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Home My WebLink AboutCity Council Resolution 1994-509• Resolution No. 94-509 CERTIFICATION OF MINUTES RELATING TO INDUSTRIAL DBVBIAPNIHNT REVENUE BONDS (OLYMPIC STEEL, INC. PROJECT) SERIES 1994 Issuer: City of Plymouth, Minnesom Governing Body: City Council Kind, dace, time and place of meeting: A regular meeting, held on August 29, 1994 at 7:00 o'clock p.m., at the City Hall. Members ptewat: Tierney, Anderson, Morrison, LymangMd, Helliwell, Granath, Edson. Members absent: None Dom meats Attached: Minutes of said meeting (pages): RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT ON BEHALF OF OLYMPIC STEEL, INC. AND ITS FINANCING UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; AUTHORIZING SUBMISSION OF THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF TRADE AND ECONOMIC DEVELOPMENT FOR APPROVAL; AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS. I, the undersigned, being the duly qualified and acting recording officer of the public corporation refefred to in the title of this certificate, certify that the documents attached hetero, as described above, have been carefully compared with the original records of the wrporation in my legal custody, hom which they have been transcribed; that the documents are a conv.. and complete transcript of the minutes of a mee ft of the governing body of the corporation, and correct and complete copies of all resolutkbs and other actions taken and of all documents approved by the governing body at the meeting, insofar ss tbay 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, pursuamt to call and notice of such meeting given as required by law. WITNESS racy hand officially as such recording officer and the seal of the City this list day of 1994. -- (SEAL) T�K�ION{�MOII�Cw1MMnlri et MYwrV00l1.�w City Clerk • L Couocilmember Anderson introduced the following resolution and moved its adoption: RESOLUTION NO. 94- S09 •1 • 1 ClOiNCINV 01 1II • • • • a • • I' 1 r I 401 t 1 a' 1' I I • I : • ' • • I : I I • r a ' 1: � • - 1 - r : • • I 1 : :� 1 ' 1'� • ' • 1 • ' VAI t 1 a' • • ' a :ti r • I "� BE rr RESOLVED by the City Council of the City of Plymouth, Minnesota (the "City"), as follows: SECTION 1 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, Section 469.152 through 469.165 (the "Act"), on behalf of Olympic Steel, Inc., an Ohio corporation, qualit%d to do business in Minnesota (the "Borrower'), consisting of the acquisition, construction and equipping of an approximately 112,000 square -foot manut%Nring facility to be used by the Borrower in its commerclal steel business (the "Project"). The Project will be located at 13100 15th Avenue North in the City. 1.2. At a public hearing, duly noticed and held on August 29, 1994 in accordance with the Act and Section 147(f) of the Internal Revenue Code of 1986, on the proposal to undertalm and finance the Project, all parties who appeared at the hearing were given an opportunity to express their views with meet to the proposal to undo elm and finance the Project and horested parties were given the opportunity to submit written comments to the City Cleric before the time of the haring. Beed on the public haring, such written comments (if any) and such other facts anti 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; and (b) the undertaking of the Project would further the general purposes contemplated and described in Section 469.152 of the Act; and (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 due City and surrounding ars; and • • Resolution No. 94-509 (d) this Council has been advised by representativa of the Borrower that conva doed, commercial financing to pay the cat of the 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 mdtiog lower borrowing cost, the Project is economically more feasible; and (e) the Council has been advised by repraentadva of the Borrower floc the Project would not be undataken but for the availability of industrial development bond financing; and (f) this Council has also been advised by repraentativea of the Borrower that on the bads of their discussions with potaWd buyers of tax-exempt bonds, revenue bonds of the City (which may be in the form of a revenue note or notes) could be blued and sold upon favorable rates and terms to flu= the Project; and (g) the City is authorized by the Act to issue its revenue bonds to finance capital projects consisting of properties used and uaeN in connection with a reventac-producing enterprim such as that of the Borrower, and the issuance of the bonds by the City would be a substantial induotmemt to the Borrower to construct the Project. SECTION 2 2.1. Our the basis of the information given the City to date, it appear: that it would be desirable for the Ctty to issue its reversers 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 determiracd to proceed with the Project and its flnancing and this Council hereby declares its present intact to have the City issue its mvemae bonds undo the Act to finance the Project. Notwithstanding the foregoing, bowever, the adoption of fhb resolution shall not be deemed to establish a legal obligation on the part of the City or its Council to ince or to cause the Isrm a of such revenue bonds. All details of such revenue bond blue and the provWons for payment thereof shill be subject to find approval of the Project by the Minnesota Department of Trade and Economic Development (the "Department") and may be subject to such Aattber conditions as the City may specify. The revenue bonds, if issued, shall not constitute a charge, Ilea or encumbrance, legal or equitable, upon any property of the City, except the revana specifically pledged to the payment thereof, and each bond, who. as and if Issued, shall recite in substance that the bond, including interest thereon, is payable solely Thom 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 Department (the "Application"), with attachments, is bereby approved, and the Mayor and City Manager are authorized to execute said documents on bsWf of the City. -2- • 11 Resolution No. 94-509 2.4. in accordance with Section 469.1341 Subdivision 3 of the Act, the Maya am City Mama are hereby authorized and directed to cause the Application to be submitted to the Department for approval of tie Projax. The MW9 City Manager, Cky Cleat, City Attorney and other officers, empbyem and &Sam of the City are hereby authorised and directed to p mvWe the Department with any prelimin" Wforn" n Deeded for ft purpose. The City Atoonuey is designated a Hood Co msel for the revenue bonds of the City to Mance the Project AM is authorised tD unit m and assist In the preposition of such documents as may be appropriate to the Project, if approved by the Depntmeat. SBC`nON 3 3.1. If the bonds are issued and sold, the City will eager into a loan agreement or similar agreement aadatying the requirements of the Act (the 'Lmn Agreement') with the Boeower. The loan payments at other amounts payable by the Borrower to the City under the Loan Agreement shall be sufficient to pay dere principal of, erred interest and redemption premium. if any, on the bonds as and when the same shall become due and payable. 3 -. 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 tits Project is carried to completion, whether or not approved by the Departments and whetber or not the City by resolution authorises the issuance of the bonds, will be paid by the Borrower upon n* mt. 3.3. The Mayor and City Manager are directed, if the bads are issued and sold, thereafter to comply with the provisions of Section 469.154, Subdivisions S and 7 of the Act. -3- C • Resolution No. 94-SO9 Attest: Adopted by the City Council of the City of Plymouth on this 29th day of August, 1994. city Clerk /s/ Joycelyn H. Tierney Mayor The motion for the adoption of the foregoing resolutions wu duly seconded by Councilmember Lvmanaood ando upon vote being taken theiom the following voted in ttivor thereof: Tierney, Anderson, Morrison, Lymangood, Helliwell, Granath, %dson. and the following voted against the same: Tone. whereupon the resolution was declared duly passed and adopted and was signed by the Mayor, whose &*nstum was attested by the City Cleric. TMMUNMOIrCadbOn d MhoutAMw 4- 0