HomeMy WebLinkAboutCity Council Resolution 1993-256Extract of Minutes of Meeting of the
City Council of the
City of Plymouth, Minnesota
Pursuant to due call and notice thereof, a regular
meeting of the City Council of the City of Plymouth, Minnesota was
duly held at the City Hall in said City on Monday, the 17th day of
May, 1993 at 7:00 o'clock P.M.
The following members were present: Mayor Bergman,
Councilmembers Tierney, Edson, and Helliwell
and the following were absent: Councilmember Vasiliou
Member Councilmember Helliwell introduced the following
resolution and moved its adoption:
RESOLUTION AUTHORIZING
THE ISSUANCE AND SALE OF
$2,790,000 VARIABLE RATE DEMAND INDUSTRIAL DEVELOPMENT
REVENUE REFUNDING BONDS, SERIES 1993
(WOODLAND VILLAGE INVESTMENTS LIMITED PARTNERSHIP PROJECT)
TO REFINANCE A PROJECT
The motion for the adoption of the foregoing resolution
was duly seconded by member Councilmember Edson and upon vote being
taken thereon the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
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RESOLUTION NO. 93- 256
RESOLUTION AUTHORIZING
THE ISSUANCE AND SALE OF
$2,790,000 VARIABLE RATE DEMAND INDUSTRIAL DEVELOPMENT
REVENUE REFUNDING BONDS, SERIES 1993
(WOODLAND VILLAGE INVESTMENTS LIMITED PARTNERSHIP PROJECT)
TO REFINANCE A PROJECT
BE IT RESOLVED by the Council of the City of Plymouth,
Minnesota, as follows:
1. The Council has received a proposal from Woodland
Village Investments Limited Partnership, a Minnesota limited
partner (the "Company") that the City undertake to refund and
redeem the outstanding principal balance of the City's $2,900,000
Industrial Development Revenue Bonds, Series 1986 (William F.
Bieber Project) dated as of June 1, 1986 (the "Prior Bonds") which
were issued to finance a Project as herein described, pursuant to
Minnesota Statutes, Sections 469.152 through 469.165 (the "Act"),
through issuance by the City of its $2,790,000 Variable Rate Demand
Industrial Development Revenue Refunding Bonds, Series 1993
(Woodland Village Investments Limited Partnership Project) (the
"Bonds").
2. It is proposed that, pursuant to a Loan Agreement
dated as of May 1, 1993 between the City and the Company (the "Loan
Agreement"), the City loan the proceeds of the Bonds to the Company
to refund the outstanding principal balance of the Prior Bonds
which were issued to finance certain capital costs incurred by the
Company in connection with the acquisition and expansion of a
manufacturing facility at 2700 Niagara Lane North in the City (the
"Project"). The Project was originally owned by William F. Bieber
and leased to Progress Casting Group, Inc. The Project has since
been transferred by Bieber to the Company. The basic payments to
be made by the Company under the Loan Agreement are fixed so as to
produce revenue sufficient to pay the principal of, premium, if
any, and interest on the Bonds when due. It is further proposed
that the City assign its rights to the basic payments and certain
other rights under the Loan Agreement to National City Bank of
Minneapolis in Minneapolis, Minnesota (the "Trustee") as security
for payment of the Bonds under an Indenture of Trust dated as of
May 1, 1993 between the City and the Trustee (the "Indenture").
Payment of the Bonds is initially secured by an irrevocable Letter
of Credit to be,issued by First Bank National Association in favor
of the Trustee in an amount equal to the principal amount of the
Bonds plus certain additional interest thereon. The Bonds are
intended to be privately placed with accredited investors by FBS
Investment Services, Inc. (the "Placement Agent"), pursuant to a
Private Placement Memorandum (the "Memorandum").
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Resolution No. 93-256
3. Forms of the following documents will be executed by
the City in connection with issuance of the Bonds:
(a) The Loan Agreement, and
(b) The Indenture.
The use of the Memorandum is hereby approved, but the City takes no
responsibility for any of the information contained therein.
4. It is hereby found, determined and declared that:
(a) it is desirable that the Bonds be issued by the
City upon the terms set forth in the Indenture;
(b) the basic payments under the Loan Agreement are
fixed to produce revenue sufficient to provide for the prompt
payment of principal of, premium, if any, and interest on the
Bonds issued under the Indenture when due, and the Loan
Agreement and Indenture also provide that the Company is
required to pay all expenses of the operation and maintenance
of the Project, including, but without limitation, adequate
insurance thereon and insurance against all liability for
injury to persons or property arising from the operation
thereof, and all taxes and special assessments levied upon or
with respect to the Project Premises and payable during the
term of the Loan Agreement and Indenture; and
(c) under the provisions of Minnesota Statutes,
Section 469.155, and as provided in the Loan Agreement and
Indenture, the Bonds are not to be payable from or charged
upon any funds other than the revenue pledged to the payment
thereof; the City is not subject to any liability thereon; no
holder of any Bonds shall ever have the right to compel any
exercise by the City of its taxing powers to pay any of the
Bonds or the interest or premium thereon, or to enforce
payment thereof against any property of the City except the
interests of the City in the Loan Agreement which have been
assigned to the Trustee under the Indenture; the Bonds shall
not constitute a charge, lien or encumbrance, legal or
equitable upon any property of the City except the interests
of the City in the Loan Agreement which have been assigned to
the Trustee under the Indenture; the Bonds shall recite that
the Bonds are issued without moral obligation on the part of
the state or its political subdivisions, and that the Bonds,
including interest thereon, are payable solely from the
revenues pledged to the payment thereof; and, the Bonds shall
not constitute a debt of the City within the meaning of any
constitutional or statutory limitation.
5. The forms of the Loan Agreement and Indenture and
exhibits thereto shall be subject to the final approval of the City
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Resolution No. 93-256
Attorney. The Loan Agreement and the Indenture are directed to be
executed in the name and on behalf of the City by the Mayor and the
City Manage_. Any other documents and certificates necessary to
the transaction described above shall be executed and delivered by
the appropriate City officers. Copies of all of the documents
necessary to the transaction herein described shall be delivered,
filed and recorded as provided herein and in the Loan Agreement and
Indenture.
6. The City shall proceed forthwith to issue its Bonds,
in the form and upon the terms set forth in the Indenture. The
offer of the Placement Agent to place the Bonds for sale at par
plus accrued interest, if any, to the date of delivery at the
interest rate or rates specified in the Indenture as of the date of
issuance of the Bonds is hereby accepted. The Mayor and City
Manager are authorized and directed to prepare and execute the
Bonds as prescribed in the Indenture and to deliver them to the
Trustee for authentication and delivery to the Bond Purchaser.
7. The Mayor and City Manager and other officers of the
City are authorized and directed to prepare and furnish to the Bond
Purchaser certified copies of all proceedings and records of the
City relating to the Bonds, and such other affidavits and
certificates as may be required to show the facts relating to the
legality of the Bonds as such facts appear from the books and
records in the officers' custody and control or as otherwise known
to them; and all such certified copies, certificates and
affidavits, including any heretofore furnished, shall constitute
representations of the City as to the truth of all statements
contained therein.
8. The approval hereby given to the various documents
referred to above includes approval of such additional details
therein as may be necessary and appropriate and such modifications
thereof, deletions therefrom and additions thereto as may be
-necessary and appropriate and approved by the City Attorney and the
City officials authorized herein to execute said documents prior to
their execution; and sai, City officials are hereby authorized to
approve said changes on behalf of the City. The execution of any
instrument by the appropriate officer or officers of the City
herein authorized shall be conclusive evidence of the approval of
such documents in accordance with the terms hereof. In the absence
of the Mayor or Manager, any of the documents authorized by this
resoldiion to be executed may be executed by the Acting Mayor or
City Manager, respectively.
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Adopted: May 17, 1993
Mayor
Attest
City Clerk
( SEAL)
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