HomeMy WebLinkAboutCity Council Resolution 2000-276RESOLUTION NO. 2000-276
RESOLUTION GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF
REVENUE BONDS PURSUANT TO MINNESOTA STATUTES, SECTIONS 469.152-
469.165, ON BEHALF OF DAILY PRINTING, INC.
BE IT RESOLVED by the City Council of the City of Plymouth, Minnesota (the "City"),
as follows:
SECTION 1
Recitals
1.1 Daily Printing, 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 printing and related equipment at its existing printing facility
located at 2333 Niagara Lane in the City. The Project would be used in connection with
the Company's commercial sheetfed printing business. The estimated total cost of the
Project, including financing costs and contingencies, is approximately $4,000,000. The
Company has requested that the City consider the issuance of revenue bonds, in a principal
amount not to exceed $3,000,000, 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 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 104
people in the City, that the Project will assist the Company in improving its productivity
and ultimately result in the creation of approximately 15 additional jobs in the City, 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
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 $3,000,000, to finance a portion
of 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
Resolution 2000-276
Daily Printing, Preliminary Approval
Page 2
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 of the Company 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 City Council on June 12, 2000.
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) SS.
The undersigned, being the duly qualified and appointed City Clerk of the City of Plymouth,
Minnesota, certifies that I compared the foregoing resolution adopted at a meeting of the
Plymouth City Council on June 12, 2000, with the original thereof on file in my office, and the
same is a correct transcription thereof.
WITNESS my hand officially as such City Clerk and the Corporate seal of the City this
day of
City Clerk