HomeMy WebLinkAboutCity Council Resolution 1992-327RESOLUTION NO. 92-327
RESOLUTION RECITING A PROPOSAL FOR AN
INDUSTRIAL FACILITIES DEVELOPMENT PROJECT,
GIVING PRELIMINARY APPROVAL TO THE PROJECT
PURSUANT TO THE MINNESOTA STATUTES
SECTION 469.154, 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
(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, Jr.
(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
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
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RESOLLTrION NO. 92-327
(e) WHEREAS, the Company is currently engaged in the
business of manufacturing equipment for use in the food industry,
particularly dryers, 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 and to be owned and leased by the
Company to Food Engineering Corporation (the "Project"), and will
result in the increased employment of approximately 220 persons in
Plymouth to work within the new facilities over the next three to
five years. In addition, the Company desires to refund
approximately $595,000 of existing tax-exempt bonds of the City
issued in 1977 to finance the Company's existing facility (the
"1977 Bonds"); 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 May 4, 1992, a public hearing on the Project was
held on June 1, 1992, after notice was published and materials made
available for public inspection at the City Hall, all as required
by Section 469.154, Subdivision 4, of the Act, at which public
hearing all those appearing who desired to speak were heard and
written comments were 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:
I. The Council hereby gives preliminary approval to the
proposal of the 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 and to refund the 1977 Bonds. Said
revenue agreement may also provide for the entire interest of the
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RESOLUTION NO. 92-32'
Company 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.
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 bighted 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, the
Company, and the purchaser of the Revenue Bonds as to the ultimate
details of the financing of the Project.
4. In accordance with Subdivision 3 of Section 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 other officers, employees and agents
of the City are hereby authorized to provide the Commissioner with
such preliminary information as he may require.
5. The Company 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 Company.
6. Briggs and Morgan, Professional Association, acting as
bond counsel, and FBS Investment Services, Inc. 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
00 maturities, interest rates and other terms and provisions of the
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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
tn 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 1st day of June, 1992.
r
Attest:
LC. Clerk
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