Resolution 988 - Laserfiche WebLink

Home Browse Search

RESOLUTION #988 Member Pesek tion and moved its adoption: introduced the following resolu- RESOLUTION RELATING TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; GIVING PRELIMINARY APPROVAL TO THE PROJECT; REFERRING THE PROPOSAL TO THE COMMISSIONER OF SECURITIES FOR APPROVAL; AND AUTHORIZING EXECUTION OF A MEMORANDUM OF AGREEMENT AND PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Orono, Minnesota (the City), as follows: .1. It is hereby found, determined and declared as follows: 1.1 The welfare of the.State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental acts to prevent, so far. as possible, emergence of blighted' lands and areas of chronic unemployment and the State has encouraged local government units to act to prevent such economic deterioration. 1.2. First National Bank of Navarre, a national banking association (the Bank) and David J. Delaney, a resident of the City of Minnetrista, Minnesota (Mr. Delaney)'are considering acquisition of land within the City, construction thereon of a building and acquisition and installation therein of items of furnishings, per- sonal property and related facilities'(all such property herein- after referred to as the Project) for use as a bank and other commercial or office facilities of approximately 10,000 square feet, 1.3. The existence -of the Project would add to the tax base of the City, Hennepin County -and the school district -in _which the City is located. 1.4. This Council has been advised that conventional, commercial financing to pay the capital cost of the Project has not been obtained and is available only on a limited basis and at such high costs* of borrowing that,the economic feasibility of complet- ing and operating the Project would be significantly reduced; however, the use of municipal financing and the lower borrowing cost resulting therefrom will materially increase the economic feasibility of the Project and will constitute a substantial induce- ment to the Bank to undertake the Project. 1..5. The Bank and Mr. Delaney -have proposed that the City issue and sell its Revenue Bonds or Notes or other obligations (the Notes), pursuant to Minnesota Statutes, Chapter 474, as amended (the Act), for the purpose of financing the Project, in- cluding certain incidental expenses thereto, in the approximate • principal amount of $450,000 and to loan the proceeds realized upon the sale of the Notes to Mr. Delaney or a partnership to be