Loading...
HomeMy WebLinkAboutCity Council Resolution 1979-152so g $1,410,000 INDUSTRIAL DEVELOPMENT REVENUE BONDS i :si:Cr City of Plymouth, Minnesota ;,_.v_ -Hina Body : City Council ;in d, Cate, time and place of meeting- A regular meeting, held on :•ionday, March 19, 1978, at 7:40 o'clock P.M., at the City Hall. ,.cabers present: Mayor Hunt, Councilmembers Hoyt, Seibold and Spaeth members absent: Councilmember Neils Documents Attached: Minutes of said meeting (pages): RESOLUTION NO. 79-152 RESOLUTION AUTHORIZING THE ACQUISITION, CONSTRUCTION AND LEASING OF A PROJECT UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AND THE SALE AND ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS TO FINANCE THE PROJECT, SECURED BY A PLEDGE AND ASSIGNMENT OF THE REVENUES THEREOF AND A MORTGAGE OF THE PROJECT TO A TRUSTEE. I, the undersigned, being the duly qualified and acting recording officer of the public co- oration -issuing the bonds re- ferred to in the title of this certificate, certify that the docu- ments attached hereto, as described above, have been carefully compared with the original record_ of said corporation in my legal custody, from v.hich t1ey have bT-?r. transcribed; that said documents are a correct and complete tran ,:r=g= of the minutes of a meeting of the governing body of said corporation, and correct and conolete copies of- all resolutions and other actions taken and of all docu- ments approved by the governing bogy at said meetinr„ so far as they relate co said bonds; and that said neetina was duly held by the governing body at the time and ?lace and was- attended through- out by the members indicates above, pursua^- to call and notice Of - such meeting given as required by 1z:. WITNESS my hand official -2%, as such r.ccording officer this 27th day o- March 1979 - Signature= Loretta Carrity - N ane a'n Councilmember Spaeth in r;or'uce the following resolution and moved i_s adoption: RESOLUTION NO. 79-152 RESOLUTION AUTHORIZING THF aCQUIS1tICN, CONSTRUCTION AND LEASING OF A PROJECT UNDE3 THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOP- MENT ACT AND THE SALE ATC ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS TO FINANCE THE PROJECT, SECURED BY A PLEDGE AND ASSIGNMENT OF THE REVENUES THEREOF AND A MORTGAGE OF THE PROJECT TO A TRUSTEE BE IT RESOLVED by the City Council of the City of Plymouth, Minnesota as follows: 1. It has been proposed that the City issue its Industrial Development Revenue Bonds (Apollo Piping Supply, Inc. Project), Series 1979, dated March 1, 1979 (the "Bonds"), in the principal amount of $1,410,000, to cc,struct and partially equip an approximately 54,000 square foot warehouse and office building in the City ( said building and equipment, together with the land upon which they are located, are hereinafter referred to as the "Project") . The Project would be leased by the City to Apollo Piping Supply, Inc., a Minnesota corporation, which would use the Project in its business of wholesale distri- bution of pipes, fixtures and valves. The Council gave preliminary approval to the proposal by resolution duly adopted November 27, 1978, and pursuant to that resolution, the following documents relating to the Project have been submitted to the Council and are now, or shall be placed, on file in the office of the Ciry Clerk: (a) Lease, dated March 1, 1979, oroeosed to be made and entered into between the City and Apollo Piping Supply, Inc., as Tenant; (b) Mortgage and Indenture of Trust, dated March 1, 1979 ( the "Indenture") proposed to be made and en_ered into between the City and the National City Bank of inneapolis, in Minneapolis, Minnesota, as Trustee,- (c) rustee;(c) Official Statement, dated March , 1979, prepared by Miller & Schroeder Municioals, Inc., of Minneapolis, Minnesota (the "Underwriter") relating to the offer and sale of the Bonds; and (d) Bond Purchase Agr,�e•nent, to be dated as of tae closing d,te, proposed to be nade and entered into between the City, Tenant and Underwriter. 2. It is hereby found, determined and declared C:13L (a) the Project constitutes a "project" authorized by Section 474.02, subd. 1, Minnesota Statutes; (b) the purpose of the Project, as defined in the Lease and Indenture, is, and the effect thereof will be ( i) to promote the public welfare by the attraction, encourage- ment and development of economically sound industry and commerce so as to prevent, so far as possible, the emergence of blighted and marginal lands and areas of chronic unemploy- ment; (ii) to develop a more intensive tax base for providing governmental services and facilities; and (iii) to provide additional employment opportunities for residents of the City and surrounding area; (c) the Project has been approved by the Commissioner of Securities of the State of Minnesota as tending to further the purposes and policies of the Municipal Industrial Development Act; (d) it is desirable tha= the Tenant be authorized, in accordance with the provisions of Section 474.03(6), Minnesota Statutes, and subject to the terms and conditions set forth in Article of the Lease, which terms and conditions the City determines to be necessary, desirable and proper, to provide for the construction and installation of the Project by such means as shall be available to the Tenant and in the manner determined by the Tenant, and with or without advertisement for bids as required for the construction and acquisition of other municipal facilities; (e) it is desirable that the Bonds in the amount of $1,410,000 be issued by the City upon the terms set forth in the Indenture, under the provisions of which the City's interest in the Lease and the rentals will be pledged and the Project will be mortgaged to the Trustee as security for the payment of principal and interest on the Bonds; ( f ) the rentals charged in the Lease for the use of the Project are fixed, and required to be revised from time to time as necessary, so as to produce income and revenue sufficient to provide for prompt pavment of principal of and interest on all Bonds issued under the Indenture wren Sue, and the Leasa also provi;ies that t::^.e Tenant is required to pay all exoens?s of the ooerat_on an-: ma in t=nar,ce of the Pro ect including , but without Iir,itation, adequate insurance thereon an.', insurance against all liability for injury to persons or prooerti arising fror+ the operation thereof, and all taxes and special assessments leviad upon or with respect to the Project and pavaale during the term of the Lease, dur ina which term a tax is imposed by Minnesota Statutes, Sect_on 474.03(3) for the privilege of using and possessing the Project, in the same amount and to the same extent as though the Tenant were the owner of all real and personal property comprising the same; and (g) under the provisions of Minnesota Statutes, Section 474.10, and as provided in the Lease and Indenture, the Bonds are not to be payable from nor charged upon any funds other than the revenue pledged to the payment thereof; the City is not subject to any liability thereon; no holders of the Bonds shall ever have the right to compel any exercise of the taxing powers of the City to pay any of the Bonds or the interest thereon, nor to enforce payment thereof against any property of the City except the Project mortgaged by the Indenture; the Bonds shall not constitute a charge, lien or encumbrance, legal or ecuitable, upon any property of the City except the Project; each Bond issued under the Indenture shall recite that the Bonds, including interest thereon, are payable solely from the revenue pledged to the payment thereof; and no Bone shall constituc.e a debt of the City within the :Weaning of any constitutional or statutory limitation. 3. The forms of Lease, Indenture and Bond Purchase Agreement referred to in paragraph 1 are approved. The City agrees to accept conveyance by warranty deed of the real estate to be included in the Project. The Lease, Indenture and Bond Purchase Agreement, with such variations, insertions and additions as the City Attorney may hereafter deem appropriate, are directed to be executed in the name and on behalf of the City by the Mayor and City Manager. Copies of all of the documents shall be delivered, filed and recorded as provided therein. The City hereby approves the form and consents to the distribution of the Official State- ment to prospective purchasers of the Bonds by the Underwriter. 4. In anticipation of the collection of revenues of the Project, the City shall proceed forthwith to issue the Bonds in the principal amount of $1,410,000, in the fore and upon the terms set forth in the Indenture, official Stai:ament and Bond Purchasewhish C:?C;!s are For Chis ourpose incorporated in C';LS C3SOIUCIOn and made a part thereof. The proposal of the Underwriter to ourchase the 9on•3s at a price of $1,357,700, plus accrued interest, upon the terms and conditions set Earth in the Bond Purchase Agreement is hereby accepted. The Mayor and City Manager are authorized and directed to oreoare and execute the 3onds as prescrit-ed in the Indenture and to deliver them to the Trustee, together with a certified copv of this resolution and other documents required by the Indenture, for authenti- cation and delivery to the Underwriter. Pursuant to Minnesota Statutes, Section 475.55, the Trustee is hereby appointed agent of the City for the purpose of authenti- cacing the Bonds. 5. The Mayor, City Manager, City Clerk and other officers of the City are authorized and directed to prepare and furnish to the purchaser of the Bonds and bond counsel certified copies of all proceedings and records of the City relating to the Bonds, and such other affidavits and certi- ficaces as may be reasonably required by bond counsel to show the facts relating to the legality and marketability of the Bonds. Approved: —' Mayor Attest: City Clerk The foregoing resolution was duly seconded by Councilmember Seibold , and upon vote being taken thereon, the following voted in favor: Mayor Hunt, Councilmembers Hoyt,Seibold and Spaeth and the following voted against the same: None whereupon the resolution was declared duly gassed and adopted.