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HomeMy WebLinkAboutCity Council Resolution 1993-192Councilmember Tierney offered the following resolution and moved its adoption: RESOLUTION N0. 93-192 RESOLUTION RELATING TO A PROJECT UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, GIVING THE PROJECT PRELIMINARY APPROVAL SUBJECT TO A PUBLIC HEARING BE IT RESOLVED by the City Council of the City of Plymouth, Hennepin County, Minnesota, as follows: Section 1. Polity and Purpose. 1.01. For the purpose of providing revenue-producing enterprises, the City is authorized by Minnesota Statutes, Sections 469.152 through 469.165, as amended (the "Act"), to enter into loan agreements with corporations providing for the City to loan the proceeds derived from the issuance of revenue bonds to the corporation to be used to pay the costs of a project as defined in the Act and providing for the repayment of the loan by the corporation. The City is further authorized to issue its revenue bonds to refund, in whole or in part, bonds previously issued by the City under the Act. 1.02. Banner Engineering Corp., a Minnesota corporation (referred to herein as the "Corporation"), has requested that the City issue its revenue bonds (the "Bonds") in the aggregate principal amount not to exceed $2,750,000 under the provisions of the Act to accomplish the following purposes: the proceeds of the bonds, in an amount not to exceed $2,750,000 would be loaned to the Corporation and used to refund the City of Plymouth, Minnesota Variable Rate Demand Industrial Development Revenue Refunding Bonds (Banner Engineering Corp. Project), Series 1988A and 1988B, dated November 1, 1988 and November 3, 1988, respectively, and outstanding in the principal amount of $2,750,000. The foregoing purposes are referred to herein as the "Project." The facilities to be financed and refinanced by the Bonds are located at 9714 Tenth Avenue North in the City. 1.03. The Project would increase the level of economic activity in the City and to the residents of the City and surrounding area. 1.04. The City is advised by representatives of the Corporation that with the aid of municipal financing, and the resulting lower borrowing cost, the Project would be significantly more feasible. The City is further advised by the Corporation that approval of municipal financing would be a significant inducement to the undertaldng of the Project by the Corporation. Section 2. Findings. 2.01. Subject to the holding of a public hearing according to law, it appears the issuance of the Bonds will be in the public interest and any competitive nature and impact and effect of the issue upon existing industry and business will not result in an unfair advantage for the proposed project to the substantial detriment of existing enterprises. Section 3. Approval and Authorization. 3.01. Subject to the holding of a public hearing according to law and subject to the mutual agreement of the City, the Corporation and the initial purchaser of the Bonds as to the details of an RESOLUTION NO. 93-192 F" indenture, loan agreement and/or other documents necessary to evidence and effect the financing of the Project and the issuance of the Bonds, the issuance of revenue bonds of the City, in one or more series, in an amount not to exceed $2,750,000 is hereby preliminarily approved and authorized to finance the Project. 3.02. Neither this preliminary commitment nor any actions, agreements, or legal matters related hereto or executed in pursuant hereof, shall in any manner or form create an indebtedness of liability of the City. 3.03. The passage of this resolution does not finally commit the City to issue the Bonds nor, if applicable, establish priority for purposes of staying within the limitations established by federal law for the amount of private activity bonds that may be issued by the City of Plymouth or the State of Minnesota. Section 4. Public Hearine. 4.01. Since a public hearing, after notice according to law, is required for final approval of the issuance of the Bonds, a public hearing on the issuance of the Bonds shall be held at the City Hall, 3400 Plymouth Boulevard, City of Plymouth, Minnesota, on the 17th day of May, 1993 at 7: 00 p.m. and the City Manager is hereby instructed to give notice of such public hearing according to law. 4.02. The form of public notice attached to this Resolution is hereby approved. Adopted by the Plymouth City Council on this 19th day of April, 1993. -2- • Resolution No. 93-192 NOTICE OF PUBLIC HEARING ON THE ISSUANCE BY THE CITY OF PLYMOUTH, MINNESOTA OF ITS REVENUE BONDS TO LOAN THE PROCEEDS OF THE REVENUE BONDS TO BANNER ENGINEERING CORP. TO REFINANCE THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF A MANUFACTURING FACILITY NOTICE IS HEREBY GIVEN that the City of Plymouth, Minnesota (the "City") will conduct a public hearing on May 17, 3993 at 7:00p.m. at 3400 Plymouth Avenue, Plymouth, Minnesota for the purpose of receiving any and all comments, reports or other information from the public and any interested persons or parties on the proposed issuance by the City of its revenue bonds for the purpose of refinancing approximately $2,750,000 of outstanding indebtedness that was incurred to finance the acquisition, construction and equipping of a manufacturing facility for the benefit of Banner Engineering Corp. (the "Borrower") under the Minne!3ota Municipal Industrial Development Act, Minnesota Statutes, Sections 469.152 through 469.165 (the "Act."). The proceeds of the revenue bonds will be loaned to the Borrower to refinance approximately $2,750,000 of outstanding indebtedness that was incurred to finance the acquisition, construction and equipping of a manufacturing facility. The project is owned by, operated and managed the Borrower. The Project is located at 9714 Tenth Avenue North, Plymoitli, Minnesota. 'Mie purpose of the public hearing will be to receive irirormot.ion on a proposal that the City ic:;ue its Revenue 13onds under the Act in order to loan the proceeds to the Borrower. The maximum principal amount of the total of the Bonds will be $2,750,000 with the proposed issue presently expected to be $2,750,000. The bunds will not be general obligations of the City, not shall they be payable in any manner by Laxation. The Revenue Bonds will be payable solely from the revenues of the Project pledged to the payment thereof, from investment proceeds and from other revenues of the Borrower, except that the Bonds may be x-�!cured by other encumbrances on the Project. The public hearing will be conducted by the Mayor of the - City or some other person delegated to conduct the hearing by the Mdyor. All persons interested may appear and be heard at the time and place set forth above or may file written comments with the Mayer of the City prior to the date of the hearing. The City is expected to meet and act on the final approval to issue Bonds promptly upon completion of the hearing. A copy of the Application of the City for approval of the Project, together with all attachments and exhibits thereto is available for public inspection at City Hall, 3400 Plymouth buulevar•d, Plymouth, Minnesota from the dente of this notice to RESOLUTION NO. 93-192 the date of the public hearing hereinabove identified, during normal business hours. CITY OF PLYMOUTH, MINNESOTA Mayor