HomeMy WebLinkAboutCity Council Resolution 1984-126Extract of Minutes of Regular Meeting of the
City Council of the
City of Plymouth, Minnesota
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 City Hall, 3400
Plymouth Boulevard, on March 5, 1984.
Upon roll call at said meeting, the following members of the
Council were present:
Acting Mayor Schneider, Councilmembers Crain, Moen and Neils
and the following members were absent:
Mayor Davenport
Councilmember Neils introduced and read the
resolution attached hereto, designated as follows, and moved its
adoption:
RESOLUTION NO. 84_126
RESOLUTION GIVING PRELIMINARY APPROVAL TO
A PROJECT WITH JEROME V. LAVIN AND SHEILA ELLEN
LAVIN D/B/A DAVICA PROPERTIES UNDER THE MINNESOTA
MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, GIVING
PRELIMINARY APPROVAL FOR THE ISSUANCE. OF INDUSTRIAL
DEVELOPMENT REVENUE BOND TO FINANCE THE PROJECT,
AUTHORIZING THE SUBMISSION OF AN APPLICATION FOR
APPROVAL OF SAID PROJECT TO THE ENERGY AND ECONOMIC
DEVELOPMENT AUTHORITY OF THE STATE OF MINNESOTA AND
AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS
The motion for the adoption of the attached resolu-
tion was duly seconded by Councilmember Schneider
and upon vote being taken thereon, the following voted in
favor thereof:
Acting Mayor Schneider, Councilmembers Crain, Moen and Neils
and the following voted against it: None
whereupon said resolution was declared duly passed and
adopted, and the Mayor and City Clerk were authorized to
execute said resolution.
RESOLUTION NO. 84-126
RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROTECT
WITH JEROME V. LAVIN AND SHEILA ELLEN LAVIN D/B/A
DAVICA PROPERTIES UNDER THE MINNESOTA MUNICIPAL
INDUSTRIAL DEVELOPMENT ACT, GIVING PRELIMINARY
APPROVAL FOR THE ISSUANCE OF INDUSTRIAL DEVELOPMENT
REVENUE BOND TO FINANCE THE PROJECT, AUTHORIZING
THE SUBMISSION OF AN APPLICATION FOR APPROVAL OF
SAID PROJECT TO THE ENEMY AND ECONOMIC DEVELOPMENT
AUTHORITY 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 Development Act t e
"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 Jerome V.
Lavin and Sheila Ellen Lavin d/b/a DAVICA Properties (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 ielp 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
acquisition of land and an existing building, renovation of the
existing building and construction of an addition thereto, all for
use as a manufacturing, shipping, warehousing and international
headquarters facility (the "Project") to be located at 2915
Niagara Lane and approximately 5 acres to the west and south
thereof in Plymouth, Minnesota, to be leased to Gordon 5 Ferguson
Companies (the "Lessee") and shall result in the employment of
additional persons to work within the new facilities; and
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 sped— i� 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 estimated maximum principal amount of
. $2,700,000, 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.
7, on the basis of information available to this Council,
it appears vnd 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 Suadivision Is 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 Borrowe- 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 by
the City, subject to the approval of the Project by the Minnesota
Energy and Economic Development Authority (the 'Authority') and
subject to final approval by this Council, the Borrower, the
Lessee and the purchaser or purchasers of the bonds as to the
ultimate details of the financing of the Project.
4. In accordance with Subdivision 7a of Section 474.01,
Minnesota Statutes, the City Clerk of the City is hereby
aut—�rz_ed an�ected to submit7the proposal for the
above-described Project to the Authority, requesting the
Authority's approval, and other officers, employees and agents of
the City are hereby authorized to provide the Authority with such
preliminary information as the Authority may require.
Representatives of the City and Lindquist 6 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 propoaed project is approved by the Authority 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 Obis 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 exercise of the taxing powr 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 shall recite in substance that =he bonds, in-
cluding interest thereon, are payable solely from the revenue and
proceeds pledged to the payment thereof. The bonds shall not
constitutA a debt of the City within the meaning of any constitu-
tional or statutory limitation.
7. In anticipation of the approval of the Authority and
the issuance of the bonds to financ» all or a portion of the
Project and in order that completion of the Project shall not be
unduly delayed when approved, the Borrower may 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 Borrawer considers necessary, including the use of interim,
short-term financing, to be reimbursed from the proceeds of the
bonds if and when delivered, but the City shall in no event be
liable for payment of, or in any respect with regard to, any such
expenditures whether or not bonds are issued or whether or not the
City gives final approval to the issuance of bonds, except such
costs may be paid from bond proceeds if and when such bonds are
issued.
Approved and adopted this 5th day of March, 1984
Mayor
City Manager
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