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MINUTES REGULAR CITY C OUNu TL MEh;'rING LECEMSF~t, 28, 1y83 PAGE 2 At 8:00 P.Pi. Mayor warkentien opened the Public Hearing on a Proposal for a Commercial Facilities Development Project and presented the Affidavits of Publication. Kobert Collins, representing Bullseye Go1P, referred to his letter of intent and stated that the paperwork was complete on the proposea Bullseye construction. He explained that in light of the last Council meeting, it appears the building will not be as large as originally discussed due to parking restrictions. Mr. Collins then requested Council consider passage of proposed Resolution 83-tug.. Attorney Galvin explained the Congressional bill which imposes a sunset on industrial revenue bond financing effective December 31, 1y8j. The proposed resolution makes certain findings of~fact and makes application to the State of Minnesota, Department of Energy and Economic llevelop- ment, for approval of a bond issue for a building that will not exceed lt0,000 square feet and a bond issue of not more than X1,000,000. He then thoroughly explained the resolution. Mayor warkentien stated he understood that if the project fails, the City is not liable and Mr. Galvin agreed. He explained that the underwriters, who will be underwriting the issue, or the financial institution purchasing the bonds or participating in the underwriting, will look for such additional securities from 3u11seye as they deem to be prudent and necessary and Mr. Co11in's clients may be required to post personal guarantees, some form of security or letter of credit, whatever is deemed necessary. Mr. Galvin then asked. who the under- writer or financial institution was. Mr. Collins replied that it had not been finalized but discussions were being held with r. Richard Nordland, First Corporate Service, and presented the letter of intent. Mayor warkentien ceanmented on the fact that Council took action on a resolution prepared by Attorney Gaateazoro, which was, in effect, to try to circumvent the change in the law. Mr. Galvin stated that the preliminary resolution which was adopted on November 30, 198 j, started the chain of events and expenses incurred after that date are considered to be bond financed projects. He explainea that there is a difference of opinion as to whether or not the preliminary resolution would make the City exempt from the sunset provision of the bill. Clerk Administrator Barneb inquired about the letter of intent from Mr. Nox~.nd and Mr. Galvin stated the letter indicates that they have examined the proposal and find it feasible. They have looked at the books, records and projections of income for Hu1l~eye and have con- cluded that the income from the facility would be sufficient to pay the debt service on the bond issue. Mayor Warkentien asked Mr. Collins if Mr. Cohen had been in contact with him and Mr. Collins replied they had talked and scheduled a meet- ing for January !~, 198t~. Mayor warkentien wanted to know if it would alter at~y of the present plans to which Mr. Collins replied that there is a potential that it would alter the ~„atter btzt die felt it would not affect arty action the Council takes at this time. . 1 PU}~,,IC HEARING ON P1~POoAL FOtt COMMr~tt- CIAL FACILI'1'- I~;S li~;Vr~LOP- MEN'1 PrtOJEC'r A'r 8:00 P.M. K03Eli.T COLLINo ATTORNEY GALVIN Councilmember Eggert asked if Mr. Collins had been in contact with Mr.