85-061 RES
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RESOLUTION 85-61
A RESOLUTION GRANTING PRELIMINARY APPROVAL TO A PROPOSED INDUSTRIAL
DEVELOPMENT PROJECT BY SCHERER LIMITED PARTNERSHIP
UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AND
AUTHORIZING APPLICATION FOR BOND
ISSUANCE AUTHORITY THEREFOR
BE IT RESOLVED, by the City Council of the City of Elk River, Minnesota as follows:
1.
There has been presented to this Council a proposal by Scherer Limited Partner-
ship (the "Company"), that the City undertake and finance a project pursuant to
the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Chapter
474 (the "Act"), generally consisting of the acquisition, construction and
equipping of an approximately 40,000 square foot retail facility on Lots 5, 6 and
7, Block 2, Elk River Plaza, in the City of Elk River to be owned by the Company
and leased to Pamida, Inc., a Delaware Corporation (the "Project"). Under the
proposal, the Company would enter into a revenue agreement with the City upon
such terms and conditions as are necessary to produce income and revenue
sufficient to pay when due the principal of the interest on up to approximately
$1,600,000 Industrial Development Revenue Bonds of the City to be issued pursuant
to the Act, to provide monies for the acquisition, construction and installation
of the Project; and the City would pledge its interest in the revenue agreement
to secure the Bonds.
The City hereby expresses its preliminary intention to issue bonds in the maximum
aggregate principal amount of up to approximately $1,600,000, to finance the
project. The City's preliminary intention does not constitute "preliminary
approval" that the City will undertake the Project pursuant to the Act; it acts
solely to authorize submission of an application to the Minnesota Department of
Energy and Economic Development as set forth in paragraph 3 hereof. Neither
preliminary nor final approval pursuant to the Act is hereby granted. The
preliminary intention herein stated is subject to compliance by the Company and
the Project with the City's "Resolution Setting Forth Criteria and Procedures
for the Issuance of Industrial Revenue Bonds," Resolution 79-5, dated April 16,
1979, and compliance by the Company and the Project with the City's ordinances
including without limitation approvals required pursuant to its Zoning Ordinance
and Subdivision Ordinances.
3.
The City Administrator and other City officials and the Company are authorized
and directed to prepare and submit an application to the Minnesota Department
of Energy and Economic Development for an allocation of $1,600,000 of bond
issuance authority for the Project pursuant to the Act. The Company shall pay
to the City the required application deposit of $16,000, representing one percent
of the requested allocation, and the City shall submit such $16,000 deposit
with the application to the Department. At such time as the deposit, or any part
thereof, is refunded to the City by the Department, the City shall remit the
amount so refunded to the Company.
4. Pursuant to the Act, this Council shall conduct a public hearing on the proposal
to undertake and finance the Project. The City Administrator, the Company and
. Faegre & Benson, as Bond Counsel, are hereby authorized and directed to prepare
Resolution 85-61 - Cont.
PAGE TWO
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and make available a draft application to the Minnesota Energy and Economic
Development Authority for approval of the Project and related materials and to
cause notice of the hearing to be published as required by the Act.
5. The Company shall pay any and all costs incurred by the City in connection with
the Project whether or not the Project receives necessary additional approvals,
whether or not the Project receives an allocation of bond issuance authority,
and whether or not the Project is carried to completion.
Passed and adopted by the Elk River City Council this 21st day of October, 1985.
0Z;L~L~
Richard Hinkle, Mayor
ATTEST:
or
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