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.