HomeMy WebLinkAboutCity Council Resolution 1981-840CITY OF PLYMOUTH
Pursuant to due call and notice thereof, a —regular meeting of the City Council
of the City of Plymouth, Minnesota, was held on -15 -621st day of December ,
19 81 . The following members were present:Mayor Davenport, Councilmembers Hoyt,
N -Ts Schneider and Threinen
The following members were absent: none
introduced the following Resolution and moved its
adoption:
RESOLUTION NO. 81 - 840
PRELIMINARY APPROVAL OF A PROPOSAL FOR A COMMERCIAL FACILITIES DEVELOPMENT PROJECT
PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AUTHORIZING THE
SUBMISSION OF AN APPLICATION AND THE PREPARATION OF NECESSARY DOCUMENTS AND
MATERIALS IN CONNECTION WITH SAID PROJECT (PRESTIGE ELECTRONICS)
WHEREAS, the purpose of Chapter 474, Minnesota Statutes, known as the Minnesota
Municipal Industrial Development Act (the "Act") as found and determined by the
legislature is to promote the welfare of the state by the active attraction and
encouragement and development of economically sound industry and commerce to
prevent so far as possible the emergence of blighted and marginal lands and areas
of chronic unemployment;
Factors necessitating the active promotion and development of economically sound
industry and commerce are the increasing concentration of population in the
metropolitan areas and the rapidly rising increase in the amount and cost of
governmental services required to meet the needs of the increased population and
the need for development of land use which will provide an adequate tax base to
finance these increased cost and access to employment opportunities for such
population;
The City Council of the City of Plymouth ("the City") has received from Prestige
Electronics, Inc., a proposal that the City assist in financing a Project herein-
after described, throught the issuance of a Revenue Bond or Bonds or a Revenue
Note or Notes hereinafter referred to in the resolution as "Revenue Bonds"
pursuant to the Act;
The City desires to facilitate the selective development of the community, retain
and improve the tax base and help to provide the range of services and employment
opportunities required by the population; and the Project will assist the City in
achieving those objectives. The project will help to increase assessed valuation
to the City and help maintain a positive relationship between assessed valuation
and debt and enhance the image and reputation of the community;
The Project to be financed by the Revenue Bonds is an Office/warehouse facility
to be located in the City and leased to Prestige Electronics, Inc. and consists
of the acquisition of land and the construction of buildings and improvements
thereon and the installation of equipment therein, and will result in the employ-
ment of additional persons to work within the new facilities;
1 `'
Pursuant to a resolution of the City Council adopted on November 2, 1981, a public
hearing on the Project was held on December 7, 1981, and continued on December.211
1981, after notice was published, and materials made available for public inspection
at the City Hall, all as required by Minnesota Statutes, Section 474.01, Subdivision
7b at which public hearing all those appearing who so desired to speak were heard;
No public official of the City has either a direct or indirect financial interest
in the Project nor will any public official either directly or indirectly benefit
financially from the Project.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Plymouth,
Minnesota, as follows:
1. The Councile hereby gives preliminary approval to the proposal of Company
that the City undertake the Project pursuant to the Minnesota Municipal Industrial
Development Act (Chapter 474, Minnesota Statutes), consisting of the acquisition,
construction and equipping of facilities within the City pursuant to Company's
specifications suitable for the operations described above and to a revenue
agreement between the City and Company upon such terms and conditions with provisions
for revision from time to time as necessary, so as to produce income and revenues
sufficient to pay, when due, the principal of and interest on the Revenue Bonds in
the total principal amount of approximately $1,800,000 to be issued pursuant to the
Act to finance the acquisition, construction and equipping of the Project; and
said agreement may also provide for the entire interest of Company therein to be
mortgaged to the purchaser of the Revenue Bonds; and the City hereby undertakes
preliminary to issue its Revenue Bonds in accordance with such terms and conditions;
2. On the basis of information available to the Council it appears, and the
Council hereby finds, that the Project constitutes properties, real and personal, "
used or useful in connection with one or more revenue producing enterprises
engaged in any business within the meaning of Subdivision la of Section 474.02 of
the Act; that the Project furthers the purposes stated in Section 474.01, Minnesota
Statutes; that the availability of the financing under the Act and willingness of
the City to furnish such financing will be a substantail inducement to Company to
undertake the Project, and that the effect of the Project, if undertaken, will be
to encourage the development of economically sound industry and commerce, to assist
in the prevention of the emergence of blighted and marginal land, to help prevent
chronic unemployment, to help the City retain and improve the movement of talented
and educated persons out of the state and to areas within the State where their
services may not be as effectively used, tp promote more intensive development and
use of land within the City and eventually to increase the tax base of the community;
3. The Project is hereby given preliminary approval by the City subject to
the approval of the Project by the Commissioner of Securities and Real Estate, and
subject to final approval by this Council, Company, and the purchaser of the
Revenue Bonds as to the ultimate details of the financing of the Project;
4. In accordance with Subdivision 7a of Section 474.01 Minnesota Statues, the
Mayor of the City is hereby authorized and directed to submit the proposal for the
Project to the Commissioner of Securities and Real Estate, requesting her approval,
and other officers, employees and agents of the City are hereby authorized to provide
the Commissioner with such preliminary information as she may require;
5. Company has agreed and it is hereby determined that any and all cost
incurred by the City in connection with the financing of the Project whether or not
the Project is carried to completion and whether or not approved by the Commissioner
will be paid by Company;
6. Briggs and Morgan, Projessional Association, acting as bond counsel, and
Juran & Moody, Inc., investment bankers, are authorized to assist in the preparation
and review of necessary documents relating to the Project, to consult with the City
Attorney, Company and the purchaser of the Revenue Bonds as to the maturities,
interest rates and other terms and provisions of the Revenue Bonds and as to the
covenants and other provisions of the necessary documents and to submit such
documents to the Council for final approval;
7. Nothing in this resolution or in the documents prepared pursuant hereto
shall authorize the expenditure of any municipal funds on the Project other than the
revenues derived from the Project or otherwise granted to the City for this purpose.
The Revenue Bonds shall notconstitute a charge, lien or encumbrance, legal or equit-
able, upon any property or funds of the City except the revenue and proceeds pledged
to the payment thereof, nor shall the City be subject to any liability thereon. The
holder of the Revenue Bonds shall never have the right to compel any exercise of the
taxing power of the City to pay the outstanding principal on the Revenue Bonds or
the interest thereon, or to enforce payment thereof against any property of the City.
The Revenue Bonds shall recite in substance that the Revenue Bonds, including interest
thereon, is payable solely from the revenue and proceeds pledged to the payment
thereof. The Revenue Bonds shall not constitute a debt of the City within the
meaning of any constitutional or statutory limitation;
8. In anticipation of the approval by the Commissioner of Securities and the
issuance of the Revenue Bonds to finance all or a portion of the Project, and in
order that completion of the Project will not be unduly delayed when approved, Company
is hereby authorized to make such expenditures and advances toward payment of that
portion of the costs of the Project to be financed from the proceeds of the Revenue
Bonds as Company considers necessary, including the use of interim, short-term
financing, subject to reimbursement from the proceeds of the Revenue Bonds if and
when delivered but otherwise without liability on the part of the City.
MW Notion for the adoption of the foregoing Resolution was duly seconded
by o ncilmember Hoyt , and upon vote beimgg taken thereon the
foliowang Vote r t — Mayor Davenport, Councilmembers F%yt,
Thinen
o�g voted apinft or none
Owreupon the Resolution was declared duly pass a pt
eae tan
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