HomeMy WebLinkAboutCity Council Resolution 1979-346nature of the project and of the proposed revenue bonds were discussed,
the draft copy of the application to the Commissioner of Securities,
with all attachments and exhibits, was available, and all persons
present who desired to do so were afforded an opportunity to express
their views with respect to the proposal to undertake and finance
the project. The following views or opinions on the proposal were
stated:
Name of Speaker
No one chose to speak.
Summary of Opinion Stated
After all persons who wished to do so had stated their views on
the proposal, the Mayor declared the hearing to be closed.
The following resolution was then presented by Councilmember
Hoyt who moved its adoption:
RESOLUTION NO. 79 - 346
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:
1. 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 Miles Homes, a division of Insilco Corporation, a
Connecticut corporation (hereinafter the "Company"), has advised this
Council of its desire to acquire and improve land and construct and
equip thereon an office building of approximately 60,000 square feet
for use as its corporate headquarters (the "Project") within the City,
to be operated by the Company in its business of home design and
planning, financing and manufacturing of pre-cut homes.
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 feasibile.
1.5 This Council has been advised by a representative of Dain,
Kalman & Quail, Incorporated, 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 issuance 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 date, 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 $4,500,000.
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,
and 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 *h 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 Neils , and upon
vote being taken thereon, the following voted in favor of the motion:
Acting Mayor Spaeth, Councilmembers Davenport, Hoyt and Neils
and the following voted against: None
whereupon said resolution was declared duly passed and adopted.
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,
July 9, 1979, 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 IYeuelopment
Revenue Bonds (Insilco Corporation (Miles Homes Division Project))
of the City.
WITNESS My hand as such City Clerk and the corporate seal of the
City this 10th day of July 1979.
(SEAL)
City Clerk
City of Plymouth, Minnesota