HomeMy WebLinkAboutCity Council Resolution 1981-780Lavy ur rLcrwuin
:Dant to due,rall and notice thereof, a rcm�
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The fo owing mert
ig members were
and Threinen'
;'were absent:
clu un
r meeting of the City Council
the 16th day of November ,
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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 .
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