85-061 RES - Laserfiche WebLink

Home Browse Search

. .2. 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