BY COUNCILOR STAUBER:
The city council finds as follows:
(a) By Resolution No. 40-05, as amended by Resolutions No. 16-06 and 34-06, the Seaway Port authority of Duluth has given preliminary approval to the issuance of revenue bonds, pursuant to authority granted by Minnesota Statutes, Sections 469.048 to 469.068, for the purpose of financing the costs of a project described as the development and construction of a facility of approximately 20,000 square feet for the manufacture of airplane components, to be leased to Northstar Machine amd Tool Company, Inc.; and
(b) The authority has conducted a public hearing on the issuance of the bonds, after publication of notice thereof in the official newspaper of the authority not less than 14 days prior to the date thereof, as required by Section 147(f) of the Internal Revenue Code of 1986, as amended, as a condition to the tax exemption of interest on the bonds; and
(c) Section 147(f) of the Code further requires approval of the bonds by the city council of the city of Duluth; and
(d The bonds will be payable solely from the revenues of the project and other projects and revenues specifically pledged to the payment thereof, and the bonds will not constitute or give rise to a pecuniary liability of the authority or the city or a charge against its general credit or taxing power.
NOW, THEREFORE, BE IT RESOLVED, that the city council of the city of Duluth, Minnesota hereby approves the issuance of the bonds by the authority.
STATEMENT OF PURPOSE: This resolution is required by federal law to allow the port authority to issue certain types of bonds. This resolution does not obligate the city to pay any money or do any act. The bonds are part of the project to expand Northstar Aerospace, a company which is adding manufacturing jobs to the local economy.