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