RESOLUTION GIVING THE NECESSARY CITY APPROVALS TO A REFINANCING BY THE DULUTH SEAWAY PORT AUTHORITY OF AN $18,000,000 INDUSTRIAL DEVELOPMENT BOND ISSUANCE WHICH FINANCED THE ST. LAWRENCE CEMENT DOCK AND WHARF FACILITIES.BY COUNCILOR HOGG:
WHEREAS, pursuant to Minnesota Statutes, Section 469.152 and 469.165, as amended (the act), the Duluth Seaway Port authority (the authority), is authorized to issue refunding bonds for the purpose of providing financing (including refinancing) for the acquisition, construction and installation of projects consisting of real and personal properties used or useful in connection with a revenue producing enterprise engaged in any business; and
WHEREAS, on May 16, 1988, the authority issued its $18,000,000 industrial development dock and wharf revenue bonds, Series H (St. Lawrence Cement, Inc.) (the Refunding Bonds I), to provide financing for the initial acquisition and construction of a silo complex for the storage of cement (the project) which includes:
(a) Four silos and an interstice silo with a total storage capacity of approximately 40,000 tons;
(b) Equipment which unloads cement from ships and conveys it to the silo complex;
(c) Equipment which unloads cement from the silo complex into trucks and railroad cars; and
WHEREAS, on October 1, 1993, the authority issued its $18,000,000 industrial development port authority revenue bonds, Series 1993H (the Refunding Bonds II) to provide refinancing of the Refunding Bonds I; and
WHEREAS, the company has requested that the authority issue its $18,000,000 industrial development dock and wharf revenue bonds (the "bonds") for the purpose of refinancing the project by refunding the Refunding Bonds II; and
WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the code), requires that all industrial revenue bonds issued after July 31, 1982, satisfy certain public approval requirements prior to issuance; and
WHEREAS, the authority conducted said public hearing on December 22, 1999, as the issuer of bonds (issuer) and as the hearing agent for the city of Duluth [which is approving the bonds as "applicable elected representative" as that term is defined in the regulations promulgated under Section 147(4) of the code]; and
WHEREAS, bond counsel has advised the city of Duluth that to ensure compliance with the public hearing requirements imposed by Section 147(f) of the code, the city of Duluth should, prior to the issuance of the bonds,
(a) Ratify the authority as its hearing agent for the public hearing held on December 22, 1999, with respect to the project and the bonds to be issued by the authority; andNOW, THEREFORE BE IT RESOLVED:
(b) Approve the project and the issuance by the authority of the bonds.
(a) That the authority is hereby ratified as the hearing agent of the city with respect to the public hearing that was conducted by the authority on December 22, 1999, with respect to the project and the bonds, and said public hearing is hereby ratified and shall be deemed to have been taken for the city for the purposes of conducting a public hearing required under Section 147(f) of the code;
(b) Issuance of the bonds by the authority in accordance with the provisions of the resolution of the authority giving approval to the issuance of $18,000,000 industrial development dock and wharf revenue refunding bonds, of the Seaway Port authority, to refinance a project of St. Lawrence Cement, Inc., which was adopted by the authority on December 22, 1999, is hereby approved by the city for purposes of satisfying the public approval requirements of Section 147(f) of the code and regulations thereunder;
(c) The basis for this resolution and the legal basis upon which the bonds will be issued is that the bonds and the interest thereon are limited revenue obligations of the issuer and shall never constitute an indebtedness of the city, within the meaning of any state constitutional provision or statutory limitation, and shall not give rise to pecuniary liability of the city as a charge against its general credit, taxing power or assets.