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HomeMy WebLinkAboutCity Council Resolution 2010-271CITY OF PLYMOUTH RESOLUTION NO. 2010-271 RESOLUTION GIVING APPROVAL TO A PROJECT ON BEHALF OF INTERFAITH OUTREACH AND COMMUNITY PARTNERS AND ITS FINANCING UNDER MINNESOTA STATUTES, SECTIONS 469.152 TO 469.165; REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT FOR APPROVAL; PROVIDING FOR THE ISSUANCE AND SALE OF REVENUE BONDS, SERIES 2010 (INTERFAITH OUTREACH AND COMMUNITY PARTNERS PROJECT) AND EXECUTION OF RELATED DOCUMENTATION BE IT RESOLVED by the City Council of the City of Plymouth, Minnesota (the "City"), as follows: SECTION 1 Recitals and Findings 1.1. This Council has received a proposal that the City, pursuant to Minnesota Statutes, Sections 469.152 through 469.165, as amended (the "Act'), issue its revenue bonds (the "Bonds") for the purpose of financing a portion or all of the cost of a proposed project (the "Project") on behalf of Interfaith Outreach and Community Partners, a Minnesota nonprofit corporation (the "Corporation"), consisting of (a) the acquisition, renovation and equipping of an approximately 40,000 square foot building located at 1605 County Road 101 North in the City and (b) financing certain costs of issuance of the Bonds. 1.2. At a public hearing, duly noticed and held on the date hereof, in accordance with Section 469.154, Subdivision 4 of the Act and Section 147(f) of the Internal Revenue Code of 1986, as amended, 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 such project and interested persons were given the opportunity to submit written comments to the City Manager before the time of the hearing. 1.3. The City hereby finds the following: a) Based on the public hearing, such written comments (if any) and such other facts and circumstances as the Councilmembers deem relevant, the Council finds that it would be desirable and would fiirther the purposes of Minnesota Statutes, Section 469.152, for the City to finance the costs of the Project under the provisions of the Act in the maximum aggregate face amount of $2,250,000, by issuing its Revenue Bonds, Series 2010 (Interfaith Outreach and Community Partners Project). The City is authorized to issue the Bonds. b) The Project would not be undertaken but for the availability of Industrial Development bond financing under the Act. c) The loan payments or other amounts payable by the Corporation to the City under the Loan Agreement, as hereinafter defined, 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. d) There is no litigation pending or, to the best of its knowledge, threatened, against the City relating to the Project or the Bonds or the Bond Documents, as hereinafter defined, or questioning the organization of the City or its power or authority to issue the Bonds or to execute and deliver the Bond Documents required to be executed by the City. e) The execution and delivery of, and the performance of the City's obligations under, the Bonds and the Bond Documents do not and will not violate any material order of any court or other agency of government, or any material provision of any indenture, agreement or other instrument to which the City is a party or by which it or any of its property is bound, or be in conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any such indenture, agreement or other instrument. f) No Councilmember (i) has a direct or indirect interest in the Project, the Bond Documents or the Bonds, (ii) has a direct or indirect interest in the Corporation, or (iii) has received or will receive any commission, bonus or other remuneration for or in respect of the Project, the Bond Documents or the Bonds. SECTION 2 Determination To Proceed with the Project and Its Financing 2.1. Award. The sale of the Bonds is hereby awarded to Anchor Bank, National Association (the "Purchaser"), and the Mayor and City Manager are hereby authorized and directed on behalf of the City to execute and deliver the Bonds to the Purchaser, subject to the conditions provided in Section 2.2 hereof, upon the terms and in the form provided herein. 2.2. Conditions to Issuance. 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 Employment and Economic Development (the "Department") and may be subject to such fi rther conditions as the City may specify. 2.3. Limited Liability. No covenant, provision or agreement of the City herein or in the Bonds, the Bond Documents or in any other document executed by the City in connection with the issuance, sale and delivery of the Bonds, or any obligation herein or therein imposed upon the City or breach thereof, shall give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers or shall obligate the City financially in any way except with respect to the Loan Agreement, as hereinafter defined, and the application of revenues therefrom 2 and the proceeds of the Bonds. No failure of the City to comply with any term, condition, covenant or agreement herein or therein shall subject the City to liability for any claim for damages, costs or other financial or pecuniary charges except to the extent that the same can be paid or recovered from the Loan Agreement or revenues therefrom or proceeds of the Bonds. No execution on any claim, demand, cause of action or judgment shall be levied upon or collected from the general credit, general funds or taxing powers of the City. In making the agreements, provisions and covenants set forth herein and in the Bond Documents, the City has not obligated itself except with respect to the Loan Agreement and the application of revenues thereunder and the proceeds of the Bonds. The Bonds constitute a special obligation of the City, payable solely from the revenues pledged to the payment thereof pursuant to the Loan Agreement, and do not now and shall never constitute an indebtedness or a loan of the credit of the City, the State of Minnesota or any political subdivision thereof or a charge against the City's general taxing powers within the meaning of any constitutional or statutory provision whatsoever. The Bonds shall also not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City, except upon the revenues specifically pledged to the payment thereof. SECTION 3 Approval of Documentation 3.1. Approval of Bond Documents. Forms of the following documents relating to the issuance of the Bonds (the "Bond Documents") have been submitted to this Council and are now on file in the office of the City Clerk: (a) a Loan Agreement (the "Loan Agreement"), between the City and the Corporation, whereby, among other things, the City has agreed to sell the Bonds to provide fiinds to be loaned to the Corporation to pay the costs of the Project, and the Corporation has agreed to make loan repayments sufficient to pay debt service on the Bonds when due, and to pay related costs, expenses and fees of the City; (b) a Pledge Agreement (the "Pledge Agreement"), between the City and the Purchaser; (c) a Mortgage, Security Agreement, Assignment of Rents and Leases and Fixture Financing Statement (the "Mortgage"), from the Corporation to the Purchaser; (d) a Disbursing Agreement (the "Disbursing Agreement"), between the Purchaser, the Corporation and the Title Agent (as defined therein); and (e) the Bonds. The forms of Bond Documents referred to above are approved. The rate of the Bonds shall not exceed 8.00%. The Bond Documents required to be executed by the City shall be executed in the name and on behalf of the City by the Mayor and City Manager in substantially the form on file, but with such changes therein, not inconsistent with the Act or other law or this Resolution, as may be approved by the officers executing the same, which approval shall be conclusively evidenced by the execution thereof. The Mayor and the City Manager are also authorized and directed to execute such closing certificates and other documents as may be necessary to complete the issuance and delivery of the Bonds, such officers' approval of which shall be conclusively evidenced by the execution thereof. 3.2. Approval of Application. 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. 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 and City Manager and other officers, employees and agents of the City are hereby authorized and directed to provide the Department with any information needed for this purpose. SECTION 4 General 4.1. Execution and Delivery of Bonds. The Bonds shall be executed by the facsimile signatures of the Mayor and the City Manager, and the Bonds shall be delivered to the Purchaser upon payment of the agreed purchase price therefor, and upon receipt by the Purchaser of the signed legal opinion of Dorsey & Whitney LLP, of Minneapolis, Minnesota, bond counsel, and the other documents required by the Bond Documents and the City. 4.2. Information Required. The Mayor, City Manager and other officers of the City are authorized and directed to prepare and fiirnish to Dorsey & Whitney LLP, bond counsel, the Corporation, and the Purchaser certified copies of all proceedings and records of the City relating to the Project and the Bonds, and such other affidavits and certificates as may be required to show the facts appearing from the books and records in the officers' custody and control or as otherwise known to them; and all such certified copies, certificates and affidavits, including any heretofore fiirnished, shall constitute representations of the City as to the truth of all statements contained therein. 4.3. Costs. The Corporation has agreed to pay directly or through the City any and all costs incurred by the City in connection with the Project, including the City's fee, whether or not the Project is carried to completion and whether or not the Bonds or Bond Documents are executed. 4.4. Ongoing Compliance. 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. ADOPTED by the Plymouth City Council this 28th day of September 2010. M 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 September 28, 2010 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 of City Clerk