HomeMy WebLinkAboutCity Council Resolution 1981-133,i
CITY OF PLYMOUTH
Pursuant to due call and notice thereof, a special meeting of the City Council of the
City of Plymouth, Minnesota was held on the 26th day of February, 1981. The following
members were present: Acting Mayor Hoyt, Councilmembers Schneider and Threinen.
The following members were absent: Mayor Davenport ar:: ".'t, -;-:member Neils.
Councilmember Schneider introduced the following Resolution and moved its adoption:
RESOLUTION NO. 81-133
RESOLUTION GIVING PREL"MINARY APPROVAL TO A PROPOSED INDUSTRIAL DEVELOPMENT
PROJECT BY BANNER ENGINEERT.NG CORPORATION UNDER THE MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT AND AUTHORIZING SUBMISSION OF AN APPLICATION TO THE
COMMISSIONER OF SECURITIES FOR APPROVAL THEREOF
BE IT RESOLVED by the City Council of the City of Plymouth, Minnesota,
as follows:
1. There has been presented to this Council a proposal by Banner
Engineering Corporation, a Minnesota corporation (the "Company") that the City
undertake and finance a project pursuant to the Minnesota Municipal Industrial
Development Act, Minnesota Statutes, Chapter 474 (the "Act") generally consisting
of the acquisition, renovation, and equipping of a manufacturing and warehouse
facility in the City for use in the sales, engineering, assembly, and storage of
electronic equipment (the "Project"). Under the proposal, the Project facilities
will be owned by the Company, and the Company will enter into a revenue agreement
with the City upon such terms and conditions as are necessary to produce income
and revenues sufficient to pay when due the principal of and the interest on up
to approximately $1,000,000 Industrial Development Revenue Bonds of the City to
be issued pursuant to the Act, to provide monies for the acquisition, construction
and installation of the Project; exclusive of the acquisition and installation of
equipment in the building; and the City will pledge its interest in the revenue
agreement to secure the bonds.
2. As required by the Act, this Council conducted a public hearing on
February 23rd and February 26, 1981 on the proposal to undertake and finance the
Project after publication in the official newspaper and a newspaper of general
circulation in the City of a notice setting forth the time and place of hearing;
stating the general nature of the Project and an estimate of the principal amount
of bonds or other obligations to be issued to finance the Project; stating that a
draft copy of the proposed Application to the Commissioner of Securities, together
with all attachments and exhibits thereto, is available for public inspection at
the office of the City Clerk, in the City Hall, at all times between the hours of
8:30 A.M. and 4:30 P.M. each day except Saturdays, Sundays and holidays to and
including the day of hearing; and stating that all parties who appear at the public
hearing shall have an opportunity to express their views with respect to the proposal.
The draft application to the Commissioner of Securities, together with all attach-
ments and exhibits thereto, was on file and available for public inspection at the
place and times set forth in the notice.
3. It is hereby found, determined and declared that the Project furthers
the purposes stated in Section 474.01 of the Act in that the purpose of the Project
is and the effect thereof will be to promote the public welfare by the attraction,
Resolution No. 81-133
Page 2
encouragement and development of economically sound industry and
commerce so as to prevent, so far as possible, the emergency of
blighted and marginal lands and areas of chronic unemployment;
the retention and development of industry to use the available
resources of the community, in order to retain the benefit of its
existing investment in educational and public service facilities;
by halting the movement of talented, educated personnel of mature
age to other areas and thus preserving the economic and human
resources needed as a base for providing governmental services
and facilities; and the more intensive development of land avail-
able in the area to provide a more adequate tax base to finance
the cost of governmental services in the Municipality, county and
school district where the Project is located.
4. The Company has entered into preliminary discussions
with Daugherty, Dawkins, Strand & Ekstrom, Incorporated, as
Underwriter, and the Underwriter has reported that the Project
and the sale of bonds therefor are feasible.
5. The Company has agreed to pay any and all costs
incurred by the City in connection with the Project whether or
not the Project is approved by the Commissioner of Securities and
whether or not the Project is carried to completion.
6. The Project is hereby given preliminary approval by
the City subject to approval of the Project by the Commissioner
of Securities and subject to final approval by this Council and
by the purchasers of any bonds to be issued as to the ultimate
details of the Project and as to the terms of the bonds.
7. In accordance with Section 474.01, Subd. 7 of the
Act, the Mayor, the City Clerk and such other officers and repre-
sentatives of the City as may from time to time be designated are
hereby authorized and directed to submit the proposal for the
Project to the Commiissioner of Securities and request her approval
thereof, and the Mayor, the City ^lerk and other officers, employees
and agents of the City are hereby a,:tnorized to provide the
Commissioner with such preliminary ii -:formation as she may require.
The Company, Messrs. Faegre & Benson a.:, bond counsel, the City
Clerk, the City Attorney, and other Cit} offici:.ls are also
authorized to initiate the preparation of a pro,osed loan agreement
and such other documents as may be necessai: r_ appropriate to
the Project so that, when and if the proposeu Project is approved
by the Commissioner and this Council gives its final approval
thereto, the Project may be carried forward expeditiously.
8. The Company is hereby authorized to enter into such
contracts, in its own name and not as agent for the City, as may
be necessary for the construction of the Project by any means
available to it and in the manner it determines without advertisement
for bids as may be required for the acquisition or construction
of other municipal facilities, but the City shall not be liable
on any such contracts.
Resolution No. 81-133
Page 3
9. All Commitments of the City expressed herein are subject to the
condition that within twelve months from the date of adoption of this resolution
the City and the Company shall have agreed to mutually acceptable terms and con-
ditions of the revenue agreement, the revenue bonds and of the other instruments
and proceedings relating to the revenue bonds, and their issuance and sale. If
the events set forth herein do not take place within the time set forth above or
any extension thereof and the revenue bonds are not sold within such time, this
resolution shall expire and be of no further force or effect.
10. The City shall have the right, in its sole discretion, to withdraw
from participation, and accordingly, not issue its revenue bonds for the Project,
should the City at any time prior to the issuance thereof determine that it is
in the best interest of the City not to issue its revenue bonds or should the
parties to the transaction be unable to reach agreement as to the terms and con-
ditions of any of the documents required for the transaction. The decision of the
City Council with respect to any of the aforementioned matters shall be incontestable.
11. The actions of the City Clerk in m;difying the notice of public hearing
as published in the Minneapolis Star and Minneapolis Tribune to provide for a public
hearing on this date are hereby ratified and confirmed in all respects.
The motion for the adoption of the foregoing Resolution was duly seconded
by CoupcilmamhAr ThrPinAn , and upon vote being taken thereon, the
following voted in favor thereof: Acting Mayor Hoyt, Councilmembers,
Shnidr jnd Threinen
The following voted against or abstained:__ one
Whereupon the Resolution was declared duly passed and adopted.