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HomeMy WebLinkAboutCity Council Resolution 1982-592CITY OF PLYMOUTH Pursuhnt to due call and notice thereof, araw] 4C meeting of the City Council of the City of Plymouth, Minnesota, was held on the 15th day of Novemhpr 19 82. The following members were present: Mayor Davenport. Councilmembers �lQi' a Neils Schneider and Th einen The fo lowing members were absent: none Councilmember Threinen introduced the following Resolution and moved its adopt on: RESOLUTION NO. 82-592 RECITING, A PROPOSAL fOR AN INDUSTRIAL FACILITIES DEVELOPMENT PROJECT GIVING PRELIMINARY APPROVAL TO THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL qW DEVELOPMENT ACT AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF SAID PROJECT TO THE COMMISSIONER OF ENERGY, PLANNING AND DEVELOPMENT OF THE STATE OF MINNESOTA AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN COMMENTION WITH SAID PROJECT (WILDMAN/SCOVILLE PRESS PROJECT) WHEREAS, (a) 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; (b) Factors necessitating the active promotion and development of econom- ically 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 costs and access to employment opportunities for such population; (c) The City Council of the City of Plymouth (the "Cit!") has received from Donald C. Wildman, (the "Company") a proposal that the City undertake to finance a Project hereinafter described, through the issuance of revenue bonds in the form of a single debt instrument ("the Note") pursuant to the Act; (d) The City desires to facilitate the selective development of the com- munity, 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 of the City and help maintain a positive relationship between assessed valuation and debt and enhance the image and reputation to the community; (e) The Company is currently the President of Scoville Press, Inc., a printing company and producer of reader -service cards and loose deck postcard packs. The Project to be financed by the Revenue Bonds is an office/production/warehouse facility to be..located in the City and leased to Scoville Press, Inc. :nd consists of the acquisition of land and the construction of buildings and improvements there- on, and will result in the employment of additional persons to work within the new facilities; Resolution No. 82.542 Page 2 (f) The City has been advised by representatives of Company that conven- tional, commercial financing to pay the capital 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 Company has also advised this Council that with the aid of municipal financing, and its resulting low borrowing cost, the Project is economically mroe feasible; (g) Pursuant to a resolution of the City Council adopted on October 18, 1982, a public hearing on the Project was held on November 15, 1982, 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 publice hearing all those appearing who so desired to speak were heard; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Plymouth, Minnesota, as follows: 1. The Council 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 not to exceed $3,900,000 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 preliminarily to issue its Revenue Bonds in accordance with such terms and conditions; 2. On the basis of information available to this 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 1 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 substantial inducement to Company to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the development of enonomically 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 tax base and to provide the range of service and employment opportunities required by the population, to help prevent the move- ment of talented and educated persons out of the state and to areas within the State where their services may not be as effectively used, to 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 Energy, Planning and Devel- opment (the "Commissioner"I. 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; Resolution No. 82-592 Page 3 4. In accordance with Subdivision 7a of Section 474.01 Minnesota Statutes, the Mayor of the City is hereby authorized and directed to submit the proposal for the Project to the Commissioner requesting his approval, and other officers, employees and agents of the City are hereby authorized to provide the Commissioner with such preliminary information as he may require; 5. Company has agreed and it is hereby determined that any and all costs 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, Professional Association, acting as bond counsel, and Juran & Moody, Inc., investment bankers, are authorized to assist in the prep- arition 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 maturi- ties, interest rates and other terms and provisions of the Revenue Bonds and as to the covenants and other provisions of the necessary documents a;id 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 not constitute a charge,lien or encumbrance, legal or equitable, 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 there- on. 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 Cityiwithin the meaning of any constitutional or statutory limitation; 8. In anticipation of the approval by the Commisssioner 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 proceed of the Revenue Bonds as Company con- siders necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the Revenue Bonds if and when delivered by other- wise without liability on the part of the City; 9. All commitments of the City expressed herein are subject to the con- dition that within twelve months from the date of adoption of this resolution the City and the Company shall have agreed to mutually acceptable terms and conditions of a revenue agreement, the Revenue Bonds and of the other insturments and pro- ceedings relating to the Revenue Bonds and their issuance and sale; 10. The Company has agreed and it is hereby determined that any and all direct and indirect costs incurred by the City in connection with the Project., whether or not approved by the Commissioner of Energy, Planning and Developm!nt, and whether or not the City by resolution authorizes the issuance of the Revenue Bonds, will be paid by the Company upon request; Resolution 82-592 Paige ;, 4 11. The Mayor, City Manager and City Clerk are directed if the Revenue Bonds are issued and sold, thereafter to comply with the provisions of Minnesota Statutes, Section 474.01, Subdivision 8; 12. The City 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 City not to issue its revenue bonds to finace the Project. Adopted by the City Council of the City of Plymouth, Minnesota, this 15th day of November, 1982. f Mayor Attest: City Clerk Thmotion for the adoption of the foregoing Resolution was duly seconded . Counc JI&Ynber Men , and upon vote being taken thereon the f 11owIng VOW= favo r thereof: Mayor Davenport, Councilwoembers Aoen. Jnen WAMOt4on the - 01; or aysulnea: none was declared duly passed am adopted. R goluti,'m N4. 82-592 S ATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF PLYMOUTH I, the undersigned, being the duly qualified and acting Clerk of the City of Plymouth, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City duly called and held on the date therein indicated, insofar as such minutes relate to a resolution giving preliminary approval to an industrial facilities development project. WITNESS my hand and the seal of said City this day of , 1982. City Clerk (SEAL)