HomeMy WebLinkAboutCity Council Resolution 1976-255W W
CITY OF PLYMOUTH
Pursuant .to due call and notice thereof, a — meeting of the City
Council of the City of Plymouth, Minnesota, was held on the 17th day of
May , 1976 The following members were present�ayor Rilde,
Councilmen Hunt Neils Seibold and Spaeth
The following members were absent: None
Councilman Hunt introduced the following Resolution and r.;oved
its adoption:
RESOLUTION NO. 76-255
RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER
THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING THE
PROPOSAL TO THE DEPARTMENT OF ECONOMIC DEVELOPMENT
FOR APPROVAL, AND AUTHORIZING EXECUTION OF A MEMORANDUM
OF AGREEMENT AND PREPARATION OF NECESSARY DOCUMENTS
BE IT RESOLVED by the City Council of the City of Plymouth, Minnesota, as follows:
1. It is hereby found, d,,termineu and declared as follows:
1.1. The welfare of the State of Minnesota requires active promotion, attraction,
encouragement and development of economically sound industry and commerce
10 through governmental acts to prevent, so far as possible, emergence of
blighted lands and areas of chronic unemployment, and the state has
encouraged local government units to act to prevent such economic deterio-
ration.
1.2. Buhler-Miag, Inc., a Minnesota corporation (hereinafter, the Company), has
advised this Council of its desire to acquire certain land, comprising
approximately 20 acres within the City, and to construct and equip thereon
one or more buildings (such land, buildings.and equipment being hereinafter
referred to as the Project), for use by the Company in manufacturing of
processing equipment for agricultural and food products.
1.3. The existence of the Project within the City would significantly increase the
tax base of the City, County and school district in which the City is located,
and would provide opportunities for employment for residents of'the City and
surrounding area.
1.4. The City has been advised that conventional, commercial financing to pay the
capital cost of the Project is available only on a limited basis and at such
high costs of borrowing that the economic feasibility of operating the Project
would be significantly reduced, but that with the aid of municipal financing,
and its resulting low borrowing cost, the Project is economically more
feasible.
1.5. This Council has been advised by a repr;;sentative of Dain, Kalman & Quail,
Incorporated of Minneapolis, Minnesota, investment bankers and dealers in
municipal bonds, that on the basis of informati. submitted to them and
their discussions with representatives of the Company and potential buyers
of tax-exempt bonds, industrial development revenue bonds of the City could
be issued and sold upon favorable rates and terms to finance the Project.
Resolution No. 76-255 Page 2
1.6. The City is authorized by Minnesota Statutes, Chapter 474, to issue its revenue
bonds to finance capital projects consisting of properties used and useful in
connection with a revenue producing enterprise, such as that of the Company,
and the issuance of such bonds by the City would be a substantial inducement to
the Company to construct its facility within the City.
On the basis of information given the City to date, it appears that it would
be in the best interest of the City to issue its industrial development revenue
bonds under the provisions of Chapter 474 to finance the Project of the Company
at a cost presently estimated to be approximately $4,500,000.
The Project above referred to is hereby given preliminary approval by the City
and the issuance of bonds for such purpose and in such amount approved, subject
to approval of the Project by the Commissioner of Economic Development and to
the mutual agreement of this body, the Company and the initial purchasers of
the bonds as to the details of the bond issue and previsions for their payment.
In all events, it is understood, however, that the bonds of the City shall not
constitute a charge, lien or encumbrance legal or equitable upon any property of
the City except the Project, and each bond, when, as and if issued, shall recite
in substance that the bond, including interest thereon, is payable solely from
the revenues received from the Project and property pledged to the payment
thereof, and shall not constitute a debt of the City.
4. The form of Memorandum of Agreement relating to the issuance of revenue bonds
of the City to finance the cost of the Project is hereby approved and the Mayor
is hereby authorized and directed to execute the Memorandum of Agreement in
behalf of the City.
In accordance with Minnesota Statutes, Section 474.01, Subdivision 7, the Mayor
is hereby authorized and directed to submit the proposal for the Project to the
Commissioner of Economic Development for his approval of the Project. The
Mayor, City Clerk, City Attorney and other officers, employees and agents of the
City are hereby authorized to provide the Commissioner with any preliminary
information he may need for this purpose, and the City Attorney is authorized
to initiate and assist r. the preparation of such documents as may be appro-
priate to the Project, if it is approved by the Commissioner.
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, Neils, Seibold and Spaeth.
The following voted aginst or abstained: None.
Whereupon the Resolution was declared duly passed and adopted.