HomeMy WebLinkAboutResolution - 78-111 - IDRB's for Eaton-CharLynn - 06/20/1978 RESOLUTION NO. 78-111
RESOLUTION OF
THE CITY COUNCIL OF
THE CITY OF EDEN PRAIRIE, MINNESOTA
WHEREAS, The City Council of the City of Eden Prairie,
Minnesota has been informed by officials of Eaton Corporation
that the Company proposes the acquisition and installation of
additional machinery and equipment in its Char-Lynn plant
located in the City and, in addition, to expand such plant and
to add thereto machinery and equipment not included within the
project;
WHEREAS, the City has been further informed that the
Company desires to finance an amount not in excess of $1 ,000,000
of the total cost of the Project through issuance by the City of
industrial development revenue bonds under the Minnesota
Industrial Development Act, chapter 474 of the Minnesota Statutes
and that the availability of such financing is an important
factor in the Company's determination as to the ultimate feasibility
• of the Project and its location;
WHEREAS, after appropriate study and investigation of the
nature of the proposed Project, the Council has determined the the
Project will result in the promotion, attraction, encouragement, and
development of economically sound industry and commerce and will
thereby assist in the prevention of the emergence of blighted and
marginal lands and areas of chronic unemployment within the City and
the State of Minnesota and that the City, in assisting with the
financing of the Project, will be acting in furtherance of a Public
purpose of the City and the State;
WHEREAS, the Company has requested the City to issue its
industrial development revenue bonds pursuant to the Act for the
purpose of defraying all or a portion of the cost of the acquisition
and installation of the machinery and equipment which will constitute
the Project and to lease the same to the Company for rent in an
amount sufficient to pay the principal of, premium, if any, and
interest on such bonds;
WHEREAS, the Company has requested that the City indicate
its willingness to issue such bonds pursuant to the Act to finance
the Project so that acquisition and installation with respect to
the Project can proceed; and
WHEREAS, the Council has determined that it is in the
best interest of the City and its inhabitants that the acquisition
and installation with respect to the Project proceed without delay;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of Eden Prairie, Minnesota, that:
1 . Pursuant to the powers of the City under Section
474.03(6) of the Minnesota Statutes and in order to indicate its
willingness to issue industrial development revenue bonds pursuant
to the Act to finance the Project in an amount not in excess of
$1 ,000,000, the execution by the City and delivery to the Company
of an inducement letter is hereby authorized.
• 2. In order to facilitate the commencement of the
acquisition and installation of the Project, the Mayor and the
City Manager are hereby authorized to accept the assignment of
contracts therefor subject to the receipt of appropriate
guarantees of payment by the Company.
3. In order to secure the approval of the Project by the
Commissioner of Securities of the Securities Division of the
Minnesota Department of Commerce pursuant to Section 474.01 ,
subdivision 7a, of the Minnesota Statutes, the Mayor, the City
Manager and the City Clerk are hereby authorized to execute and
deliver to the Commissioner on behalf of the City an Application
for Approval of Municipal Industrial Revenue Bond Project such
Application to be substantially in the form attached hereto as
Attachment II, subject to such minor changes, insertions and
omissions as may be approved by the Mayor, the City Manager and the
City Clerk and the execution of such Application by the Mayor, the
City Manager and the City Clerk as herewith authorized shall be
conclusive evidence of any such approval .
4. Subject to due compliance with all requirement of law,
the obtaining of all necessary consents and approvals, and the
negotiation, execution and delivery of mutually agreeable definitive
documentation, the City, by virtue of such statutory authority as
may now exist or may hereafter be conferred, hereby authorizes the
Mayor, the City Manager and the City Clerk to take any and all
further action and execute and deliver any and all other documents
as may be necessary to issue and deliver such proposed industrial
development revenue bonds of the City and to effect the undertaking
for which such bonds are to be issued.
Adopted this 20th day of June, 1978.
THE CITY COUNCIL OF THE CITY OF
EDEN PRAIRIE, MINNESOTA
7�BY:
tle: ayor
(SEAL)
• Attest:
Titl Cit Clerk