78-2667 • RESOLUTION NO. 78 26I§7
RESOLUTION GIVING PRELI:MINArY APPROVAL TO A
PROJECT UNDER THE MUNICIPAL IN
DEVELOPMENT ACT, REFERRING HE PROPOSAL TO
THE COMMISSIONER OF SECURIT ESI FOR APPROVAL,
AND AUTHORIZING EXECUTION Or AI MEMORANDUM OF
AGREEMENT AND PREPARATION 0 NECESSARY DOCU-
MENTS
BE IT RESOLVED by the City louncil of the City of Hopkins,
Minnesota, as follows:
Section 1. Recitals.
1.01. The Legislature of t e1State of Minnesota in
Minnesota Statutes, Chapter 474, as a ended (the Act) has found and
declared that the welfare of the Stat- requires active promotion,
attraction, encouragement and develop exit of economically sound
industry and commerce through govern -ntal acts to prevent, so far
as possible, emergence of blighted la' ds and areas of chronic unem-
ployment; has authorized municipaliti -s to. issue revenue bonds to
finance, in whole or in part, the costs of the acquisition, construc-
tion, reconstruction, improvement and betterment of projects, includ-
ing any properties, real or personal, used or useful in connection
with a revenue producing enterprise - ngaged in any business; and has
authorized municipalities to enter i to "revenue agreements" as
defined in the Act with any person, :ir, , or public or private cor-
poration or federal or state governm =nta1 subdivision - or agency (the
"Contracting Party ") providing for t e tayment by the Contracting
Party of amounts sufficient to provide or the prompt payment of
principal of and interest on the rev -nue bonds.
1.02. Pursuant to the aut or.ty of the Act, it has been
proposed that the City issue its rev =nue bonds in an amount sufficient
to pay costs of the acquisition, con-truction, improvement and better -
ment of certain real and personal properties in the City to be used
by Super Valu Stores, Inc., a Delawa'e 4orporation (the Company), as
a freezer addition to its current waiehpuse facility (the Project) and
to make the proceeds of the sale of 'hose revenue bonds available to
the Company, which will agree to pay thp City amounts sufficient to
• pay promptly the principal of and in erest on the revenue bonds, and
to cause the Project to be construct :d.l The Project is presently
estimated to cost approximately $1,01
1.03. The existence of th :• I? oject would add to the tax
base of the City, County and School i"istrict in which the City is
located and would provide increased opPortunities for employment for
residents of the City and surrounding, area.
1.04. The City has been advi that conventional
. commercial financing to pay the capital cost of the Project is
available only on a limited basis and at such high costs of
borrowing that the economic feasibility of operating the Project
would be significantly reduced, but that with the aid of municipal
financing, and its resulting low borrowing costs, the Project is
economically more feasible.
1.05. This Council has been Edvised that revenue bonds
of the City could be issued and sold upon favorable rates and
terms to finance the Project.
1.06. There has been presented to this Council a form
of Memorandum of Agreement relating to the issuance of revenue
bonds of the City to finance costs of the Project.
Section 2. Approvals and Authorizations.
2.01. On the basis of information given the City to date,
it appears that it would be in the best interest of the City to
issue its industrial development revenue nds under the provisions
of the Act to finance costs of the Projec
• 2.02. The Project is hereby given preliminary approval
by the City and the issuance of revenue bonds for such purpose and
in an amount not to exceed $1,000,000 approved, subject to approval
of the Project by the Commissioner of S curities and of the purchas-
ers of the bonds as to the details of the bond issue and provisions
for their payment.
2.03. The form of Memorandum of Agreement is approved
and the Mayor and City Clerk are authorized to execute the Memorandum
of Agreement, with such changes as the City Attorney may approve, on
behalf of the City.
2.04. In accordance with law, the Mayor' is hereby autho-
rized and directed to submit the proposal for the Project to the
Commissioner of Securities for his approval of the Project. The
Mayor, City Clerk, City Manager, City Attorney and other officers,
employees and agents of the City are hereby authorized to provide
the Commissioner with any preliminary information he may need for
this purpose, and the City Attorney is authorized to initiate and
assist in the preparation of such documents as may be appropriate
• to the Project, if it is approved by the Commissioner.
Section 3. Special Obligations.
In all events, it is understood, however, that the bonds
of the City shall not constitute a chE.rg , lien or encumbrance
legal or equitable upon any property of the City except the Project,
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• if it becomes the property of the Ci.y, and each' bond, when, as,
and if issued, is payable solely fro the revenue received from
the Project and property pledged to she 'payment thereof, and
shall not constitute a debt of the C
t .
t ,u 6
,t,. .
— Mayor
Attest: . 4 _/ — ��.
City C erk
III
STATE OF M NNE SOP N/ 55.
111 COUNTY OF HENN
CITY OF H • 'KIN$
CLERK OF THE
i, TH UN[1ERSIGNED ••;- <.nTA, AND CUSTODIAN
NEP►N ('OUNTY ERTIFY THAT
' E k s Y C
CITY OF HO'KIN HE g ,�,, : r . r TRF ,s'' -RIPT
OF THE SE L A RE CORDS 01=
OREGOING r p THEREOF PRESERVED
THE ABOV • OR THE WHOLE C" CLERK.
AND COPY OF y ,,. C
AND ON LEI ' T E OF I CE OF
iiir / "' -
CITY CLERK OF T CITY OF HOPKIN
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