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RESOLUTIOI�t RECITIL�G A PROPOSAL FOR A:
COMMERCIAL FACILITIES DEVELOPMENT PR�.TECT
GIVING PRELIMIL�TARY APPROVAL TO fiHE PROJECT
PURSUAi�TT TO THE MINI�TESOTA
' MUI�TICIPAL INDUSTRIAL DEVELOPMEI�7T ACT
: :AUTHORIZII�TG THE' SUBMISSIOI�T OF AN APPLICATION
�. FOR APPROVAL OF THE PROJECT TO THE
- ENERGY AND ECONOMIC DEVELOPM�NT
AUTHORTTY OF THE STATE OF MINNES�JTA
AL�7D AUTHORI ZING THE PREPARATIOI�T OF
: NECESSARY DOCUMENTS AND MATERIALS
IiQ COC�TNECTION WITH THE PROJECT
WHEREAS,
(a) The purpose o.f Chapter 474,`Minnesota`
Statutes, known as the Minnesota Municipal Industrial
Development Act (the "Act") as found and'deterrnined by the
legislature is to promote:the wel:fare of the state by the
active attraction and'encouragement and development of economi-
. ca31y sound industry and comrnerce to prevent so far as possible
the emergence of blighted and marginal.lands and areas of'
chronic unemployment; :
_ (b) Factors necessitating the active promotion
and development of sconomically sound industry and commerce are
the increas:ing concentration of population in the metropolitan
areas and the rapidly rising increase in the amaunt and cost of
governmental services required to meet the needs of the
�ncreased population and the need for developr.tent of land use
� . which will provide an adequate tax base to finanee these
increased costs and access to employment opportunities for such :
_ population;
(�) The Cit Council of the Cit of Arden Hills
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-(the_"City") has received from Richard H. Routhe, D.V.M. (the _
''Borrower") a proposal that the City assist in financing a
Project hereinafter described, through the issuance of a
Revenue Bond or Bonds or a Revenue Note or Notes hereinafter
referred to in this resolution as "Revenue Bonds" pursuant to
the Aet,
(d) The City desires to facilitate the selec-
tive development of the community, retain and improve the tax .
. base and help to provide the range of services and employment
opportunities required by the�population; and the Project wi11
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assist the City in achieving those ob�ectives. The Pro]ect
will help to increase assessed valuation of the City and help
maintain a positive relationship between assessed valuation and
debt and enhance the image and reputation of the community;
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(e) The Borrower is currently engaged in the
practice of veterinary-medicine. The Project to be financed by
the Revenue Bonds is a multipurpase veterninary care facility
to be located 1261 Wes� County Road F in Arden Hil:�,s, Minnesota
and consists of the acquisition af land and the construction o£ `
buildings and improvements thereon and the installation of
equipment therein to be initially owned and operated by the
Borrower or a corporation to be established by Borrower, and
will result in the employment of �additional persons to work
within the new facilities;
(f) The City has been advised by representa-
tives of Borrower that conventional, commeraial financing to
- pay the cagital cost of the Project is available only on a
limited basis and at such high costs of borrowing that the
economic teasibility of operating the Project would be signi-
ficantly-reduced, but Borrower has also advised this Council
that with the aid of municipal financing, and its resulting low
. borrowing cost, the Project is economically more feasible; .
(g) Pursuant to a resolution of the City
Council adopted on October 15, 1984, a public hearing on the,
: Project was held on November 8, 1984, after notice was
published, and materials made availabl8 for public inspection
at the City Hall, all as required by Minnesota Statutes,
Section 474.01, Subdivision 7b at v�hich public hearing all
: those appearing who so desired to speak were heard;
(h) No public official of the City has either a
direct or indirect financial interest in the Project nor will
any public official either directly or indirectly benefit
. finahcially from the Project.
N�W, THEREFORE, BE IT RESOLVED by the City Council of the
�City of Arden Hills, Minnesota, as follows:
1. The Council hereby gives preliminary approval to the
proposal of Borrower that the City undertake the Project
: pursuant to the Minnesota Municipal Industrial Development Act
(Chapter 474, Minnesota Statutes), consisting of the aequi- :
sition, construction and equipping of facilities within the
City pursuant to Borrower's specifications suitable for the
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operations described above to be initially owned and operated
by the Bor�`ower and pursuant to a revenue agreement between the
City and Borrower upon such terms and conditions with
provisions for revision from tirne to time as necessary, so as
to produce income and revenues sufficient to pay, when due, the
principal of and interest on the Revenue Bonds in the maximum
� aggregate principal amount of $400,000 to be issued pursuant to
- the Act to finance the acquisition, construction and equipping
of the Project; and said agreement rnay also provide for the
entire interest of Borrower therein to be mortgaged to the
purchaser of the Revenue Bonds; and the City hereby undertakes
preliminarily to issue its Revenue Bonds in accordance with
such terms and conditions; •
2. On the basis of information available`to this Council
it appears, and the Council hereby finds, that_the Project
constitutes properties, real and personal, used or useful in
connection with one or more revenue producing enterprises
engaged in any business within the meaning of Subdivision la of
: Section 474.02 of the Act; that the Project furthers the
purposes stated in Section 474.01, Minnesota Statutes; that the
Project would not be undertaken but for the availability of
industrial bond finaneing that the availability of the
f inancing under the Act and willingness of the City to furnish
such financing will.be a substantial inducement to Borrower to
unde�take the P,roject, and that the effect of the Project, if -
undertaken, will be to encourage the development of
economically sound industry and commerce, to assist in the
prevention of the emergence of blighted and marginal land, to
help prevent chronic unemployment, to help the City retain and
improve the tax base and to provide the range of service and
employment opportunities required by the population, to help :
prevent the movement of talented and educated persons out of
the state and to areas within the State where their serviceS
may not be as effectively used, to promote more intensive
development and use of land within the City and eventually to
_ increase the tax base of the community;
3. The`Project is hereby given preliminary approval by
the City subject to the approval of the Project by the
�Minnesota Energy and Economic Development Authority or such
other state officer having authority to grant approval (the
"Authority"), and subject to final approval by this Council,
Company, and the purchaser of the Revenue Bonds as to the ulti-
mate details of the financing of the Project;
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4. In accordance with Subdivisian 7a of Section 474.01
Minnesota Statutes, the Mayor of the City is hereby autharized :
and directed to submit the proposal for the Project to the
Authority requesting its approval, and other officers,
employees and agents of the City are hereby authorized to
�^, provide the Authority with such preliminary information as it
may require; _
5. Borrower has agreed and it is hereby determined that
any and all costs incurred by the Citg in connection with the
financing of the Project whether Qr not the Project is carried
to completion and whether or not approved by the Authority will
be paid by Borrower;
6. Briggs and Morgan, Professional Association, acting as
bond counsel, is authorized to assist in the preparation and
review of necessary documents relating to the Project, to
consult with the City Attorney, Borrower and the purchaser of
the Revenue Bonds as to the maturitie�, interest rates and
other terms and provisions of the l�evenue Bonds and as to the
covenants and other provisions of the n�eessary documents and _
to submit such documents to the Council for final approval;'
7. Nothing in this resolution or in the documents pre- :
pared pursuant hereto shall authorize the expenditure of any -
municipal funds on the Project other than the revenues derived
from the Project or atYierwise grantea to the City for this
purpose. The Revenue Bonds shall not constitute a charge, lien
or encumbrance, legal or equitable, upon any property or funds
of the City except the revenue and proceeds pledged to the
payment thereof, nor shall the City be subject to any liability
thereon. The holder of the Revenue Bonds shall never have the,
right to compel any exercise of the taxing power of the City to
pay the outstanding principal on tY'►e Revenue Bonds or the :
interest thereon, or to enforce payment thereof against any
� property of the City. The Revenue Bonds shall reeite in
substance that the Revenue Bonds, including interest thereon,
is payable solely from the revenue and proceeds pledged to the
payment thereof. The Revenue Bonds shall not constitute a debt:
of the City within the meaning of any canstitutional or .
�statutory limitation; ,
8. In anticipation of the approval by the Authority the
issuance of the Revenue Bonds to finance all or a portion of
the Project, and in ozder that completian of the Project will
not be unduly delayed when approved, Borrower is hereby
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authorized to make such expenditures and advances taward
payment ot that portion o£ the costs of the Project to be
finaneed from the proceeds of the Revenue Bonds as Borrower con-
siders necessary, including the use of interim, short-term
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financing, subjecf to reimbursement from the proceeds of the
�::.. Revenue Bonds if and when delivered but otherwise without -
liability on the part of the City;
Adopted by the City Coun 'l of the City of Arden Hills,
Minnesota, this � day of , 1984.
Mayor
A t•
City Clerk-Administrator : - -
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