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HomeMy WebLinkAbout81-043 . • Member zaun introduced the following resolution and moved its adoption: RESOLUTION. NO. 81-43 RESOLUTION RELATING T© A PROJECT UNDER THE MLNNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; CALLING A PUBLIC HEARING THEREON BE IT RESOLVED by the City Council of the City-of Lakeville, Minnesota (the City), as follows; Section 1. Recitals. 1.01. The welfare of the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental acts toy prevent, so .far as possible, emergence of blighted lands .and areas of chronic unemployment, and the State has encouraged local governmental units to act to prevent such economic deterioration. 1.02. Despatch Industries, Inc., a Minnesota. corporation (the Company), engaged in the manufacture of heat processing and metal finishing equipment, has advised this Council of its desire to acquire land and to construct one or more buildings and .related facilities and to acquire and install certain personal property (such acquisition, construction and installation hereinafter is referred to as the Project), for use by the Company as an addition to its existing manufacturing facility. By _ • Resolution No. 80-80, adopted August i8, 1980, this Council gave preliminary approval to the financing of the Project through the issuance of revenue bonds under Minnesota Statutes, Chapter 474 (the Act), in the approximate principal amount of $2,500,000, the then estimated cost of the Project. Representatives of the " Company have informed this Council that the costs of the Project are now estimated to be~S4,000,000. _ I.03. The City is authorized by the Act to issue .long-term revenue bonds, or temporary revenue notes in anticipation thereof, to finance. capital projects consisting of properties used or useful in connection with a revenue-producing enterprise, such as that of the Company. .The Company has requested that the City issue • its revenue bonds in the approximate principal amount of $4,000,000 to finance the cost of the Project, and in •anticipation thereof issue its revenue notes in the same " ~ f/ . l approximate principal amount to provide temporary financing of .the Project. Section 2. Public Hearing. 2.01. Section 474.01, Subdivision 7b of the Act requires that prior, to submission of an application to the Minnesota Commissioner of Securities requesting approval of the. Project as required by Section 474.01, Subdivision 7a of the Act, .this. Council shall conduct a public hearing on the proposal to undertake and finance the Project. Pursuant to that provision, a public hearing on the proposal to undertake and finance the Project is called and shall be held on July 20 , 19$1, at 7:30 0' clock P. M., at the council chambers, Airlake Park, 7773-214th St• 2.02. The City.Clerk-Administrator shall cause notice of the public hearing to be published in the official newspaper of the City and in a newspaper of genexal circulation throughout the City at least once not less than fifteen. nor more than thirty days prior to the date. fixed for the hearing, such notice to be in .substantially the following form: NOTICE OF PUBLIC HEARING ON A PROPOSED PROJECT AND THE. ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, MINNESOTA STATUTES, CHAPTER 474, AS AMENDED CITY OF LAKEVILLE, MINNESOTA NOTICE IS HEREBY GIVEN that the City Council of the City of Lakeville, Minnesota, will meet on .July. 20 , 1981, at 7:30 .o'clock P . M. , at council chambers, 7 - t street w. , in Lakeville, Minnesota, for t e purpose of conducting a public hearing on a proposal that. the City. issue revenue bonds, and revenue notes in anticipation thereof, under the Minnesota Municipal Industrial . Development Act, Minnesota Statutes, Chapter 474, as amended., in order to finance the cost of a project on behalf of Despatch Industries, Inc., a Minnesota corporation (the Company), engaged in the manufacture of heat processing and metal finishing equipment. The proposed project will consist of the acquisition of land, the construction of one or more buildings and the acquisition and installation of certain personal property, all to be used by the Company in an expansion of its existing manufacturing facility (the Project}. The estimated total amount of the proposed issue of bonds and of notes. is $4,OD0,0O0. Such bonds and notes shall be limited obligations of the City and the bonds and notes and interest thereon shall be payable solely from the revenue pledged to the payment thereof, except-that .the bonds and notes may be secured by a mortgage or other encumbrance on the Project. No holder of any bond or note.- shall ever have the right to compel any exercise of the taxing power of the City to pay the bonds and notes, or the interest thereon, nor to enforce payment against any property of the City except the revenues pledged to the payment thereof. A draft copy of the proposed application to the Minnesota Commissioner of Securities for approval of the. Project, together with all attachments and exhibits thereto, is available for public inspection at city xall, 8830-207th street w. weekdays, between the hours of 5:00 a.m, and 4:30 p.m. All persons interested may appear and express their views with respect to the proposal to undertake and finance the proposed project. :Dated: .June 29 1981. BY O OF THE CIT 'COUNCIL ~ atrick E. McGarvey City Clerk-Administrator C 2.03. A draft:. copy of the proposed application to the. Minnesota Commissioner of Securities, together with all attachments and exhibits thereto, are hereby ordered placed on file with the City Clerk-Administrator, and shall be available for public inspection, following the publication of the notice of public hearing, weekdays, between the hours of 8:.00 and -4:30 Section 3. Special.Obligation.. In all events, it is understood, however, that any revenue bonds or notes issued by the City pursuant to the Act to assist in-the financing of the Project shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the Project, if it becomes the property of the City; that each bond or note, when, as and if issued, shall be payable solely from the revenues received .from the Project and. property pledged to the payment thereof and shall not constitute a debt of the City; and that the Company shall save and h©ld the City harmless with respect to any and all liabilities and expenses incurred by the City with respect to the Project, the bonds and the. notes. .This resolution shall be effective immediately .upon its final adoption, PASSED AND FINALLY ADOPTED by.the City Council of the City of Lakeville this 29th day of June 1981. ~ ' Mayor Attest: ~~'"c% ~~1 ~ City Clerk-Administrato