporation and the Underwriter as to the details of documents necessary to evidence and effect the financing of the Project and the issuance of the revenue bonds, the issuance of revenue bonds of the City pursuant to the Act in an amount not exceeding $800,000 is authorized to finance the cost of the Project. 2.02 The Mayor and City Manager are authorized and directed to submit the Project to the Commissioner of Securities for his approval as tending to further the purposes and policies of the Act, and to cause such information concerning the Project to be submitted to the Commissioner as may be required for this purpose. 2.03 The City's legal counsel and bond counsel are authorized to assist in the preparation and review of documents necessary to provide for the issuance, payment and security of the revenue bonds; to consult with the Corporation and the Underwriter as to the terms and pro visions of the revenue bonds and the necessary documents; and to submit such documents to this Council for final approval. Section 3. No Liability of City. Nothing in this resolution or in the doucments prepared pursuant hereto shall authorize the expenditure of any monies of the City on the Project other than the revenues thereof or the proceeds of the revenue bonds. The revenue bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City except the Project and the revenues pledged to the pay ment thereof, nor shall the City be subject to any liability thereon. No holder of any revenue bond shall ever have the right to compel any exercise of the taxing power of the City to pay any such bond or the interest thereon, nor to enforce payment thereof against any property of the City except the Project. Each revenue bond shall recite on its face that the bond, including interest thereon, is payable solely from the revenues pledged to the payment thereof. No bond issued hereunder shall constitute indebtedness of the City within the meaning of any constitutional, statutory or charter limitation. RESOLUTION NO. 79 -92 Section 4. Project Expenditures. In anticipation of the approval of the Project by the Commissioner of Securities and the issuance of revenue bonds of the City to finance the Project, and in order that completion of the Project will not be unduly delayed when approved, the Corporation is hereby authorized to make such expenditures and advances toward payment of costs of the Project as it considers necessary, including the use of interim financing, subject to reimbursement from the proceeds of the revenue bonds when and if issued, but otherwise without liability on the part of the City. April 9, 1979 Date Mayor ATTEST: Clerk 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: Tony Kuefler, Bill Fignar, Gene Lhotka, and Celia Scott; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. Dean Nyquist abstained from voting.