HomeMy WebLinkAboutCity Council Resolution 1978-659EXTRACT OF MINUTES OF MEETING
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 held at the City Hall in said City on Monday,
October 16, 1978, commencing at 7:30 o'clock P.M.
The following members were present: Mayor Hunt,
Councilmembers Hoyt, Neils and Spaeth
and the following were absent: Councilmember Seibold
Neils
The following resolution was presented by Councilmember
who moved its adoption:
RESOLUTION NO. 78-659
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 City Council of the City of Plymouth,
Minnesota, as follows:
I. 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, emergency 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. United Hardware Distributing Co., a Minnesota corporation
(hereinafter the Company), has advised this Council of its desire to
acquire and improve land and construct and equip thereon a two-story
office building of approximately 40,000 square feet for use as its
corporate headquarters (the "Project") within the City, to be
operated by the Company in the sales of hardware merchandise to retail
hardware dealers.
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 economically more feasible.
1.5. This Council has been advised by a representative of
Piper, Jaffray & Hopwood, Inc., investment bankers and dealers in
municipal bonds, that on the basis of information submitted to them
and their discussions with representatives of the Company, Industrial
Development Revenue Bonds can be successfully issued and sold 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 isquance 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 de-te, 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 $1,900,000.
3. The Project above referred to 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
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 properly pledged to the payment thereof, aad shall
not constitute a debt of the City within the meaning of any
constitutional or statutory limitation thereon.
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 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 7A, the City Manager is hereby authorized and directed
to submit the proposal for the Project to the Commissioner of
Securities for his approval. 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 Spaeth , and upon
vote being taken thereon, the following voted in favor of the motion:
Mayor Hunt, Councilmembers Hoyt, Neils, and Spaeth
and the following voted against: None
whereupon said resolution was declared duly passed and adopted.
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STATE OF MINNESOTA )
COUNTY OF HENNEPIN ) SS.
CITY OF PLYMOUTH )
I, the undersigned, being the duly qualified and acting
City Clerk of the City of Plymouth, Minnesota, do hereby certify that
I have carefully compared the attached and foregoing extract of a
regular meeting of the City Council of said City held on Monday,
OeWber 16, 1978 with the original thereof on file in my office
and the same is a full, true and correct copy thereof, insofar as
the same relates to the issuance and sale of Industrial Development
Revenue Bonds of the City.
WITNESS My hand as such City Clerk and the corporate seal
of the City this 23rd day of October , 1978.
City Clerk
City of Plymouth, Minnesota
(SEAL)