HomeMy WebLinkAboutCity Council Resolution 1992-2595/4
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RESOLUTION NO. 92-259
RESOLUTION RECITING A PROPOSAL FOR AN
INDUSTRIAL FACILITIES DEVELOPMENT PROJECT,
GIVING PRELIMINARY APPROVAL TO THE PROJECT
PURSUANT TO THE MINNESOTA STATUTES
SECTION 469.154 SUBJECT TO A PUBLIC HEARING,
AUTHORIZING THE SUBMISSION OF
AN APPLICATION FOR APPROVAL OF THE PROJECT TO THE
COMMISSIONER OF THE DEPARTMENT OF TRADE AND
ECONOMIC DEVELOPMENT OF THE STATE OF MINNESOTA,
AND AUTHORIZING THE PREPARATION OF
NECESSARY DOCUMENTS AND MATERIALS
IN CONNECTION WITH THE PROJECT
(NUAIRE INC. PROJECT)
(a) WHEREAS, the purpose of Minnesota Statutes, sections
469.152 through 469.165, relating to municipal industrial
development (the "Act"), as found and determined by the
legislature, is to promote the welfare of the state by the active
attraction 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;
and
(b) WHEREAS, factors necessitating the active promotion
and development of economically sound industry and commerce are the
increasing concentration of population in the metropolitan areas
and the rapidly rising increase in the amount and 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; and
(c) WHEREAS, the City Council of the City of Plymouth,
Minnesota (the "City"), has received from NUAIRE Inc_, a
corporation organized under the laws of the State of Minnesota (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; and
(d) WHEREAS, the City desires to facilitate the selec-
tive 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
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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; and
(e) WHEREAS, the Company is currently engaged in the
business of manufacturing air filtration products; and the Project
to be financed by the Revenue Bonds is an approximately 70,000
square foot addition to the Company's existing facility located at
2100 Fernbrook Lane in the City and consists of the construction of
improvements and the installation of equipment therein, all to be
constructed pursuant to the Company's specifications and to be
owned and operated by the Company (the "Project"), and will result
in the continued employment of the approximately 140-150 persons
employed by the Company in Plymouth to work within the new
facilities (the city has been advised that the addition will permit
the Company to consolidate its operations at the Project from space
leased elsewhere in the City); and
(f) WHEREAS, the City has been advised by representa-
tives of the Company that conventional, commercial financing to pay
the capital cost 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, and the Company has also advised this Council that the
Project would not be undertaken but for the availability of
industrial development bond financing; and
(g) WHEREAS, pursuant to a resolution of the City
Council adopted on April 6, 1992, a public hearing on the Project
will be held on may 18, 1992, as required by Section 469.154,
Subdivision 4, of the Act, at which public hearing all those
appearing who desire to speak will be heard and written comments
will be accepted; and
(h) WHEREAS, 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, subject to
consideration of information received at the public hearing, to the
proposal of the Company that the City undertake the Project
pursuant to the Act and p.irsuant to a revenue agreement between the
City and Company containing such terms and conditions (with
provisions for revision from time to time as necessary) as may be
necessary to produce income and revenues sufficient to pay, when
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due, the principal of and interest on the Revenue Bonds in the
maximum aggregate principal amount of $2,500,000, to be issued
pursuant to the Act to finance the acquisition, construction and
equipping of the Project. Said revenue agreement may also provide
for the entire interest of the Company therein to be mortgaged to
the purchaser of the Revenue Bonds.
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 2(b) of Section 469.153 of the
Act; that the Project furthers the purposes stated in Section
469.152 of the Act; that the Project would be made more
economically feasible with the availability of industrial
development bond financing under the Act and the willingness of the
City to furnish such financing; and that the 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 areas 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 rroject is hereby given preliminary approval by the
City subject to the approval of the Project by the Commissioner of
the Department of Trade and Economic Development or such other
state officer having authority to grant approval (the
"Commissioner"), and subject to final approval by this Council
(after consideration of information received at the public
hearing) , the Company, ar. i the purchaser of the Revenue Bonds as to
the ultimate details of the financing of the Project.
4. in accordance with Subdivision 3 of Sectior. 469.154 of the
Act, the Mayor or Manager of the City is hereby authorized and
directed to submit the proposal for the Project to the Commissioner
requesting his approval and submit an Application for Allocation of
Bonding Authority to the Minnesota Deportment of Finance, and other
officers, employees and agents of the City are hereby authorized to
provide the Commissioner and the Department of Finance with such
preliminary information as they may require.
5. The Company has agreed and it is hereby determined that
any and all costs incurred by'th•= City in connection with the
financing of the Project, whether or not the Project is carried to
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RESOLUTION N0. 92-259
completion and whether or not approved by the Commissioner, will be
paid by the Company.
6. Briggs and Morgan, Professional Association, acting as
bond counsel, and Norwest Corporate Finance, are authorized to
assist in the preparation and review of necessary documents
relating to the Project, to consult with the City Attorney, the
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.
7. 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 pledged 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 of
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, are payable solely from the revenue and proceeds pledged
'..o the payment thereof. The Revenue Bonds shall not constitute a
debt of the City within the meaning of any constitutional or
statutory limitation.
Adopted by the City Council of the City of Plymouth,
Minnesota, this 4th day of May, 1992.
Mayor
Attest:
c L y.
Cler
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STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF PLYMOUTH
I, the undersigned, being the duly qualified and acting
Clerk of the City of Plymouth, Minnesota, DO HEREBY CERTIFY that I
have compared the attached and foregoing extract of minutes with
the original thereof on file in my office, and that the same is a
_foil, true and complete transcript of the minutes of a meeting of
the City Council of said City duly called and held on the date
therein indicated, insofar as such minutes relate to a resolution
giving preliminary approval to an industrial facilities development
project.
WITNESS my hand and the seal of said City this 12th day
of May , 1992.
Clerk
(SEAL)
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