HomeMy WebLinkAboutCity Council Resolution 1976-1730 •
CITY OF PLYMOUTH
Pursuant to due call and notice thereof, a special meeting of the City
Council of the City of Plymouth, Minnesota, was held on the 26 day of
April 19 76 . The following members were present:
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Councilman Hunt introduced the following Resolution and moved
is adoption: -
RESOLUTION NO. 76-173
CITING THE NEED FOR INDUSTRIAL DEVELOPMENT; GIVING PRELIMINARY APPROVAL TO A
PROJECT UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE
PROJECT TO THE MINNESOTA DEPARTMENT OF ECONOMIC DEVELOPMENT FOR APPROVAL;
ACCEPTING A LETTER OF INTENT AND A PROPOSAL FOR THE PLACEMENT OF BONDS TO FINANCE
THE PROJECT; AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS THEREFOR.
WHEREAS, the Minnesota Legislature has enacted Chapter 474 of the Minnesota Statutes,
which is cited as the "Minnesota Municipal Industrial Development Act" ("the Act"),
and
WHEREAS, the purpose of the Act and the findings of the Legislature stated therein
are that the welfare of the State requires the active promotion, attraction,
encouragement and development of economically sound industry and commerce to prevent
as fay as possible the emergence of blight and areas of chronic unemployment. and to
pr.vent economic deterioration. and
WHEREAS, other factors necessitating such active promotion and development are the
increasing concentration of population in the Metropolitan area and the soaring
increase in the amount and cost of governmental services required to meet the needs
of the increased population and the need for development of land use which will
provide an adequate tax base to finance these costs, and
WHEREAS, the City Council by Resolution No. 74-469, of September 30, 1974, has
adopted a policy concerning the issuance of Industrial Development Bonds by the
City under certain conditions, and
WHEREAS, the Deltak Corporation ("Deltak") is proposing that the City issue and
sell its Industrial Development Bonds for a project to be located within the City,
and such proposal conforms with the policies, procedures and guidelines set out in
said Resolution No. 74-469;
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH,
MINNESOTA as follows:
1.) The Deltak Corporation has submitted to the Council a proposal that the City
undertake a project under the Act, consisting generally of the acquisition by
purchase of certain land located within the City and constructing and equipping
thereon one or more buildings and related equipment and machinery suitable and
April 26, 1976 •
RESOLUTION NO. 76-173
Page (2.)
for initial use in the design, manufacture, and sale of heat transfer
devices. The proposal calls for the project to be financed by funds
loaned by the City to Deltak pursuant to a revenue agreement between the
City and Deltak which will provide revenues sufficient to provide for
the prompt payment of principal of and interest on bonds of the City to
be issued to finance the acquisition and construction of the project.
The proposal also calls for the entire interest of the City in the
revenue agreement and the project to be pledged and mortgaged to the
holders of the bonds of the City or a trustee therefor.
2.) On the basis of information furnished the Council, it appears that the
effect of the project, if undertaken by the City, will be to encourage
and develop economically sound industry, to acquire a valued employer
in the community, to provide more adequate tax base to finance increasing
amounts and costs of governmental services within the City, and to increase
employment for residents of the City and surrounding area, all of benefit
to residents and taxpayers of the City of Plymouth, and other levels of
government in the City and the metropolitan area.
3.) The proposed project is hereby given preliminary approval by the City.
The proposal and letter of intent of Dain, Kalman and Quail, Inc., of
Minneapolis, Minnesota, to directly place the bonds of the City to be
issued in accordance with Minnesota Statutes, Chapter 474, and upon the
terms and conditions stated in the proposal, which are marked Exhibits "A"
and "B" and attached hereto, are hereby accepted. The approval of the
project and proposal for the placement of the bonds is subject to approval
of the project by the Commissioner of Economic Development of the State of
Minnesota and to the mutual agreement of this Council, Deltak, and the
initial purchasers of the bonds as to the details of the project and the
bonds.
4.) In accordance with Sec. 474.01, Subdivision 7, the City Attorney and other
City representatives are hereby authorized and directed to submit the
proposal for the undertaking to the Commissioner of Economic Development,
requesting his approval of the project. The Mayor, City Attorney, and
other officers, employees and agents of the City are hereby authorized to
provide the Commissioner such preliminary information as he may require
for this purpose. The City Attorney is also authorized to initiate
preparation of such documents as may be appropriate to the undertaking
if it is approved by the Commissioner in order that when and if approved,
it may be carried forward expeditiously in accordance with law and
Resolution No. 74-469.
5.) The City shall proceed to complete negotiations and the issuance of these
obligations by a negotiated sale as authorized by Secs. 474.06 and 474.13
of the Act.
The motion for the adoption of the foregoing Resolution was duly seconded by
Councilman Spaeth, and upon vote being taken thereon, the following voted in favor
thereof: Mayor Hilde, Councilmen Hunt, Seibold and Spaeth. The following voted
against or abstained: none. Whereupon the Resolution was declared duly passed
and adopted.