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.