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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: ,r,r* �rwir tft 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.