HomeMy WebLinkAboutCity Council Resolution 1997-485•
RESOLUTION NO. 97485
RESOLUTION GIVING PRELIMINARY APPROVAL TO
THE ISSUANCE OF REVENUE BONDS PURSUANT TO
MINNESOTA STAT1lTES, SECTION 469.152-469.165,
ON BEHALF OF NUAIRE, INC.
BE IT RESOLVED by the City Council of the City of Plymouth, Minnesota (the "City'), as
follows:
SECTION 1
1.1 Nuaire, Inc. (the "Company") has advised this Council of its desire to
undertake a project in the City (hereinafter, the "Project') consisting of the acquisition and
installation of additional manufacturing equipment at its existing office/manufacturing facility
located at 2100 Fembrook Lane in the City. The Project would be used in connection with the
Company's business of manufacturing air filtration products. The estimated total cost of the
Project, including financing costs and contingencies, is approximately $1,700,000. The
Company has requested that the City consider the issuance of revenue bonds, in a principal
amount not to exceed $1,700,000, to assist in the financing of the Project.
1.2 The City is authorized by Minnesota Statutes, Sections 469.152 through
469.165 (the "Act'), to issue its revenue bonds (the "Bonds') to finance capital projects
consisting of properties used and uselhl in connection with a revenue-producing enterprise
engaged in the fabricating, manufacturing, storing and warehousing of manufactured products.
1.3 The Company has represented to the City that the Company employs
approximately 180 people in the City, that the Project will assist the Company in improving its
productivity and profitability, and that the issuance of tax-exempt revenue bonds is essential to
the successffil completion of the Project.
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Resolution 97485
Page 2
SECTION 2
2.1 On the basis of the information given the City to date, preliminary
approval is hereby given to the issuance of the Bonds, in an amount not to exceed $1,700.000, to
finance the costs of the Project. The adoption of this resolution shall not be deemed, however, to
establish a legal obligation on the part of the City or its Council to issue or to cause the i.uuaoce
of the Bonds. All details of the Bonds and the provisions for payment thereof shall be subject to
.Baal approval of this Council prior to their issuance. The Bonds, if issued, shell not constitute a
e1arge, lien or encumbrance, legal or equitable, upon any property of the City, except the
revenues to be received from the Company specifically pledged to the payment thereof, and each
Bond, w'hen, as and if issued, shall recite in substance that the Bond, including interest thereon, is
payable solely from said revenues and property constituting the Project specifically pledged to
the payment thereof, and shall not constitute a debt or pecuniary liability of the City within the
meaning of any constitutional or statutory limitation.
2.2 The Company has represented to the City that it intends to reimburse costs
with respect to the Project fiom the proceeds of the Bonds when issued. The City reasonably
expects to reimburse casts of the Project with proceeds of the Bonds, when issued, based upon
the representations of the Company on which the City believes it is reasonable to rely, and this
Resolution shall be a declaration of "official intent" within the meaning of Section 1.150.2 of the
Income Tax Regulations.
2.3 At such time as the Company is prepared to proceed with the issuance of
the Bonds, the Mayor and the City Manager, in consultation with the Company, are authorized to
execute the necessary documents on behalf of the City to apply for an allocation of bonding
authority for the Project pursuant to the provisions of Minnesota Statutes, Chapter 474A.
2.4 At such time as the Company is prepared to proceed with the issuance of
the Bonds, the City Manager, in consultation with the Company and bond counsel for the City, is
authorized to prepare and publish a notice of hearing on the issuance of the Bonds as tequired by
Section 469.154 of the Act and Section 147(f) of the Internal Revenue Code of 1986.
Adopted this 2e day of August,1997.