HomeMy WebLinkAboutCity Council Resolution 1981-499CITY OF PLYMOM
Pursuant to due call and notice thereof, a _fey lar meeting of the City
Council of the City of Plymouth, Minnesota, was held on the 17th day of
Auaust , 19 81 The following members were present: Uavenport,
Cniinrilmemb rs Hoyt, Neils, Schneider and Threinen
were absent: none
Qnij0CJ1mPmhPr Hoyt introduced the following Resolution and moved
its adoption:
RESOLUTION NO. 81-499
RESOLUTION GIVING PRELIMINARY APPROVAL TO A
PROJECT UNDER THE MUNICIPAL INDUSTRIAL
DEVELOPMENT ACT: REFERRING THE PROPOSAL TO
THE COMMISSIONER OF SECURITIES AND REAL ESTATE 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:
10 1.1 The welfare of the State of Minnesota requires active promo-
tion, 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 unemploy-
ment, and the state has encouraged local government units to act to
prevent such economic deterioration.
1.2 Linhen, a Minnesota limited partnership (hereinafter the
"Company"), has advised this Council of its desire to construct and
equip a new office and plant facility in the City to be leased to Big
Bear Construction, Inc. ("Tenant"), for use in Tenant's business of
the restoration of residential and commercial prc.perty after casualty
(the "Project").
1.3 The existence of the Project within the City would signifi-
cantly 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 by the Company that conventional,
commercial financing to pay the capital cost of the Project is avail-
able only on a limited basis and at such high costs of borrowing that
the economic feasibility of operating the Project would be signif-
icantly reduced, but that with the aid of municipal financing, and its
resulting low borrowing cost, the Project is economically more feas-
ible.
1.5 This Council has been advised by Summit State Bank of Bloomington,
Minnesota, that, on the basis of information submitted to it and the
discussions with representatives of the Company, bonds o; notes to
finance all or part of the cost of the Project can be successfully
sold, and that it will purchase such bonds or notes.
Resolution f 81-499
Page 2
1.6 The City is authorized by Minnesota Statutes, Chapter 474,
to issue its revenue bonds or other obligations (the "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 sub-
stantial inducement to the Company to construct the Project within the
City.
2. On the basis of information given the City to date, it
presently appears that it would be in the best interest of the City to
issue its industrial development revenue Bonds in an amount of not to
exceed $350,000 under the provisions of Chapter 474 to finance the
Project of the Company at a cost presently estimated to be approxi-
mately $425,000.
3. The Council declares that it is its present intent to issue
the Bonds, and the Project above referred to is hereby given prelim-
inary approval by the City and the issuance of Bonds for such purpose
and in such amount approved, subject to approval of the Proj:act by the
Commissioner of Securities and Real Estate 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 pro-
visions for its payment. In all events, it is understood, however,
that the Bonds 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 mean-
ing of any constitutional or statutory limitation thereon.
4. The form of Memorandum of Agreement relating to the issuance
of the Bonds 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.
S. In accordance with Minnesota Statutes, Section 474.01,
Subdivision 7A, the Mayor and City Manager are authorized and directed
to submit the proposal for the Project to the Commissioner of
Securities and Real Estate for approval. The Mayor, City Manager,
City Attorney and other officers, employees, and agents of the City
and Messrs. LeFevere, Lefler, Kennedy, O'Brien & Drawz, A Professional
Association, as 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 ilmember Neils , and upon vote being taken thereon, the
fol owIng votea in favor thereo,: pyor Davenaort, Councilmembers Hoyt,
ils Schneider and Threine
The following voted against or a stain
Whereupon the Resolution was declared duly passed and adiopted.
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