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HomeMy WebLinkAbout88-157 CERTIFICATION OF MINUTES RELATING TO a INDUSTRIAL DEVELOPMENT REVENUE BONDS Issuer: City of Lakeville, Minnesota Governing Body:. City Council Kind, date, time and place of meeting: A regular meeting, held on December 5, 1988; at 7:00 P.M., at the Council Chambers, in Lakeville, Minnesota. Members present : Nelson, Zaun, Enright, Sindt, Harvey Members absent.: hone Documents Attached: Minutes of said meeting (pages): RESOLUTION NO. 88-157 RESOLUTION GIVING PRELIMINARY APPROVAL TO A FINANCING PROGRAM ON BEHALF OF OFFICE ELECTRONICS, INC. UNDER MINNESOTA STATUTES,. • SECTIONS 469.152 THROUGH 469.165, AS AMENDED (OFFICE ELECTRONICS, INC. PROJECT) I, the undersigned, being the duly qualified and acting. recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of the corporation in my legal custody, from which they have been transcribed; that the documents are a correct and complete transcript of the minutes of a meeting of the governing body of .the corporation, and correct and complete copies of all. resolutions and other actions taken and of all documents approved by the governing body at the meeting, insofar as they relate to the obligations; and that the meeting was duly held by the governing. body at .the time and place and was attended. throughout by 'the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESSS my hand officially as such recording officer and the seal of the Issuer this 5th d y f D ember, 1988.. f (Seal) igna ure Patrick McGarvey, • City Administrator-Clerk Councilmember Enright moved for adoption of • the followin resolution: 9 RESOLUTION N0. 88-157 RESOLUTION GIVING PRELIMINARY APPROVAL TO A FINANCING PROGRAM ON BEHALF OF OFFICE ELECTRONICS, INC. UNDER MINNESOTA STATUTES, SECTIONS 469.152 THROUGH 469.165, AS AMENDED (OFFICE ELECTRONICS, INC. PROJECT) BE IT RESOLVED by the City Council (the Council) of the City of Lakeville, Minnesota (the City), as follows: SECTION 1 Recitals-and Findings 1.1. The Council has received a proposal that the City finance a portion or all of the cost of a proposed development program (the Program) under Minnesota Statutes, Sections 469.152 through 469.165 (the Act), consisting of (i) the construction of an approximately square foot addition to the printing facility owned by Office Electronics, Inc., an Illinois corporation (the Borrower), (ii) the • acquisition and installation of equipment in said addition and the existing facility and (iii) the refunding and refinancing of the City's outstanding Industrial Development Revenue Bonds (Office Electronics, Inc. Project), Series 1980, dated September 1, 1980. The printing facility is located in the City at 1.2. The Council hereby finds, determines and declares as follows: (a) The welfare of the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental actions for the purpose of preventing the emergence of blighted and marginal lands and areas of chronic unemployment, and the State of Minnesota has encouraged local government units to act to prevent such economic deterioration. (b) The Program would further the general purposes contemplated and described in Section 469.152 of the Act. (c) The construction and equipping of the addition to the printing facility would add to the tax base of Dakota County, the City and the School District in which the facili y is located and would also provide increased opportunities for • employment for residents of the City and surrounding area. (d) The Council has been advised that conventional • financing for the Program is available only on a limited basis and at such high costs of borrowing that the economic feasibility of the Program would be significantly reduced, but that with the aid of municipal borrowing, and its resulting lower borrowing cost, the Program is economically more feasible. (e) The Council has also been advised that revenue bonds of the City could be issued and sold upon favorable rates and terms to finance the Program. (f) The City is authorized by the Act to issue its revenue. bonds to finance and refinance capital projects consisting of properties used and useful in connection with a revenue producing enterprise, such as that of the Borrower, and the issuance of the bonds by the City would be a substantial inducement to the Borrower to expand its operations in the City. .SECTION 2 Determination to Proceed with the Program 2.1. On the basis of the information given the City to date, it appears that it would be desirable for the City to issue its revenue bonds under the provisions of the Act in the • maximum aggregate face amount of $4,000,000 to finance the Program. 2.2. It is hereby determined to proceed with the Program and the Council hereby declares its present intent to issue its revenue bonds under the Act in a principal amount not- to exceed $4,000,000 to finance the Program. Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the City to issue or to cause the issuance of such revenue bonds. All details of such revenue bond issue and the provisions for payment thereof shall be subject to final approval of the Program by the Minnesota Department of Trade and Economic Development and to the availability of sufficient bond .volume allocation from the State, and may be subject to such further conditions as the City may specify. The revenue 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 of the City within the meaning of any constitutional or statutory .limitation. • -2- SECTION 3 • General 3.1. If the bonds are issued and sold, the City will enter into a revenue agreement in the form of a lease, mortgage, direct or installment sale contract, loan agreement, take or pay or similar agreement satisfying the requirements of the Act (the Revenue Agreement) with the Borrower. The amounts payable by the Borrower to the City under the Revenue Agreement 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.. 3.2. The Borrower has agreed and it is hereby determined that any and all direct and indirect costs incurred by the City in connection with the Program, whether or not the Program is carried to completion, will be paid by the Borrower upon request. Adopted this 5th day of December, 1988. --'~--C-~Z.~ Mayo • Attest• City Adminis ra or-Cle The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Harvey. and, .upon vote being taken thereon, the following voted in f avor thereof: Zaun, Enright, Sindt, Harvey, Nelson .and the following voted against the same: None whereupon the resolution was declared duly passed and adopted. _3_