HomeMy WebLinkAboutResolution - 596 - Resolution Adopting Guidelines for Municipal Industrial Development Bonds - 10/10/1972 VILLAGE OF EDEN PRAIRIE
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 596
A RESOLUTION ADOPTING GUIDELINES FOR
4 MUNICIPAL INDUSTRIAL DEVELOPMENT BONDS
BE IT RESOLVED by the Village Council of the Village of Eden Prairie,
County of Hennepin, Minnesota as follows:
THAT the following guidelines are adopted in considering an industry's
request to issue Municipal Industrial Development Bonds,
1 . Only new construction or plant expansion amounting to $500,000
or more would be eligible for financing through Municipal Industrial
Development Bonds.
2. Complete set of audits for two previous years must be provided.
3. A copy of Dun and Bradstreet 's most recent Rating Report must be
provided.
4. There must be "minimum coverage" of 2 X the Principal and Interest
due earned annually the previous year before taxes. For example,
a $1 ,300,000 bond issue requires approximately $125,000 in annual
principal and interest. Therefore, $250,000 must have been earned
before taxes by the company the previous year. There must also be
a demonstrated record of yearly increases in earnings before taxes.
5. The fair market rental value of the building must equal to or exceed
the total amount of bonds and interest due. An appraisal may be
required to verify fair market rental value.
6. Administrative and legal costs to issue the bonds will be paid by
the applicant industry.
ADOPTED by the Village Council at a regular Coun meeting n October
10, 1972.
ig� -
aul R. Redpath, Mayor
ATTEST:
SEAL
Edna M. Holmgren, ETerk