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HomeMy WebLinkAboutCity Council Resolution 1977-262:qP- EXTRACT OF I9INUTES OF MEETING OF THE • CITY COUNCIL OF THL CITY OF PLYMOUTH HL'NNEPIN COUNTY, MINNESOTA Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Plymouth, Minnesota, was duly held in the City Hall in the City of Plymouth, on Monday, the 6th day of June, 1977, commencing at 7:30 o'clock p.m. The following members were present: Mayor Hilde, Councilmen Neils, Seibold and Spaeth and the following were absent: Councilman Hunt, Council;iember Soaeth introduced the following resolution and moved its adoption: • RESOLUTION NO. 77-262 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE DEPARTMENT OF ECONOt:IC 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: I.I. The welfare of the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental act3 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. Wagner-Spray tech, Inc., (hereinafter the Company), has advised this Council of its desire to improve certain land, comprising approximately 15.5 acres o4;ned by the company within the City, and to construct and equip one or more buildings (such lard, buildings and equipment being hereinafter referred to as the Prpject), to be used by the Camp' in the manufacture, assembly and marketing of high pressure airless spray equipment. il 1.3. The existence of the Project within the City would significantly increase the tax base of the City, the Ccunty, and the 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 representative of UBS -DB Corporation (the joint investment banking affiliate of Union Bank of Switzerland and the Deutsche Bank) of New York, N.Y., 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 gates and terms to finance the Project. 1.6. The City is authorized by Minnesota Statutes, Chapter 474, (the "Act") 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 the Act to finance the Project of the Company at a cost presently estimated to be approximately $4,400,000. 3. The Project above referred to is hereby given preliminary approval by the City and the issuance of obligations for such purpose and up to such amount approved, subject to approval of the Project by the Minnesota Commissioner of Economic Development (or such other state agency authorized to grant approval under the Act) 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 obligations 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, as, and if issued, shall recite in substance that the bond, including intcrnst thereon, is payable solely from the revenues received from the Project and properly 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 Alayor and City 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 City Manager 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 Manager, 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 Commissionez. The motion for the adoption of the foregoing resolution was duly seconded by Member Seibold , and upon vote being taken thereon the following voted in favor thereof: Councilmen Neils, Seibold and Spaeth and the following voted against the same: Mayor Hilde abstained. whereupon said resolution was duly adopted.