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HomeMy WebLinkAbout02-44.docFEBRUARY 12, 2002 02-44 RESOLUTION (CARRIED 7-0 LOST LAID OVER WITHDRAWN PURPOSE: INITIATED BY: INITIAL RESOLUTION -INDUSTRIAL DEVELOPMENT REVENUE BONDS/SERV-ICE, 2715 W. 20TM AVENUE CITY ADMINISTRATION CITY OF OSHKOSH, WISCONSIN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, S.-I., Inc., a Wisconsin corporation (d/b/a Serv-lce), Iceman Investment LLC, a Wisconsin limited liability company, Thomas R. Leske, and/or Jean M. Leske (individually or as a part of any combination, joint venture, limited liability company, limited liability partnership, trust or partnership of which any of the above are a part, the "Borrower"), wishes to pursue expansion, equipping and related improvements of a facility in the Municipality (the "Project") for use in connection with the manufacture of ice 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 $1,750,000; and WHEREAS, Borrower has represented that it expects the Project to create approximately 20 new full-time equivalent jobs in the Municipality; and WHEREAS, the Project will benefit the Municipality. NOW, THEREFORE, IT IS RESOLVED: ]. 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 $1,750,000 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 February__, 2002 City Clerk Approved February__, 2002 Mayor NOTICE TO ELECTORS OF THE CITY OF OSHKOSH, WISCONSIN On February 12, 2002, the Common Council of the City of Oshkosh, Wisconsin (the "Municipality"), adopted an initial resolution pursuant to Wisconsin Statutes Section 66.1103 stating the intent of the Municipality (i) to issue revenue bonds in one or more series in an amount not to exceed $1,750,000 for the purpose of financing on behalf of S.-I., Inc., a Wisconsin corporation (d/b/a Serv-lce), Iceman Investment LLC, a Wisconsin limited liability company, Thomas R. Leske and/or Jean M. Leske (individually or as a part of any combination, joint venture, limited liability company, limited liability partnership, trust or partnership of which any of the above are a part, the "Borrower"), all or a portion of the costs of expansion, equipping and related improvements of a facility in the Municipality (the "Project") to be used in connection with the manufacture of ice and related manufacturing and service activities; and (ii) to enter into one or more related revenue agreements with the Borrower. IF ISSUED, THE BONDS WOULD BE PAYABLE SOLELY FROM THE REVENUES DERIVED FROM A REVENUE AGREEMENT OR AGREEMENTS RELATING TO THE FINANCED PROJECT OR, IN THE EVENT OF DEFAULT OF THE REVENUE AGREEMENT OR AGREEMENTS, AS OTHERWISE AUTHORIZED BY THE MUNICIPALITY AND PERMITTED BY LAW. THE BONDS WOULD NOT CONSTITUTE AN INDEBTEDNESS OF THE MUNICIPALITY WITHIN THE MEANING OF ANY STATE CONSTITUTIONAL PROVISION OR STATUTORY LIMITATION AND WOULD 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. The Borrower has represented to the Municipality that it expects the Project to create approximately 20 new full-time equivalent jobs in the Municipality. The resolution may be inspected by any elector of the Municipality at the office of the City Clerk, City Hall, 215 Church Avenue, Oshkosh, Wisconsin 54902-1130, during business hours. Wisconsin Statutes Section 66.1103(10)(d) reads as follows with respect to the opportunity to petition for a referendum upon the question of the issuance of the Bonds: "(d) The governing body may issue bonds under this section without submitting the proposition to the electors of the municipality for approval unless within 30 days from the date of publication of notice of adoption of the initial resolution for such bonds, a petition conforming to the requirements of s. 8.40, signed by not less than 5% of the registered electors of the municipality or, if there is no registration of electors in the municipality, by 10% of the number of electors of the municipality voting for the office of governor at the last general election as determined under s. 115.01(13), is filed with the clerk of the municipality and as provided in s. 8.37 requesting a referendum upon the question of the issuance of the bonds. If such a petition is filed, the bonds may not be issued until approved by a majority of the electors of the municipality voting thereon at a general or special election." Dated: February__, 2002. City Clerk