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.
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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