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HomeMy WebLinkAbout75-017 ,,-<-' . . : RESOLUTION NO: 75-17 RESOLUTION RECITING A PROPOSAL FOR A 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 ECONOMIC DEVELOPMENT OF THE STATE OF MINNESOTA AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH SAID PROJECT \oTHEREAS, (a) . The purpose of Chapter 474, Minnesota Statutes, known as the Minnesota Municipal Industrial Development Act (hereinafter called "Act") as found and determined by the legislature is to promote the welfare of the state by the active attraction and encouragement and development of economically sound industry and commerce; (b) Factors necessitating the active pro- motion and development of economically sound industry and commerce are the increasing concentration of population in the 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 of land use which will provide an adequate tax base to finance these increased costs and access to employment opportunities for such population; (c) The City Council has received from Cardiac Pacemakers, Inc., a Minnesota corporation (herein- after referred to as "Company") a proposal which proposal is outlined in an Underwriting Agreement, Ca copy of which is attached hereto as Exhibit A) that the City undertake the Project hereinafter described; Cd) The City of Arden Hills desires to facil- itate the selective development of the community to retain . and improve its tax base and to help it provide the range of services and employment opportunities required by its population and said Project will assist the .City in aChieving that objective. Said Project 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 City; (e) The Company is currently engaged in the. production and distribution of pacemakers and other related products. The Project to be financed by the proposed Industrial Development Revenue Bonds involves the relocation and expansion of the Company's facilities within the City and consists of the acquisition of land and the construction and installation thereon of a building and incidental improvements, and will result in the employment of approximately 280 additional~ persons to work within the new facilities; (f) The City has been advised by representa- tives of the Company that conventional, commercial 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 economic feasibility of operating the Project would be significantly reduced, but the Company has also advised this Council that with the aid of municipal financing, and its resulting low borrowing cost, the Project is economically more feasible. NOW, 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 the Company that the City undertake the Project pursuant to the Minnesota MuniCipal Industrial Development Act (Chapter 474, j.1innesota Statutes), consisting of the acquisition and construction of facilities within the City purusant to Company's specifications suitable for the operations described above to be leased by the City to the Company 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 proposed Industrial Development Revenue Bonds of the City in the total principal amount of approximately $3,000,000 to be issued pursuant to the Act to finance the acquisition and construction of said Project; and said proposal also provides for the entire interest of the City therein to be pledged and mortgaged to the holders of the bonds of the City or a trustee therefor; and the City hereby undertakes preliminarily to issue its revenue bonds in accordance with such terms and conditions; -2- -,.. . 2. On the basis of information available to this Council it appears, and the Council hereby finds, that said Project constitutes real property, used or useful in connection with one or more revenue producing enterprises engaged in any business within the meaning of Subdivision 1 of Section 474.02 of the Act, that the availability of the financing under the Act and willingness of the City to furnish such financing will be a substantial inducement to the Company to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage on a selective basis the development of economically sound industry and COmmerce within the City, and will help the City to retain and improve its tax base and provide the range of services and emplOyment opportunities required by its population, and will help to . 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; 3. Said Project is hereby given preliminary approval by the City subject to the approval of the Project by the Commissioner of Economic Development and subject to final approval by this Council, Miller & Schroeder Municipals, Inc., as Underwriters, and the Company of any bonds to be issued and as to the ultimate details of the Project; 4. In accordance with Subdivision 7 of Section 474.0l, Minnesota Statutes, the Mayor of the City is hereby authorized and directed to execute on behalf of the City said Underwriting Agreement and to submit the proposal for the above described Project to the Commissioner of Economic Development requesting his approval, and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary infor- mation as he may require. Miller & Schroeder Municipals, . Inc., as Underwriters, the C,Lt_LJ!.ttorney and Briggs and Morgan, Professional Association as Bond Counsel for said Project are also authorized to initiate the Project, in order that when and if approved, it may be carried forward expeditiously; 5. The Company has agreed and it is hereby determined that any and all 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 Commissioner will be paid by the Company. . -3- Adopted by the City Council of the City of Arden Hills, Minnesota this 'II ~-t day of March , 1975. . Attest~~(f7l/tf;,k C~ Y Clerk . -4-