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<br />. <br /> <br />. <br /> <br />. <br /> <br />RESOLUTION NO. 88- 7q <br />RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, <br />PRESCRIBING THE FORM AND DETAILS, AND PROVIDING <br />FOR THE PAYMENT OF $299,900 GENERAL OBLIGATION <br />TAX INCREMENT (TAXABLE) BONDS, SERIES 1988A <br /> <br />BE IT RESOLVED by the City council of the City of Elk <br />River, Minnesota as follows: <br /> <br />Section 1. Findings: Costs. <br /> <br />1.1) The City has duly established Development District <br />No.1 (the District), Tax Increment Financing District No.5 <br />(the TIF District), and adopted a Tax Increment Financing Plan <br />(the TIF Plan) for the TIF District, all pursuant to Chapter <br />469 of The Minnesota Statutes (the Act). <br /> <br />1.2) The purpose of the District is to acquire a <br />development site, described in Exhibit A attached hereto, <br />located within the District (the Property) to provide the <br />incentive necessary for Alltool Company to remain in and to <br />expand its operations in the City, resulting in increased <br />employment in the City and the preservation and enhancement of <br />the City's tax base. <br /> <br />1.3) It is necessary and desirable to the sound financial <br />management of the City and its orderly economic development <br />that the City issue and sell bonds pursuant to the Act to <br />provide financing for the purchase of the Property. <br /> <br />Section 2. Authorization of Bonds. <br /> <br />2.1) This Council hereby determines that it is necessary <br />and in the best interests of the City for the City to issue its <br />General Obligation Tax Increment (Taxable) Bonds, Series 1988A <br />in the principal amount of Two Hundred Ninety Nine Thousand <br />Nine Hundred Dollars ($299,900) (the Bonds) for the purpose of <br />financing the cost of purchasing the Property. <br /> <br />2.2) The sale and issuance of the Bonds is hereby <br />authorized pursuant to Minnesota Statutes, Section 469.178 and <br />Chapter 475. The Council has determined, based upon advice of <br />bond counsel, that interest on the Bonds cannot be excluded <br />from gross income for purposes of federal income taxation; <br />therefore publication of q notice of the sale is not required. <br />It is hereby determined that not less than twenty percent (20%) <br />of the cost of the Property, as hereinafter defined, is <br />estimated to be received from taxes levied upon the increased <br />value of property within the TIF District; so that, no election <br />under the provisions of section 475.58 of the Minnesota <br />Statutes is required. <br />