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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 _,' 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 • (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 -2- • i • 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. -3- 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, IM10668 ODMcwdlludondbVrAtM%4W?.Mr -4