HomeMy WebLinkAboutCity Council Resolution 1974-258CITY DF PLYMOUTH'
Pursuant todue callandnotice thereof, a regular meeting of the City
Council of the City of Plymouth, Minnesota, was ha'd on the 20th day
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of .. 1974 The following members were, present:` or
_May
H ,; unt, Me and Spaeth
e O oWing„me ers were'd sent;.Count!!!11=0 ' _ •
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Couneilman spaeth introduced the following Resolution and
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wyed its adoption:
RESOLUTION NO. 74-258
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MUNICIPAL INDUSTRIAL DEVELOPMENT BONDS
WHEREAS, the 'Council, on September 4, 1973, by Resolution No. 73-349. established
a policy concerning the review of municipal industrial development bond requests,
and
WHEREAS, the. City Manager has recommended.cettain changes in-that policy.,;
NOW. THEREFORE. BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF<THE CITY M PLYMOUTH
that the City's municipal industrial developmentbond°:policy be amended, as
stated on the followingpage.
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The inotion for the adoption of the foregoing Resolution was duly seconded by
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Councilman Neils and upon tate being 'Calan thereon, the
following vole;,- nn- or ereo :vor Hilde, Gouncilmeh.Hunt.
and`
Neils S ae"th _
'Me "none '
_
ng.vu— led against :or.a mine _ •
tthereupon the;Resolution Was declAred::duly passe. an adop ed.�
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that such ft neing.for,certain types or. inaustr es or oustnesses may-oe.uT
benefi't'to ttie community and, accordingly, has'intlicated its willingness to
consider requests foo, >IndUstrial Development Bond tinincing, provided the
applicants meet certain requirements:
1. The proposed development shall be of a type which fills an unusual
Or important need within the community, as opposed to the type of develop-
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All which may be considered as normal'or plentiful in Plymouth. It shall
makea significant contribution to both the expansion of the City's tax base
The 4nplicant shall be required to indicate how, the pro-
and employment.
posed;development wiiI benefi-t the tax base by indicating the taxes which
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would haye been pain during the most recent tax year, basod upon the pro -
posed .project costs. The applicant shall further indicate the`number.of
jobt.tq be created and .the nature of those jobs.. In those instances
where development is to take place in stages, the foregoing data shall
be provided for each stage.
2. The prospective lessee shall be an established concern with a
good,, solid credit rating, demonstrated financial position and good future
earnings prospect. In order to demonstrate these matters, an applicant
is ;required to subnit a complete set of certified audits for the two `
previous- years, as.*ell as the most ,current rating report of Dun and Brad-
street. The applicant shall also be requirad to demonstrate that the -
record rf;earnings, before deducting depreciation and interest charges
and before taxes, has been increasing during the past two years and, in
addition, that the average annual cash flow for the most recent two years
provides a minimum co ;rage of two times the projected annual principal
and ititerest required to service the proposed debt.
3. The prospective lessee shall fully disclose the general nature
of. the business to be conducted, the firm's total development plans in
Plymouth,:.inclpding general development and site plans,and timetable for
the development of al. 1`phases of those plans.
4. The fair market annual rental value of the building (or buildings)
must be equal'to, or Exceed,, the annual amount of bonds and interest due.
An appraisal may be required to verify the fair market rental value.
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5. The prospective lessee shall.. select qualified financialconsul-
tants and/or urniQrririiters to prepare all necessary documents and materials
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' requjred for a Municipal. Industrial Development Sond Sale,. provided that
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all -such materials shall be reviewed 'h the City or its agents.'- The
applicant shall. be required to assume all. costs associated with the
processing of the application for Municipal Industrial Development Bond
financing, including all City costs, and shrill accompany the request for
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financing with a deposit of.$5,000 which may be used by the City to re-
imburse its costs involved in the investigation and review of the financ-
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ing. The unused portion of said deposit shall be returnable to the
applicant, and the City shall recognizesuch City expense as cost of the
ObJect "financing which may be included in the bond issue.
b. The City reserves the right to deny any application for Municipal
Industrial Development Bond financing at any stage of the proceedings
prior to actual.issuar:e of the bonds.
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