HomeMy WebLinkAboutCity Council Resolution 2000-190RESOLUTION NO. 2000-190
RESOLUTION GIVING PRELIMINARY APPROVAL TO THE
ISSUANCE OF REVENUE BONDS PURSUANT TO MINNESOTA
STATUTES, SECTIONS 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
Recitals
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 and the construction of
building improvements at its existing office/manufacturing facility located at 2100
Fernbrook 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
$1,500,000. The Company has requested that the City consider the issuance of
revenue bonds, in a principal amount not to exceed $1,500,000, to assist in the
financing of the Project.
2.1 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 useful 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 185 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 successful completion of the Project.
SECTION 2
Preliminary Approval of Bond Financing
1
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
$1,500,000, 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 issuance of the Bonds. All details of
the Bonds and the provisions for payment thereof shall be subject to final
approval of this Council prior to their issuance. The Bonds, if issued, shall not
constitute a charge, 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, when, 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 from the proceeds of the Bonds when issued. The City
reasonably expects to reimburse costs 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 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 required by Section 469.154 of the Act and Section
147(f) of the Internal Revenue Code of 1986.
Adopted by the Plymouth City Council on April 11, 2000.
FA