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85-071 RES RESOLUTION 85-71 . RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROPOSED INDUSTRIAL DEVELOPMENT PROJECT BY SCHERER LIMITED PARTNERSHIP UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AND AUTHORIZING SUBMISSION OF AN APPLICATION TO THE MINNESOTA DEPARTMENT OF ENERGY AND ECONOMIC DEVELOPMENT FOR APPROVAL THEREOF 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 pro- posal by Scherer Limited Partnership, a Minnesota limited partnership (the "Partnership") 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, con?truction and equip- ping 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 Partnership and leased to pamida, Inc., a Delaware corporation (the "Project"). The Partnership will enter into a revenue 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 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 will pledge its interest in the revenue agreement to secure the bonds. . 2. As required by the Act, this Council conducted a public hearing on Monday, November 18, 1985 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 setting forth 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; stating that a draft copy of the proposed Application to the Minnesota Department of Energy and Economic Development, together with all attachments and exhibits thereto, is available for public inspection at the office of the City Administrator, in the City Hall, at all times between the hours of 8:30 A.M. and 5:00 P.M. each day except Saturdays, Sundays and legal holidays to and including the day of hearing; and stating that all parties who appear at the public hearing shall have an opportunity to express their views with respect to the proposal. The draft application to the Minnesota Department of Energy and Economic Development, together with all attachments and exhibits thereto, was on file and available for public inspection at the place and times set forth in the notice. -3- . 3. It is hereby found, determined and declared that the Project furthers the purposes stated in Section 474.01 of the Act in that the purpose of the Project is and the effect thereof will be to promote the public welfare by the attraction, encourage- ment ,and development of economically sound industry and commerce so as to prevent, so far as possible, the emergence of blighted and marginal lands and areas of chronic unemployment; the reten- tion and development of industry to use the available resources of the community, in order to retain the benefit of its existing investment in educational 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 avail- able in the area to provide a more adequate tax base to finance the cost of governmental services in the Municipality, county and school district where the Project is located. In the judgment of the City Council, based upon the representations of the Partnership, the Project as proposed would not be undertaken by the Partnership but for the availability of industrial development bond financing. . 4. The Partnership has entered into preliminary discussions with the First National Bank of Minneapolis, as financial consultant, and the financial consultant has reported that the Project and the sale of bonds therefor are feasible. 5. The Partnership 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 Minnesota Department of Energy and Economic Development and whether or not the Project is carried to completion. 6. The Project is hereby given preliminary approval by the City subject to approval of the Project by the Minnesota Department of Energy and Economic Development and subject to final approval by this Council and by the purchasers of any bonds to be issued as to the ultimate details of the Project and as to the terms of the bonds. . 7. In accordance with Section 474.01, Subd. 7 of the Act, the Mayor, the City Administrator, 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 Minnesota Department of Energy and Economic Development and request its approval thereof, and the Mayor, the City Administrator, and other officers, employees and agents of the City are hereby authorized to provide the Department with such preliminary information as it may require. The Partnership, Faegre & Benson as bond counsel, the City Administrator, the City Attorney, and other City officials are also authorized to initiate the preparation of a proposed loan agreement and such other documents as may be necessary or appro- -4- . priate to the Project so that, when and if the proposed Project is approved by the Department and this Council gives its final approval thereto, the Project may be carried forward expeditiously. 8. The Partnership 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 adver- tisement for bids as may be required for the acquisition or construction of other municipal facilities, but the City shall not be liable on any such contracts. Passed and adopted by the Elk River City Council this eighteenth day of November. 1985. ~'A Richard Hinkle. Mayor . ATTEST: . ~.../}2 .~ Thomas R. Bublitz. City or -5-