01-12-1977 Council Agenda - Laserfiche WebLink

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1. The Council hereby gives preliminary approval to the proposal of Company that the City undertake the Project pursuant to the Minnesota Municipal Industrial Development Act (Chapter 474, Minnesota Statutes), consisting of the acquisi- tion, construction and improvement of facilities within the City purusant to Company's specifications suitable for the operations described under a revenue agreement between the City and 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 the proposed industrial development revenue bonds of the City in the total principal amount of approxi- mately $385,000 to be issued. in one or more series pursuant to the Act to finance all or a part of the acquisition, construc- tion and improvement of said Project; and said proposal may also provide for the entire interest of the City therein to be pledged and mortgaged to the holders of the bonds of the City and any interim notes or a trustee therefor under such conditions as are necessary to assure that the interest on said bonds are exempt from the federal income tax; and the City hereby undertakes preliminarily to issue its 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 said Project constitutes properties, real and personal, used or useful in connection with one or more revenue producing enter- prises engaged in any business within the meaning of Subdivi- sion la of Section 475.02 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 the development of economically sound industry and commerce and assist in the prevention of the emergence of blighted and marginal land, will help to prevent chronic unemployment, and will help the City to retain and improve its tax base and provide the range of services and employment opportunities required by its popu- lation, 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 and will result in more intensive development and use of land within the City and will eventually result in an increase in the City's tax base; 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, the purchasers of the bonds and any interim notes, and the Company of any bonds and interim notes to be issued and as to the ultimate details of the Project; -3- 008