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HomeMy WebLinkAbout78-035Councilmember Zaun offered the following resolution and moved its adoption: RESOLUTION NO. 78-35 RESOLUTION GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF INDUSTRIAL REVENUE BONDS FOR A PROJECT ON BEHALF OF STAR-TEX CORPORATION, REQUESTING APPROVAL BY THE COMMISSIONER OF SECURITIES, AND AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS PURSUANT TO THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota, as follows: Section 1. Policy and Purpose. 1.01. For the purpose of promotion, attraction, encouragement and development of economically sound commerce, preserving and developing a tax base adequate to finance necessary public services, and encouraging employment oppor- tunities for the citizens of the City and surrounding area, the City is authorized by the Municipal Industrial Development Act, Minnesota Statutes, Chapter 474, to acquire and lease real and personal property for use by a revenue-producing enterprise, or to loan funds directly to.the enterprise to be used for such acquisition, said funds to be raised through the issuance of revenue bonds of the City. 1.02. Star -Tex Corporation, a Delaware corporation, hereinafter called the Corporation, is engaged in the manufacture and sale of plastic film and other _packaging products. The Corporation desires to acquire land and construct and equip a 100,000 square foot manufacturing facility (the Project) in the City, at an estimated cost of $2,300,000, and has requested that the City finance the Project by the issuance of revenue bonds pursuant to Minnesota Statutes, Chapter 474. 1.03. The Project would increase the tax base and the level of economic activity in the community, would provide additional employment opportunities and would enhance the repu- tation of the area as a desirable location for other suitable businesses. 1.04. The City is advised by representatives of the Corporation that the Project will be more feasible with the aid of municipal financing and the resulting lower borrowing cost, and the availability of municipal financing will be an inducement to the Corporation to undertake the Project in the City. Section 2. Authorization. 2.01. Subject to approval of the Project by the Minnesota Commissioner of Securities, and subject to the mutual agreement of the City Council, the Corporation and the purchaser of the bonds as to the details of an indenture, lease or loan agreement, and other documents necessary to evidence the issuance of the bonds, the Project is approved and authorized and the issuance of revenue bonds of the City to finance the Project in the amount of $2,300,000 is hereby authorized. 2.02. The Mayor is authorized and directed to submit the Project for approval by the Commissioner of Securities as tending to further the purposes and policies of the Municipal Industrial Development Act, and to cause such information concerning the Project to be submitted to the Commissioner as he shall require for this purpose. 2.03. The City Attorney is hereby authorized to assist in the preparation of necessary documents relating to the financing of the Project, and to consult with the Corpora- tion, the purchaser of the bonds and bond counsel as to the maturities, interest rates and other terms and provisions of the bonds and the covenants and other provisions of the indenture, lease or loan agreement, and to submit such documents to the Council for final approval. Section 3. No Liability of City. Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditures of any funds on the Project other than the revenues thereof or the proceeds of the bonds or other funds provided to the City for this purpose. The bonds shall not constitute a charge, lien or encumbrance, legal or equitable upon any property or funds of the City, except the Project and revenue pledged to the payment thereof, nor shall the City be subject to any liability thereon. No bondholder shall ever have the right to compel any exercise of the taxing power of the City to pay any such bonds or the interest thereon, nor to enforce payment thereof against any property of the City except the Project. No bond issued hereunder shall constitute a debt of the City within the meaning of any constitutional or statutory limitation. It is understood that all fees and costs incurred by the City in the issuance of said bonds, including the fees of the City Attorney and bond counsel, shall be the responsibility of the Corporation whether or not the bonds are actually issued. Section 4. Project Expenditures. In anticipation of the approval by the Commissioner of Securities and the issuance of revenue bonds to finance the Project, and in order that completion of the Project will not be unduly delayed when approved, the Corporation is hereby authorized to make such expenditures and advances toward payment of costs of the Project as it considers necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the revenue bonds when delivered but otherwise without liability on the part of the City. Adopted by the Council this 15th day of May, 1978. f� Approved: — /�.,j Mayor Attest: City Cler -A minis for Councilmember Curry seconded the motion, and upon call of the roll, the following Councilmembers voted in favor; Lekson, Curry, Spande, Zaun and Nelson and the following were opposed: none whereupon said motion was declared carried and the resolution duly adopted.