HomeMy WebLinkAbout11-28-77 CITY OF LAKEVILLE SPECIAL COUNCIL MEETING
NOV~IBER 28, ,1977
The meeting was called to order by,Mayor Mak.a at 5:00 P.i~i.
Roll call was taken:.. Present; Mako., Curry and Zaun. Absent: Emond and Clarkson..
'Also present: Patrick McGar~ey, City~Administrator; Patrick Farrell, City Attorney,
The pity Council and staff .reviewed a;Mam~zandum of Agreement and a Resolution
which. would gave approval to an industrial revenue bond issue fmr Marillat In-`
dustries of Adrian, Michigan in"LHe:amount of $3 million dollars. Present at
the meeting"were Mr. John Thur~,an, Treasurer of Marillat Industries, Inc. and
Mr. Fred Hoskin, Assistant Vice President of the Ohio Cox~pany, Toledo, Ohfo.'
Mr. Thurman and l+~r. 'Aosk~' explained t~tat .the proceeds o£ the industrial re-
venuebonds in the aunt of $3 miliian col3ars would be used for the purchase
of the former Frederick--~il.lys building wit's 20 acres of Iand for a cost of
$l.9 million and the ,rest of the'groeeeds wou=ld be-used as per': the outline
;in the application to .the Depar~nent of Commerce, Securities Dfvision of the
-State of Minnesota. Mr. Thurman explained that approximately $300,000 of
the $800,000 shown for equipm~xt ac~iisition and installation will be the
new furnace to'heat the building alnd provide a source of energy in the making
`of their product .
Mr. Farrell advised the Council that the application does not include funds
set aside for initial bond reserve. Mr. Hoskin explained that recent indus-
trial revenue bondz.issues hava'not included .this reffierve when the companyn-
volved has a'good financial record. Mr, Hoskin a1:ao explained. the role of
the.(lhia&Company as the underwriter of this bond issue and the role of the
truate+t:~whieh'would be a.Mnnesota bank acceptable to the City..
The City Administrator advised the Council that Mr. Pinscher of Springsted,
Inc. had statetd that the company was in good financial condition after review-
ing their last three audits and the Dun and ,Bradstreet information supplied
to the City. He also advised'`the City that 'the Council may want to require
an apprz~i~al of- the building and also require a trustee satisfactory to the
City.
Mr.:Farrell reviewed a purchase agreement between Stanley Company; and Marillat
Industries concerning the purchase of the building that was provided by Mr.
-Thurman. Mr. Farrell stated that the agreement appeared"'t0 be an arms length
trax~action in the :sale and purchase of the rea]; esCate fd~'n.~li~9,.,,ml~~.i~p dp~:l~.rs.
Mayor Mako asked Mr.'Thurman if there would be any air pollution from .thee
burning of the wood scraps in the company's new furnace. Mr. Thurman e~y
plained that there; would be no air pollution and t~:at the furnace .would meet'
-EPA and. Minnesota requirements. He exphihed that the materials-are burned
in a suspended 'condition which pr~ahib#.ts-;visi~~.e .smeake. He 'exp~.sined .that a
40 foot stack would be constructed with the new-furnace..
77.608 Motion was,made;by Curry, seconded by Zaun to waive the 30 day requirement
contained`in City Resolution 75-189 for :City analysis in approving: an ndus-
tral revenue bond issue_in_this case.
Roll call `was taken on the motion. Ayes; Mako, Curry and Zaun.
77.609 Motion was made by Zaun, aeconded by Curry_ta adopt Resolution 77-73 giving
preliminary approval tv a pro3ect under the Municipal industrial Development
Act for Marillat Industries, Inc.
Roll call was taken on the motion. Ayes, Curry, Zaun and Mako.'
77.610 Motion was made by Zaun, °seconded by Curry to adgoarn the special `Cout~'~`meet-
ing.
Roll call .was taken on the motion. Ayes, Zaun.Mako and Curry. Time: S:dS P.M.
.:Res tf lly ubmitf-~d,
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C t i~ C
~ Patrick E. McGarvey~'Citq. erk
:.Edward J. ,M~t o y ; yor
:4' ~