HomeMy WebLinkAboutCity Council Resolution 1992-260RESOLUTION NO. 92-260
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 PUBLICATION OF A NOTICE OF PUBLIC HEARING
AND NECESSARY DOCUMENTS AND MATERIALS
IN CONNECTION WITH THE PROJECT
(FOOD ENGINEERING CORPORATION 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 Ralph D. Burgess (the
"Owner") and Food Engineering Corporation, 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
(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
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 equipment for use in the food industry;
630203
JI
r
RFS01,IP'10\ NO. 92-260
and the Project to be financed by the Revenue Bonds is an
approximately 59,080 square foot addition to the Company's existing
facility located at 2765 Niagra 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 (the "Project") and refunding of the outstanding
principal amount of the City's 1977 Industrial Development Revenue
Bonds (Burgess Project) in the amount of $620,000. The Project is
to be owned by the Owner and leased to the Company, and will result
in increased employment of approximately 220 additional persons by
the Company in Plymouth to work within the new facilities over the
next three to five years; and
(f) WHEREAS, the City has been advised by representa-
tives of the Owner 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 owner has also advised this Council that the
entire Project would not be undertaken but for the availability of
industrial development bond financing; and
(g) WHEREAS, before final issuance of the Revenue Bonds,
it is necessary for the City to hold a public hearing on the
proposal pursuant to Section 469.154, Subdivision 4, Minnesota
statutes; 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 Owner and Company that the City undertake the
Project pursuant to the Act and pursuant 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 due, the principal of and interest on the Revenue Bonds in the
maximum aggregate principal amount of $3,750,000 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 Owner therein to be mortgaged to the
purchaser of the Revenue Bonds. The City hereby undertakes
preliminarily to issue its Revenue Bonds in accordance with such
terms and conditions, subject to consideration of information
received at the public hearing.
630203
RESOUTFIO\ NO. 9-2-260
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 Project 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, and the purchaser of the Revenue Bonds as to
the ultimate details of the financing of the Project.
4. The City Clerk is hereby authorized and directed to cause
notice of the public hearing to be published one time in the
official newspaper and a newspaper of general circulation available
in the City not less than 15 days prior to the date fixed for the
hearing substantially in the form attached hereto. The Mayor,
Clerk and other appropriate officials are hereby authorized to
submit an Application for Allocation of Bonding Authority to the
Minnesota Department of Finance.
5. The Owner has agreed and it is hereby determined that any
and all costs incurred by the City in connection with the financing
of the Project, whether or not the Project is carried to completion
and whether or not approved by the Commissioner, will be paid by
the Owner.
6. 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, the owner 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
630203
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
to 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:
Clerk
630203
t. _ U _ _ai eta —_'I —. -. '�r•. _ - _ , -- -
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
full, 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 blax , 1992.
Clerk
(SEAL)
630203