85-072 RES
RESOLUTION 85-72
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RESOLUTION STATING PRELIMINARY INTENT TO
APPROVE A PROPOSED INDUSTRIAL
DEVELOPMENT PROJECT
JAY MORRELL & JAY PLAISTAD 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:
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1. There has been presented to this Council a proposal by Jay Morrell &
John Plaistad Partnership. a Minnesota General Partnership (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 approximate 10.000 square foot building for a hardware store at part of Lot
7. Block 2. Elk River Plaza. to be owned and operated by the Company (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 $400.000 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.
2. The City hereby expresses its peliminary intention to issue bonds in
the maximum aggregate principal amount of up to approximately $400.000 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 wihout limitation approvals
required pursuant to its Zoning Ordinance and Subdivision Ordinances.
3. The City Clerk-Administrator and other 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 $400.000 of
bond issuance authority for the Project pursuant to the Act. The Company
shall pay to the City the required application deposit of $4.000. representing
one percent of the requested allocation. and the City shall submit such $4.000
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
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remit the amount so refunded to the Company.
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4. Pursuant to the Act, this Council shall conduct a public hearing on
November 16, 1985 on the proposal to undertake and finance the Project. The
City Clerk-Administrator, the Company and Faegre & Benson, as Bond Counsel,
are hereby authorized and directed to prepare 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 rquired by the Act.
5. The Company shall pay any
connection with the Project whether
additional approvals, whether or not
bond issuance authority, and whether
completion.
and all costs incurred by the City in
or not the Project received necessary
the Project received an allocation of
or not the Project is carried to
Adopted this 16th day of November, 1985.
Richard Hinkle, Mayor
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Thomas R. Bubl1tz, C1ty Adm1n1strator .
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