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HomeMy WebLinkAbout80-005WHEREAS, the Minnesota Industf.ia' Development Act is designed to: - 1. Aid in the development of economically sound industy and commerce. 2": Prevent the emergence of blighted areas and marginal lands, and provide for the redevelopment. Thereof. Aid in increasing 3• employment. 4. Increase the tax base of the mun i c i pa's' %typk }and of the other taxing authorities. 5. Protect existing jobs by discouraging` migration of �- Minnesota firms to other states.: NOW, THEREFORE, BE IT RESOLVED by the City Council of Prior Lake, Minnesota," x ' y that the followipg criteria are hereby °adopted as•guideliines in considering aI ppi,ications for industrial, and commercial .,revenue ` fingncing: l The s'uggested size of industrial or commercial financing,shal be $500,000. 2. The total; amount of the taxi- exempt financing shall not s, ' exceed the total cost °of 'the project. 3• The term of the proposed note bond indebtedness shall; at not exceed ,the useful life of the project. (Statutory t, maximum,- 40 years.) ��. 4. The preferred type of financing for commercial and industrial; development issues shall be a mortgage revenue ' note - to-be soled only to an institutional investor or institutional inve$:tors as :a private p1acenient. 5. One; hundred percent financing shall be considered acceptabie = <3 to the City in case of revenue bonds sold as private placements.' (612) 447 -4230 4629 �AKOTA STREET S.E. PRIOR LAKE, MINNESOTA 55372 CITY 01 PRIOR LAKE—. : : f RESOLUTION 8Q; Resolution for Industeia and Commercial Development-" Revenue Financing under MSA Chapter, 474 Motion by: Bissor►ett Seconded by: Busse „ - T (612) 447 -4230 4629 �AKOTA STREET S.E. PRIOR LAKE, MINNESOTA 55372 r 6, in`the event the proposed financing takes the form of a mort- gage revenue note privately placed, the financing Policy'of ° the private- placunent lender may be considered acceptable to ° the 'City. 7. In the case of a pubii`c issuance of ,a bond issue, ft�.e� financing policy will be loft "to the.discretion of the City - Council, City i p bond underwriter. S. The applicant shall demonstrate that the proposed facility �. will not require further public expenditures for public im- provements unless authorized by,th'e City Council, 9. The applicant shall submit all 'financial information to the City for the last three years. In the of,a new business, a three year pro =forma statement of earnings W ill be required.' 1 The applicant shall submit a detailed Market.Analysis demon- strating that no adverse impact will be created upon,existing ' businesses and illustrate their anticipated percent of the . Market for the- arj�m. Great consi "derat,ion will be given to the market analysis and approval will be contingent 'upon a well evidence document'. The Market Analysi's shall be con - - sistant . With developmental plans pf _,tlie Gity,.and wi l h hot - - -, ` ` exert undue strain upon City services. H. The,appl'icani shall indicate that his "proposal qpmpftes r with �- the City's zoning -and subdivision regulations and,how the pro -r posa l ,fit's 'into 'the'Comprehens I Plan.. 12: A fee of one -tenth of'one percent, with a minimurel amount of -$1,000 and a maximum of • $$;000 'shall L be;'- submitted ,, by the -� r r applicant, at t`he time of application, -,to defray the costs incur' red • by, the City. If the Clty 0ouncil, does not approve r the `pretiminary,f ion ;; 50,p'ercent of the fe6 "'may be�re- ` v fundable. If the' preliminarYiresolution is- approved - the 'fee us non- re t-nded and -any add i ti ona' cost's incurred by the City ' 1 _ shall be bids by the �appl i'cant. . A l 13 ,Prior to the adoption : the final resolution author`izin'g ,, of the industrial revenue bonds or revenue notes the applicant shall del iver`a f1`rm, financing commitment :.accep -table to the City from either the private - lender or.,the underwriter. '4 "The, City reserves the right to deny any application for municipal ,.. , } "ndustr i'a'1„ development bone or revenue nose f nancing at any stage s` of the proceed=ings, prior to adoption,of the final resol =ution authorizing "issuance of indmstria,l developmdnt bonds or'reVenue notes .