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.