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")
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Resolution No. 91-325
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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: