Loading...
HomeMy WebLinkAboutCity Council Resolution 1991-325CITY OF PLYMOUTH, MINNESOTA RESOLUTION NO. 91-325 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER MINNESOTA STATUTES, CHAPTER 469, SECTIONS 469.152-469.165 REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT FOR APPROVAL, AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS WHEREAS, the welfare of the State of Minnesota (the "State") requires active promotion., attraction, encouragement 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 government units to prevent the economic deterioration of such areas to the point where.the process can be reversed 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 public services it other areas; and WHEREAS, technological change has caused a shift to a significant degree in the area of opportunity for educated 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 of Plymouth, Minnesota (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 compensated and the lessening attraction of pers,zs 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; and WHEREAS, other factors necessitating such action are the increasing concentration of population in urban and metropolitan areas; the consequent increase in the amount and cost of governmental services required In these areas; the energy crisis and energy cost escalation, and their contribution to unemployment, rising interest rates, balance of payments deficits and increased welfare payments to cover rising fuel costs and the increased costs of fuel intensive necessities; and the need for more intensive development and use of land to provide an adequate tax bas to finance these costs; and WHEREAS, the effect of these factors is intensified by the necessity of withdrawing land for public use for highways, parks and open space reserves, schools and playgrounds, and other public enterprises needed to sustain proper living conditions, communications, and mobility in an increasingly urban society; and WHEREAS, Northco Plymouth Investors Limited Partnership, a Minnesota limited partnership (the "Developer") has advised this City Council (the "Council") P-If 1 1 ':+1 t-19: -4 H--,Ll-IE'--. :. ;P4'•; Ef I Resolution No. 91-325 P. of the City that it has proposed the acquisition, construction and equipping of an approximately 79,000 square foot manufacturing, office and showroom facility (the "Project") to be used in the manufacturing of precision industrial measuring machines to be located in the City. The Project will be owned by the Developer and leased to or purchased by the IMT Division of Carl Zeiss, Inc. of Thornwood, New York or an affiliated corporation; and WHEREAS, the improvement of the Project will contribute to more intensive development and use of land to increase the tax base of the City and overlapping taxing authorities and maintain and provide for an increase in opportunities for employment for residents of the City, including economically disadvantaged or unemployed individuals; and WHEREAS, the City has been advised that conventional, commercial financing to pay the capital costs of the Project is available at such costs of borrowing that the Project would not be economically feasible without the availability of industrial development bond financing; and WHEREAS, this Council has been advised by the Developer that on the bads of information submitted to them and their discussions with representatives of area financial institutions and potential buyers of tax-exempt bonds, industrial development revenue bonds of the City could be issued and sold upon favorable rates and terms to finance the improvement of the Project; and WHEREAS, pursuant to Minnesota Statutes, Chapter 469, the City is authorized to issue its revenue bonds to finance the cost, in whole or in part, of the acquisition, construction, reconstruction, improvement or extension of capital projects consisting of properties used and useful in connection with a revenue producing enterprise, such as the Project, and the issuance of such bonds by the City would be a substantial inducement to the Developer to construct the Project in the City; and WHEREAS, 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 industrial development revenue bonds under the provisions of Chapter 469, in an amount not to exceed $5,000,000 to finance the cost of the Project; and WHEREAS, in order to issue tax exempt bonds to finance the Project, it is necessary that the City obtain an allocation of Bonding City pursuant to Minnesota Statutes, Chapter 474A; NOW, THEREFORE, BE IT RESOLVED THAT: 1. The Proiect is hereby given preliminary approval by the City and the issuance of the revenue bonds for such purposes and in an amount not to exceed $5,000,000 approved, subject to the approval of the Project by the Minnesota Department of Trade and Economic Development ("DTED"), and subject to the mutual agreement of this body, the Developer and the initial purchaser of the bonds as to the details of the bonds and provisions for their payment- In all events, it is understood, however, that the bonds of the City shall not constitute a charge, lien or encumbrance legal or equitable upon any property of the City except the Project, and the bonds, when, as, and if issued, shall recite in substance that the bonds, including interest thereon, are payable solely from the revenues received Resolution No. 91-325 from the Project and property pledged to the payment thereof, and shall not constitute a debt of the City. 2. It is hereby found and determined that the Project furthers the purposes set forth in Minnesota Statutes, Chapter 469 and that it would not be undertaken but for the availability of industrial development bond financing. 3. In accordance with Minnesota Statutes, Section 469.154, the Mayor of the Council is hereby authorized and directed to submit the proposal for the Project to DTED. The Mayor and other officers, employees and agents of the City are hereby authorized to provide DTED with any preliminary information needed for this purpose, and the Mayor is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project, if it is approved. 4. The taw firm of Holmes & Graven, Chartered, is authorized to act as Bond Counsel and to assist in the preparation and review of necessary documents relating to the Project and bonds issued in connection therewith. The Mayor and other officers, employees and agents of the City are hereby authorized to assist Bond Counsel in the preparation of such documents. 5. In accordance with Minnesota Statutes, Section 469.154, Subdivision 7, the Playor and other officers, employees and agents of the City are hereby authorized and directed to encourage the Developer to provide employment opportunities to economically disadvantaged or unemployed individuals. Such individuals may be identified by such mechanisms as are available to the City, including a first source agreement in which the Developer agrees to use a designated State employment office as a first source for employment recruitment, referral, and placement. 6. The Developer has agreed to pay directly or through the City any and all cost incurred by the City in connection with the Project whether or not the Project is approved by DTED, whether or not the Project is carried to completion, and whether or not the bonds or operative instruments are executed. 7. All commitaitmis of the City expressed herein are subject to the condition that by December 31, 1991 the City and the Developer shall have agreed to mutually acceptable terms and conditions of the loan 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. 8. The adoption of this Resolution does not constitute a guarantee or firm commitment that the City will issue the bonds as requested by the Developer. The City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the bonds, or issue the bonds in an amount less that the amount referred to in paragraph 1 hereof, should the City at any time prior to issuance thereof determine that it is in the best interest of the City not to issue the Bonds, or to issue the Bonds in an amount less than the amount referred to in paragraph 1 hereof, or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. Resolution No. 91-32S Adopted by the City Council of Plymouth on the 17th day of June, 1991. Kim M. Berman Mayor Attest: