HomeMy WebLinkAboutCity Council Resolution 1978-516EXTRACT OF MINUTES OF THE CITY
COUNCIL OF THE CITY OF PLYMOUTH
HENNEPIN COUNTY, MINNESOTA
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 21st day of August, 1978, at
7:30 o'clock P.M.
The following members were present: Mayor Hunt, Council -
members Neils and Spaeth
and the following were absent: Councilmembers Hoyt and Seibold
Councilmember Spaeth introduced the
following resolution and moved its adoption:
Resolution No. 78- 516
A RESOLUTION REAFFIRMING PRELIMINARY APPROVAL
OF A PROJECT UNDER THE MINNESOTA MUNICIPAL
INDUSTRIAL DEVELOPMENT ACT: REFERRING THE
PROPOSAL TO THE MINNESOTA COMMISSIONER OF
SECURITIES FOR APPROVAL; AND AUTHORIZING
EXECUTION OF A MEMORANDUM OF AGREEMENT AND
THE 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:
1.1. This council by Resolution 78-483 (the "Resolution") adopted
on August 23, 1976, gave preliminary approval to a project under the
Minnesota Industrial Development Act, Minnesota Statutes, Chapter 474,
as amended, (the "Act), which project consisted of the construction
and equipping of an expanded rehabilitation facility (the "Project)
by Union City Mission, Inc., a Minnesota non-profit corporation
(the "Corporation") for use by the Corporation in conducting
rehabilitation programs and rendering various other social services.
The estimated cost of the Project was $1,750,000.
1.2. The Project was approved by the Minnesota Commissioner
of Economic Development pursuant to the Act in effect at that time,
on December 21, 1976. The City and the Corporation entered into
a Memorandum of Agreement, dated August 23, 1976, relating to various
undertakings by the parties, which Memorandum of Agreement expired
by its terms on August 23, 1977.
1.3. The Corporation proceeded on the basis of the Resolution
to begin preparation of necessary documents for the issuance and
sale by the City of Industrial Development Revenue Bonds in the
amount of $1,750,000, but was unable to complete the financing within
the time period authorized by the Resolution and the Memorandum of
Agreement. The Corporation has since proceeded to construct the
Project by means of interim financing obtained from the Northwestern
National Bank of Minneapolis.
1.4. The Corporation has informed this council:
a) that conventional long term financing of the
capital cost of the Project is available only
on a limited basis;
b) that a public offering of Industrial Development
Bonds to finance the cost of the Project is not
feasible at this time;
c) that the Northwestern National Bank of
Minneapolis has indicated its willingness to
directly purchase interim bonds or notes to
provide tax exempt financing of the Project
until definitive financing in the form of
Industrial Development Revenue Bonds or notes
is feasible; and
d) that with the aid of interim municipal financing
the Project is economically more feasible and
that the lower debt service resulting'therefrom
will result in a reduction in debt service charges
to points and third party payers and that said
reduction in debt service charges will be passed
on to participants and third party payers as
required by the Act.
1.5. The City is authorized by Section 474.02, Subdivision 1C, of
the Act, to issue its revenue bonds and interim revenue bonds or
notes to finance the capital cost of projects used or useful in
connection with a revenue producing enterprise, whether or not
operated for profit engaged in providing health care services of
the nature provided by the Corporation.
2. On the basis of the information given to the City to date,
including the information submitted in connection with the Resolution
and the subsequent application to the Commissioner of Economic
Development, it appears that it would be in the best interests of
the City to issue its Temporary Industrial Development Revenue Bonds
or Notes (the "Temporary Bonds"), as authorized by Section 474.07 of
the Act in an amount note to exceed $1,750,000, and which Bonds or
Notes shall mature within 24 months of the date of their issuance.
2.1. It is specifically determined that the issuance and sale
of Bonds or Notes to provide definitive financing for the Project
is not approved hereby, but that the council reserves the right to
approve the i,:Luance and sale of such definitive Bonds or Notes by
subsequent action if in its judgment it is desirable to do so.
3. The Project above referred to is hereby given preliminary
approval by the City and the issuance of Temporary Bonds for such
purpose and in such amount approved, subject to approval of the
Project by the Commissioner of Securities and to the mutual agreement
of this body, the Corporation and the initial purchasers of the
temporary bonds as to the details of the temporary bond issue and
provisions for their payment. In all events, it is understood,
however, that the temporary 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 temporary bond, when, as,
and if issued, shall recite in substance that the temporary 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 issuance
of temporary revenue bonds of the City to finance the cost of the
Project is hereby approved and the Mayor and 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 7a, the Mayor and Manager are hereby authorized and
directed to submit the proposal Tor the Project to the Commissioner
of Securities for his approval of the Project. The Mayor, City
Manager, 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.
6. Resolution 76-483 is hereby reaffirmed in all respects,
except as modified by the terms of this resolution.
The motion for the adoption of the foregoing resolution
was duly seconded by Councilmember Neils , and
the following voted in favor thereof: Mayor Hunt and Councilmember Spaeth
and the following voted against the same: Councilmember Neils
whereupon said resolution was declared duly passed and adopted.
STATE OF MINNESOTA )
)
COUNTY OF HENNEPIN j SS.
CITY OF PLYMOUTH )
I, the undersigned, being the duly qualified and aFting
City Clerk of the City of Plymouth, Minnesota, hereby cUrtify that
I have carefully compared the foregoing extract of the minutes of
a regular meeting of the City Council of said City held on August
21, 1978, with the original thereof on file in my office, and the
same is a full, true and complete transcript therefrom.
WITNESS My hand as City Clerk and the corporate seal of
the City this 21st day of August, 1978.
City Clerk
City of Plymouth, Minnesota
(SEAL)