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HomeMy WebLinkAboutCity Council Resolution 1981-780Lavy ur rLcrwuin :Dant to due,rall and notice thereof, a rcm� 19__�_. The, fol 1 �N ils n i The fo owing mert ig members were and Threinen' ;'were absent: clu un r meeting of the City Council the 16th day of November , r• navannnrt_ fnnrlmamharc Councilmember Threinen introduced the following Resolution and moved its adoption: RESOLUTION NO. 81-780 PRELIMINARY APPROVAL TO A PROJECT FOR COORDINATED MANAGEMENT SYSTEMS! INC. (OR ASSIGNS) AND AUTHORIZING THE ISSUANCE OF REVENUE BONDS OR TAX EXEMPT MORTGAGE NOTES THEREFOR UNDER THE MINNESOTA MUNICIPAL INDUSTRI.AL DEVELOPMENT ACT, REFER- RING THE PROPOSAL TO THE COMMISSIOER OF SECURITIES AND REAL ESTATE FOR APPROVAL, AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS WHEREAS, the Minnesota Legislature has enacted Chapter 474 of the Minnesota Statutes, which is cited as the "Minnesota Municipal Industrial Development Act" (hereinafter, the "Act"); and WHEREAS, in enacting the Act, the Legislature found that the welfare of the State requires the active promotion, attraction, encouragement and development of economically sound industry and commerce to prevent as far as possible the emergence of blighted and marginal lands and areas of chronic unemployment, and to prevent economic deterioration; and WHEREAS, other factors necessitating such active promotion and development of industry and commerce for the City of Plymouth, Minnesota (the "City") are the increasing movement of population and business to other areas, the steady and rapid increase in the amount and cost of government services required to meet the needs of the community and the need for more intensive development and use of land within the City; and WHEREAS, Coordinated Management Systems, Inc. a Delaware Corporation, or its assigns (the "Company"), intends to acquire, construct, install and equip land, buildings and fixtures for use by the Company as a commercial office building (the "Project"); and WHEREAS, the Company has proposed that the City undertake and finance the Project under the Act and that Industrial Development Revenue Bonds or Tax Exempt Mortgage Notes in one or more series (the "Obligations") in an amount now estimated not to exceed $5,000,0*00 be issued by the City for the purpose of financing the Projeut, and the proposal calls for the City and the Company to either enter into a lease agreement or loan agreement wherein the City will own the Project and lease the Project to the Company or will loan the proceeds of the Obligations to the Company and the Company will agree to acquire, equip, construct, operate and maintain the Project and pay all costs thereof and to make lease payments or to repay the loan from the City by payments to produce income and revenues sufficient to provide for the prompt payment of the principal of and interest on the Obligations and all cost and expenses of the City in connection with the Project and issuance and sale of the Obligations; and Resolution # 81-780 Page 2 WHEREAS, the proposal further provides that a mortgage and security interest will be granted on the Project and the City's right and interest in the lease agreement or loan agreement assigned for the benefit and security of the holders from time to time of the Obligations; and WHEREAS, the City has been advised by the Company that convential, commercial financing to pay the capital cost of the Project has not been obtained and is available only on a limited basis and at such high costs of borrowing that the economic feasibility of acquiring and operating the Project would be significantly reduced, but the Company has also advised this City that the use of municipal financing, and its resulting low borrowing cost, will constitute a significant inducement to the Company to undertake the Project; and WHEREAS, the proposed Project would encourage the expansion of a revenue- producing enterprise; and WHEREAS, the full faith and credit of the City will not be pledged or responsible for the Project or the payment of the principal of and interest on the Obligations; and WHEREAS, the undertaking of the Project and the issuance of the Obligations appear to satisfy the legislative objects, purposes and requirements of the Act; and WHEREAS, pursuant to the Act a public hearing on the proposal to undertake and finance the Project (the "Public Hearing") has been conducted following notice of the Public Hearing complying with the provisions of the Act being published once not less than 15 days nor more than 30 days prior to the date fixed for the Public Hearing, in the official newspaper and a newspaper of general cir- culation of the City; and WHEREAS, at the Public Hearing all parties who appeared were given an oppor- tunity to express their views with respect to the proposed undertaking and financing of the Project. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Plymouth: 1. On the basis of information furnished to this City Council, the effect of the Project, if undertaken by the City, will be to encourage the development of economically sound industry and commerce, and the providing of greater employment opportunities, all of benefit to residents and tax- payers of the City. 2. The undertaking and financing of the Project and the issuance of the Obligations in an amount now estimated no to exceed $5,000,000 to finance the costs thereof, all as referred to above, is hereby authorized and approved by the City, and it is hereby determined that it is the present intent of the City to proceed with the Project and the financing thereof, subject to the approval of the Project by the Commissioer of Securities and Real Estate as required by the Act, and to the agreement of the City, the Company and the purchaser or purchasers of the Obligations on the details, terms and conditions on which the Project will be financed and the Obligations will be issued, sold and secured. Resolution i 81-780 Page 3 3. The Obligations may be privately place or publicly offered. 4. In accordance with Section 474.01, Subdivision 7, of the Act, the Mayor, City Clerk and City Manager are hereby authorized and directed to submit the proposal for undertaking the Project to the Commissioner of Securities and Real Estate, requesting her approval of the Project. The Mayor, City Clerk, City Manager, City Attorney and other officers, employees and agents of the City are hereby authorized to provide the Commissioer of Securities and Real Estate with such preliminary information as she may require for this purpose. The City Attorney is also authorized in cooperation with Kutak Rock & Huie to initiate preparation of such documents as may be appropriate to the Project in order that, when and if the Project is approved by the Commissioer of Securities and Real Estate, it may be carried forward expeditiously. 5. Messrs, Kutak Rock & Ruie, and LeFevere, Lefler, Kennedy, O'Brien & Drawz a Professional Association, as co -bond counsels, are hereby authorized and directed to initiate the preparation of proposed documents as may be necessary or appropriate to the Project and the issuance of the Obligations and to meet any registration requirements of the securities laws of the State of Minnesota so that, when and if the proposed Project is approved by the Commissioner of Securities and Real Estate and this City gives its final approval thereof, the Project may be carried for- ward expeditiously. 6. All commitments of the City expressed herein are subject to the condition that within twenty-four months from the date of adoption of this resolution the City and the Company shall have agreed to mutually acceptable terms and conditions on the details, terms and conditions on which the Project will be financed and the Obligation will is issued, sold and secured. If the events set forth herein do no take place within the time set forth above or any extension thereof and the Obligations are not sold within such time, this resolution shall expire and be of no further force or effect. 7. The City shall have the right, in its sole discretion, to withdraw from participation, and accordingly, not issue its Obligations 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 Obligations 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 the transaction. The decision of the City Council with respect to any of the aforementioned matters shall be incontestable. The motion for the adoption of the foregoing Resolution was duly seconded by gouncilmCMDer Neils , and upon vote being taken thereon, the following voted in Favor marcor: Mayor Davenport. Councilmembers Neils. ine tollowzng voted against or abstained: -none Whereupon the Resolution was declared duly passe a opte . •a� aa• �e�