HomeMy WebLinkAboutCity Council Resolution 1983-144Lill Ul' F'LTM)UIM
Pursuant to due call and notice thereof, a special meeting of the City Council
of the City of Plymouth. Minnesota. was held oonthet day of A ril
19.-&3—. The following members were present:Counci I member Neils, Presiding OTricer,
ouncilmember Moen and Threinen
The following members were a sent: Mayor Davenportand Counci ImeMber
tt�
Counciimember ThrEinen introduced the following Resolution and moved its
adoption:
RESOLUTION NO. 83 - 144
RESOLUTI014 GIVING PRELIMINARY APPROVAL TO A PROJECT 'WITH GARY R. BLUEt' UNDE" THE
MINNESOTA MUNICIPAL I14DUSTRIAL DEVELOPMENT ACT, GIVING PRELIMINARY APPROVAL FOR
THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS TO FINANCE THE PROJECT,
AUTHORIZING THE SUBMISSION OF AIN 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 Industrial Deve1pment 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
uneriployment; and
• WHEREAS, factors n=cessitating 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 Cicy 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 end shall
result in the employment of additional persons to work within the
new facilities; and
Resolution
Page 2
No. 83
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 specifications uitable 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 $450,000, 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 f,)r 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 la 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'3 tax base.
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 Development and subject to
2
4. In accordance with Subdivision 7a of Section 474.01,
Minnesota Statutes, the City Clerk of the City is hereby
authorized and directed to subunit 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 Commissioner 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.
5. 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 the 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
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 thereon.
The holder or holders from time to time of the bonds shall never
have the right to compel any exercir.: -3f the taxing power of the
City to pay the outstanding principesl on the bonds or the interest
thereon or to enforce payment thereof against any property of the
City. The bonds shall recite in substance that the bonds, in-
cluding 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 meaning of any constitu-
tional or statutory limitation.
7. In anticipation of the approval of the Commissioner of
Energy, Planning and Development 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.
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G. All commitments of the City expressed herein are
subject to the condition that within twelve months from the
date of adoption of this resolution the City and the Borrower
shall have agreed to mutually acceptable terms and conditions
of the Revenue Agreement, the revenue bonds and of the other
instruments and proceedings relating to the revenue bonds and
their issuance and sale.
9. The Borrower 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 the
Project is carried to completion, and whether or not approved
by the Commissioner of Energy, Planning and Development, and
whether or not the City by resolution authorizes the issuance
of the bonds, will be paid by the Borrower upon request.
10. 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 tittle 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 finance the
Project.
The notion for the adoption of the foregoing Resolution was duly seconded
by .CYacilmember Moen , and upon vote being taken thereinthe
20lIOWUI': Voted 3n favor ��—� _Cquncilmember Neils, Presiding Officer,
W. CQIjDrJ1"@r§ Moen and Threinen
..o. iVUVW&ug WWWU % or 90SUlnen: Nong
Whereupon the Resolution was declared duly passed and adopted.
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