HomeMy WebLinkAboutCity Council Resolution 1985-655RESOLUTION NO. 85-655
RESOLUTION GIVING PRELIMINARY APPROVAL TO A
PROJECT UNDER THE MINNESOTA MUNICIPAL INDUS-
TRIAL DEVELOPMENT ACT, REFERRING THE PROPOSAL
TO THE MINNESOTA DEPARTMENT OF ENERGY AND
ECONOMIC DEVELOPMENT FOR APPROVAL AND AUTHO-
RIZING PREPARATION OF NECESSARY DOCUMENTS.
BE IT RESOLVED by the City Council (the "Council") of
the City of Plymouth, Minnesota (the "City"), as follaws:
1. It is hereby found, dete_T.ined and declared as
follows:
1.1. The welfare of the State of Minnesota (the
"State") requires active promotion, attraction, encour-
agement and development of economically sound industry
and commerce through governmental acts to prevent, so
far as possible, emergence of blighted lands and areas
of chronic unemployment, and it is the policy of the
State to facilitate and encourage action by local gov-
ernment units to prevent the economic deterioration of
such areas to the point where the process can be re-
versed only by total redevelopment through the use of
local, state and federal funds derived from taxation,
with the attendant necessity of relocating displaced
persons and of duplicating pu")lic services in other
areas.
1.2. Technological change has caused a shift to a
significant degree in the area of opportunity ff)r edu-
cated youth to processing, transporting, marketing,
service and other industries, and unless existing and
related industries are retained and new industries are
developed to use the available resources of the City, a
large part of the existing investment of the community
and of the State as a whole in educational and public
service facilities will be lost, and the movement of
talented, educated personnel of mature age to areas
where their services may be effectively used and com-
pensated and the lessening attraction of persons and
businesses from other areas for purposes of industry,
commerce and tourism will deprive the City and the State
of the economic and human resources needed as a base for
providing governmental services and facilities for the
remaining population.
1.3. The increase in the amount and cost of govern-
mental services requires the need for more intensive
development and use of land to provide an adequate tax
base to finance these costs.
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1.4. Turck Multiprox Inc. (the "Company"), has
advised the Council that it desires to undertake a
project which consists of the acquisition of land and
the construction and installation of an office and manu-
facturing facility thereon (the "Project"), to be
located on approximately 3.8 acres at Northwest Business
Campus at the intersection of Campus Drive and Xenium
Lane in the City.
1.5. The existence of the Project in the City will
contribute to more intensive development and use of
lard, thereby increasing the tax base and employment
opportunities in the City.
1.6. The City has been advised by the Company and
on that basis hereby finds that conventional, commercial
financing t� pay the capital cost of the Project is
available at such costs of borrowing that the Project
would not be economically feasible and would not be
undertaken but for the availability of industrial devel-
opment bond financing therefor.
1.7. This Council has been advised by Miller i
Schroeder Municipals, Inc., of the financial feasability
of the Project, as so undertaken with the assistance of
the City, or of its intention to purchase commercial or
industrial revenue obligations of the City to finance
the Project.
1.8. The Company has agreed to pay directly or
through 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 Department of
Energy and Economic Development (the "Department");
whether or not the Project is carried to completion; and
whether or not the Bonds or operative instruments are
executed.
1.9. The City is authorized by Minnesota Statutes,
Chapter 474, to issue its revenue bonds, notes or other
obligations to finance the cost, in whole or in part, of
the acquisition, construction, reconstruction, improve-
ment, betterment or extension of capital projects con-
sisting of properties used and useful in connection with
a revenue producing enterprise, including the Project,
and the issuance of such obligations by the City would
be a substantial inducement to the Company to construct
its facility in the City.
1.10. The City has been advised by O'Connor Z
Hannan, Minneapolis, Minnesota, who shall act as bond
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counsel to the City with respect to the Project, that
the Project constitutes a "project" within the meaning
. of Minnesota Statutes, Chapter 474.
2. On the basis of information given the City to date,
it appears that it would be in the best interest of the City
to issue its obligations (the "Bonds") under the provisions
of Minnesota Statutes, Chapter 474, to finance the Project,
in an amount presently estimated not to exceed $2,800,000.
3. The Project and the related financing thereof by
the City are hereby given preliminary approval, and the
issuance of the Bonds for such purpose and in such estimated
amount is hereby approved, subject to approval of the Proj-
ect by the Department and to the mutual agreement of the
Council, the Company and the initial purchasers of the Bonds
as to the details and provision for payment of the Bends.
In all events, it is understood, however, that the Bonds
shall not constitute a debt of the City or a charge, lien or
encumbrance, legal or equitable, upon any property of the
City except its interest in the Project, and each of the
Bonds when, as and if issued shall recite i:i substance that
it is payable solely from the revenues received from the
Project and property pledged to the payment thereof.
4. In accordance with Minnesota Statutes, Section
474.01, Subdivision 7a, the Mayor is hereby authorized and
directed to submit the proposal for the Project to the '
Department for approval. The Mayor and other officers, em-
ployees and agents of the City are hereby authorized to
provide the Department with any preliminary information
needed for this purpose and are further authorized to initi-
ate and assist in the preparation of such documents as may
be appropriate to the Project and the financing thereof.
5. The adoption of this resolution by the Council 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 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 trans-
action.
6. All commitments of the City expressed herein are
subject to the condition that within twelve months of the
date of adoption of this resolution the City and the Company
shall have agreed to mutually acceptable terms and condi-
tions of a loan agreement, the Bonds and of the other
instruments and proceedings relating to the Bonds and their
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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.
Adopted by the Plymouth City Council on September 9,
1985.
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