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HomeMy WebLinkAboutCity Council Resolution 1983-233Councilmember Neils introduced the following Resolution and moved its adoption: RESOLUTION NO. 83-233 RESOLUTION AUTHORIZING THE SALE AND ISSUANCE OF UP TO $450,000 INDUSTRIAL DEVELOPMENT REVENUE NOTE TO FINANCE A PROJECT UNDER MINNESOTA STATUTES, CHAPTER 474, AND AUTHORIZING THE EXECUTION OF NECESSARY DOCUMENTS (GARY R. BLUEM PROJECT) The City Council of the City of Plymouth, Minnesota, do ordain, as follows: 1. It has been proposed that the City issue its Industrial Development Revenue Note (Gary R. Bluem Project), dated May 1, 1983 (the Note), to finance the construction of a new office, prototype manufacturing and warehouse facility in the City on behalf of Gary R. Bluem (the Borrower). The following documents relating to the Note have been submitted to the Council and are now, or shall be placed, on file in the office of the City Clerk: (a) Master Note Purchase Agreement dated as of May 1, 1983 entered into between the City, and First Plymouth National Bank; (b) Loan Agreement dated as of May 1, 1983 entered into between the City and the Borrower; (c) Assignment of Loan Agreement dated as of May 1, 1983 entered into between the City and First Plymouth National Bank; (d) Disbursing Agreement dated as of May 1, 1983 entered into between the City, the Borrower and First Plymouth National Bank; (e) Note of the City in the amount of $450,000. 2. It ii hereby found, determined and declared that: (a) the Project to be financed by the Note constitutes a "project" authorized by Section 474.02, subd. 1, Minnesota Statutes; (b) the issuance of the Note is authorized by the Act and it is necessary and desirable that the Note in an amount not to exceed $450,000 be issued by the City upon the terms set forth in the Master Note Purchase Agreement; (c) the purpose of the Project is and the effect thereof will be to promote the public welfare by encouraging and retaining the location, retention and development of economically sound industry and commerce within the City so as to prevent, so far as possible, the emergence of blighted and marginal lands and areas of chronic unemployment; by promoting the use of available resources of the community thereby retaining the benefit of its existing investment in educational and public service facilities; by discouraging the movement of talented, educated personnel of mature age to other areas, thus preserving the economic and human resources needed as a base for providing governmental services and facilities; and by encouraging more intensive development of land in the City to provide an adequate and better balanced tax base to finance the increase in the amount and cost of governmental services; (d) the Project is located in the City, at a site which is readily accessible to employees residing within the City and the surrounding community; (e) the Project adds to the tax base of the City and overlapping taxing jurisdictions; (f) the payments required by the Loan Agreement are fixed, and required to be revised from time to time as necessary, so as to produce income and revenue sufficient to provide for prompt payment of principal of and interest on the Note when due, and the Loan Agreement also provides that the Borrower is required to pay all expenses of the operation and maintenance of the Project including, but without limitation, adequate insurance thereon and insurance against all liability for injury to persons or property arising from the operation thereof, and all taxes and special assessments levied upon or with respect to the Project and payable during the term of the Loan Agreement; and (g) under the provisions o'O Minnesota Statutes, Section 474.10, and as provided in the Loan Agreement, the Note is not to be payable from nor charged upon any funds other than the revenue pledged to the payment thereof; the City is not subject to any liability thereon; no holders of the Note shall ever have the right to compel any exercise of the taxing powers of the City to pay the Note or the interest thereon, nor to enforce payment thereof against any property of the City; the Note shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City; the Note shall recite that the Note including payable solely from the revenue thereof; and the Note shall not City within the meaning of any limitation. interest therein, is pledged to the payment constitute a debt of the constitutional or statutory 3. The forms of the Loan Agreement, Master Note Purchase Agreement, Assignment of Loan Agreement, Disbursing Agreement and Note referred to in paragraph 1 are approved. Said documents, with such insubstantial variations, insertions and additions as the parties executing the same may hereafter approve, are directed to be executed in the name and on behalf of the City by the Mayor and City Manager. Copies of all of the documents shall be delivered, filed and recorded as provided therein. 4. The Note to be issued shall not exceed $450,000 in principal amount. The interest rate on the Note shall be 85% of the prime rate from time to time in effect at First National Bank of Minneapolis. The term "prime rate" shall mean the announced rate of interest made available by the First National Bank of Minneapolis on short term, unsecured loans to large businesses with the highest credit standing, as that rate may change from time to time. All changes in the interest rate caused by fluctuations in the prime rate shall become effective auto- matically on the date that the prime rate of the First National Bank of Minneapolis effectively changes. Subject to the fore- going, the Mayor and City Manager are authorized to approve the final terms and conditions of the Note. 5. The Mayor and City Manager are further authorized and directed to prepare and execute the Note as prescribed in the Master Note Purchase Agreement. The Mayor, City Manager and other officers of the City are authorized and directed to prepare and furnish to the purchaser of the Note and bond counsel certified copies of all proceedings and records of the City relating to the Note, and such other affidavits and certificates as may be required by bond counsel, and approved by the City Attorney, to show the facts relating to the legality and marketability of the Note. Approved:Mayor Attest: City C erk The motion for the adoption of the foregoing Resolution was duly seconded by Councilperson Moen , and upon vote being taken thereon, the following voted in favor thereof: Councilmembers Moen, Neils, Schneider and Threinen and the following voted against the same: Mayor Davenport abstained whereupon the Resolution was declared duly passed and adopted. CERTIFICATION OF MINUTES RELATING TO $450,000 INDUSTRIAL DEVELOPMENT REVENUE NOTE (Gary R. Bluem Project) Issuer: City of Plymouth, Minnesota Governing Body: City Council Kind, date, time and place of meeting: a regular meeting held on May 2, 1983, at 7:30 o'clock P.M., at the City Hall. Members present: Mayor Davenport, Councilmembers Moen, Neils, Schneider and Threinen Members absent: None Documents Attached: Minutes of said meeting (pages): RESOLUTION NO. 83-233 RESOLUTION AUTHORIZING THE SALE AND ISSUANCE OF UP TO $450,000 INDUSTRIAL DEVELOPMENT REVENUE NOTE TO FINANCE A PROJECT UNDER MINNESOTA STATUTES, CHAPTER 474, AND AUTHORIZING THE EXECUTION OF NECESSARY DOCUMENTS (GARY R. BLUEM PROJECT) I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the note referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said note; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer this day of May, 1983. Signdture Laurie Houk, City Clerk Name and Title