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• RESOLUTION GIVING PRELIMINARY APPROVAL TO THE
ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE
BONDS IN A PRINCIPAL AMOUNT NOT TO EXCEED
$4,325,000 TO FINANCE A PROJECT ON BEHALF OF
GRIST MILL CO., INC.
WHEREAS, the Minnesota Legislature has enacted the
Municipal Industrial Development Act, Minnesota Statutes,
Sections 469.152 to 469.165 (hereinafter, the Act); and
WHEREAS, in enacting the Act, the Legislature found
that the welfare of the state requires the active promotion,
attraction, encouragement and development of economically sound
industry and commerce to prevent so far as possible the
emergence of blight and areas of chronic unemployment, and to
prevent economic deterioration; and
WHEREAS, Grist Mill Co., Inc., a Delaware corporation
(hereinafter, the Borrower), has indicated an interest and.
desire that the City undertake a project under the Act
consisting of the acquisition of land and the construction and
equipping of an approximately 69,000 square foot addition (the
Project) to its existing facility located at 21325 Hamburg
Avenue in the City and used by the Borrower in the manufacture
of food products; and
• WHEREAS, the Borrower has proposed that the City
undertake and finance the Project under the Act and that
Industrial Development Revenue Bonds (hereinafter, the Bonds)
in the approximate principal amount of $4,325,000 be issued for
the purpose of financing the Project, and the proposal calls
for the City and the Borrower to enter into a Loan Agreement
wherein the City will loan the proceeds of the Bonds to the
Borrower and the Borrower will agree to acquire, improve,
equip, operate and maintain the Project and pay all costs
thereof and to repay the loan from the City by loan repayments
to be fixed and revised from time to time as necessary so as to
produce income and revenues sufficient to provide for the
prompt payment of the principal of and interest on the Bonds
and all costs and expenses of the City in connection with the
Project and the issuance and sale of the Bonds; and
WHEREAS, the City has been advised by representatives
of the Borrower that conventional, commercial financing to pay
the capital cost of the Project has not been obtained and is
available only on a limited basis and at such high costs of
borrowing that the economic feasibility of acquiriing,
improving, equipping and operating the Project would be
significantly reduced, but the Borrower has also advised the
Council that the use of municipal financing, and its resulting
lower borrowing cost, will constitute a significant inducement
• to the Borrower to undertake the Project; and
• WHEREAS, the proposed .Project would encourage the
expansion of an important revenue-producing enterprise with the.
City; and
WHEREAS, the Project when completed would add to the
tax base of the City, the County and school district and would
provide increased opportunities for employment for residents of
the City and the surrounding area; and
WHEREAS, the full faith and credit of the City will
not be pledged or responsible for the Project or the payment of
the principal of and interest on the Bonds; and
WHEREAS, the undertaking of the Project and the
issuance of the Bonds appear to satisfy the legislative
objects, purposes and requirements of the Act.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF
THE CITY OF LAKEVILLE:
That on the basis of information furnished the
Council, the effect of the Project, if undertaken by the City,
will be to encourage the development of economically sound
• industry and commerce, and to provide greater employment
opportunities, all of benefit to residents and taxpayers of the
City of Lakeville and other levels of government in the area,
and will further the purposes set forth in Minnesota Statutes,.
Section 469.152. .
Be It Further Resolved that the undertaking and
financing of the Project and the issuance of one or more series
of Industrial Development Revenue Bonds in the approximate
amount of $4,325,000 to finance the costs thereof, all as
referred to above, is hereby authorized and approved by the
City, and it is hereby determined to proceed with the Project
and the financing thereof, subject to the approval of the.
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Project by the Commissioner of the Department of Trade and
Economic Development after public hearing as required by the
Act and Section 147(f) of the Internal Revenue Code of 1986,
and to the agreement of the City and the Borrower and the
Purchaser or Purchasers of the Bonds on the detailed terms and
conditions on which the Project will be financed and the Bonds
will be issued, sold and secured.
Be It Further Resolved that the Mayor, City
Administrator and the City Clerk are hereby authorized and
directed to submit the appropriate application form to the
Department of Finance for an allocation of bonding authority
for the issue.
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.
STATE OF MINNESOTA)
s5.
COUNTY OF DAIfOTA )
The undersigned, being the duly appointed, qualified
and acting City Clerk of the City of Lakeville, Minnesota,
hereby certifies that the foregoing is a full, true and correct
copy of a resolution duly passed and adopted by the City
Council of said City at its meeting duly called and held on
July 9, 1990, by the following roll call vote:
Ayes:
Nays:
Absent:
and that said resolution has not subsequently been amended and
is now in full force and effect.
IN WITNESS WHEREOF, I have hereunto set my hand and
the seal of the City of Lakeville, Minnesota.
City Clerk
Dated: July 9, 1990
(SEAL)
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