HomeMy WebLinkAboutCity Council Resolution 1981-441CITY OF PLYMOUTH
Pursuant to due call and notice thereof. arhe ular meeting of
the City Council of the City of Plymouth,M nnei rota, was he d on the
20th day of July , 19 81 . The following members
were present:Mavor Davenport, ounce mem ers Hoyt,---ffe-ils, Schneider and Threjnen
The following members were absent: none
Councilmember Neils introduced the following Resolution and
moved is adoption:
RESOLUTION NO. 81-441
RESOLUTION DETERMINING TO PROCEED WITH A PROJECT AND ITS FINANCING 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 Municipality), as follows:
SECTION 1
Recitals and Findings
1.1. This Council has received a proposal that the
Municipality finance a portion or all of the cost of a
proposed project under Minnesota Statutes, Chapter 474
(the Act), consisting of the acquisition of an existing
facility, the construction thereto and equipping the same
for use as an office and printing facility (the Project)
to be .leased by Aggressive Investors, a Minnesota general
partnership (the Borrower) to Watt/Peterson, Inc.
1.2. At a public hearing, duly noticed and held on
Juiy 2n , 1981, in accordance with the Act, on the
proposal to undertake and finance the Project, 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 the public
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
requires active promotion, attraction, 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 of Minnesota 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 Municipality, the County and School
District in which the Project is located and would provide
Resolution No. 81-441
Pager 2
increased opportunities for employment for residents of
the Municipality and surrounding area.
(d) This Council has been advised by
representatives of the Borrower that conventional,
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 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
representatives of the Borrower that on the basis of their
discussions with potential buyers of tax-exempt bonds,
revenue bonds of the Municipality (which may be in the
form of a commercial development revenue note or notes)
could be issued and sold upon favorable rates and terms to
finance the Project.
(f) The Municipality 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
Borrower, and the issuance of such bonds by the
Municipality would be a substantial inducement to the
Borrower to acquire and construct the Project.
SECTION 2
Determination to Proceed with
the Project and its Financing
2.1. On the basis of the information given the
Municipality to date, it appears that it would be
desirable for the Municipality to issue its revenue bonds
under the provisions of the Act to finance the Project in
an estimated total amount of $ 950,000
2.2. It is hereby determined to proceed with the Project
and its financing and this Council hereby declares its
present intent to have the Municipality issue its revenue
bonds under the Act to finance the Project.
Notwithstanding the foregoing, however, the adoption of
this resolution shall not be deemed to establish a legal
obligation on the part of the Municipality or its City
Council to issue or to cause the issuance of such revenue
bonds. All details of such revenue bond issue and the
provisions for payment thereof shall be subject to final
Resolution No. 81- 441
Page 3
approval of the Project by the Minnesota Commissioner of
Securities and may be subject to such further conditions
as the Municipality may specify. The revenue bonds, if
issued, shall not constitute a charge, lien or
encumbrance, legal or equitable, upon any property of the
Municipality, 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 property pledged to
the payment thereof, and shall not constitute a debt of
the Municipality within the meaning of any constitutional
or statutory limitation.
2.3. The Application to the Commissioner of Securities,
with attachments, is hereby approved, and the Mayor and
City Manager are authorized to execute said documents in
behalf of the Municipality.
2.4. In accordange with Section 474.10, Subdivision 7a of
the Act, the Mayor and City Manager are hereby authorized
and directed to cause the Application to be submitted to
the Commissioner of Securities for approval of the
Project. The Mayor, City Manager, City Attorney and other
officers, employees and agents of the Municipality are
hereby authorized and directed to provide the Commissioner
with any preliminary informatior the Comirissioner 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.
SECTION 3
General
3.1. If the bonds are issued and sold, the Municipality
will enter into a lease, sale or loan agreement or similar
agreement satisfying the requirements of the Act (the
Revenue Agreement) with the Borrower. The lease rentals,
installment sale payments, loan payments or other amounts
payable by the Borrower to the Municipality under the
Revenue Agreement shall be sufficient to pay the
principal, interest and redemption premium, if any, on the
bonds as and when the same shall become due and payable.
3.2. The Borrower has agreed and it is hereby determined
that any and all direct and indirect costs incurred by the
Municipality 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
Resolution No. 81-441
Page 4
whether or not the Municipality by resolution authorizes the issuance
of the bonds, will be paid by the Borrower upon request.
3.3. The Mayor and City Manager are directed, if the bonds are issued
and sold, thereafter to comply with the provisions of Minnesota Statutes,
Section 474.01, Subdivision 8.
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 thereof: Mayor Davenport, Councilmembers Hoyt,
Neils, Schneider and Threinen
The following voted against or abstained: none
Whereupon the Resolution was declared duly passed and adopted.