Loading...
HomeMy WebLinkAbout84-081 CERTIFICATION OF MINUTES RELATING TO 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 June 18,1984, at ~-00 o'clock P.M., at the City Hall. Members present: Nelson, Zaun, Sindt, Enright, Harvey Members absent : None Documents Attached: Minutes of said meeting (pages): MINUTES OF PUBLIC HEARING ON PROPOSED PROJECT RESOLUTION NO. 84-81 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT AND ITS FINANCING UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE MINNESOTA ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY FOR APPROVAL; AND AUTHORIZING PREPARATION OF NECESSARY DOC~TS 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 ali 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. WITNESS my hand officially as such rec rding o icer and the seal of the City this 1~ day o 4 c Signs ure Patrick McGarvey, City Clerk-Administrator {SEAN) Name and Title The Mayor stated that this was the time and place fixed by Resolution No . 84-~~ -of this Council , adopted on May 21, . 1984, for a public hearing on the proposal that the City undertake and finance a Project on behalf of RJTP Company a Minnesota partnership ( the Borrower ) pursuant to Minnesota Statutes, Chapter 474. The City Clerk-Administrator presented affidavits showing publication of the notice of public hearing at least once not less than 15 nor more than 30 days prior to the date fixed for the public hearing, in the Dakota County Tribune, the official newspaper of the City, and in the Minneapolis Star and Tribune, a .newspaper of general circulation throughout the City. The affidavits were examined, found to be satisfactory and ordered placed on file with the City Clerk-Administrator. The Mayor then opened the meeting for the public- - hearing on the proposal to undertake and finance the Project on behalf of the Borrower. The purpose of the hearing was ' ~ explained, the nature of .the Project and of .the proposed revenue bonds was discussed, the draft copy of the Application to the Minnesota Energy and Economic Development Authority with draft copies of all attachments and exhibits were available, and all persons present who desired to do so were afforded an opportunity to express their views with respect to the proposal to undertake and finance the Project, in response to which the following persons either appeared, were recognized and made statements, or filed written comments with the City Clerk-Administrator before the date set for the hearing, summaries of which appear opposite their respective names: Name of Speaker Summary of Views None After all persons who wished to do so had stated or filed their views on the proposal, the Mayor declared the ° ~ public hearing to be closed. After some discussion, Councilmember Nelson moved for adoption of the following resolution: -2- RESOLUTION NO . 84-81 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT AND ITS FINANCING UNDER THE MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING THE PROPOSAL TO THE MINNESOTA ENERGY AND ECONOMIC DEVELOPMENT AUTHORITY FOR APPROVAL; AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota (the Municipality), as follows: SECTION 1 Recitals and Findings 1.1. This Council has received a proposal that the Municipality finance a portion or all of the cost of a proposed project under Minnesota Statutes, Chapter 474 (the Act), consisting of the construction and equipping of an approximately 100,000 square foot addition to an existing manufacturing facility to be located at 8235 West 220th Street in the Municipality (the Project) by RJTP Company, a Minnesota general partnership (the Borrower), to be leased by the Borrower to Star-Tex Corporation, a Minnesota corporation. 1.2. At a public hearing, duly noticed and held on June 18, _ 1984, in accordance with the Act and Section 103(k) of the Internal Revenue Code of 1954, as amended, on the proposal to undertake and finance the Project, all parties. w_ho appeared at the hearing were given an opportunity to express their views - with respect to the proposal to undertake and finance the Project and interested persons were given the opportunity to submit written comments to the City Clerk-Administrator before the time of the hearing,' Based an the public hearing, such • written comments (if any) and such other facts and circumstances as this Council deems relevant, this 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 _ acts to prevent, so far as possible, emergence of blighted 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 Project would further the general purposes contemplated and described in Section 474.01 of the Act. (c) The existence of the. Project would add to the. tax ,.base of the Municipality, the County and the School District in -3- which. the Project is. located and would provide increased opportunities for employment for residents of the Municipality and surrounding area. (d) This Council has been advised by representatives of the Borrower that conventional, commercial financing to pay the cost of the Project is available only on a limited basis and at such high costs of borrowing that the economic feasibility of operating the Project would be significantly reduced, but that with the aid of municipal .borrowing, and its resulting lower borrowing cost, the Project is economically more feasible. (e) This Council has also been advised by representatives of the Borrower that on the basis of their discussions with potential buyers of tax-exempt bonds, revenue bonds of the Municipality (which may be in the form of a commercial development revenue note or notes) could be issued and sold upon favorable rates and terms to finance the Project. (f) The Municipality is authorized by the Act to issue its revenue bonds to finance. 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 Municipality would be a substantial. inducement to the Borrower to acquire, construct. and equip the Project. _ SECTION 2 Determination to Proceed with the Project and its Financing 2.1. On the basis of the information given the Municipality to • date, it appears that it would be desirable for the ' ~ Municipality to issue its revenue bonds under the provisions of the Act to finance the Project in the maximum aggregate face amount of $2,500,000. 2.2. It is hereby determined to proceed with the Project and its financing and this Council hereby declares its present intent to have the Municipality issue its revenue bonds under the Act to finance the Project. Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the Municipality or .its City Council 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 Project by the. Minnesota Energy and Economic Development Authority and may be subject to such further -4- conditions as the Municipality may specify. The revenue bonds, if issued, shall not constitute a charge, lien or encumbrance, Legal or equitable, upon any property of the. Municipality, 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 Municipality within the meaning of any constitutional, statutory or charter limitation. 2.3. The Application to the Minnesota Energy and Economic Development Authority, with attachments, is hereby approved, and the Mayor and City Clerk-Administrator are authorized to execute said documents on behalf of the Municipality. 2.4. In accordance with Section 474.10, Subdivision 7a of the Act, the Mayor and City Clerk-Administrator are hereby authorized and directed to cause the Application to be submitted to the Minnesota Energy and Economic Development Authority for approval of the Project. The Mayor, City Clerk-Administrator, City Attorney and other officers, employees and agents of the runicipality are hereby authorized and directed to provide the Authority with any preliminary information needed for this purpose. The City Attorney is authorized to initiate and assist in the preparation of such v documents as may be appropriate to the Project, if approved by the Authority. SECTION 3 Gener al 3.1. If the bonds are issued and sold, the Municipality. will • enter into a lease, sale or loan agreement or similar agreement ' ~ satisfying the requirements of the Act (the Revenue Agreement) with the Borrower. The lease rentals, installment sale payments, loan payments or other amounts payable by the Borrower to the Municipality 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 Municipality in connection with the Project, whether or not the Project is carried to completion, and whether or not approved by the Minnesota Energy and Economic Development Authority, and whether or not the Municipality by resolution authorizes the issuance of the bonds, will be paid by the Borrower upon .request. _5_ 3.3. The Mayor and City Clerk-Administrator are directed, if the bonds are issued and sold, thereafter to comply with the provisions of Minnesota Statutes, Section 474.01, Subdivisions 8 and 11. Adopted this 18~h day of June, 984. J r i Attest : , ~ 22~. C. City Clerk-Administrator. The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Enright and upon vote being taken thereon, the following voted in favor thereof : Sindt, Enright, Harvey, Nelson, Zaun and the following voted against the same: None whereupon the resolution was declared duly passed and adopted - and was .signed by the Mayor which signature was attested-by the City Clerk-Administrator. _6.