HomeMy WebLinkAboutCity Council Resolution 1984-793RESOLUTION NO. 84-793
RESOLUTION GIVING PRELIMINARY APPROVAL
TO A PROJECT WITH NATHAN LANE ASSOCIATES
AND CALLING FOR PUBLIC HEARING PURSUANT TO
MINNESOTA STATUTES, SECTION 474.01, SUBDIVISION 7b,
AND PUBLICATION OF NOTICE
WHEREAS, the purpose of Chapter 474, Minnesota Statutes,
known as the Minnesota Municipal Industrial Development Act the
"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 Nathan Lane
Associates, a Minnesota general partnership (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 help 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 the
acquisition and construction of an approximately 75,000 square
_feet office and warehouse facility constituting an addition to an
existing facility owned by the Borrower at 1035-1065 Nathan Lane
North in the City and to be leased to Minter -Weisman Co., a
Minnesota corporation (the "Project") 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 and that the Project would
not be undertaken but for the availability of industrial
development bond financing.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY
AS FOLLOWS:
1. The Council hereby gives preliminary apprcral 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 specifications 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
$5,500,000, 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.
2. On the basis of information available to this Council,
it appears and the Council hereby finds that the Project
constitutes properties, real and personal, used or useful in
connection with one or more revenue-producing enterprises within
the meaning 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 Borrower
to undertake the Project, that, based upon representations of the
Borrower the Project would not be undertaken but for the
availability of industrial development bond financing 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 Prosect is hereby given preliminary approval by�
the Cit , subject to subsequent preliminary -approval of theCity
following a public hearing,the approval of the Project by the
Minnesota Energy and Economic Development Authority (the
2
"Authority`), obtaining an allocation for arivate activi
ana rinai approval gy Lnis Louncil, the Borrower ana the purchaser
or purchasers of the bonds as to the ultimate details of the
financing of the Project.
4. Representatives of tha City and Lindquist i Vennum, as
bond counsel, are hereby authorized, in cooperation with the
Borrower and the Borrower's counsel, to take such action as is
necessary to obtain or maintain an allocation of the federal
limits on private activity bonds, pursuant to Minnesota Laws for
1984, Chapter 582, and 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
proposed project is approved by the Authority, receives an
allocation as to the federal limits on private activity bonds and
this Council gives its final approval thereto, the Project may be
carried forward expeditiously. The City does not hereby
or commit to allocate any of its a location with respect to
federal limits on private activity bonds, but will consider a
request for an allocation by the Borrower in the year in which the
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, whether or not an allocation as to the federal limits
on private activity bonds is obtained and whether or not the bonds
or operative instruments are executed and whether or not approved
by the Commissioner, shall be paid by the Borrower.
6. The
rantee or a
sole aiscrezion to witnoraw trom uarticipation and accordingly not
issue the bonds should the City at any time prior to the issuance
thereof determine that it is in the hest interest of tho ri tu n„*
7. Nothing in this 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 power 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
3
City. The bonds shall recite in substance that the bonds, in-
cluding interest thereon, are payable solely from the revenue and
proceeds pledged to the payment thereof. The bonds shall not
constitute a debt of the City within the meaning of any constitu-
tional or statutory limitation.
S. In anticipation of the approval of the Authority and
the issuance of the bonds to finance 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 expendi-
tures and advances toward payment of that portion of the costs of
the Project to be financed from the proceeds of the bonds as the
Borrower 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 ')onds are
issued.
9. A public hearing is hereby authorized to be conducted
by this Council on the proposal to undertake and finance the
Project at any regularly scheduled meeting of this council for
which notice is published at the City Hall, 3400 Plymouth
Boulevard in the City, at which hearing all parties who appear
shall be given an opportunity to express their views with respect
to said proposal.
10. Notice of the time and place of hearing, which shall
contain (i) a general functional description of the type, use and
nature of the Project, (ii) the estimated maximum aggregate face
amount of the bonds or other obligations to be issued with respect
to the Project, (iii) the initial owner, operator or manager of
the Project, and (iv) the prospective location of the Project by
its street address or, if none by a general description designed
to inform readers of the specific location of the Project, is
hereby authorized to be published at least once not less than
fifteen (15) days nor more than thirty (30) days prior to the date
fixed by the City Manager as set forth in paragraph 9 above for
the hearing in the official newspaper and in a newspaper of
general circulation of the City. The notice shall state that a
draft copy of the proposed application to the Minnesota Energy and
Economic Development Authority together with all attachments and
exhibits therto, shall be available for public inspection
-following the publication of such notice and shall specify the
place and times such application and its exhibits and attachments
shall be so available.
4
Approved and adopted by the Council this 5th day of
November, 1984.
Mayor
City Manager