HomeMy WebLinkAboutCity Council Resolution 1996-100•
Councilmember Black introduced the following resolution and moved its
adoption:
RESOLUTION NO. 96-_ inn
RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT ON BEHALF OF
TURCK 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.
BE IT RESOLVED by the City Council of the City of Plymouth, Minnesota (the "City"), as
follows:
SECTION 1
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I.I. 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
TURCK Inc., a Minnesota corporation (the "Borrower"), consisting of the acquisition, construction and
equipping of an approximately 65,000 square -foot manufacturing facility to be used by the Borrower in its
proximity sensor and automation component manufacturing business (the "Project"). The Project will be
located in Plymouth Technology Park, which is west of Interstate 494, north of Schmidt Lake Road and
east of Fernbrook Lane in the City.
1.2. At a public hearing, duly noticed and held on February 7, 1996 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 parties 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 purport: 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 bate of Hennepin County, the City
and the School District in which the Project is located and would provi.!e increased opportunities for
employment for residents of the City and surrounding area; and
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(d) this Council has been advised by representatives of the Borrower that conventional,
commercial -financing to pay the cost 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 resulting lower borrowing cost, the Project
Is economically more feasible; and
(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; and
(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 rotes and terms to
finance 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 useful in connection with a revenue-producing enterprise, such
as that of tate Borrower, and the issuance of the bonds by the City would be a substantial inducement to
the Borrower to construct the Project.
SECTION 2
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 $5,500,000 (the "Bonds").
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 the Bonds 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 the Bonds. All details of the
Bonds 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 terms of the Bonds and the documents in connection therewith. The City
retains the right in its sole discretion 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 resolution, or
should the parties to the transaction be unable to reach agreement 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, ligal 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
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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 hereby
approved, and the Mayor and City Manager are authorized to execute said documents on behalf of the
City.
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. Best do Flanagan, Professional Limited Liability
Partnership, is designated as Bond Counsel for the Bonds 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
3.1. 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 "Loan Agreement") with the Borrower. The loan
payments or other amounts payable by the Borrower to the City under the Loan 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.
3.2. 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, and whether or not the City by resolution
authorizes the issuance of the Bonds, will be paid by the Borrower upon request.
3.3. 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 of the Act.
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Adopted by the City Council of the City of Plymouth on this 71h day of February, 1996.
Joycelyn H. Tierney
Mayor
Attest: Laurie F. Ahrens
City Clerk
The motion for the adoption of the foregoing resolutions was duly seconded by Councilmember
G"nsatt, and, upon vote being taken thereon, the following voted in
favor thereof:
Tierney, Anderson, Wold, Lymangood, Preus, Granath, Black.
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,
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