78-69B
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
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RESOLUTION
Date: November 27, 1978
Motion by Councilman Pearson
Resolution No. 78-69
Seconded by Councilman Geving
RESOLUTION RECITING A PROPOSAL FOR AN INDUSTRIAL
DEVELOPMENT PROJECT, GIVING PRELIMINARY APPROVAL
TO THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL
INDUSTRIAL DEVELOPMENT ACT, AUTHORIZING THE SUBMISSION
OF AN APPLICATION FOR APPROVAL OF SAID PROJECT TO
THE COMMISSIONER OF SECURITIES, AND AUTHORIZING THE
PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN
CONNECTION WITH SAID PROJECT.
WHEREAS,
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a. The purpose of Chapter 474, Minnesota Statutes, known as
the Minnesota Municipal Industrial Development Act, as found and
determined by the legislature, is to promote the welfare of the
state by the active attraction, encouragement and development of
economically sound industry and commerce to prevent so far as
possible the emergence of blighted and marginal lands and areas
of chronic unemployment, and for this purpose the state has
encouraged action by local governmental units;
b. Factors necessitating the active promotion and develop-
ment of economically sound industry and commerce are the increasing
concentration of population in urban and metropolitan areas, and
the rapidly rising increase in the amount and cost of governmental
services required to meet the needs of the increased population,
and the need for development and use of land which will provide an
adequate tax base to finance these increased costs;
c. The City desires to expand its business and employment
opportunities, and the available tax base of the City;
d. The City Council has received from the M.A. Gedney Company
(the "Company") a proposal that the City finance a project for
purposes consistent with the Minnesota Municipal Industrial Develop-
ment Act, said project to consist of building construction and equip-
ment acquisition and installation, including, but not limited to,
expanded production line re-layouts and capacity additions in all
departments, installation of expanded vinegar generating facilities,
additions to relish department, additional warehouse space and
equipment, installation of cabbage cutting and fermenting facilities,
improved mustard production equipment and additional waste treatment
facilities, all at a cost presently estimated at $1,500,000;
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district,
would not
project.
The Project would aid and assist the City, the school
and the county, and the full faith and credit of the City
be pledged or be responsible in connection with such
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Chanhassen, as follows:
1. The proposal of the Company that the City undertake to
provide financing for the Project pursuant to the Minnesota Munici-
pal Industrial Development Act (Chapter 474, Minnesota Statutes)
by acquisition of the Project to be leased or sold by the City to
the Company, or by direct loans of the revenue bond proceeds to
the Company, all upon such terms and conditions, with provisions for
revision from time to time as necessary, so as to produce income and
revenues sufficient to pay, when due, the principal of and interest
on bonds of the City to be issued pursuant to the aforesaid Chapter
474 to finance said Project, is hereby given preliminary approval by
the City.
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2. On the basis of information provided to this Council, it
appears, and the Council hereby finds, that the effect of the Project,
if undertaken, will be to encourage the development of economically
sound commerce in the City, to increase the assessed value of property
within the City and to increase current employment opportunities for
residents of the City and surrounding areas, all to the benefit of
the residents and taxpayers of the City, the school district, the
county and the State of Minnesota.
3. The Project above referred to and the issuance of revenue
bonds in the amount necessary to pay the costs of the Project,
presently estimated to be $1,500,000, are hereby given preliminary
approval by the City subject to approval of the Project by the
Corrunissioner of Securities and to the mutual agreement of the City,
the Company, and the initial purchaser of the bonds as to the details
of the bond issue and provisions for their payment, and subject,
further, to the reservation of the right by the City to deny the appli-
cation of the Company at any stage of the proceedings prior to the
adoption of the final resolution authorizing issuance of the bonds.
4. In all events, it is understood, however, that the bonds,
when, as and if issued, shall not constitute a charge, lien or encum-
brance, legal or equitable, upon any property of the City except the
project, and each bond shall recite in substance that the bond,
including interest thereon, is payable solely from the revenues
received from the Project and property pledged to the payment thereof,
and shall not constitute a debt of the City.
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5. In accordance with the Minnesota Statutes, ~474.01, Subd. 7,
the Mayor is hereby authorized and directed to submit the proposal for
the Project to the Commissioner of Securities for his approval of the
Project. The Mayor, City Manager, City Attorney and other officers,
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employees and agents of the City are authorized to initiate and
assist in the preparation of such documents as may be appropriate
to the Project, if it is approved by the Commissioner.
Passed and adopted by the
27th day of November
Council of the City of Chanhassen this
, 1978.
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MAYOR
ATTES):(2 CJ1.~
City Manager
YES
~1ayor Hobbs
Councllman Pearson
Councilman Geving
Councllman Neveaux
Councllman Waritz
NO