HomeMy WebLinkAbout07-09-90 CITY OF LAKEVILLE SPECIAL COUNCIL MEETING
JULY 9, 1990
The meeting was called to order at 8:30 a.m. by Mayor Zaun.
Ro11 call was taken. Present: Councilmembers Ruhmann,
Sindt, Harvey and Mayor Zaun. Absent: Councilmember
Mulvihill.
Also present: B. Erickson, City Administrator;. D. Feller,
Finance Director; J. Robinette, Community Development
Director; C. Friedges, City Clerk.
Mr. Erickson presented the request of .Grist Mill Company for
preliminary approval to sell Industrial Development Revenue
Bonds in a principal amount not to exceed $4,325,000 to
finance the expansion of their manufacturing facility in
Airlake Industrial Park. He explained that the company
wishes to acquire additional land for the construction of a
69,000 square foot addition to their existing facility. Mr.
Erickson. explained that the bonds do not carry the full faith
and credit of the City and would, therefore, cause no
liability to the tax payers in the event the company defaults
on those bonds. The City does, however, extend its tax
exempt .status to the company so they -can receive a more
favorable interest rate. .Such tax .exemption would be in
accordance with IRS regulations. The bond proceeds would
also be used to purchase equipment in excess of $1,000,000
and additional land for employee parking. The total cost to
Grist Mill for the expansion is $4,318,000.
Mr. Tom Renshaw, Director of Engineering for the Grist Mill,
explained that their company, which manufactures food
products, has been constrained in growth .due to a lack of
space and personnel. He stated that the company has recently
been able to purchase six nearby lots, and their immediate
plans are to build a distribution center and, concurrent with
that, an additional production area. He stated. .that their
current sales volume is $61,000,000, which represents a 40~
increase over the previous year. He explained- that.. the
company is working toward improving employee benefits,. and
they expect to add approximately 28 staff members to the 320
employees who currently work at Grist Mill.
Mr. Erickson introduced Mr. John Kirby from .the Dorsey &
Whitney firm, who is acting as the City's bond counsel for
the issue. Mr. Kirby explained that the company must have a
preliminary resolution from the City in order to make
application to the State of Minnesota, Department.. of Finance,
for an .allocation of bonding authority for tax exempt
financing. He explained that the State hands out bonding
allocations on a two week basis, and with the City's approval
today, .they will hopefully. be awarded an allocation at the
CITY OF LAKEVILLE SPECIAL COUNCIL MEETING
JULY 9, 1990
July 16th meeting. The issue will come back. to the City at a
later date .for public hearing and approval of the final
resolution.
Councilmembers thanked the Grist Mill for their active
involvement in the city, and expressed their support of
industrial growth from existing firms in the community.
90.200. Motion was made by Harvey, seconded by Ruhmann to approve
Resolution No. 90-77 giving preliminary .approval to the
issuance of industrial development revenue bands in a
principal amount not to exceed $4,325,000 to finance a
project on behalf of the Grist Mill Company, Inc.
Roll call was taken on the motion. Ayes, Zaun, Sindt,
Harvey, Ruhmann.
Mayor Zaun adjourned the special council meeting at 8:47 a.m.
Respectfully submitted,
y
Charlene Friedges, City C1
Du ne Zaun, Ma o