HomeMy WebLinkAboutCity Council Resolution 1976-511EXTRACT OF MINUTES
CITY OF PLYMOUTH REGULAR COUNCIL ML STING
MONDAY, SEPTEMBER 13, 1976
Pursuant 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 13th day of September, 1976, at
7:30 o'clock P.M.
The following members were present: Mayor Hildp,
Councilmen Neils, Seibold and Spaeth.
and the following were absent: Councilman Hunt
Mmber Councilman Spaeth introduced the following
resolution and moved its adoption:
RESOLUTION NO. 76.-511
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 econor..ically
sounc in:iustry anci commerce through governmental acts to prevent,
a 0
so far as possible, emergence of blighted lands and areas of chronic
unemploytient, and the state has encouraged local government units
to act to prevent such economic deterioration.
1.2. Food Engineering Corporation, a Minnesota corporation (here-
inafter, the Company), has advised this Council of its desire to
acquire certain land, comprising approximately 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 food
processing equipment and other food processing equipment.
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 residjnts 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 representative of Piper,
Jaffray & Hopwood, Incorporated of Minneapolis, Minnesota, investment
bankers and dealers in municipal bonds, that on the basis of
information 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.
1.6. 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.
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 Company at a cost presently estimated
to be approximately $875,000.00.
3. The Project above referred to is hereby given preliminary
approval by the City and the issuance of bonds for such purpose and
it 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 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.
�. 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.
5. 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 in the preparation of such documents as may be
appropriate to the Project, if it is approved by the Commissioner.
The motion for the adoption of the foregoing resolution
was duly seconded by Member Mayor Hilde , and the following
voted in favor thereof: Mayor Hilde, Councilmen Neils and Spaeth.
and the following voted against the same: Councilman Seibold.
whereupon said resolution was declared duly passed and adopted.
STATE OF MINNESOTA )
COUNTY OF HEIQN PIN ) SS.
CITY OF PLYMOUTH )
I, the undersigned, being the duly qualified and acting
City Clerk of the City of Plymouth, Minnesota, hereby certify that
I have carefully compared the foregoing extract of the minutes of a
regular meeting of the City Council of said City held on September
13, 1976, with the original thereof on file in my office, and the
same is a full, true and complete transcript therefrom as it relates
to the preliminary approval of a Project under the Minnesota
Industrial Development Act.
WITNESS My hand as City Clerk and the corporate seal of the
City this 23rd day of September, 1976.
City Clerk
City of Plymouth, Minnesota
(SEAL)