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HomeMy WebLinkAbout1996-011 Council ResolutionRESOLUTION NO. 96 - 11 Extract of Minutes of a Meeting of the City Council of the City of Lino Lakes, Minnesota Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Lino Lakes, Minnesota, was duly held at the City Hall in said City on Monday, the 12th day of February, 1996, at 6:30 o'clock P.M. The following members were present: Bergeson, Kuether, Lyden, Neal, Landers and the following were absent: None. Member Kuether and moved its adoption: introduced the following resolution RESOLUTION RECITING A PROPOSAL FOR AN INDUSTRIAL DEVELOPMENT PROJECT AND TAKING OFFICIAL ACTION WITH RESPECT THERETO AND INDICATING PRELIMINARY INTENT TO ASSIST THE FINANCING OF THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT The motion for the adoption of the foregoing resolution was duly seconded by member Neal , and after full discussion thereof and upon vote being taken thereon, the following voted in favor thereof: Bergeson, Kuether, Lyden, Neal, Landers. and the following voted against the same: None. whereupon said resolution was declared duly passed and adopted. 312116.1 RESOLUTION RECITING A PROPOSAL FOR AN INDUSTRIAL DEVELOPMENT PROJECT AND TAKING OFFICIAL ACTION WITH RESPECT THERETO AND INDICATING PRELIMINARY INTENT TO ASSIST THE FINANCING OF THE PROJECT PURSUANT TO THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT WHEREAS, (a) The purpose of Minnesota Statutes, Sections 469.152 through 469.165 known as the Minnesota Municipal Industrial Development Act (the "Act") as found and determined by the legislature is to promote the welfare of the state by the active attraction and encouragement and development of economically sound industry and commerce to prevent so far as possible the emergence of blighted and marginal lands and areas of chronic unemployment; (b) Factors necessitating the active promotion and development of economically sound industry and commerce are the increasing concentration of population in the metropolitan areas and the rapidly rising increase in the amount and cost of governmental services required to meet the needs of the increased population and the need for development of land use which will provide an adequate tax base to finance these increased costs and access to employment opportunities for such population; (c) The City Council of the City of Lino Lakes (the "City") has received a proposal from Taylor Corporation, a Minnesota corporation (the "Company"), that the City assist in financing a Project hereinafter described, through the issuance of a Revenue Bond or Bonds or a Revenue Note or Notes in the maximum aggregate principal amount of $6,000,000 (hereinafter referred to in this resolution as "Revenue Bonds") pursuant to the Act; (d) The City desires to facilitate the selective development of the community, retain and improve the tax base and help to provide the range of services and employment opportunities required by the population; and the Project will assist the City in achieving those objectives. The Project will help to increase tax capacities of the City and surrounding area and help maintain a positive relationship between tax capacities and debt and enhance the image and reputation of the community; (e) The Project to be financed by the Revenue Bonds is an approximately 150,000 square foot manufacturing facility to be located at the I-35 and County Road 14 interchange, Lino Lakes, Minnesota and consists of the acquisition of land and 312116.1 improvements thereon and the construction and equipping of the facility for Taymark (an operating division of the Company), and will result in the employment of additional persons to work within the facilities; (f) The City has been advised by representatives of the Company that conventional, commercial financing to pay the capital 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; (g) No public official of the City has either a direct or indirect financial interest in the Project nor will any public official either directly or indirectly benefit financially from the Project. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota, as follows: 1. The Council hereby indicates its preliminary intent to undertake the Project pursuant to the Minnesota Municipal Industrial Development Act and to issue the Revenue Bonds in the maximum aggregate principal amount of $6,000,000 pursuant to the Act to finance the Project. _ 2. On the basis of information available to this Council it appears, and the Council hereby finds, that the Project constitutes properties, real and personal, used or useful in connection with one or more revenue producing enterprises engaged in any business within the meaning of Subdivision la of Section 469.153 of the Act; that the Project furthers the purposes stated in Minnesota Statutes, Section 469.152; that the availability of the financing under the Act and willingness of the City to furnish such financing will be a substantial inducement to Company to undertake the Project, and that the effect of the Project, if undertaken, will be to encourage the development of economically sound industry and commerce, to assist in the prevention of the emergence of blighted and marginal land, to help prevent chronic unemployment, to help the City retain and improve the tax base and to provide the range of service and employment opportunities required by the population, to help prevent the movement of talented and educated persons out of the state and to areas within the State where their services may not be as effectively used, to promote more intensive development and use of land within the City and eventually to increase the tax base of the community. 3. The issuance of the Revenue Bonds by the City is subject to, among other things, (a) the holding of a public hearing on the proposal, (b) the approval of the Project by the Minnesota 312116.1 2 Trade and Economic Development Authority (the "Authority"), (c) review and approval of the proposed Project by the City's Bond Counsel, (d) the availability of an allocation for the issuance of tax exempt obligations, and (e) final approval by this Council, the Company, and the purchaser of the Revenue Bonds as to the ultimate details of the financing of the Project. 4. Company has agreed and it is hereby determined that any and all costs incurred by the City in connection with the financing of the Project whether or not the Project is carried to completion and whether or not approved by the City will be paid by Company. 5. Nothing in this resolution or in the documents prepared pursuant hereto shall authorize the expenditure of any municipal funds on the Project other than the revenues derived from the Project or otherwise granted to the City for this purpose. The Revenue Bonds shall not constitute a charge, lien or encumbrance, legal or equitable, upon any property or funds of the City except the revenue and proceeds pledged to the payment thereof, nor shall the City be subject to any liability thereon. The holder of the Revenue Bonds shall never have the right to compel any exercise of the taxing power of the City to pay the outstanding principal on the Revenue Bonds or the interest thereon, or to enforce payment thereof against any property of the City. The Revenue Bonds shall recite in substance that the Revenue Bonds, including interest thereon, is payable solely from the revenue and proceeds pledged to the payment thereof. The Revenue Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 6. It is the purpose of this resolution to evidence the commitment of the parties and their intentions with respect to the proposed Project in order that the Company may proceed without delay with the commencement of the acquisition, installation and construction of the Project with the assurance that there has been sufficient "official action" within the meaning of the Internal Revenue Code of 1986, as amended, to allow for the issuance of industrial revenue bonds (including, if deemed appropriate, any interim note or notes to provide temporary financing thereof) to finance the entire cost of the Project upon agreement being reached as to the ultimate details of the Project and its financing. 7. In anticipation of the final approval by the City of the issuance of the Revenue Bonds to finance all or a portion of the Project, and in order that completion of the Project will not be unduly delayed when approved, the Company is hereby authorized to make such expenditures and advances toward payment of that portion of the costs of the Project to be financed from the 312116.1 3 proceeds of the Revenue Bonds as Company considers necessary, including the use of interim, short-term financing, subject to reimbursement from the proceeds of the Revenue Bonds if and when delivered but otherwise without liability on the part of the City. Adopted by the City Council of the City of Lino Lakes, Minnesota, this 12th day of February, 1996. Attest: -1)?(4}4C Clerk -Treasurer 312116.1 4 Mayor STATE OF MINNESOTA COUNTY OF ANOKA CITY OF LINO LAKES I, the undersigned, being the duly qualified and acting Clerk -Treasurer of the City of Lino Lakes, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City duly called and held on the date therein indicated, insofar as such minutes relate to a resolution giving preliminary approval to an industrial development project. WITNESS my hand this 12th day of February 1996. /77 312116.1 5 y Clerk -Treasurer