HomeMy WebLinkAboutCity Council Resolution 1982-399CITY 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—t e — 16thday of Auaust ,
19 82. The following members were present: Acting Mayor Schneider, Counciln mbers
i'Pben, Neils and Threinen
The following members were absent: Mayor Davenport
Councilmember Threinen introduced the following Resolution and moved its
adoption:
RESOLUTION NO. 82-399
DETERMINING TO PROCEED WITH A PROJECT AND ITS FINANCING UNDER THE MUNICIPAL
INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE COMMISSIONER OF ENERGY,
PLANNING AND DEVELOPMENT FOR APPROVAL AND AUTHORIZING PREPARATION OF NECESSARY
DOCUMENTS
BE IT RESOLVED by the City Council of the City of Plymouth, Minnesota (the
Municipality), as follows:
SECTION 1
Recitals and Findings
1.1 This Council has received a proposal that the Municipality finance a portion
or all of the cost of a proposed project under Minnesota Statutes, Chapter 474
(the Act), consisting of acquisition of a lot located at the Southwest corner of
Highway 55 and Niagara Lane in the municipality and construction of a 25,677
square foot office and warehouse building thereon by JOSS, a Minnesota general
partnership (the Borrower) to be leased to Jude Candy and Tobacco Company, Inc.
. (the Lessee) (such acquisition and construction is hereinafter referred to as
the Project).
1.2 At a public hearing, duly noticed and held on August 16, 1982, in accord-
ance with the Act, on the proposal to undertake and finance the Project, all
parties who appeared at the hearing were given an opportunity to express their
views with respect to the proposal to undertake and finance the Project. Based
on the public hearing and such other facts and circumstances as this determines
and declares as follows:
(a) The welfare of the State of Minnesota requires active promotion,
attraction, encouragement and development of economically sound industry and
commerce through governmental acts to prevent, so far as possible, emergence of
blighted lands and areas of chronic unemployment, and the State of Minnesota
has encouraged local government units to act to prevent such economic deterio-
ration.
(b) The Project would further the general purposes contemplated and
described in Section 474.01 of the Act.
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Res. No. 82-399
(c) The existence of the Project would add to
the tax base of the municipality, Hennepin County and the
School District in which the Project is located and would
provide increased opportunities for employment for
residents of the Municipality and surrounding area.
(d) This Council has been advised by
representatives of the Borrower that conventional,
commercial financing to pay the cost of the Project is
available only on a limited basis and at such high costs
of borrowing that the economic feasibility of operating
the Project would be significantly reduced, but that with
the aid of municipal borrowing, and its resulting lower
borrowing cost, the Project is economically more feasible.
(e) This Council has also been advised by
representatives of the Borrower that on the basis of their
discussions with potential buyers of tax-exempt bonds,
revenue bonds of the Municipality (which may be in the
form of a industrial development revenue note or notes)
could be issued and sold upon favorable rates and terms to
finance the Project.
(f) The Municipality is authorized by the Act to
• issue its revenue bonds to finance capital projects
consisting of properties used and useful in connection
with a revenue producing enterprise, such as that of the
Borrower, and the issuance of the bonds by the
Municipality would be a substantial inducement to the
Borrower to undertake the Project.
SECTION 2
Determination to Proceed with
the Project and its Financing
2.1. On the basis of the information given the
Municipality to date, it appears that it would be
desirable for the Municipality to issue its revenue bonds
under the provisions of the Act to finance the Project in
an estimated total amount of $800,000.
2.2. It is hereby determined to proceed with the Project
and its financing and this Council hereby declares its
present intent to have the Municipality issue its revenue
bonds under the Act to finance the Project.
Notwithstanding the foregoing, however, the adoption of
this resolution shall not be deemed to establish a legal
obligation on the part of the Municipality or its City
Council to issue or to cause the issuance of such revenue
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Res. No. 82-399
• bonds. All details of such revenue bond issue and the
provisions for payment thereof shall be subject to final
approval of the Project by the Minnesota Commissioner of
Energy, Planning and Development and may be subject to
such further conditions as the Municipality may specify.
The revenue bonds, if issued, shall not constitute a
charge, lien or encumbrance, legal or equitable, upon any
property of the Municipality, 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
property pledged to the payment thereof, and shall not
constitute a debt of the Municipality within the meaning
of any constitutional or statutory limitation.
2.3. The Application to the Commissioner of Energy,
Planning and Development, with attachments, is hereby
approved, and the Mayor and City Manager are authorized
and directed to execute said documents in behalf of the
Municipality.
2.4. In accordance with Section 474.10, Subdivision 7a of
the Act, the Mayor and City Manager are hereby authorized
and directed to cause the Application to be submitted to
• the Commissioner of Energy, Planning and Development for
approval of the Project. The Mayor, City Manager, City
Attorney and other officers, employees and agents of the
Municipality are hereby authorized and directed to provide
the Commissioner with any preliminary information needed
for this purpose. The City Attorney is authorized to
initiate and assist in the preparation of documents as may
be appropriate to the Project, if approved by the
Commissioner.
SECTION 3
General
3.1. If the bonds are issued and sold, the Municipality
will enter into a lease, sale or loan agreement or similar
agreement satisfying the requirements of the Act (the
Revenue Agreement) with the Borrower. The lease rentals,
installment sale payments, loan payments or other amounts
payable by the Borrower to the Municipality under the
Revenue Agreement shall be sufficient to pay the
principal, interest and redemption premium, if any, on the
bonds as and when the same shall become due and payable.
3.2. The Mayor and City Manager are directed, if the
• bonds are issued and sold, thereafter to comply with the
provisions of Minnesota Statutes, Section 474.01,
Subdivision 8.
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Res. No. 82-399
.
3.3. The Municipality reserves the right, in its sole
discretion, to withdraw from participation, and
accordingly, not issue its revenue bonds to finance the
Project, should this Council at any time prior to the
adoption of the resolution authorizing the issuance
thereof determine that it is in the best interest of the
Municipality not to issue its revenue bonds to finance the
Project.
3.4. All commitments of the Municipality expressed herein
are subject to the condition that within twelve (12)
months from the date of adoption of this resolution the
Municipality and the Borrower shall have agreed to mutually
acceptable tees and conditions of the Revenue Agreement,
the revenue bonds and the other instruments and proceedings
relating to the revenue bonds and their `ssuance and sale.
Adopted this 16th day of _August , 1982.
Mayor
Attest:
•
City Clerk
(SEAL)
The motion for the adoption of the foregoing
resolution was duly seconded by Member Neils
and upon vote being taken thereon, the following voted in
favor thereof:
Acting Mayor Schneider, Councilmembers Moen, Neils, and Threinen
and the following voted against the same:
None
whereupon the resolution was declared duly passed and
adopted and was signed by the Mayor, which was attested by
the City Clerk -Treasurer.