2001.09.05 RESO 2001-0051 - Laserfiche WebLink

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RESOLUTION 2001- 51 RESOLUTION RECITING A PROPOSAL FOR AN INDUSTRIAL DEVELOPMENT PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO MN STATUTES, SECTION 469.154, AND AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR ALLOCATION AND FOR APPROVAL OFTHE PROJECT TO THE DEPT OF TRADE AND ECONOMIC DEVELOPMENT AND FOR PREPARATION OF NECESSARY DOCUMENTS (MINNESOTA UNION BUILDERS) WHEREAS, (a) The purpose of Minnesota Statutes, Sections 469.152 to 469.165 relating to municipal industrial development (the "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 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 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 of the City of Hugo (the "City") has received from Minnesota Union Builders, LLC, (the "Company") a proposal that the City undertake to finance a project hereinafter described, through the issuance of revenue bonds (hereinafter the "Bonds") pursuant to the Act; (d) The City desired to facilitate the selective development of the community and surrounding area, retain and improve the tax based in the City, and help to provide the range of services and employment opportunities required by the population; and the Project will assist the City in achieving those objectives. The Project will help to increase assessed valuation in the City and help maintain a positive relationship between assessed valuation and debt and enhance the image and reputation of the community; (e) The Project to be financed by the Bonds is the acquisition of land in the Bald Eagle Industrial Park and the construction thereon an approximately 94,000 sq. ft. facility for the manufacture of modular homes (the "Project"). (f) The City has been advised by representatives of 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; (g) 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 financially from the Project.