03-11-1987 Council Agenda - Laserfiche WebLink

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WHEREAS, the existence of the Protect in the City will contribute to more intensive development and use of land to Increase the tax base of the City and overlapping taxing authorities and maintain and provide for an increase In opportunities for employment for residents of the City, Including economically disadvantaged or unemployed individuals; and WHEREAS, the City has been advised that to pay the capital cost of the Protect is aval that the economic feasibility of operating reduced, and, therefore, the City finds that financing, and the availability of other therewith, the Project would not be economical conventional, commercial financing fable at such costs of borrowing the Protect would be significantly but for the aid of municipal municipal assistance in connection ly feasible; and WHEREAS, this Council has been advised that, on the basis of information submitted to them and their discussions with representatives of area financial institutions and other potential buyers, Jointly issued Securitized Development Revenue Bonds of the Cities could be issued and sold upon favorable rates and terms to finance the Project; and WHEREAS, the City is authorized by Minnesota Statutes, Chapter 474, to issue its revenue bonds to finance the cost, in whole or in part, of the acquisition, construction, reconstruction, improvement or extension of capital protects consisting of properties used and useful in connection with a revenue - producing enterprise, and the issuance of such bonds by the City pursuant to the Joint Powers Agreement with the Cities would be a substantial inducement to revenue - producing enterprises to construct such facilities in the City; and WHEREAS, on the basis of information given the City to date, it appears that it would be in the best interest of the City to Jointly issue the Securitized Development Revenue Bonds with the Cities under the provisions of Chapter 474 and Section 471.59 to finance the Project in an amount presently estimated not to exceed $300,000,000. NOW, THEREFORE, BE IT RESOLVED THAT: 1 The Project is hereby given preliminary approval by the Clty and the Issuance of the revenue bonds for such purpose and In such amount is preliminarily approved, subject to approval of the Project by the Minnesota Department of Energy and Economic Development and to the mutual agreement of this body, the Cities and the Initial purchaser of the bonds as to the details of the bonds and provisions for their payment. In all events, it Is understood, however, that the bonds of the City shall not constitute a charge, lien or encumbrance legal or equitable upon any property of the City except the Project, and the bonds, when, as and If issued, shall recite In substance that the bonds, including interest thereon, are payable solely from the revenues received from the Project and property pledged to the payment thereof, and shall not constitute a debt of the City. page -3-