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HomeMy WebLinkAbout78-065Councilmember Spande introduced the following resolution and moved its adoption: RESOLUTION 78-65 RESOLUTION AUTHORIZING THE ACQUISITION, CONSTRUCTION AND LEASING OF A PROJECT UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT AND THE SALE AND ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS TO FINANCE THE PROJECT, SECURED BY A PLEDGE AND ASSIGNMENT OF THE REVENUES THEREOF AND A MORTGAGE OF THE PROJECT TO A TRUSTEE BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota as follows: 1. It has been proposed that the City issue its Industrial Development Revenue Bonds (Star -Tex Corporation Project), Series 1978, dated August 1, 1978 (the "Bonds"), in the principal amount of $2,300,000, to acquire certain real property within.the City and lease the same, together with a 100,000 square -foot building to be constructed and equipped thereon (the "Project"), to Star -Tex Corporatior a Minnesota corporation, which will use the Project for the extrusion of plastic products. The Council gave preliminary approval to the proposal by resolution duly adopted May 15 , 1978, and pur- suant to that resolution, the following documents relating to the Project have been submitted to the Council and are now, or shall be placed, on file in the office of the City Clerk -Administrator: (a) Lease, dated as of August. 1, 1978, proposed to be made and entered into between the City and Star -Tex Corporation, as Tenant; (b) Mortgage and Indenture of Trust, dated as of August 1, 1978 (the "Indenture") proposed to be made and entered into between the City and the National City Bank of Minneapolis, in Minneapolis, Minnesota, as Trustee; (c) Official Statement prepared by Miller & Schroeder Municipals, Inc., of Minneapolis, Minnesota (the "Underwriter") relating to the offer and sale of the Bonds; and (d) Bond Purchase Agreement, to be dated as of the closing date, proposed to be made and entered into between the City, Tenant, Underwriter and Laitala Family Investment Company, Inc., a Delaware corporation. 2. It is hereby found, determined and declared that: (a) the Project to be financed constitutes a "project" authorized by Section 474.02, subd. 1, Minnesota Statutes; (b) the purpose of the Project, as defined in the Lease and Indenture, is, and the effect thereof will be (i) to promote the public welfare by the attraction, encouragement and development of • f economically sound industry and commerce so as to prevent, so far as possible, the emergence of blighted and marginal lands and areas of chronic unemployment; (ii) to develop a more inten- sive tax base for providing governmental services and facilities; and (iii) to provide additional employment opportunities for residents of the City and surrounding area; (c) the Project has been approved by the Commissioner of Securities of the State of Minnesota as tending to further the purposes and policies of the Municipal Industrial Development Act; (d) it is desirable that the Tenant be authorized, in accordance with the provisions of Section 474.03(6), Minnesota Statutes, and subject to the terms and conditions set forth in Article 3 of the Lease, which terms and conditions the City deter- mines to be necessary, desirable and proper, to provide for the acquisition and construction of the Project by such means as shall be available to the Tenant and in the manner determined by the Tenant, and with or without advertisement for bids as required for the construction and acquisition of other municipal facilities; (e) it is desirable that the .Bonds in the amount of $2,300,000 be issued by the City upon the terms set forth in the Indenture, under the provisions of which the City's interest in the Lease and the rentals will be pledged and the Project will be mortgaged to the Trustee as security for the payment of principal and interest on the Bonds; (f) the rentals charged in the Lease for the use of the Project are fixed, and required to be .revised from time to time as necessary, so as to produce income and revenue sufficient to provide for prompt payment of principal of and interest on all Bonds issued under the Indenture when due, and the Lease also pro- vides that the Tenant is required to pay all expenses of the operation and maintenance of the Project including, but without limitation, adequate insurance thereon and insurance against all liability for injury to persons or property arising from the operation thereof, and all taxes and special assessments levied upon or with respect to the Project and payable during the term of the Lease, during which term a tax is imposed by Minnesota Statutes, Section 474.03(3) for the privilege of using and possessing the Project, in the same amount and to the same extent as though the Tenant were the owner of all real and personal property comprising the same; and (g) under the provisions of Minnesota Statutes, Section 474.10, and as provided in the Lease and Indenture, the Bonds are not to be payable from nor charged upon any funds other than the revenue pledged to the payment thereof; the City is not subject to any liability thereon; no holders of the Bonds shall ever have the right to compel any exercise of the taxing powers of the City to pay any of the Bonds or the interest thereon, nor to enforce payment thereof against any property of the City except the Project mortgaged by the Indenture; the Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the Project; each Bond issued under the Indenture shall recite that the Bonds, including interest thereon, are payable solely from the revenue pledged to the payment thereof; and no Bond shall constitute a debt of the City within the meaning of any constitutional or statutory limitation. 3. The forms of Lease, Indenture and Bond Purchase Agreement referred to in paragraph 1 are approved. The City agrees to accept conveyance by warranty deed of the real estate to be included in the Project. The Lease, Indenture and Bond Purchase Agreement, with such variations, insertions and additions as the City Attorney may hereafter deem appropriate, are directed to be executed in the name and on behalf of the City by the Mayor_ and City Clerk -Administrator. Copies of all of the documents shall be delivered, filed and recorded as provided therein. The City hereby consents to the distribution of the Official Statement to prospective purchasers of the Bonds, but assumes no responsibility for the content thereof. 4. In anticipation of the collection of revenues of the Project, the City shall proceed forthwith to issue the Bonds in the principal amount of. $2,300,000, in the form and upon the terms set forth in the Indenture, which terms are for this purpose incor- porated in this resolution and made a part thereof, and at interest rates not to exceed an average annual rate of 9.50%, including the discount on the bonds, as shall be approved by the Mayor and City Clerk -Administrator (which approval of the Mayor. and Clerk -Administrator shall be conclusively evidenced by their execution of the Indenture and shall constitute the approval of this Council). The proposal of the underwriter to purchase the Bonds at a price of $2,208,000, plus accrued interest, upon the terms and conditions set forth in the Indenture is hereby accepted. The Mayor and City Clerk -Administrator are authorized and directed to prepare and execute the Bonds as pre- scribed in the Indenture and to deliver them to the Trustee, together with a certified copy of this resolution and other documents required by the Indenture, for authentication and delivery to the Underwriter. 5. The Mayor, City Clerk -Administrator and other officers of the City are authorized and directed to prepare and furnish to the purchaser of the Bonds and bond counsel certified copies of all proceedings and records of the City relating to the Bonds, and such other affidavits and certificates as may be required by bond counsel, and approved by the City Attorney, to show the facts relating to the legality and marketability of the Bonds. Approved. Mayor Attest: C qty Clerk -Administrate