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77-2586 CITY OF HOPKINS Hennepin County, Minnesota RESOLUTION NO. 77-2586 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 ECONOMIC DEVELOPMENT 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 Hopkins, Minnesota, as follows: 1. There has been presented to this Council a proposal that the City undertake a project pursuant to the Minnesota Munici- pal Industrial Development Act, Chapter 474 , Minnesota Statutes, consisting of the remodeling of an existing warehouse and the con- struction of an addition thereto (the "Project") in the City to be used by Napco Industries, Inc. , an Indiana corporation. Under the proposal, Napco Industries, Inc. will enter into a revenue agree- ment to construct and equip the Project and the City agrees to issue up to approximately $1,000, 000 Industrial Development Revenue Bonds of the City pursuant to the Act to finance the Project. If the revenue agreement takes the form of a loan agreement, Napco • Industries, Inc. will retain title to the Project and the site thereof and the loan agreement will require Napco Industries, Inc. to pay amounts sufficient to pay the principal of and interest on any Bonds issued. If the revenue agreement takes the form of a lease, title to the Project will be conveyed to the City and the lease will require Napco Industries, Inc. to pay rent sufficient to pay the principal of and interest on the Bonds. The City may assign its interest in the revenue agreement to a trustee or the bondholder to secure the Bonds. The Bonds may also be secured by a mortgage of the Project. The Bonds shall be issued in accordance with the Act, and shall provide funds payable solely from amounts received by the City pursuant to the revenue agreement. The Bonds 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 a form of Application to Commissioner of Economic Development for approval of the Project setting forth the estimated costs of the Project and the increased employment and payrolls to result therefrom. 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, agriculture and commerce so as to prevent, so far as possible, the emergence of blighted and marginal lands and areas of chronic unemployment; the development of industry to use the available resources of the community, in order to retain the benefit of its existing investment in educa- tional and public service facilities, by halting the movement of talented, 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 an adequate tax base to finance the increase in the amount and cost of governmental services provided by the City, the County and the School District in which the City is located. 3. The Project is hereby given preliminary approval by the City, subject to (i) approval of the Project by the Minnesota Commissioner of Economic Development and (ii) approval of this Council, Napco Industries, Inc. and the underwriters or an insti- tutional investor of the ultimate details of the Project and the terms of the Bonds. 4. Napco Industries, Inc. is undertaking to make arrangements with an underwriter or institutional investor for the purchase of the Bonds. Upon receipt of a letter of intent to purchase the Bonds from an underwriter or other purchaser (I/ designated by Napco Industries, Inc. , the Mayor and City Manager are hereby authorized and directed to submit to the Commissioner of Economic Development an Application for approval of the Project, substantially in the form presented to this meeting, together with the letter of intent necessary to complete such Application. The Mayor and City Manager and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary information as he may request. 5. Napco Industries, Inc. 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. 6. Napco Industries, Inc. has agreed to, and is hereby authorized to enter into such contracts as may be necessary for the construction of the Project by any means available to it and in the manner it determines without advertisement for bids as may be required for the construction or acquisition of other municipal • facilities. OFF Attest: / �6: G un-2/ City Clerk