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HomeMy WebLinkAbout80-080 CERTIFICATION OF MINUTES RELATING Z'O INDUSTRIAL DEVELOPMENT REVENUE BONDS (DESPATCH INDUSTRIES, INC. PROJECT) Issuer: City of Lakeville, Minnesota Governing Body: City. Council Rind, date, time. and place of meeting: A council meeting, held August 18 , 1980., at 7:30 0' clock ~.m. , at council chamber,. 7773 214th St. W. Members Present: Spande, Lekson, Zaun, Sindt, Nelson. Members Absent: None Documents Attached: Minutes of said meeting (pages): _ through including: RESOLUTION N0. 80-80 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL.DEVELOPMENT.ACT; REFERRING THE. PROPOSAL TO THE COMMISSIONER OF SECURITIES FOR APPROVAL AND AUTHORIZING PREPARATION OF NECESSARY .DOCUMENTS I, the undersigned, being the duly qualified and acting recording officer of the public corporation .considering issuance of 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 said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said .corporation, and. correct and complete copies of all resolutions and other actions taken and of all documents ..approved by the governing body at said meeting, so far as they relate to said obligations; and that said 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 recording officer this 18th day of u ust , 1980. l r Signature Patrick E. McGarvey, City Clerk-Administrator Name and Title .The City Clerk-Administrator presented an .affidavit as to publication of the. Notice of Public Hearing relating to the proposal to undertake and finance a project on behalf of .Despatch Industries, Inc. in .the Dakota County Tribune , the official newspaper of the City, and in the Dakota county. Tribune , a newspaper of general circulation throughout the City, once not less than 15 days nor more .than 30 days prior to the date fixed for the public hearing. The affidavits were examined, found to be satisfactory and ordered placed on file with the City Clerk-Administrator. The Mayor then stated that it being the. hour specified in the Notice of Public Hearing all parties could now express their views on the proposal to undertake and finance the project with Despatch Industries, Inc., in response. to which the following persons appeared, were recognized and made statements, summaries of which appear opposite. their respective names: Names Summary of Views Earl Whitney Spoke for the Company and presented an artiste rendering of the plant expansion and employment increase. No others. After all persons who .wished to do so had stated their views on the proposal, the Mayor declared the hearing to be .closed.. Member zaun then introduced the following resolution and moved its .adoption: RESOLUTION NO. 80-80 RESOLUTION GIVING PRELIMINARY APPROVAL TO A PROJECT UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT; REFERRING. THE PROPOSAL TO THE COMMISSIONER OF SECURITIES FOR APPROVAL AND .AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS BE IT .RESOLVED by the City Council of the City of Lakeville, Minnesota (the City) as follows.: 1. It is hereby .found, determined and declared: l.l. The Minnesota.Legislature has enacted the Minnesota Municipal Industrial Development Act, appearing at Chapter 474., Minnesota. Statutes. (.the Act), under which .the City is authorized to issue revenue bonds for the ..purpose of providingfinancing for the acquisition, construction and equipment of projects consisting of real and personal properties used or useful in connection 'with a revenue.-producing enterprise engaged in any business.. 1.2. In enacting the Act, the Legislature found that the welfare of the. State requires the active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental action to prevent so far as possible the emergence of blight and areas of chronic unemployment; and determined that it is the .policy. of the State to encourage action by .local governmental .units to prevent such economic deterioration. 1.3. Despatch Industries, Inca, a Minnesota corporation (the Company), has advised this Council of its desire to construct on certain land located within the .City one or more buildings and related facilities and to acquire personal property for installation therein (such construction, acquisition and installation, hereinafter referred to as the Project), for use by the Company as an addition to its existing manufacturing facility. -2- 1.4. The existence of the 'Project .within the City would significantly increase the tax base of the City, Bakota County and the school district in which the Project is located and would provide opportunities for employment for residents of the City and surrounding area. 1. 5. As required. by Section 474.01, Subdivision 7b of the Act, a public hearing was conducted August 18 , 1980,. on the proposal to undertake and finance the Project after the publication of notice. of the time and place of the hearing, the general nature of the Project and the estimated principal amount of the Bonds, which notice was_ published in the official newspaper of the City, and in a newspaper in general circulation throughout the City not less than .fifteen (15) days nor more.. than thirty (30) days before the public hearing; a draft copy of the proposed application to the Commissioner of Securities, together with all attachments and exhibits thereto, was available for public inspection following the publication of the notice of public hearing. 1. 6. This Council has been advised by representatives of the Company that conventional, commercial financing to pay the capital cost of the Project has not been obtained and is available only on a limited basis and at such high costs and on such terms of borrowing that .the economic feasibility of acquiring, constructing and operating the Froject would be significantly impaired; however, representatives of the Company have also advised the City that the use of municipal financing and the lower borrowing cost resulting therefrom will materially increase the economic feasibility of the Project. and will constitute a substantial inducement to undertake the Project. 1. 7. The Company has .proposed that the City issue and sell its industrial development revenue bonds or notes (whether bonds or notes, hereinafter referred tow s the Bonds) pursuant to the Act for .thee purpose. of financing the Project, including certain expenses incidental thereto, in the approximate principal amount of $2,500,000 and loan the proceeds. realized upon the sale of the Bonds to the .Company pursuant. to arevenue agreement.. (the Revenue Agreement) wherein the Company will be obligated to acquire and construct the Project, to apply the proceeds of the Bonds solely to the payment of the costs thereof and to make payments under the Revenue. -3- Agreement at the time and in the amounts sufficient to provide for the prompt payment of the principal of, premium, if any, and interest on the Bonds and all costs and expenses of the City incident to the issuance and sale of the Bonds; the proposal further provides that the Project will be mortgaged and a security interest granted therein, and the City's right and interest in the Revenue Agreement pledged for the benefit and security of the_ holders from time to time of the. Bonds. 1. 8. The undertaking of the proposed Project and the .issuance of the Bonds to finance the costs thereof will further and promote the-public purposes and legsla- tive objectives of the Act by encouraging. the retention and development of a revenue-producing enterprise within the City, by increasing the tax base of the City and over- lapping taxing jurisdictions, by providing additional employment opportunities for residents of the City and surrounding area and by stimulating the development of lands within the City. 1.9. The fullfaith and credit of .the City will not be pledged or responsible. for the Project or the payment of the principal of and interest on the Bonds. 1.10. This .Council has also been advised by a .representative of , of , , that on the basis. of information submitted to them and their discussions with representatives of the Company and potential buyers of tax-exempt bonds, the Bonds could be issued and sold upon. terms and conditions satisfactory to the City and the Company to finance the Project. 2. On the basis of information given the City to date, it appears that it would be in the best interest of -the City to issue the .Bonds under: the provisions of the Act to undertake and. finance the Project at a cost presently estimated to be approximately $2,500,000. 3. The undertaking of the. Project and the issuance of the Bonds pursuant to the Act in the approximate principal amount of $2,500,000 to finance the costs thereof all as referred to above is hereby authorized. and approved. by the City, subject to the approval of ..the Project by the .Commissioner of Securities and to the mutual agreement of this Council, the Company' and the purchaser or purchasers of the Bonds as to the detailed terms and conditions on which the Bonds will be issued, sold and secured and the terms and conditions of -4- the Revenue Agreement and other instruments and proceedings relating to the Bonds; the agreement of the City must be evidenced by a resolution of this Council authorizing the issuance of the .Bonds for the purpose of financing the Project and authorizing the execution of .the necessary documents. In all events, it is understood, however, that the Bonds. shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property of the City except the Project, if the Project becomes property of the City, and each Bond, when, as and if issued, shall .recite in substance that the Bond, including interest thereon, is 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. 4. In accordance with Section 474.01, Subdivision 7 of the Act, the Mayor and .City Clerk-Administrator are hereby authorized and directed to submit an application to the Commissioner of Securities .for her approval of the Project. The .Mayor., City Clerk-Administrator, City Attorney and other officers, .employees and agents of the City are hereby. authorized in cooperation with Dorsey, Windhorst, Hannaford, Whitney & Halladay, as band counsel, to .initiate preparation of such documents as may be appropriate to the Project in order .that, when and if the Project is approved by the Commissioner, it may be carried forward expeditiously. .The Mayor and City Clerk-Administrator are hereby authorized and directed, when and if the Bonds are issued., to submit to the Minnesota Department of Economic Development information concerning the Project as required by Subdivision 8 of Section 474.01,-Minnesota Statutes. 5. All commitments of the City. expressed herein. are subject to the condition that within twelve (12) months from the date of .adoption of this resolution (or suchother date as shall be mutually satisfactory to the City and the Company) the City and the Company shall have agreed upon mutually acceptable terms and conditions of the Revenue Agreement, the Bonds and of the other instruments and proceedings relating to the Bonds. If the .events set forth herein do not take place within the time set forth above or .any extension thereof and the Bonds are not sold within such time, the Company agrees that it will reimburse the City .for all reasonable and .necessary expenses which the City may incur in performance of its authorization and approvals hereunder. -5- This resolution shall be effective immediately upon its final adoption. PASSED AND FINALLY ADOPTED by the City Council of the City of Lakeville this 18th day of August 1980. Mayor Attest: ~ ~ ity Clerk-Administra r The motion for the adoption of the foregoing resolution was duly seconded by Member sindt and upon vote being taken thereon, the following voted in favor thereof: Nelson, Spande, Lekson; Zaun, Sindt. 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-