HomeMy WebLinkAboutCity Council Resolution 1996-032•
RESOLUTION NO. 96-32
OF THE
CITY OF PLYMOUTH, MINNESOTA
RESOLUTION ESTABLISHING THE DATE FOR A PUBLIC HEARING ON
AND GIVING PRELIMINARY APPROVAL TO A PROPOSED PROJECT ON
BEHALF OF TURCK INC. AND ITS FINANCING UNDER THE MINNESOTA
MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; AUTHORIZING A
SUBMISSION TO THE MINNESOTA DEPARTMENT OF FINANCE FOR AN
ALLOCATION OF BONDING AUTHORITY IN AN AMOUNT NOT
EXCEEDING $57500,000; AND AUTHORIZING THE PREPARATION OF
NECESSARY DOCUMENTS
WHEREAS, Minnesota Statutes, Sections 469.152 through 469.165, as amended
(the "Act") authorizes a city to issue revenue obligations for the purposes specified in the
Act and in furtherance of the policies set forth therein; and
WHEREAS, prior to approving the financing and undertaking of the acquisition,
construction and equipping of a manufacturing facility (the "Project") proposed by
TURCK Inc. (the "Borrower"), the Project must be considered at a public hearing after
notice, published at least 15 days and not more than 30 days before the hearing, in a
newspaper cir%:ulating generally within the City of Plymouth (the "City"); and
WHEREAS, the financing of the Project shall require an allocation of bonding
authority in accordance with Minnesota Statutes, Chapter 474A;
NOW, THEREFORE, be it resolved by the City of Plymouth, Minnesota:
1. That the City Council of the City will conduct a public hearing on the
proposal to issue revenue obligations and undertake the Project r%T
Wednesday February ? , 19969 at approximately? o'clock p.m.
2. That the City Clerk is hereby authorized to cause a public notice to be
published once in a newspaper circulating generally with the boundaries of
the City not less than fifteen (15) days nor more than thirty (30) days prior
to the date established for the publichearing by the preceding paragraph
of this Resolution.
3. The City Manager is hereby authorized and directed to take all steps
necessary and desirable to proceed to develop the Project and the financing
therefor.
4. The City preliminarily approves the proposal for the issuance of Bonds, not
to -.xceed $5,500,000 to finance the Project.
S. Notwithstanding the foregoing, however, the adoption of this resolution
shall not be deemed to establish a legal obligation on the I.art of tite City
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or its City Council to issue or cause ti+e 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").
The issuance of the Bonds shall be subject to a final authorizing resolution
by the City Council in its sole discretion and approval by the City of the
term of the Bonds and the document 3 in connection therewith. The City
retains the right in its sole discretior! to withdraw from participation and
accordingly not to issue the Bonds, or to issue the Bonds in an amount less
than the amount referred to in this resolution, should the City, at any time
prior to issuance thereof, determine that it is in the best interests of the
City not to issue the Bonds, or to issue the Bonds in an amount less than
the amount referred to in this resc ation, or should the parties to the
transaction be unable to reach agr. ament as to the terms and conditions of
any of the documents required for the transaction. The Bonds, if issued,
shall not constitute a charge, lien or encumbrance, legal or equitable, upon
any property of the City, except ;ne 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 specif.cally pledged to the payment thereof and
shall not constitute a debt of the City within the meaning of any
constitutional or statutory limitations.
6. In accordance with Minnesota Statutes, Chapter 474A, the Mayor, City
Manager and Bond Counsel f t 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 'W -location Application") with respect tc the
Project in an amount not exceeding $5,500,000 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.
7. 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.
Adopted by the City Council on January 9, 1996.
.Y.
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