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HomeMy WebLinkAbout1990.04.16 RESO 1990-0012V -0 RESOLUTION 1990-12 A RESOLUTION AUTHORIZING A JOINT POWERS AGREEMENT. THIS JOINT POWERS AGREEMENT (thee "Agreement") is made and entered into by and between the City of Hugo, Minnesota (the "City"), a Plan A statutory City, duly organized and existing under the laws and constitution of the State of Minnesota, and the Washington County Housing and Redevelopment Authority (the "Authority"), a public body corporate and politic under the laws and constitution of the State of Minnesota. RECITALS WHEREAS, the Washington County Housing and Redevelopment Authority was created pursuant to Laws of Minnesota 1974, Chapter 475 (the "Special Law"); and WHEREAS, under the Special Law, the Authority was granted all of the powers and duties of a housing and redevelopment authority under the provisions of the municipal housing and redevelopment act, Minnesota Statutes, Sections 462.411 to 462.711 (the "Act"), and acts amendatory thereof; and WHEREAS, The Special Lew provides that the Authority may not exercise jurisdiction in any municipality where a municipal housing and redevelopment authority is established and before the Authority undertakes a project within the boundaries of any incorporated city, such project shall be approved by the governing body of such city; and WHEREAS, The City of Hugo is a Plan A statutory city under the laws of the State of Minnesota and has no municipal housing and redevelopment authority; and WHEREAS, the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Chapter 474 (the "IDB Act") authorizes municipalities and redevelopment agencies to issue industrial development revenue bonds to finance projects, as defined therein, subject to the limitations contained therein; and WHEREAS, Section 474.02, subdivision 3 of the IDB Act defines the term "redevelopment agency" to include any housing and redevelopment authority referred to in Chapter 462 or any body authorized to exercise the powers of a housing and redevelopment authority, such as the Authority; and WHEREAS, pursuant to the IDB Act, obligations which are subject to limitation under a "federal limitation act," as defined in Section 474.16, subdivision 5 of the IDB Act, may not be issued by a "local issuer" until such "local issuer" receives an allocation of the authority to issue such obligations pursuant to Section 474.19 oftbe IDB Act; and WHEREAS, Section 474.16, subdivision 2 of the IDB Act defines the term "local issuer" to include any home rule charter of statutory city, such as the City, and further includes any town, any housing and redevelopment authority referred to in Chapter 462 and any body authorized to exercise the powers of a housing and redevelopment authority, such as the Authority; and WHEREAS, under the allocation procedures of Section 474.19 of the IDB Act, a local issuer which is not an entitlement issuer may apply for an allocation of bond issuance authority by submitting an application to the Minnesota Department of Energy and Economic Development on or before the 20th day of any month; and WHEREAS, Section 474.19 of the IDB Act further provides that a local issuer may enter into a joint powers agreement with any other state or municipal entity which has authority to issue obligations subject to a federal limitation act whereby the other entity issues the bonds on behalf of the local issuer for the project for which an allocation was received by the local issuer; and WHEREAS, the Authority has received a proposal from George D. Crockett III and Brian J. McGoldrick, on behalf of Dyna Glass, Inc. and Photo Tech Products, a partnership requesting issuance of up to $275,000.00 of its revenue bonds under the IDB Act to finance the acquisition and rehabilitation of the land and building for use as a light manufacturing facility (the "Project"); and WHEREAS, the Authority is willing to submit the application for and issue such bonds on behalf of the City to finance the Project pursuant to Section 474.19 of the IDB Act, subject to the approval of the Project by the City; and WHEREAS, the Authority is willing to exercise jurisdiction within the corporate boundaries of the City in order to assist the Developer in the acquisition and rehabilitation of the Project by exercising the powers and duties provided to it under the Act and the %%}B Act; and WHEREAS, the authority has proposed that the City and the Authority enter into this Joint Powers Agreement, as described in Section 474.19 of the Act, pursuant to which the Authority will undertake the Project in the City: NOW, THEREFORE, BE IT RESOLVED, BY THE HUGO CITY COUNCIL THAT IN CONSIDERATION of the premises and the mutual promises herein contained, the parties hereto agree as follows: Section 1. Agerovals and Agreements of the City. The City hereby approves the Project and the financing; thereof by the Authority by the issuance of its revenue bonds or other obligations under the IDB Act. The City authorizes the Authority, on behalf of the City, to submit an application to the Minnesota Department of Energy and Economic Development for an allocation of bond issuance authority» as provided in Section 474.19 of the IDB Act. The City further authorizes the Authority to exercise within the corporate boundaries of the City such powers and jurisdiction which the Authority is granted under the Act and the IDB Act as the authority determines to be useful and necessary in assisting the development of the Project by the Developer in the City. Section 2. Agreements of the Authority. The Authority hereby agrees to provide financing and other assistance to the Project by exercising, ^ within the corporate boundaries of the City, the powers and duties granted to the Authority under the Act and the IDB Act. The Authority agrees ° 0 that its efforts with respect to the Project shall be exercised on behalf of the City and in keeping with the best interests of the City for the purpose of promoting, attracting, and encouraging the development of economically sound industry and commerce in the City. Section 3. Source and Contribution of Funds. All funds required for undertaking the Project in the City shall be derived from the proceeds of the bonds of the Authority and from the Developer, and the City shall not be required to provide any financial assistance to the Project. The authority may use its own funds to provide such additional assistance, if any, as it determines to be necessary or useful in connection with the Project. Section 4 The Authority and the City agree that the Authority shall require, in all agreements, documents, or instruments executed or entered into in connection with the financing or development of the Project, that the City shall be indemnified by the Developer or any other obligors with respect to the Project for any and all claims or causes of action arising from or in connection with the undertaking of the Project pursuant to the Agreement. Section 5. Liability for Debts and Obligations. The authority shall not do any act or thing the effect of which is to create a charge on or lien against the property or revenues of the Authority or the City. The bonds of the Authority issued with respect to the Project shall be special, limited obligations of the Authority payable solely from proceeds, revenues, and other amounts pledged thereto. The bonds and the interest thereon shall neither constitute nor give rise to an indebtedness, pecuniary liability, general or moral obligation, or a pledge of the faith or loan of credit of the Authority, the City, the State of Minnesota or any political subdivision of the above, within the meaning of any constitutional or Statutory provisions. Section 6. Authority Indemnification. The Authority shall indemnify and hold the City and its officers, employees, agents, and volunteer workers, harmless from any and all claims, suits, damages, costs (including reasonable attorney's fees) arising out of any act or omission of the Authority, its officers, employees, agents, or volunteer workers in the performance of this Agreement. Section 7. Unless otherwise provided by concurrent action of the Authority and the City, this Agreement shall terminate upon the retirement or defeasance of the last outstanding bonds issued to finance the Project and the payment of all amounts required to be paid under the Project documents, and this Agreement may not be terminated in advance of such retirement or defeasance. If the Bonds are not issued on or before November 1. 1990, this Agreement shall terminate on December 31, 1990. Section 8. Amendments. This Agreement may be amended only by the mutual written consent of the Authority and the City at any time. No amendment may impair the rights of the holders of the bonds issued to finance the Project unless they have consented to such amendment in the manner provided for amendment of the bond documents. IN WITNESS WHEREOF, the City of Hugo, Minnesota and the Washington County Housing and Redevelopment Authority have caused this Agreement to be executed by their authorized representatives and by the affixing and attestation of their official seals, all as of the day and year first written. Upon roll call, Council members voting AYE: McAllister, Jesinski, Olson, Vail, Atkinson Voting NAY: NONE Whereupon said resolution was declared day of April, 1990. ATTEST: �;y V adopted this 16th