The URL can be used to link to this page

Home My WebLink AboutCity Council Resolution 1983-092ar Pursuant to due call and notice thereof, a regular meeting of the City Council (the "Council") of the City of Plymouth, Minnesota, was duly held at 7:30 o'clock p.m., at the city( hall, 3400 Plymouth Boulevard, Plymouth, Minnesota, on February C2, 1963. Upon roll call at said meeting, the following members of the Council were present: Acting Mayor Schneider, Councilmembers Moen, Neils and Threinen and th�i following members were absent: Mayor Davenport * f # Councilrsember Moen introduced and read the resolution attached hereto, designated as follows, and moved its adoption: RESOLUTION NO. 83-92 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT WITH GARY R. BLUEM UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, GIVING PRELIMINARY APPROVAL FOR THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS TO FINANCE THE PROJECT, 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 The motion for the adoption of the attached resolution was duly seconded by Councilmember Threinen , and upon vote being taken thereon, the following voted in favor thereofs Acting Mayor Schneider, Councilmembers Moen, Neils and Threinen and the following voted against it: None l!. RESOLUTION NO. QL-22 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT WITH GARY R. BLUEM UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, GIVING PRELIMINARY APPROVAL FOR THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS TO FINANCE THE PROJECT, 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 WHEREAS, the purpose of Chapter 474, Minnesota Statutes, known as the Minnesota Municipal Induz:trial Development Act (the "Act"), as found and determined by the legislature, is to promote the welfare of the State of Minnesota (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; and WHEREAS, factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration of population in the metropolitan areas, 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 shall provide an adequate tax base to finance these increased costs and access to employment opportunities for such population; and WHEREAS, the City Council (the "Council") of the City of Plymouth, Minnesota (the "City"), has received from Gary R. Bluem (the "Borrower"), a proposal that the City undertake to finance a Project (as hereinafter described) through the issuance of revenue bonds (the "bonds") pursuant to the Act; and WHEREAS, the City desires to facilitate the selective development of the community, retain and improve its tax base and help provide the range of services and employment opportunities re- quired by its population, and the Project shall assist the City in achieving those objectives. The Project shall Help to increase assessed valuation of the City and help maintain a positive rela- tionship between assessed valuation and debt and enhance the image and reputation of the City; and WHEREAS, the Project to be financed by the bonds is construction of a new office and light manufacturing facility (the "Project") to be located at 2500 Niagra Lane in the City and shall result in the employment of additional persons to work within the new facilities; and 1 WHEREAS, the City has been advised by representatives of the Borrower that conventional 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 the Borrower has also advised this Council that with the aid of municipal financing and its resulting low borrowing cost the Project is economically more feasible. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY AS FOLLOWS: 1. The Council hereby gives preliminary approval to the proposal of the Borrower that the City undertake the Project pursuant to the Minnesota Municipal Industrial Development Act, Chapter 474, Minnesota Statutes (the "Act"), pursuant to the Borrower's speecif cations suitable for the operations described above and to a revenue agreement between the City and the Borrower 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 proposed bonds in the total principal amount of $375,000, to be issued pursuant to the Act to finance the costs of the Project, and the agreement may also provide for the entire interest of the Borrower therein to be mortgaged to the purchaser of the bonds; the City hereby undertakes preliminarily to issue its bonds in accordance with such terms and conditions. The City requires that its bonds be sold to one or more institutions experienced in evaluating the type of credit involved, capable of bearing the financing risk and purchasing for investment purposes. 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 availability of the financing under the Act and willingness of the City to furnish such financing shall be a substantial inducement to the Borrower to undertake the Project and that the effect of the Project, if undertaken, shall 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 its tax base and provide the range of service and employment opportunities required by its population, to help prevent 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, to promote more intensive development and use of land within the City and to eventually increase the City's tax base. 3. The Project is hereby given preliminary approval the City, subject to the approval of the Project by the Commissioner of Energy, Planning and Development and subject 2 by to final approval by this Council, the Borrower and the or .:. purchasers of the bonds as to the ultimate details of teaser financing of the Project. 4. In accordance with Subdivision 7a of Section 474.01, Y Minnesota Statutes, the. City Clerk of the City is hereby "ffr_ected author+ zed awn to submit the proposal for the above-described Project to the Commissioner of Energy, Planning =' and Development, requesting the Commissioner's approval, and other officers, employees and agents of the City are hereby authorized to provide the Commmmissioner with such preliminary information as the Commissioner may require. Representatives of the City and Lindquist & Vennum, as bond counsel, are hereby authorized, in cooperation with the Borrower and the Borrower's counsel, to initiate the preparation of a proposed loan agreement, mortgage and such other documents as may be necessary or appropriate to the Project so that, when and if the proposed project is approved by the Commissioner and this Council gives its final approval thereto, the Project may be carried forward expeditiously. S. The Borrower 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 tY a Project is carried to completion and whether or not approved by the Commissioner, shall be paid by the Borrower. 6. Nothing in this resolution or in the documents pre- pared 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 bonds shall not constitute a charge, lien or ancummbrance, 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 thereon. The holder or holders frr.m time to time of the bonds shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the bonds or the interest thereon or to enforce payment thereof against any property of the City. The bonds shali recite in substance that the bonds, in- clndina interest thereon, are payable solely from the revenue and proceeds pledged to the payment thereof. The bonds shall not constitute a debt of the City within the maeaning of any constitu- tional or statutory limitation. 7. In anticipation of the approval of the Cowmissianer of Energy, Planning and Deve apment and the issuance of the bonds to finance all or a portion of the Project and in order that completion of the Project shall not be unduly delayed when approved, the Borrower 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 bonds as the Borrower considers necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the bonds if and when delivered but otherwise without liability on the part of the City. 3 Approved and adopted this 22nd day of February, 1983. Mayor City Clerk 4