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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