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Home My WebLink AboutResolution 1253 • l Cit� o� ORONO RESOLUTION OF THE CITY COUNCIL • NO. 1253 • � • • RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED INDUSTRIAL DEVELOPMENT PROJECT BY NELSON-CREAR UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AND AUTHORIZING SUBMISSION OF AN APPLICATION TO THE COMMISSIONER OF SECURITIES FOR APPROVAL THEREOF Be It Resolved by the City Council of the City of Orono, Minnesota, as follows : 1. There has been presented to this Council a proposal by Nelson-Crear (the "Borrower" ) that the City undertake a project pursuant to the Minnesota Municipal Industrial Development Act (Minnesota Statutes, Chapter 474) for the acquisition, con- struction and equipping of a commercial office building (the "Project" ) . Under the proposal , the Project will be owned by the • Borrower and leased to various tenants and the Borrow�r will �nter into a Loan Agreement with the City upon such terms and conditions as are necessary to produce income and revenues sufficient to pay when due the principal of and interest on up to approximately $400, 000 Industrial Development Revenue Bond of the City to be issued pursuant to said Chapter 474 , Minnesota Statutes , to provide monies for the acquisition, construction and equipping of the Project, the City will pledge its interest in the Loan Agreement to the bondholder, and the Borrower will mortgage the Project to secure the bond. 2 . As required by said Chapter 474 , Minnesota St��t�ites , this Council conducted a public hearing on t�'ar�!� 9 R__?981_ on the proposal to undertake and finance the Project , after publication in the official newspaper and a newspaper of general circulation in the City of a notice of the time and place of hearing, stating the general nature of the Project and an estimate of the principal amount of bonds or other obligations to be issued to finance the Project and stating that a draft copy of the proposed Application to the Commissioner of Securities, together witn all attachments and exhibits thereto, shall be available for public inspection at the office of the City Clerk , in the City Hall , Orono, Minnesota, at all times between the hours of 8 : 00 a.m. and 4: 30 p.m. each day except Saturdays , Sundays and holidays to and including the day of hearing; and all � parties who appeared at the public hearing were given an opportunity to express their views with respect to the proposal. PAGE 1 OF 3 • l Cit� of ORONO RESOLUTION OF THE CITY COUNCIL • NO. 1253 • � • • 3. It is here�y found, determined and declared that the purpose of the Project is and the effect thereof will be to promote the public welfare by the attraction, encouragement and development of economically sound industry , agriculture and commerce so as to prevent, so far as possible, the emergence of blighted and marginal lands and areas of chronic unemployment; the retention and development of industry to use the available resources of the community, in order to retain the benefit of their exi5ting investment in educational and public service facilities, by halting the movement of talented and educated personnel of mature age to other areas and thus preserving the economic and human resources needed as a base for providing governmental services and facilities; and the more intensive development of land available in the area to provide a more adequate tax base to finance the cost of governmental services in the City, County, and School District where the Project is located. • 4 . The Borrower has entered into preliminary discussions with The Towle Company (the "Financial Advisor" ) and the Financial Advisor has reported that the Project and the sale of the bond therefor. are economically feasible. 5 . The Project is hereby given preliminary approval by the City subject to approval of the Project by the Commissioner of Securities and subject to final approval by this Council and by the purchasers of any �onds to be issued and as to the ultimate details of the Project. 6 . In accordance with Section 474 . 01 , Subd. 7 , Minnesota Statutes , the P�Iayor, the City Clerk and such other officers and representatives of the City as may from time to time be designated are hereby authorized and directed to submit the proposal for the Project to the Commissi�ner of Securities and request her approval thereof, and the Mayor, the City Clerk, and other officers , employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary information as she may require. The Borrower, Messrs . Faegre & Benson as bond counsel , the Financial Advisor, the City Attorney, and other City officials are also authorized to initiate the preparation of a proposed loan agreement, mortgage and such other documents as may be necessary • or appropriate to the Project so that, when and if the proposed Project is approved by the Commissioner and this Council gives its final approval thereto, the Project may be carried forward expe- ditiously. PAGE 2 OF 3 . '� �: l Cit� o� ORONO • - RESOLUTION OF THE CITY COUNCIL � NO. 1253 • � • s , 7 . The Borrower has agreed to pay any and all costs incurred by the City in connection with the Project whether or not the Project is approved by the Commissioner and whether or not the Project is carried to completion. 8 . The Borrower is hereby authorized to enter into such contracts, in its own name and not as agent for the City, as may be necessary for the construction of the Project by any means available to it and in the manner it determines without advertise- ment for bids as may be required for the acquisition or construc- tion of other municipal facilities , but the City shall not be liable on any such contracts. Adopted by the City Council of the City of Orono on the 9 day of March , 1981. , • �I � � r C j� � � ' "L�. iam B. an Nest, Mayor ATTEST: L�c.�` �Walter . Benson, City Administrator � PAGE 3 OF 3 w . 1 • STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) I , the undersigned, being the duly qualified and acting City Clerk of the City of Orono, Minnesota , do hereby certify that the attached extract of minutes of a regular meeting of the City Council of the City held P�?arch 9 , , 198I , is a full, true and correct transcript therefrom insofar as the ,same relates to the $400 ,000 Industrial Development Revenue Bond of the City. � WITNESS My hand officially and seal officially as said th da of I��_arch , 1981 • City Clerk this 10 Y s � �� City Clerk Alberta Strom (Seal} i -4-