HomeMy WebLinkAboutCity Council Resolution 1976-483Pursuant to due call and notice thereof, a regular meeting
of the City Council of the City of Plymouth, Hennepin County,
Minnesota, was duly held at the Council Chambers in the City of
Plymouth, Minnesota, on Monday, the 23rd day of August, 1976, at
7:30 o'clock P.M.
The following members were present: Mayor Hilde,
Councilmen Hunt, Neils and Spaeth,
and the following were absent: Councilman Selbold.
Mayor Hilde introduced the following resolution and moved
its adoption:
RESOLUTION NO. 76-483
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, determined 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 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 deterioration.
1.2. Union City Mission, Inc., a Minnesota non-profit corporation
(hereinafter, the Corporation), which operates a rehabilitation facility
In the City has advised the Council that it desires to construct and equip
an expanded facility to replace the existing facility consisting of one
or more buildings (hereinafter referred to as the "Project") upon land
owned by it of an area of approximately 18 acres for use by the
Corporation in conducting rehabilitation programs and rendering various
other social services.
1.3. 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.
1.4. This Council has been adv' -sed by a representative of Piper,
Jaffray & Hopwood, Incorporated of Minneapolis, Minnesota, investment
bankers and dealers in municipal bonds, that on the basis of informa-
tion 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.
1.5. 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 Corporation, and the issuance of such
bonds by the City would be a substantial inducement to the Company to
construct its facility within the City.
2. 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 Corporation at a cost
presently estimated to be approximately $1,750,000.
3• 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 Corporation and the initial purchasers of the ponds as
to the details of the bond issue and provisions 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 and Manager are hereby authorized and
directed to execute the Memorandum of Agreement in behalf of the City.
5. In accordance with Minnesota Statutes, Section 474.01,
Subdivision 7, the Mayor and Manager are 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 Manager,
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 in the preparation of
such documents as may ae appropriate to the Project, if it is approved
by the Commissioner.
The =-_:on for the adoption of the foregoing resolution was
duly seconded by Councilamn Hunt, and the following voted in favor
thereof: Mayor Hilde and Councilman Hunt;
and the following voted aginst the same: Councilman Neils;
and the following abstained: Councilman Spaeth;
whereupon said resolution was declared duly passed and adopted.