HomeMy WebLinkAboutCity Council Resolution 1977-623MW W
. EXTRACT OF MINUTES OF MEETING OF THE
CITY COUNCIL OF THE CITY OF PLYMOUTH
HENNEPIN COUNTY, MINNESOTA
Pursuant to due call and notice thereof, a special
meeting of the City Council of the City of Plymouth, Minnesota,
was duly held in the Council Chambers in said City on the 24th
day of October, 1377, at 7:30 o'clock P.M.
The following members were present: Acting Mayor Hunt,
Councilmen Neils, Seibold and Spaeth
and the following members were absent: Mayor Hilde.
Councilmember Neils introduced the
following resolution and moved its adoption:
RESOLUTION NO. 77-623
RESOLUTION GIVING PRELIMINARY APPROVAL TO A
PROJECT UNDER THE MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT, REFERRING THE PROPOSAL TO
MINNESOTA COMMISSIONER OF SECURITIES 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.
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1.2. McQuay-Perfex, Inc., a Minnesota corporation (hereinafter
the Company), has advised this Council of its desire to improve
certain land, comprising approximately 13 acres within the
City, and to expand, improve, and equip thereon two existing buildings
(such land, buildings and equipment being hereinafter referred to
as the Project), to be used by the Company in the manufacture of
heat transfer devices and related heating and cooking 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 opportuni-
ties 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
Dain, Kalman & Quail, Incorporated of Minneapolis, Minnesota, invest-
ment 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 $4,300,000.
3. The Project above referred to is hereby given preliminary
approval by the City and the issuance of bonds for such purpose aad
in such amount approved, subject to approval of the Project by the
Commissioner of Securities and to the .nutual 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.
4. The form of Memorandum of Agreement relating to the
issuanca of revenue bonds of the City to finance the cost of the
Project is hereby approved and the Mayor and City Manager are hereby
authorized and directed to execute the Memorandum of Agreement in
behalf of the City.
S. In accordance with Minnesota Statutes, Section 474.01,
Subdivision 7A, the City Manager is hereby authorized and directed to
submit the proposal for the Project to the Commissioner of Securities
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
Commissioner.
The motion for the adoption of the foregoing resolution
was duly seconded by Councilmember Seibold i and upon vote
being taken thereon, the following voted in favor thereof:
Acting Mayor Hunt, Councilmen Neils, Seibold and Spaeth
and the following voted against the same: None
whereupon said resolution was declared duly passed and adopted.
STATE OF MINNESOTA)
)
COUNTY OF HEINKEPIN) SS.
)
CITY OF PLYMUTii )
I, the undersigned, being the duly qualified and acting
Clerk of the City of Plymouth, Minnesota, do hereby certify that
I have carefully compared the attached and foregoing extract of
minutes of a special reeting of the City Council of said City held
on October 24 , 1977, with the original thereof on file in
my office, and the same is a full, true and complete transcript
therefrom insofar as the same relates to giving preliminary
approval to a project under the Municipal Industrial Development
Act.
WITNESS My hand as such Clerk and the corporate seal of
the City this 24th day of October ,1977.
C ty Clerk
City of Plymouth, !Minnesota
(SEAL)