HomeMy WebLinkAbout96-172 CITY OF LAKEVILLE
RESOLUTION
Date October 7, 1996 Resolution No. 96-172
Motion By Mulvihill Seconded By Sindt
RESOLUTION GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF
REVENUE BONDS PURSUANT TO MINNESOTA STATUTES, SECTIONS
469.152-469.165, ON BEHALF OF PHOTRAN CORPORATION
NOVt~, THEREFORE, BE IT RESOLVED, by the City Council of the City of
Lakeville, Minnesota (the "City"), as follows:
SECTION 1
Recitals
1.1 Photran Corporation (the "Company") has advised this Council of its desire
to undertake a project in the City (hereinafter, the "Project") consisting of the (i) the
acquisition and renovation of a building to be used primarily for manufacturing purposes
and (ii) the acquisition, refurbishing and construction of manufacturing equipment to be
• used in the Company's manufacturing operations. The Project would be generally located
at 218th Street and Hanover Avenue in the Airlake Industrial Park in the City. The Project
would be used in connection with the Company's business of manufacturing thin film
coated glass products. The estimated total cost of the Project, including financing costs
and contingencies, is approximately $'7,000,000. The Company has requested that the City
consider the issuance of revenue bonds, in a principal amount not to exceed $7,000,000,
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 arevenue-producing enterprise
engaged in the fabricating, manufacturing, storing and warehousing of manufactured
products.
1.3. Once completed it is anticipated that the Project would add approximately
97 new jobs to the City and State, and would add to the tax base of the City and
overlapping taxing jurisdictions. The Company has represented to the City that the
issuance of the 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 $7,000,000, 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 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 the revenues and property 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 reply.
2.3. At such time as the Company is prepared to proceed with the issuance of
the Bonds, the Mayor and City Administrator, 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 Administrator, 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.
APPROVED AND ADOPTED by the City Council of the City of Lakeville,
Minnesota, this 7th day of October, 1996.
CITY O LAKE VII,LE
By'
D ane Zaun, May r
ATT,E(S~T~:
Charlene Friedges, i y Clerk
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