85-66
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CITY OF CHANHASSEN
CARVER AND HENNEPIN COUNTIES, MINNESOTA
DATE: November 18, 1985
RESOLUTION NO: 85-66
MOTION BY:
Swenson
SECONDED BY:
Horn
RESOLUTION DETERMINING TO PROCEED WITH A PROJECT AND ITS
FINANCING UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT
ACT; REFERRING THE PROPOSAL TO THE MINNESOTA ENERGY AND ECONOMIC
DEVELOPMENT AUTHORITY FOR APPROVAL AND AUTHORIZING PREPARATION OF
NECESSARY DOCUMENTS
BE IT RESOLVED by the City Council of the City of Chanhassen,
Minnesota (the City) as follows:
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SECTION 1. Recitals and Findings.
1.1. This Council has received a proposal that the City
finance a portion or all of the cost of a proposed project under
Minnesota Statutes, Chapter 474 (the Act), consisting of the
acquisition and installation of equipment (the Project) at the
plant in the City owned by M. A. Gedney Company (the Borrower).
The Plant is located at 2100 Stoughton Avenue in the City. The
Project is described in greater detail in Exhibit A attached
hereto.
1.2. At a public hearing, duly noticed and held on November
18, 1985, in accordance with the Act, on the proposal to under-
take and finance the Project, all parties who appeared at the
hearing were given an opportunity to express their views with
respect to the proposal to undertake and finance the Project.
Based on the public hearing and such other facts and circumstances
as this Council deems relevant, this Council hereby finds, deter-
mines and declares as follows:
a. The welfare of the State of Minnesota requires active
promotion, attraction, encouragement and development of economi-
cally sound industry and commerce through governmental acts to
prevent, so far as possible, emergence of blighted lands and
areas of chronic unemployment, and the State of Minnesota has
encouraged local government units to act to prevent such economic
deterioration.
b. The Project would further the general purposes con-
templated and described in Section 474.01 of the Act.
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c. The existence of the Project would add to the tax base of
the City, the County and School District in which the project is
located and would provide increased opportunities for employment
for residents of the City and surrounding area.
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d. This Council has been advised by the Borrower that con-
ventional, commercial financing to pay the cost of the Project is
available only on a limited basis and at such high costs of
borrowing that the Project would not be presently undertaken
without the aid of revenue bond financing.
e. This Council has also been advised by the Borrower that
on the basis of its discussions with potential buyers of tax-
exempt bonds, revenue bonds of the City (which may be in the form
of a commercial development revenue note or notes) could be
issued and sold upon favorable rates and terms to finance the
Project.
SECTION 2. Approvals and Authorizations.
2.1. On the basis of the information given the City to date,
it appears that it would be desirable for the City to issue its
revenue bonds under the provisions of the Act, in one or more
series, to finance the project in the estimated total amount of
$1,300,000.
2.2. The Council hereby determines to proceed with the
Project and its financing, and hereby declares its present intent
to have the City issue its revenue bonds under the Act to finance
the Project, subject to the approval of the Project by the
Minnesota Department of Energy and Economic Development.
Notwithstanding the foregoing, however, the adoption of this
resolution shall not be deemed to establish a legal obligation on
the part of the City or this Council to issue or to cause the
issuance of such revenue bonds. All details of such revenue bond
issue and the provisions for payment thereof shall be subject to
the mutual agreement of this Council, the Borrower and the
purchaser or purchasers of the revenue bonds and such further
conditions as the City may specify, such agreement and specifica-
tion on the part of the City to be evidenced by a resolution of
this Council authorizing the issuance of the revenue bonds on the
terms and conditions agreed upon and authorizing the execution of
necessary documents. In all events, it is understood that the
revenue bonds shall not constitute a charge, lien or encumbrance,
legal or equitable, upon any property of the City except the
revenues pledged to payment of such revenue bonds, and each bond,
when, as and if issued, shall recite in substance that the bond,
including interest thereon, is payable solely from the revenues
received from the Project and any property pledged to the payment
thereof and shall not constitute a debt of the City within the
meaning of any constitutional, statutory or charter limitation.
2.3. The Application to the Minnesota Department of Energy
and Economic Development, with attachments, is hereby approved,
and the Mayor and City Manager are authorized to execute said
documents on behalf of the City.
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2.4. The Borrower has agreed and it is hereby determined
that any and all direct and indirect costs incurred by the City
in connection with the Project, whether or not the Project is
carried to completion, and whether or not approved by the
Department of Energy and Economic Development, and whether or not
the City by resolution authorizes the issuance of the bonds, will
be paid by the Borrower upon request.
Adopted this 18th day of November, 1985.
ATTEST:
Don
;{2, Gfl,YJb <:/l
Ashworth, City Clerk/Manager Tqbmas L.
YES
NO
Hamilton
Horn
Watson
Swenson
Gevinq
None
ABSENT
None