HomeMy WebLinkAboutCity Council Resolution 1981-560CITY OF PLYKM
Pursuant to due call and notice thereof, a special meeting of the City
CoWil f the City of Plymouth, Minnesota, was p
on the 8th da of
epemier , 19 81 . The following members were present: a-'T�i yo=venort,
Cow0Lgi Lgmbers Hovt, Neils, Schneider and'Threinen
were
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none
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,S.ounsil_member Neils introduced the following Resolution and moved
its adoption:
RESOLUTION N0. 81-560
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 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:
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 Whittar Industries, Ltd., a Minnesota limited partnership
(hereinafter the "Company"), has advised this Council of its desire to
construct and equip au expansion of -the Juster Steel Service Center
operated by the Company at 625 Xenium Lane in the City in its business
of the manufacture of rolled steel products (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 Continental Illinois
National Bank And Trust Company of Chicago ("Bank") that on the basis
of information submitted to them and the discussions with represen-
tatives of the Company that the Project is feasible and that the Bank
will purchase such bonds or notes.
Resolution R 81-560
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 the Bonds by the City would be a sub-
stantial inducement to the Company to coestruct 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 under the provisions of
Chapter 474 to finance the Project of the Company at a cost presently
estimated to be approximately $3,200,000.
3. The Council declares that it is its present intent to issue
the Bonds, and the Project above referred to is hereby given
preliminary approval by the City and the issuance of Bonds for such
purpose and in such amount approved, subject to approval of the Pro-
ject by the Commissioner of Securities 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 4 Agreement in behalf of the City.
5. 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 office -s, employees, and agents of the City
and Messrs. LeFevere, Lefler, Kennedy, O'Brien & Drawz, A Professional
Association, as bond counsel, are hereby au-.horized 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 approrriate to the Project, if
it is approved by the Commissioner.
The motion for the adoption of the foregoing Resolution wa_: duly second&:
by Councilmember Schneider , and upon vote being taken thereon, the
following- wt in ravor thereof: mayor Davenport, Councillembers Hoyt,
il,s. Schneider and Threinen ,
e followimg voted aga st or a sta' none
Whereupon the Resolution was declared duly pass a pt .
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