HomeMy WebLinkAboutCity Council Resolution 1979-433EXTRACT 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, August 6, 1979,
commencing at 7:30 o'clock P.M.
The following members were present:
Mayor Hunt, Councilmembe^s Davenport, Hoyt and Neils
and the following were assent:
Councilmember Spaeth.
The following resolution was presented by Councilmember Neils
who moved its adoption:
RESOLUTION NO. 79-433
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 Versatile Cornat Corporation, a corporation organized under
the laws of the Province of British Columbia, Canada, and qualified
to do business in the State of Minnesota (hereinafter the "Company"),
has advised this Council of its desire to acquire and improve land
and construct and equip thereon a warehouse and office building of
approximately 25,000 square feet (the "Project") within the City, to
be operated jointly by the Company and Versatile Parts, Inc. in its
business of the manufacture and distribution of farm machinery parts.
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 representatives of Juran
& Moody, Inc., 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 success-
fully 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 $750,000.
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 approval. The Mayor, City Clerk, City Manager, City Attorney,
and other officers, employees, and agents of the City and Messrs.
LeFevere, Lefler, Pearson, O'Brien & Drawz and Dorsey, Windhorst,
Hannaford, Whitney s Halladay as co -bond counsel, are hereby authorized
to provide the Commissioner with any preliminary information needed
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 Hoyt
and upon
vote being taken thereon, the following voted in favor of the motion:
Mayor Hunt, Councilmembers Davenport, Hoyt and Neils
and the following voted against:
None
whereupon said resolution was declared duly passed and adopted.