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HomeMy WebLinkAboutCity Council Resolution 1993-753CERTIFICATION OF MINUTES RELATING TO INDUSTRIAL DEVELOPMENT REVENUE BONDS (DAILY PRINTING, INC. PROJECT) SERIES 1993 Issuer: City of Plymouth, Minnesota Governing Body: City Council Kind, date. time and place of meeting: A regular meeting, held on November 15, 1993, at 7:00 o'clock p.m., at the City Hall. Members present: Helliwell, Edson, Vasiliou, Tierney, Bergman Members absent: None Documents Attached: Minutes of said meeting (pages): MINUTES OF PUBLIC HEARING ON PROPOSED PROJECT and RESOLUTION 93-753 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT ON BEHALF OF DAILY PRINTING, INC. AND ITS FINANCING UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT FOR APPROVAL; AUTHORIZING A SUBMISSION TO THE MINNESOTA DEPARTMENT OF FINANCE FOR AN ALLOCATION OF BONDING AUTHORITY IN AN AMOUNT NOT EXCEEDING $6,000.000; AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS. I. the undersigned, being the duly qualified and acting recording officer of the public corporation referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of the corporation in my legal custody, from which they have been transcribed; that the documents are a correct and complete transcript of the minutes of a meeting of the governing body of the corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at the meeting, insofar as they relate to the obligations; and that the meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS my hand officially as such recording officer and the seal of the City this 16th day of November, 1993. City Clerk (SEAL) • RESOLUTION 93-753 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT ON BEHALF OF DAILY PRINTING, INC. AND ITS FINANCING UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT FOR APPROVAL; AUTHORIZING A SUBMISSION TO THE MINNESOTA DEPARTMENT OF FINANCE FOR AN ALLOCATION OF BONDING AUTHORITY IN AN AMOUNT NOT EXCEEDING $6,000,000; AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS. BE IT RESOLVED by the City Council of the City of Plymouth, Minnesota (the "City"), as follows: SECTION 1 Recitals and Findings 1.1. This Council has received a proposal that the City finance a portion or all of the cost of a proposed project under Minnesota Statutes, Sections 469.152 through 469.165 (the "Act"), on behalf of Daily Printing, Inc., a Minnesota corporation (the "Borrower"), consisting of the acquisition of 13.25 acres of land and the construction and equipping of an approximately 70,000 square foot manufacturing facility to be used by the Borrower in its commercial printing business. The Project will be located at 23rd Avenue North and Niagara Lane in the City. 1.2. At a public hearing, duly noticed and held on November 15, 1993, in accordance with the Act and Section 147(f) of the Internal Revenue Code of 1986, on the proposal to undertake and finance the Project, all parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal to undertake and finance the Project and interested persons were given the opportunity to submit written comments to the City Clerk before the time of the hearing. Based on the public hearing, such written comments (if any) and such other facts and circumstances as this Council deems relevant, this Council hereby finds, determines and declares as follows: (a) The welfare of the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental actions for the purpose of preventing the emergence of blighted and marginal lands and areas of chronic unemployment, and the State of Minnesota has encouraged local government units to act to prevent such economic deterioration. (b) The undertaking of the Project would further the general purposes contemplated and described in Section 469.152 of the Act. (c) The existence of the Project would add to the tax base of Hennepin County, the City and the School District in which the Project is located and would provide increased opportunities for employment for residents of the City and surrounding area. (d) This Council has been advised by representatives of the Borrower that conventional, commercial financing to pay the cost of the -2- Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of constructing and operating the Project would be reduced, but that with the aid of municipal borrowing, and its resulting lower borrowing.cost, the Project is economically more feasible. (e) The Council has been advised by representatives of the Borrower that the Project would not be undertaken but for the availability of industrial development bond financing. (f) This Council has also been advised by representatives of the Borrower that on the basis of their discussions with potential buyers of tax-exempt bonds, revenue bonds of the City (which may be in the form of a revenue note or notes) could be issued and sold upon favorable rates and terms to finance the Project. (g) The City is authorized by the Act to issue its revenue bonds to finance capital projects consisting of properties used and useful in connection with a revenue-producing enterprise, such as that of the Borrower, and the issuance of the bonds by the City would be a substantial inducement to the Borrower to construct the Project. SECTION 2 Determination to Proceed with the Project and its Financing 2.1. On the basis of the information given the City to date, it appears that it would be desirable for the City to issue its revenue bonds under the provisions of the Act to finance the Project in the maximum aggregate face amount of $6,000,000. 2.2. It is hereby determined to proceed with the Project and its financing and this Council hereby declares its present intent to have the City issue its revenue bonds under the Act to finance the Project. Notwithstanding the foregoing, however. the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the City or its Council to issue or to cause the issuance of such revenue bonds. All details of such revenue bond issue and the provisions for payment thereof shall be subject to final approval of the Project by the Minnesota Department of Trade and Economic Development (the "Department") and may be subject to such further conditions as the City may specify. The revenue bonds, if issued, shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, except the revenues specifically pledged to the payment thereof, and each bond. when, as and if issued, shall recite in substance that the bond, including interest thereon. is payable solely from the revenues and property specifically pledged to the payment thereof, and shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 2.3. The Application to the Minnesota Department of Trade and Economic Development (the "Application"), with attachments, is hereby approved, and the Mayor and City Manager are authorized to execute said documents on behalf of the City. -3- • 2.4. In accordance with Section 469.154, Subdivision 3 of the Act, the Mayor and City Manager are hereby authorized and directed to cause the Application to be submitted to the Department for approval of the Project. The Mayor, City Manager, City Clerk, City Attorney and other officers, employees and agents of the City are hereby authorized and directed to provide the Department with any preliminary information needed for this purpose. The City Attorney is designated as Bond Counsel for the revenue bonds of the City to finance the Project and is authorized to initiate and assist in the preparation of such documents as may be appropriate to the Project, if approved by the Department. SECTION 3 Application for Allocation of Bonding Authority 3.1. In accordance with Minnesota Statutes, Chapter 474A, the Mayor and Bond Counsel for the City are hereby authorized to prepare and to cause to be submitted to the Minnesota Department of Finance an Application for Allocation of Bonding Authority for Tax Exempt Financing Under Federal Tax Law (the "Allocation Application") with respect to the Project in an amount not exceeding $6,000,000 upon receipt from the Borrower of the information necessary to complete the Allocation Application and the amount necessary to pay all fees and any application deposit required under the Act. The Mayor, City Manager, City Clerk, City Attorney and other officers, employees and agents of the City are hereby authorized and directed to provide the Department of Finance with any preliminary information needed for this purpose. SECTION 4 General 4.1. If the bonds are issued and sold, the City will enter into a loan agreement or similar agreement satisfying the requirements of the Act (the "Revenue Agreement") with the Borrower. The loan payments or other amounts payable by the Borrower to the City under the Revenue Agreement shall be sufficient to pay the principal of, and interest and redemption premium, if any, on, the bonds as and when the same shall become due and payable. 4.2. The Borrower has agreed and it is hereby determined that any and all direct and indirect costs incurred by the City in connection with the Project, whether or not the Project is carried to completion, whether or not approved by the Department, whether or not the Borrower receives an allocation of bonding authority from the Department of Finance, and whether or not the City by resolution authorizes the issuance of the bonds, will be paid by the Borrower upon request. 4.3. The Mayor and City Manager are directed, if the bonds are issued and sold, thereafter to comply with the provisions of Section 469.154, Subdivisions 5 and 7 or the Act. -4- Adopted by the City Council of the City of Plymouth on this 15th day of November, 1993. Mayor Attest: City Clerk The motion for the adoption of the foregoing resolution was made by Vasiliou. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Edson and, upon vote being taken thereon, the following voted in favor thereof: Helliwell, Edson, Vasiliou, Tierney, Bergman and the following voted against the same: None whereupon the resolution was declared duly passed and adopted and was signed by the Mayor, whose signature was attested by the City Clerk. 7604P -5- 0