Loading...
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 4