HomeMy WebLinkAboutCity Council Resolution 1976-212W W
CITY OF PLYMOUTH
Pursuant -to due call and notice thereof, a regular meeting of the City
Council of the City of Plymouth, Minnesota, waseon on tFie 19th day of
April 1976 . The following members were present:
e o ow ng me e s were a sen nnnP
Mayor Hilde introduced the following Resolution and moved
s adoption:
RESOLUTION NO. 76-212
A RESOLUTION CITING THE NEED FOR INDUSTRIAL DEVELOPMENT;
GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE
MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT: REFERRING
THE PROPOSED PROJECT TO THE MINNESOTA DEPARTMENT OF
ECONOMIC DEVELOPMENT FOR APPROVAL; ACCEPTING A LETTER OF
INTENT AND A PROPOSAL FOR THE PURCHASE 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 far as possible the emergence of blight and areas of chronic
unemployment, and to prevent 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 sovernmental 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 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 Whittaker Corporation ("Whittaker") 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 74-469;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH, MINNESOTA
as follows:
1. The Whittaker Corporation ("Whittaker") has submitted to the Council
a proposal that the City undertake a project under the Act, consisting
Resolution No. 76-212 • •
Page 2
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 for initial
use in the manufacture, fabrication and warehousing of steel products.
The proposal calls for the project to be leased by the City to
Whittaker upon rents to be fixed and revised from time to time as
necessary so as to produce income and revenue 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 Project to be pledged and mortgaged to the holders of the bonds
of the City or a trustee therefor.
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 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.
and Piper, Jaffray and Hopwood, Inc., of Minneapolis, Minnesota,
to purchase 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 Ex''bits "A" and "6" and
attached hereto, are hereby accepted. The approval of the project
and proposal for the purchase of 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, Whittaker,
and the initial purchasers of the bonds as to the details of the project.
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 preparati:)rr, 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 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: Councilman Neils
Whereupon the Resolution was declared duly passed and adopted.
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