HomeMy WebLinkAbout01-340.docAUGUST 14, 2001 01-340 RESOLUTION
(CARRIED 7-0 LOST LAID OVER
WITH DRAWN
CITY OF OSHKOSH, WISCONSIN
INITIAL RESOLUTION FOR REVENUE BONDS WHICH
ALSO CONSTITUTES A RESOLUTION DECLARING OFFICIAL
INTENT TO REIMBURSE EXPENDITURES ON THE PROJECT
WITH PROCEEDS OF A TAX-EXEMPT BORROWING
WHEREAS, the City of Oshkosh, Wisconsin (the "Municipality") is authorized by
Wisconsin Statutes Section 66.1103 (the "Act") to issue Bonds to finance costs of
certain projects including manufacturing facilities; and
WHEREAS, bonds issued pursuant to the Act are to be payable from amounts
paid under a revenue agreement (as defined in the Act) relating to the project being
financed and not from tax revenues or other funds of the Municipality; and
WHEREAS, Don Evans, Inc., a Wisconsin corporation (d/b/a "EVCO Plastics")
(the "Borrower"), wishes to pursue acquisition of land and construction and equipping of
a facility thereon and related improvements to be operated by the Borrower in the
Municipality (the "Project") for use in connection with injection molding manufacturing
and related manufacturing and service activities; and
WHEREAS, the Borrower has asked the Municipality to indicate its intention to
provide financing under the Act for all or a portion of the bonds and the Project before it
proceeds; and
WHEREAS, the Borrower also has presented the Municipality with evidence of its
intention to reimburse itself for expenditures relating to the Project which it pays with
funds which are not the proceeds of revenue bonds issued under the Act; and
WHEREAS, the Borrower expects the reimbursement to be funded with the
proceeds of qualified small issue private activity revenue bonds which will constitute
reimbursement bonds to be issued on its behalf with respect to the Project and has
indicated that it does not expect the aggregate principal amount of any bonds to be
issued for the Project to exceed $7,500,000; and
WHEREAS, Borrower has represented that it expects the Project to create
approximately 115 full-time equivalent jobs in the Municipality, of which 56 jobs will be
new full-time equivalent jobs and 59 jobs will be moved from another location within the
Municipality; and
WHEREAS, the Project will benefit the Municipality.
NOW, THEREFORE, IT IS RESOLVED:
1. The Municipality hereby declares its intent to assist the Borrower with
respect to the financing of the Project by issuing the Bonds (the "Bonds") in one or more
series in an amount not to exceed $7,500,000 and, under Treas. Reg. Sec. 1.150-2, to
reimburse any expenditures made on costs of the Project prior to issuance of the Bonds
with proceeds of the Bonds.
2. To encourage the Borrower to undertake the Project, the Municipality will
pursue a financing plan (the "Financing") under which it will:
(a) sell to one or more purchasers procured by the Borrower bonds
under the Act;
(b) enter into one or more revenue agreements with the Borrower
providing the Municipality with revenue sufficient to pay the principal of, premium,
if any, and interest on the Bonds when due and requiring the Borrower to provide
the portion of the Project to be financed with the Bonds; and
(c) assign any revenue agreements to the holders of the Bonds or to a
trustee for their benefit and enter into any other appropriate arrangements
requested by the Borrower to further secure the payment of the Bonds.
3. The Bonds shall never constitute an indebtedness of the Municipality
within the meaning of any state constitutional provision or statutory limitation and shall
not constitute or give rise to a pecuniary liability of the Municipality or its officers or a
charge against the Municipality's general credit or taxing powers.
4. The appropriate officers of the Municipality are authorized to negotiate the
terms of the Financing and all related documents. The terms of the Financing and all
related documents will be subject to this Resolution and the Act and will not be binding
until
(a) the details of the Financing and the issuance of the Bonds are
approved and authorized by further resolution of this Common Council;
(b) the electors of the Municipality have been given the opportunity to
petition for a referendum as required by the Act and either (i) no petition is timely
filed or (ii) if a petition is timely filed, a referendum approves the issuance of the
Bonds; and
(c) all documents required in connection with the Financing have been
duly executed and delivered by the parties.
5. The City Clerk is directed to
(a) publish the Notice to Electors in substantially the form attached to
this Resolution as a class 1 notice under Wisconsin Statutes Chapter 985, in a
newspaper eligible to make such publication for the Municipality and
(b) file with the Secretary of the Department of Commerce of the State
of Wisconsin a copy of this Resolution and a copy of the Notice to Electors.
Adopted August__, 2001
City Clerk
Approved August__, 2001
Mayor