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
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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.
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