Resolution 2174 - Laserfiche WebLink

Home Browse Search

? - RESOLUTION NO. 2174 '. ',' .. RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED INDUSTRIAL DEVELOPMENT PROJECT TO BE CONSTRUCTED AND FINANCED UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, AUTHORIZING THE SUBMISSION OF AN APPLICATION TO THE COMMISSIONER OF SECURITIES FOR APPROVAL THEREOF AND AUTHORIZING THE PREPARATION OF DOCUMENTS AND MATERIALS IN CONNECTION WITH THE PROJECT BE IT RESOLVED by the City Council of the City of New Brighton, Minnesota, as follows: 1. There has been presented to this Council a proposal that the City undertake a project pursuant to the Minnesota Mu- nicipal Industrial Development Act, Chapter 474, Mi~nesota Stat- utes, consisting of the acquisition and construction of an office- industrial building (the "Project") in the City to be owned by Irvin P. Moen, an individual. Under the proposal, Mr. Moen (the "Developer") will enter into a loan agreement whereby the Devel- oper agrees to construct the Project and the City agrees to issue up to approximately $1,000,000 in principal amount of revenue obligations of the City pursuant to the Act to finance the Project. The obligations would be issued to institutional investors in a so-called tax exempt mortgage private placement transaction whereby the obligations would be secured by a mortgage of the Project. The Developer will retain title to ~he Project and the site thereof and the loan agreement will require the Developer to pay amounts sufficient to pay the principal of and interest on any obligations issued. The Developer will lease the Project to B & Y Metal Painting Inc. and Chemical Technology, Inc. The Developer's interest in the leases will be assigned to the holders of the obligations as additional security. The City will also assign its interest in the loan agreement to the holders of the obligations to secure the Obligations. The obligations shall be issued in accordance with the Act, and shall provide that the obligations are payable solely from amounts received by the City pursuant to the loan agreement anq other property pledged to their payment. The obligations shall not be a general obligation of the City or be payable from any other property or funds of the City. 2. There has been presented to this meeting informa- tion relating to the Project, including a form of Application to the Commissioner of Securities for approval of the Project and a letter of intent of First State Bank of New Brighton to purchase the obligations. It is hereby 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 and commerce so as -2-