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HomeMy WebLinkAboutCity Council Resolution 1981-134c, 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 and Council - member Neils. Acting Mayor Hoyt introduced the following Resolution and moved its adoption: RESOLUTION NO. 81-134 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 PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Plymouth, Minnesota (the "City"), as follows: SECTION 1 Recitals and Findings 1.1 This Council has received a proposal that the City finance a portion of the cost of a proposed project under Minnesota Statutes, Chapter 474 (the "Act"), consisting of an addition to an existing manufacturing and office building (the "Project") by Deltak Corporation (the "Company"). 1.2 At a public hearing duly noticed and held on February 23 and February 26, 1981, in accordance with the Act, on the proposal to undertake and finance the Pro- ject, all parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal to undertake and finance the Project. Based on such hearing and such other facts and circumstances as this Council deems relevant, this Council hereby finds, determines and declares as follows: (a) The welfare of the State of Minnesota required active promotion, attrac- tion, encouragement and development of economically sound industry and commerce through governmental acts to prevent, so far as possible, emergence of blighted lands and areas of chronic unemployment, and the State has encouraged local government units to act to prevent such economic deterioration. (b) The Project would further the general purposes contemplated and described in Section 474.01 of the Act. (c) The existence of the Project would add to the tax base of the City and of the County and School District in which the Project is located and would provide increased opportunities for employment for residents of the City and surrounding area. (d) This Council has been advised by Dain Bosworth Incorporated that con- ventional, commercial financing to pay the cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic ti Resolution No. 81-134 Page 2 feasibility of operating the Project would be significantly reduced, but that with the aid of municipal borrowing, . and its resulting lower borrowing cost, the Project is economically more feasible. (e) This Council has also been advised by Dain Bosworth Incorporated that on the basis of their study of the economical feasibility of the Project, revenue bonds of the City could be issued and sold upon favorable rates and terms to finance the Project. (f) The City is authorized by the Act 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 acquire and construct that Project. SECTION 2 Preliminary Approval of Project 2.1 On the basis of information given the City to date, it appears that it would be desirable for the City to issue its revenue bonds under the provisions of the Act to finance the Project in an amount not to exceed $ 2,000,000. 2.2 It is hereby determined to proceed with the Project and its financing and the Project is hereby given prelimi- nary approval by the City and the issuance of revenue bonds of the City in such amount is hereby approved, subject to the approval of the Project by the Commissioner of Securities, the fulfillment of such other conditions as the City may require with respect to the issuance of its revenue bonds in connection with the Project, and the mutual agreement of this Council and the Company as to the details of the revenue bonds and provisions for their payment. In all events, it is understood, however, that the revenue bonds of the City shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, except the revenues pledged to the payment thereof, and each revenue bond, when, as and if issued, shall recite in substance that the revenue bond, including interest thereon, is payable solely from the revenues pledged to the payment thereof, and shall not constitute a debt of the City within the meaning of any constitution or statutory limitations. 2.3 The form of the Application to the Commin.icner of Securities, with'attachmrnts, is hereby approved, anc: the Mayor and the City Manager are authorized to execute saiC documents in behalf of the City. 2.4 In accordance with Section 474.10, Subdivision 7A of the Act, the Mayor and City Manager are hereby authorized and Resolution No. 81-134 Page 3 directed to cause said Application to be submitted to the IS Commissioner of Securities for approval of the Project. The Mayor, City Manager, City Attorney and other officers, employees and agents of the City are hereby authorized and directed to provide the Commissioner with any preliminary information the Commissioner may need for this purpose, and the City Attorney is authorized to initiate and assist in the preparation of suc:, documents as may be appropriate to the Project, if it is approved by the Commissioner of Securities. SECTION 3 General 3.1 If the revenue bonds are issued and sold, the City will enter into a lease, sale or loan agreement or similar agreement satisfying the requirements of the Act (the "Revenue Agreement"). The lease rentals, installment sale payments, loan payments or other amounts payable by the Company to the City under the Revenue Agreement shall be sufficient to pay the principal, interest and redemption premium, if any, on the revenue bonds as and when the same shall become due and payable. 3.2 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 conditions of the Revenue Agreement, the revenue bonds and of the other instruments and proceedings relating to the revenue bonds, and their issuance and sale. 3.3 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. The Company has agreed and it is hereby determined that any and all direct and indirect costs incurred by the City in connection with this Project, whether or not the Project is carried to completion, and whether or not approved by the Commissioner of Securities, and whether or not the City by resolution authorizes the issuance of the revenue bonds, will be paid by the Company upon request. 3.4 The Mayor and City ManagQr are directed, if the revenue bonds are issued and sold, thereafter to comply with the provisions of Minnesota Statutes, Section 474.01, Subdivision 8. 3.5 The City shall have the right, in its sole discre- tion, to withdraw from participation, and accordingly, not issut- 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 conditions of any of the documents required for Resolution No. 81-134 Page 4 10 the transaction. The decision of the City Council with respect to any of the aforementioned matters shall be incontestable. 3.6 The actions of the City Clerk in modifying the notice of public hearing as published in the Minneapolis Star and Minneapolis Tribune to provide for a pub- lic 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 Councilmember Schneider and upon vote being taken thereon, the . following voted in favor thereof: Acting Mayor Hoyt, Councilmembers Schneider and Threinen The following voted against or abstained: None Whereupon the Resolution was declared duly passed and adopted.