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HomeMy WebLinkAboutResolution 1087 • Member Mayor Van Nest introduced the following resol- ution and moved its adoption: • RESOLUTION NO. 1087 • � RESOLUTION RELATING TO A PROJECT UNDER THE ' MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AND CALLING FOR A PUBLIC HEARING ' BE IT RESOLVED by the City Council of the City of Orono, Minnesota �the City�, as follows : � Section l. Recitals. l. l The City is authorized by Minnesota Statutes, Chapter 474 (the Act�, to issue its industrial development revenue bonds or notes to finance capital projects consisting of properties used and useful in connection with a revenue producing enterprise. 1. 2 . By Resolution No. 988 entitled• "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 Nec- � essary Documents" , adopted by the City Counc�l on January 23 , 1979 , approval was gi�ven �:to .a project consisting of the acqui- s.ition of :l°and within the „.�ity, .�construction :thereon �:of .a b.uild- i:ng and acquis�i:t�ion::and :�inst°al`lation •.there�i.n :of _items :of furnish- ings, personal property •:and •related �faci"1-ities, for use as a bank and other commercial or office facilities of �approximately 10 ,000 square feet, and the issuance of revenue bonds or notes or other obliqations pursuant to the Act (the Notes) in an approximate amount • of $450, 000 to finance such project, the proceeds of such Notes to be - loaned to Mr. David J. Delaney, a resident of the City of Minnetrista, Minnesota (Mr. Delaney) , or a partnership to be organized by Mr. , Delaney �the Partnership) pursuant to a revenue agreement wherein the Partnership and/or Mr. Delaney will be obligated to acquire, construct and equip the project , to apply the proceeds of the , Notes to the payment of costs thereof and to make payments under the revenue agreement at the times and in the amounts suf- ficient to provide for the prompt payment of the principal of and the interest on the Notes and all costs and expenses of the City inc:idental to the issuance and• sale of the Notes. 1. 3 It is now proposed that the City issue additional Notes in an aggregate amount not to exceed approximately $250, 000 pursuant to the Act to finance a proposed increase in the size of the above-referred to building from� a building of approximately 10, 000 square feet to a building of approximately 14 , 000 square feet, i� a proposed increase in the proportion of bank space in the build- ing ,and related improvements and property, and to finance increased costs of the �project approved by Resolution No. 988 of approxi- mately $50,000 due to inflation. . 2 . 3 A draft copy of the proposed application to the Minnesota Commissioner of Securities , together with all attachments and exhibits thereto , shall be placed on file with the City Clerk prior to publication of the notice of public hearing and shall be available for public inspection at the times specified in the notice specified under Section 2 . 2 hereof. � �� '� �: ��. � �y ; Mayor Attest :�ic� ity Clerk The motion tor the adoption of the foregoing resolution • was seconded by Member Butler , and upon vote being taken thereon, the following voted in favor thereof: rZa��or Van rdest, Councilmembers Butler, �iurr, �iassengale, and. Paur_us and the following voted against the same: Z�Tone whereupon said resolution was declared duly passed and adopted. Adopted by the City Council of the CitY o� Orono, r�innesota at a regular meeting held October 30, 1979. � ' -3- �esolutipn No. 1087 , �xhibit A ?agey 1 •' NOTICE OF PUBLIC HEA,RING ON A PROPOSED � PROJECT AND THE ISSUANCE OF INDUSTRIAL � DEVELOPMENT REVENUE BONDS UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, • MINNESOTA STATUTES, CHAPTER 474 , AS At�IENDED � CITY OF ORONO, MINNESOTA NOTICE IS HEREBY GIVEN that the City Council of the City , of Orono, Minnesota� will meet on November 27, 1979 at 7 : 30 o' clock • p.M. , at Council Chambers located �,n the City of Orono, Minnesota, � for the purpose of conducting a public hearing on a proposal that the City issue industrial development revenue bonds or notes (herein- after, the Notes) , under the Municipal Industrial Development Act, Minn- esota Statutes, Chapter 474 , as amended, in order to undertake and fi- nance, in �rhole or in part, a project within the City on behalf , of Mr. Daqid J. Delaney, or a partnership to be organized by Mr. Delaney. The proposed project will consist of an increase in the project approved by Resolution No. 988 of the City Council of the City of Orono on January 23 , 1979 , which project approved by Res- olution No. 988 consists of the acquisition of land within the City, construction thereon of a building and acquisition and in- stallation of items of furnishings, personal property and related facilities for use as a bank and other commercial or office facil- ! ities, a user of which is to be the First National Bank of Navarre. The proposed project consists of an increase in the size . :of the building from approximately 10 ,000 square feet to approxi- mately 14 , 000 square feet, a proposed increase in� the amount of bank space in the building, and related improvements and, property. The estimated total amount of Notes approved by Resolution No. 988 was $450,000 and the estimated total amount of the proposed Notes to be issued to finance the above-described increase, and approximately $50 , 000 of increased costs of the project approved by Resolution No. 988 due to inflation, is estimated not to exceed approximately $250 ,000 �(making the total estimated amount of Notes to be issued not to exceed approximately $700 ,000) . The Notes and interest thereon shall not be payable from nor charged upon any funds of tYie City other than the revenue pledged to the pay- ment thereof, nor shall the City be subject to any pecuniary lia- bility thereon. No holder or holders of any such Notes shall ever have the right to compel any exercise of the taxing power of the City to pay the Notes or the interest thereon, nor to enforce payment against' any property of the City. ,Such Notes shall not constitute a charge, lien or encumbrance, legal br• equitable, upon the property of the City, nor shall the same constitute a debt of the City within the meaning of any constitutional or statutory limitation. A draft copy of the proposed application to the Minne- • sota Commissioner of Securiti.es for approval of the increase in the project, together with all attachments and exhibits thereto, is available for public inspection at the office of the City Clerk at 1335 South Brown Road in the City of Orono,_ Minnesota, . __.. between the hours of 8: 00 A.M. and 4 : 30 P.M. , November 7, 1979 � through November 27, 1979. ' - � Re�olution No. 1087 � Exhibi� A Page 2 . - , � All persons interested may appear and be heard at the time and place set forth above. Dated:. November 1, 1979 , BY ORDER OF THE CITY COUNCIL . ByG!/ • ity Clerk � . / , � • .