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<br />RESOLUTION NO. <br /> <br />91-59 <br /> <br /> <br />. <br /> <br />RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT ON <br />BEHALF OF TESCOM CORPORATION AND ITS FINANCING UNDER THE <br />MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING <br />THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF TRADE AND <br />ECONOMIC DEVELOPMENT FOR APPROVAL AND THE DEPARTMENT OF <br />FINANCE FOR A PRIVATE ACTIVITY BOND ALLOCATION; AND <br />AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS <br /> <br />BE IT RESOLVED by the City Council of the City of Elk <br />River, Minnesota (the City), as follows: <br /> <br />SECTION 1 <br />Recitals and Findinqs <br /> <br />. <br /> <br />1.1. This Council has received a proposal that the City <br />finance a portion or all of the cost of a proposed project under <br />Minnesota Statutes, sections 469.152 through 469.165 (the "Act"), <br />on behalf of Tescom Corporation, a Minnesota corporation (the <br />"Borrower"), consisting generally of financing of (i) the <br />construction of an addition of approximately 20,000 square feet <br />to its existing manufacturing facility located at 12616 <br />Industrial Boulevard in Elk River, Minnesota, including <br />landscaping, parking and related improvements (ii) the financing <br />of certain related equipment for use therein in connection with <br />its business of manufacturing pressure control devices, including <br />regulators and valves, and (iii) to the extent permitted under <br />the Internal Revenue Code of 1986, as amended (the "Code"), costs <br />of the issuance of the bonds (collectively, the "Project"). <br /> <br />1.2 Based on a preliminary review of the proposed Project, it <br />would appear that: <br /> <br />(a) The undertaking of the Project would further the <br />general purposes contemplated and described in section 469.152 <br />of the Act. <br /> <br />(b) This Council has been advised by representatives of <br />the Borrower that conventional, commercial financing to pay the <br />cost of the Project is available only at such high costs of <br />borrowing that the economic feasibility of the Project would be <br />reduced. <br /> <br />. <br /> <br />(c) This Council has also been advised by representatives <br />of the Borrower that on the basis of their discussions with <br />potential buyers of tax-exempt bonds, revenue bonds of the City <br />(which may be in the form of a revenue note or notes) could be <br />issued and sold upon favorable rates and terms to finance the <br />Project. <br />