HomeMy WebLinkAboutCity Council Resolution 1978-495EXTRACT OF MINUTES OF 61EETING OF THE
CITY COUNCIL 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 at the City hall in said City on
Monday, the 14th day of August, 1978, at 7:30 o'clock p.m.
The following members were present:
Mayor Hunt, Councilmembers Hoyt, Neils, Seibold and Spaeth
and the following were absent: None.
Councilmember —Seibold , introduced the
following resolution and moved its adoption:
RESOLUTION NO. 78-495
RESOLUTION GIVING PRELIMINARY APPROVAL TO A
PROJECT UNDER THE MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT: REFERRING THE PROPOSAL TO
THE COMMISSIONER OF SECURITIES FOR APPROVAL
AND AUTHORIZING EXECUTION OF A MEMORANDUM
OF AGREEMENT AND PREPARATION OF NECESSARY
DOCUMENTS.
BE IT RESOLVED By the ':ity Council of the City of
Plymouth, Minnesota as follows:
1. It is 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 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. Garlock Equipment Co., a Minnesota corporation
(the "Company"), has advised this Council of its desire to
construct a 76,000 square foot new plant (the "Project"),
within the City, to be operated by the Company in the
production of industrial and commercial roofing 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 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 economicaly more feasible.
1.5 This Council has been advised by a representative
of Miller 6 Schroeder Municipals, Inc., that on the basis of
information submitted to them and their discussions with
representatives of the Company, that it is feasible to
privately place industrial development bonds or notes (the
"Bonds") issued by the City 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 ponds by the City
would be a substantial inducement to the Company to
construct is 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 Bonds under the provisions of Chapter 474
to finance the Project of the Company at a cost presently
estimated to be approximately $1,400,000.
3. The Project 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 Securities of the State of Minnesota
and to the mutual agreement of this body, the Company and
the initial purchasers of the Bond as to the details of the
Bonds anu provisions for their payment. In all events, it
is understood, however, that the Bonds shall not constitute
a charge, lien or encumbrance legal or equitable upon any
property of the City except the Project, and the Bonds,
when, as, and if issued, shall recite in substance that the
Bonds, including interest thereon, are 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 within the meaning of any statutory limitation
thereon.
4. The form of Memorandum of Agreement relating to
the issuance of the 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.
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
Commission 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 needed 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 the Councilmember
Neils , and upon vote being taken thereon, the
following wing voted in favor thereof:
Mayor Hunt, Councilmembers Hoyt, Neils and Seibold
and the following voted against:
Councilmember Spaeth
whereupon said resolution was declared duly passed and
adopted.
W W
STATE OF MINNESOTA )
COUNTY OF HENALPIN ) SS.
CITY OF PLYMOUTH )
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 meeting of the
City Council held on August 14, 1978, 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 preliminary approval of a project under the
Municipal Industrial Development Act.
WITNESS My hand as Clerk and the corporate seal of
the City this 14th day of August, 1978.
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City of Plymouth, Minnesota
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