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HomeMy WebLinkAboutCity Council Resolution 1986-180RESOLUTION NO. E6 -ISO 9280LUTION RECITING A PROPOSAL FOR AN INDUSTRIAL FACILITIES DZVELOPYENT PROJECT GIVING P APPROVAL TO THE PROJECT PURSUANT TO THE YINNE80TA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AUTHORIZING THE FUBf1t186I011 OF AN APPLICATION FOR APPROVAL OF THE PROJECT TO THE ENERGY AND ECOHOWC DEVELOPMENT AUTHORITY OF THE 3' ATE OF MINNZBOTA AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS AND MATERIALS IN CONNECTION WITH THE PROJECT WHEREAS, (a) 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 by the active attractive 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; (b) Factors necessitating the active promotion and developmen` of economically sound industry and commerce are the increasing concentration -if population in the metropolitan areas and the rapidly rising increase in the amount anu cost of governmental services required to meet the needs of the increased population and the need for development of land use which will provide an adequate tax base to finance these increased costs and access to employment opportunities for such population; (c) The City Council of the City of Plymouth (the "City") has received from William F. Bieber, and individual (the "Company") a proposal that the City assist in financing a Project hereinafter described, through the issuance of a Revenue Bond or Bonds or a Revenue Note or Notes hereinafter referred to in this resolution as "Revenue Bonds" pursuant to the Act; (d) The City desires to facilitate the selective development of the community, retain and improve the tax base and help to provide the range of services and employment opportunities required by the population; and the Project will assist the City in achieving those objectives. The Project will help to increase assessed valuation of the City and help maintain a positive relationship between assessed valuation and debt and enhance the image and reputation of the community; (e) The Company is currently engaged in the business of industrial manufacturing. The Project to be financed by the Revenue Bonds is the acquisition and rehabilitation of an approximately 105,869 sq. ft. existing building (with 5,850 sq. ft. mezzanine) located at .1600 Niagara Lane North in Plymouth for use as a premium quality aluminum castings manufacturing facility and consists of the renovation of buildings and Improvements and the installation of equipment to be initially owned and operated by the Company, and will result In the employment of additional persons to work within the new facilities; (f) The City has been advised by representatives of Company that conventional, commercial financing to pay the capital coat 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 Company has also advised this Council that the Project would not be i►ndertaken but for the availability of ind,istrial bond financing; RESOLUTION 140. 86-180 (g) Pursuant to a resolution of the City Council adopted on i1aa4,�, 1986, a public hearing on the Project was held on ARr. E 7 , 1986, after notice was published, and materials made available for public inspection at the City Hall, all as required by Minnesota Statutes, Section 474.01, Subdivision 7b at which public hearing all those appearing who so desired to speak were heard; (h) No public official of the City has either a direct or Indirect financial Interest in the Project nor will any public official either directly or indirectly benefit financially from the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Plymouth, Minnesota, as follows: 1. The Council hereby gives preliminary approval to the proposal of Company that the City undertake the l;roject pursuant to the Minnesota Municipal Industrial Development Act (Chapter 474, :Minnesota Statutes), consisting of the acquisition, rehabilitation and equipping of facilities within the City pursuant to Company's specifications suitable for the operations described above to be initially owned and operated by the Company and pursuant to a revenue agreement between the City and Company upon sl --!h terms and conditions with provisions for revision from time to time as necessary, s as to produce Income and revenues sufficient to pay, when due, the principal of and interest on the Revenue Bonds in the maximum aggregate principal amount of $3,000,000 to be issued pursuant to the Act to finance the acquisition, rehabilitation and equipping of the Project; and said agreement may also provide for the entire interest of Company therein to be mortgaged to the purchaser of the Revenue Bonds; and the City hereby undertakes preliminarily to issue its Revenue 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 ,engaged in any business within the meaning of Subdivision 1 of Section 474.02 of the Act; that the Project furthers the purposes stated in Section 474.02, Minnesota Statutes; that the Project would not be undertaken but for the availability of industrial bond financing; that the availability of the financing under the Act and willingness of the City :o furnish such financing will be a substantial Inducement to Company to undertake the Project, and that tao effect of the Project; If undertaken, will 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 the tax base and to provide the range of service and employment opportunities required by the population, to help prevent the movement of talented and educated persons out of the state and to areae: 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 eventually to increase the tax base of the community; 3. The project Is hereby given preliminary approval by the City subject to the aNirc : of the P• oject by the Minnesota Energy and Economic Development Authority oc- sw.�n other state officer having authority to grant approval (the "Authority"), and subject to final a;oroval by this Council, Company, and the purchaser of the Revenue So :ds as to the ulti nate details of the financing of the Project; 4. In accordance with Subdivision 7a of Section 474.01 Minnesota Statutes, the Mayor of the City is hereby authorized and directed to submit the proposal for the Project to the Authority requesting Its approval, and other officers, employees and -2- RESOLUTION NO. 86-180 agents of the City are hereby authorized to provide the Authority with such preliminary information as it may require; S. 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 Commissioner of Securities; whether or not the Project Is carried to completion; and whether or not the bonds or operative instruments are executed; 6. The adoption of this resolution does not constitute a guarantee or a firm commitment that the City will issue the bond as requested by the Company. The City retains the right in its sole discretion to withdraw from participation and accordingly not issue the bond should the City at anytime prior to the issuance thereof determine that it is in the best Interest of the City not to issue the bond 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; 7. 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 metually 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. S. Briggs and :Morgan, Professional Association, acting as bond counsel, is authorized to assist in the preparation and review of necessary documents relating to the Project, to consult with the City Attorney, Company and the purchaser of the Revenue Bonds as to the maturities, Interest rates and other terms and provisions of the Revenue Bonds and as to the covenants and other provisions of the necessary documents and to submit such documents to the Council for final approval; 9. Nothing in this resolution or in the documents prepared 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 Revenue 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 ptedged to the payment thereof, nor shall the City be subject to any liability thereon_. The holder of the Revenue Bonds shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Revenue Bonds or the interest thereon, or to enforce payment thereof against any property of the City. The Revenue Bonds shall recite In substance that the Revenue Bonds, including interest thereon, is payable solely from the revenue and proceeds pledged to the payment thereof. The Revenue Bonds shoal not constitute a debt of the City within the meaning of any constitutional or statutory limitation; 10. In anticipsition of the approval by the Authority the issuance of the Revenue Bonds to finance all or a portion of the Project, and in order that completion of the Project will not h,^ anduly delayed when approved, Company Is hereby authorized to make such expenditur.s and advances to Ward payment of that portion of the costs of the Project to be financed from the psoceads of the Revenue Sonde as Company considers necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the Revenue Bonds if and when delivered but otherwise without liability on the party of the City. -3-