HomeMy WebLinkAboutCity Council Resolution 1984-633RESOLUTION NO. 84-633
RESOLUTION GIVING PRELIMINARY APPROVAL
TO A PROPOSED INDUSTRIAL DEVELOPMENT PROJECT
BY BANNER ENGINEERING CORP. UNDER THE MUNICIPAL
INDUSTRIAL DEVELOPMENT ACT AND AUTHORIZING
SUBMISSION OF AN APPLICATION TO THE
MINNESOTA ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY
FOR APPROVAL THEREOF
BE IT RESOLVED by the City Council of the City of
Plymouth, Minnesota, as follows:
1. There has been presented to this Council a pro-
posal by Banner Engineering Corp., a Minnesota corporation (the
"Company"), that the City undertake and finance a project
pursuant to the Minnesota Municipal Industrial Development Act,
Minnesota Statutes, Chapter 474 (the "Act") generally consisting
of the acquisition, construction and equipping of a 25,000 square
foot addition to and expansion of the Company's existing
manufacturing facility at 9714 - 10th Avenue North in the City
(the "Project"). Under the proposal, the Project facilities will
be owned by the Company, and the Company will enter into a
revenue agreement with the City upon such terms and conditions as
are necessary to produce income and revenues sufficient to pay
when due the principal of and the interest on an up to
approximately $2,500,000 Industrial Development Revenue Bond of
the City to be issued pursuant to the Act, to provide monies for
the acquisition, construction and installation of the Project;
and the City will pledge its interest in the revenue agreement to
secure the bonds.
2. As required by the Act, this Council conducted a
public hearing on s.. 17, 1984 on the proposal to undertake
and finance the Project after publication in the official
newspaper and a newspaper of general circulation in the City of a
notice setting forth the time and place of hearing; stating the
general nature of the Project and an estimate of the principal
amount of bonds or other obligations to be issued to finance the
Project; stating that a draft copy of the proposed Application to
the Minnesota Energy and Economic Development Authority, together
with all attachments and exhibits thereto, is available for
public inspection at the office of the City Clerk, in the City
Hall, at all times between the hours of 9:30 A.M. and 4:30 P.M.
each day except Saturdays, Sundays and legal holidays to and
including the day of hearing; and stating that all parties who
appear at the public hearing shall have an opportunity to express
their views with respect to the proposal. The draft application
to the Minnesota Energy and Economic Development Authority,
together with all attachments and exhibits thereto, was on file
and available for public inspection at the place and times set
forth in the notice.
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3. It is hereby found, determined and declared that
the Project furthers the purposes stated in Section 474.01 of the
Act in that the purpose of the Project is and the effect thereof
will be to promote the public welfare by the attraction, encourage-
ment and development of economically sound industry and commerce
so as to prevent, so far as possible, the emergence of blighted
and marginal lands and areas of chronic unemployment; the reten-
tion and development of industry to use the available resources
of the community, in order to retain the benefit of its existing
investment in educational and public service facilities; by
halting the movement of talented, educated personnel of mature
age to other areas and thus preserving the economic and human
resources needed as a base for providing governmental services
and facilities; and the more intensive development of land avail-
able in the area to provide a more adequate tax base to finance
the cost of governmental services in the Municipality, county and
school district where the Project is located.
4. The Company has entered into preliminary discussions
with Norwest Bank Minneapolis, N.A., as lender, and the lender
has reported that the Project and the sale of bonds therefor are
feasible.
5. The Project is hereby given preliminary approval by
the City subject to approval of the Project by the Minnesota
Energy and Economic Development Authority and subject to final
approval by this Council and by the purchasers of any bonds to be
issued as to the ultimate details of the Project and as to the
terms of the bonds.
6. In accordance with Section 474.01, Subd. 7 of the
Act, the Mayor, the City Manager, and such other officers and
representatives of the City as may from time to time be
designated are hereby authorized and directed to submit the
proposal for the Project to the Minnesota Energy and Economic
Development Authority and request its approval thereof, and the
Mayor, the City Manager, and other officers, employees and agents
of the City are hereby authorized to provide the Authority with
such preliminary information as it may require. The Company,
Faegre 6 Benson as bond counsel, the City Manager, the City
Attorney, and other City officials are also authorized to
initiate the preparation of a proposed loan agreement 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
Authority and this Council gives its final approval thereto, the
Project may be carried forward expeditiously.
7. The Company is hereby authorized to enter into such
contracts, in its own name and not as agent for the City, as may
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be necessary for the construction of the Project by any means
available to it and in the manner it determines without
advertisement for bids as may be required for the acquisition or
construction of other riunicipal facilities, but the City shall
not be liable on any such contracts.
81, The Conpany has agreed to pay directly or th::ough
the City any and all costs incurred by the City in connection
with the Project whether or not the Project is approved by the
Minnesota Energy and Economic Development Authority; whether or
not the Project is carried to completion; and whether or not the
bonds or operative instruments are executed.
9. The adoption of this resolution does not
constitute a guarantee or a firm commitment that the City will
issue the bonds as requested by the Company. The City retains
the right in its sole discretion to withdraw from participation
and accordingly not issue the bonds should the City at any time
prior to the issuance thereof determine that it is in the best
interest of the City not to issue the bonds or should the parties
of the transaction be unable to reach agreement as to the terms
and conditions of any of the documents required for the
transaction.
10. All commitments of the City expressed herein are
subject to the condition that within twelve months of the date of
adoption of t -11 -As Resolution the City and the Company shall have
agreed to mutually acceptable terms and conditions of the revenue
agreement, the bonds and of the other instruments and proceedings
relating to the bonds and their issuance and sale. If the events
set forth herein do not take place within the time set forth
above, or any extension thereof, and the bonds are not sold
within such time, this Resolution shall expire and be of no
further effect.
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