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HomeMy WebLinkAbout06.06.83 Council Minutes 173 MINUTES COUNCIL MEETING REGULAR JUNE 6, 1983 1. The Mayor called the meeting to order at 7:00 P.M. Present: Mayor Akin, Councilmembers Cook, Orr, Sprute, Kelly. Absent: None Also Present: Administrator Thompson, Planner Tooker. 2. It was the concensus of the Council to approve the minutes of the May 16, 1983 regular session, and May 31, 1983 special session. 3. The Mayor convened the annual Tax Equalization meeting. The meeting was adjourned until later in the meeting. 4. Garold Barney, former owner of the Grain Exchange thanked the Council and Citizens of Farmington for their support while he was in business. 5. Motion by Orr, second by Kelly to approve the following consent agenda: a. Resolution R35-83 designating the City Administrator as authorized official to apply for training reimbursements from POST Board. b. Tax abatement as follows: 1) Reduce to $10,194 parcel #14-22450-070-00; 2) Reduce to $14,012 parce~ #14-7700-041-33; 3) Reduce to $10,820, Parcel #14-02400-012-25. c. Various licenses and permits for MOuntain Dew Days. d. Capital outlay request for a sprayer for Park & Recreation. e. Bills APIF, motion carried. 6. The Council opened discussion on Manufactured Homes. City Planner Charles Tooker indicated that the Planning Commission recommended that the ordinance remain basically the same with some clarification in language. Mr. Tooker sta- ted that it was his opinion that the ordinance should incorporate minimum bulk standards. City Administrator Larry Thompson stated that it was his feeling that the present ordinance did not comply with State Law based on the Attorney Generalis opinion, and that it could be subject to challenge. Discussion on the matter was tabled. 7. Mayor Akin opened a public hearing at 7:15 P.M., relating to a $2,700,000 Industrial Revenue Bonds project proposed by Marigold Foods, Inc. (see attached) Mayor Akin closed the public hearing. 8. Motion by Kelly, second by Orr to adopt Resolution R36-83 granting prelimi- nary approval and determining to proceed with a project and its financing under the Minnesota Municipal Industrial Development Act, referring the proposal to the MInnesota Department of Commerce for approval and authorizing preparation of necessary documents. APIF, motion carried. 174 9. Mayor Akin opened a public hearing at 7:30 P.M. to consider Terra Plat. Mayor Akin indicated that the improvement to the plat should include the first seal coating and apparatus to install water meters. City Administrator Thomp- son recommended that because of conflict with State Law, the surface water management ordinance should not be applied to this plat. Councilman Orr asked if the existing house would remain. Bill Ford stated that the house would be improved. Charles Tooker stated that only 2~ acres were being de- veloped at this time, but the Planning Commission indicated that the remaining land owned by the developers should be platted the next time. Bob Stegmaier stated that the storm water problem should be addressed. Mr. Tooker stated that the setback concern the Planning Commission had expressed was resolved, and that the Parkland dedication was to be made in cash. Mayor Akin closed the hearing. 10. Motion by Orr, second by Cook to adopt Resolution R37-83 , approving the preliminary plat and authorizing the signing of the final plat. APIF, motion carried. 11. The Council directed City Staff to draft a developers agreement for improvements to Terra Plat. 12. The ~1ayor reconvened the Tax Equalization meeting. The County Assessorls staff recommended no changes in assessments. Robert and Elaine Donnelly and Roger and Karla Duff submitted letters protesting the value of their property because of their location to the proposed sludge ash site. The City also accepts two similar letters from Lakeville residents. Mayor Akin closed the meeting. 13. Motion by Akin, second by Orr to transfer the liquor license from Dennis Riste dba The Ruddy Duck to Dave Erickson dba Eagle Club upon condition the building inspector and police chief indicate the restaurant facilities are op- erational, effective July 1,1983. APIF, motion carried. 14. Motion by Akin, second by Kelly to set a Public Hearing for Monday, June 20, 1983 at 7:30 P.M. at the Council Chambers to consider amending the zoning ordinance regarding the location of manufactured homes in various residential districts. APIF, motion carried. 15. Carol Schultz, Executive Director of the Dakota County H.R.A. presented various documents for Council action necessary to implement the Small Cities Development Block Grant. Ms. Schultz explained each document and the action necessary. 16. Motion by Sprute, second by Orr to adopt Resolution R38-83 accepting the SCOB Grant. APIF, motion carried. 17. Motion by Sprute, second by Orr to adopt Resolution R39-83 adopting residential rehabilitation policy and guidelines. APIF, motion carried. 18. Motion by Sprute, second by Orr to approve the administrative service agreement withthe Dakota County H.R.A. APIF, motion carried. 19. Motion by Akin, second by Kelly to approve the personnel action as recommended by the City Administrator. APIF, motion carried. 175 Council Minutes of June 6, 1983 continued - 20. Scott Dobesh requested that the Council reduce the Peddlerls Permit fee for his ice cream wagon. The Council agreed that it was not their intent to restrict local businessmen by too large of a fee. Larry Thompson stated that the different fees could be established for peddlers, solicitors and transient merchants. Motion by Akin, second by Orr to adopt Resolution R40-83 amending the annual license fees as follows: Peddlers Permit - $10/month - $100/year. APIF, motion carried. 21. Motion by Kelly, second by Akin to approve the application for two ad- ditional gaming devices for Dobels Place. APIF, motion carried. 22. Motion by Akin, second by Sprute to approve a gambling license for the MIlitary Order of Cooties. APIF, motion carried. 23. It was the concensus of the Council that the Administrator research the possibility of upgrading Ash Street. 24. The meeting adjourned at 9:40 P~M. LT/mh CERTIFICATION OF MINUTES RELATING TO $2,700,000 INDUSTRIAL DEVELOPMENT REVENUE BONDS (MARIGOLD FOODS, INC. PROJECT) Issuer: City of Farmington, Minnesota Governing Body: City Council Kind, nate, time and place of meeting: A regular meeting, held on Monday, June 6,1983, at 7:00 o'clock P.M., at the City Hall. Members Present: Akin, Cook, Kelly, Orr, Sprute Members Absent: None Documents Attached: Minutes of said meeting (pages): MINUTES OF PUBLIC HEARING ON PROPOSED PROJECT RESOLUTION NO. R36-83 RESOLUTION GRANTING PRELIMINARY APPROVAL AND DETERMINING TO PROCEED ~ITH A PROJECT AND ITS FINANCING UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF COMMERCE 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 the corporation in my legal custody, from which they have been transcribed; that the documents are a correct and complete transcript of the minutes of a meeting of the governing body of the corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at the meeting, insofar as they relate to said obligations; and that the 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 given as required by law. WITNESS my hand officially as such recording officer and the seal of this City this f) day of June, 1983. ?'~~/. /' '. \h~ ~ / .,;.-;"./.::t /" /".{.r-'-;J~ v/ Signature / ./ (SEAL) Larry Thompson, City Clerk-Administrator ~ The Mayor stated that this was the time and place fixed for a public hearing on the proposal that the City unoertake and finance a Project on behalf of Marigold Foods, Inc., a Delaware corporation (the Borrower), pursuant to ~innesota Statutes, Chapter 474. The City Clerk- Administrator presented an affidavit showing publication of the notice of public hearing at least once not less than 15 nor more than 30 days prior to the date fixed for the public hearing in the Dakota County Tribune, being the official newspaper of the City ana a newspaper of general circulation throughout the City. The affidavit was examined, found to be satisfactory and ordered placed on file at the office of the Citv Clerk-Administrator. The Mayor then opened the meeting for the public hearing on the proposal to undertake and finance the Project on behalf of the Borrower. The purpose of the hearing was explained, the nature of the Project and of the proposed revenue bond or bonds were discussed, the draft copy of the Application to the Commissioner of the Department of Commerce, tOGether with all attachments and exhibits thereto, was available, and all persons present who desired to do so were afforded an opportunity to express their views with respect to the proposal to undertake and finance the Project, in response to which the following persons appeared, were recognized and made statements, summaries of which appear opposite their resnective names: Name of Sneaker Summary of Views Clerk/Administrator Thompson The bonds would be sold to finance equip- ment and construction costs which would create approximately 15 new jobs. The City Attorney and Bonds Counsel stated that the proposed sale does comply with the provisions of M.S. Chapter 474. The proposal will move all cultured milk production to Farmington. Ward Anderson Gil Gil bertson Will they buy milk products locally? Bi 11 Ramsey Yes. The same as Mid-America. Merle Tobias The project would be very good for the community. Babe Kuchera It's good to see the Creamery growing. Bob Stegmaier Can you pullout at any time like Land o I La ke? Bi 11 Ramsey We would have a 10 year lease, and with the added capital outlay it isnlt likely we will pullout. After all persons who wished to do so had stated their views on the proposal, the Mayor declared the public hearing to be closed. After some discussion, Councilmember Kelly introduced the following resolution and moved its adoption: RESOLUTION NO. R36-83 RESOLUTION GRANTING PRELIMINARY APPROVAL AND DETERMINING TO PROCEED WITH A PROJECT AND ITS FINANCING UNDER THE MINNESOTA MUNICIPAL INDUSTRIAL DEVELOPMENT ACT, REFERRING THE PROPOSAL TO THE MINNESOTA DEPARTMENT OF COMMERCE FOR APPROVAL AND AUTHORIZING PREPARATION OF NECESSARY DOCUMENTS ~E IT RESOLVED by the City Council of the City of Farmington, Minnesota (the City), as follows: Section 1. Recitals and Findings. ].1. This Council has received a proposal that the City finance a portion or all of the cost of a proposed project under Minnesota Statutes, Chapter 474 (the Act), consisting of the construction of an expansion to an existing facility for the manufacture of cultured dairy products and the acquisition ana installation therein of equipment (the Project), by Marigold Foods, Inc., a Delaware corporation (the Borrower). 1.2. At a public hearing, duly noticed and held on June 6, 1983, in accordance with the Act, on the proposal to undertake and finance the Project, all parties who appeared at the hearing were given an opportunity to express their views with respect to the proposal to undertake and finance the Proiect. Based on the public hearing and such other facts and circumstances as this Council deems relevant, this Council hereby finds, determines and declares as follows: (a) The welfare of the State of Minnesota requires active promotion, attraction, encouragement and development of economically sound industry and commerce through governmental acts to prevent, so far as possible, emergence of blighted lanos and areas of chronic unemployment, and the State of ~innesota has encouraged local government units to act to prevent such economic deterioration. (b) The Project would further the general purposes contemplated and described in Section 474.01 of the Act. (c) The existence of the Project would add to the tax base of the City and the County and School District in which the Proiect is located and would ret~in existins employment opportunities and provide increased opportunities for employment for residents of the City and surrounding area. (d) This Council has been advised by representatives of the Borrower that conventional, commercial financing to pay the 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 siqnificantly reduced, but that, with the aid of municipal borrowing and its resulting lower borrowing cost, the Project is economically more feasible. (e) This Council has also been advised by representatives of the Borrower that, on the basis of their discussions with potential buyers of tax-exempt bonds, revenue bonds of the City (whicn may be in the form of a revenue bond or revenue bonds) could be issued and sold upon favorable rates and terms to finance the Project. (f) The City is authorized by the Act to issue its revenue bonds to finance capital projects consisting of properties used and useful in connection with a revenue producing enterprise, such as that of the Borrower, and the issuance of the revenue bonds by the City would be a substantial inducement to the Borrower to construct and equip the Proiect. Section 2. Approvals and Authorizations. 2.1. On the basis of the information given the City to aate, it appears that it would be desirable for the City to issue its revenue bonds under the provisions of the Act to finance the Project in the estimated aggregate principal amount of $2,700,000. 2.2. The Council hereby determines to grant preliminary approval to and to proceed with the Project and its financing and hereby declares its present intent to have the City issue its revenue bonds under the Act to finance the Pro~ect, subject to the approval of the Project by the Commissioner of the Minnesota Department of Commerce. Notwithstanding the foregoing, however, the adoption of this resolution shall not be deemed to establish a legal obligation on the part of the City or this Council to issue or to cause the issuance of such revenue bonds. All details of such revenue bond issue and the provisions for payment thereof shall be subject to the mutual agreement of this Council, the Borrower and the purchaser or purchasers of the revenue bonds and such further conditions as the City may specify, such aoreement ana specification on the part of the City to be evidenced by a resolution of this Council authorizing the issuance of the revenue bonds on the terms and conditions agreed upon and authorizing the execution of necessary documents. In all events, it is understood that the revenue bonds shall not constitute a charge, lien or encumbrance, legal or e~uitable, upon any property of the City except the revenues pledge0 to the payment of such revenue bonds, and each bond, when, as ane if issuee, shall recite in substance that the bond, including interest thereon, is payable solely from the revenues received from the Project and any property pledged to the pavment thereof and shall not constitute a debt of the City within the meaning of any constitutional or statutory limitation. 2.3. The Application to the Commissioner of the Minnesota Department of Commerce, with attachments, is hereby approved, and the Mayor and City Clerk-Administrator are authorized to execute said documents in behalf of the City. 2.4. In accordance with Section 474.01, Subdivision 7a of the Act, as amended by Minnesota Statutes, Section 16.125, and the State of Minnesota, Department of Administration Reorganization Order No. 123 (Order No. l23),the Mayor and City Clerk-Administrator are hereby authorized and directed to cause an application to be submitted to the Commissioner of the Minnesota Department of Commerce for approval of the Project. The Mayor, City Clerk-Administrator, City Attornev and other officers, employees and agents of the City are hereby authorized and directed to provide the Commissioner with any preliminary information needed for this purpose. The City Attorney is authorized to initiate and assist in the preparation of documents as may be appropriate to the Project, if approved by the Commissioner. 2.5. If the revenue bonds are issued and sold, the City will enter into a lease, sale or loan agreement or similar agreement satisfying the requirements of the Act (the Revenue Agreement) with the Borrower. The lease rentals, installment sale payments, loan payments or other amounts payable by the Borrower to the City under the Revenue Agreement shall be sufficient to pay the principal, interest and redemption premium, if any, on the revenue bonds as and when the same shall become due and payable. 2.6. The Borrower has agreed and it is hereby determined that any and all direct and indirect costs incurred hv the City in connection with the Project, whether or not the Project is carried to completion, whether or not approved by the Commissioner of the Minnesota Department of Commerce and whether or not the City by resolution authorizes the issuance of the revenue bonds, will be paid by the Borrower upon request. 2.7. The Mayor and City Clerk-Administrator are directe~, if the revenue bonos are issued and sold, thereafter to comply with the provisions of Minnesota Statutes, Section 474.01, Subdivision 8, as amended by Section 16.125 and Order No. 123. Adopted this 6th day of JUrlU~~ Mayor / Attest:// L, ' /,' /" _// \-~; / /:' / . / / ; ,/ " J', ----- - ., 0- . - ./ / ,'"f l/tc..."TI.,. .-.... - I" -. " f" ,/, ~ /1 City Clerk~Administrator '"..... '/ .' (SEAL) ~he motion for the adoption of the foregoing resolution was duly seconded by Councilmember Orr and, upon vote being taken thereon, the following voted in favor thereof: Akin, Cook, Kelly, Orr, Sprute and the following voted against the same: None whereupon the resolution was declared duly passed and adopted.