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HomeMy WebLinkAbout94-103 • • Councilmember Johnson introduced the following resolution and moved its adoption: RESOLUTION NO. 94-103 RESOLUTION GIVING PRELIMINARY APPROVAL TO THE ISSUANCE OF REVENUE BONDS PURSUANT TO MINNESOTA STATUTES, SECTIONS 469..152-469.165, ON BEHALF OF LAKEVILLE PREMOULDED PRODUCTS COMPANY BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota (the City), as follows: SECTION 1 Recitals 1.1. Lakeville Premoulded Products Company, a Minnesota corporation (the "Company" has advised this Council of its desire to undertake a project in the City (hereinafter, the "Project") consisting of the acquisition of approximately 5 acres of land and the construction and equipping thereon of a facility of approximately 55,000 square feet for the manufacture of premoulded paper products. The Company would utilize waste such as newspaper and old corrugated in the manufacturing process, repulp the waste and would produce moulded paper products such as, without limitation, apple trays, egg trays and cartons and packaging material. The facility would be located west of Granada Avenue in the Airlake Industrial Park in the City and the estimated total cost of the Project, including financing costs and contingencies, is approximately $19,000,000. The Company has requested that the City consider the issuance of revenue bonds, in a principal amount not to exceed $15,000,000, 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 disposal of solid waste and the production of manufactured products. 1.3. Once completed it is anticipated that the Project would add approximately 32 new jobs to the City and State, and would significantly 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 $15,000,000, 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 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 reasonble to rely. 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. Mayor Attest: ~ ~'U,_,~ . ~ G~ City Clerk i' r i ~ The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Mulvihill and, upon vote being taken thereon, the following voted in favor thereof: Johnson,. Zaun, Sindt, Mulvihill, Harvey and the following voted against the same: N/A whereupon the resolution was declared duly passed and adopted. i