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HomeMy WebLinkAbout06-168.doc MAY 9, 2006 06-168RESOLUTION (CARRIED__7-0_ LOST ______ LAID OVER ______ WITHDRAWN ______) PURPOSE:INITIAL RESOLUTION / INDUSTRIAL DEVELOPMENT REVENUE BONDS / MUZA METAL PRODUCTS INITIATED BY:CITY ADMINISTRATION CITY OF OSHKOSH, WISCONSIN INITIAL RESOLUTION REGARDING INDUSTRIAL DEVELOPMENT REVENUE BONDS WHEREAS, the City of Oshkosh, Wisconsin, (the "City") is authorized by Section 66.1103, Wisconsin Statues, as amended (the "Act"), to acquire, construct, equip, reconstruct, improve, maintain, repair, enlarge or remodel industrial projects, and to enter into revenue producing agreements for same, in order to promote the right to gainful employment, business opportunities and general welfare of its inhabitants and to preserve and finance costs related to such industrial projects, which bonds are to be payable solely out of the revenues derived pursuant to the revenue agreement pertaining to the project to be financed by the bonds so issued and which bonds may be secured by a mortgage or other security interest on the project; and WHEREAS, Muza Metal Products Corp., a Wisconsin corporation and/or an entity affiliated with Muza Metal Products Corp. through common ownership or control, (collectively referred to herein as the “Eligible Participant”) desires to expand, construct, improve and/or equip its manufacturing facility in the City, such expansion, construction, improvement, and/or equipping of the manufacturing facility is hereinafter referred to as the "Project"; and WHEREAS, the Project is estimated to require the issuance of bonds in an amount not to exceed $3,000,000; and WHEREAS, the Project qualifies to be financed with industrial development revenue bonds as a manufacturing facility under Wis. Stat. 66.1103(2)(k)1.; and WHEREAS, the Eligible Participant desires and has requested assistance from the City in financing the cost of the project through the issuance by the City of its industrial development revenue bonds pursuant to the Act; NOW, THEREFORE, BE IT RESOLVED BY THIS COMMON COUNCIL OF THE CITY OF OSHKOSH, WISCONSIN, THAT: (1) In view of the considerable benefits to be derived by the City from the development of the Project, the City intends to work toward the consummation of a project financing agreement pursuant to which the City shall: (a)issue, sell and deliver to purchasers (to be obtained by the Eligible Participant) its industrial development revenue bonds in an aggregate principal amount not to exceed $3,000,000 (the "Bonds") in order to finance costs related to the Project, which Bonds shall be payable solely out of the revenues derived from a note and mortgage or other security agreement on the Project or from such other revenue agreement as may be permitted by law; and (b)lend the proceeds of the Bonds to the Eligible Participant who will use the proceeds to help finance the project (and for any other purposes permitted by the Act) and enter into a note and mortgage agreement or other security agreement with the Eligible Participant or enter into other lawful revenue-producing agreements with respect to the Project providing revenues sufficient to pay principal of and interest on the Bonds when due; and (c)assign the note and mortgage agreement or other security agreement or other revenue agreement and pledge the revenues and other amounts therefrom to the bondholders, or to a servicer, or a trustee under an indenture of trust, in order to secure the payment of principal and interest on the Bonds. (2)THE BONDS SHALL NEVER CONSTITUTE AN INDEBTEDNESS OF THE CITY WITHIN THE MEANING OF ANY STATE CONSTITUTIONAL PROVISION OR STATUTORY LIMITATION, AND SHALL NOT CONSTITUTE OR GIVE RISE TO A PECUNIARY LIABILITY OF THE CITY OR A CHARGE AGAINST ITS GENERAL CREDIT OR TAXING POWERS. (3)All expenses incurred in connection with the transactions herein contemplated shall be paid by the Eligible Participant from the proceeds of the Bonds, or otherwise, and shall not be the responsibility of the City. (4) Taxes shall be assessed in accordance with applicable law to the Eligible Participant with respect to the Project in the same manner and amount as though the Project was not being financed by an industrial development revenue bond. (5)The appropriate officers of the City are hereby authorized to negotiate the terms of a project financing agreement, note and mortgage or other security agreement or other revenue agreement, instruments of conveyance, mortgage and indenture of trust, if any, and any other documents required to properly complete the financing, provided that all such terms and procedures followed shall be subject to the conditions of this resolution and the provisions of Section 66.1103, Wisconsin Statutes, as amended, and shall not be binding unless and until: (a)the details of the project financing agreement and all documents pertinent thereto are reviewed, authorized and approved by a definitive resolution of this Common Council. (b)the electors of the City have been given the opportunity to petition within 30 days from the date of publication of notice of adoption of this initial resolution for a referendum on the question of the issuance of the Bonds as provided by law; (c)either no such valid petition for referendum shall have been timely filed or if such petition has been filed the said bond issue shall have been approved by a referendum; and (d)all documents required in connection with the financing shall have been duly executed by the parties thereto and delivered to the extent required; and (e)all applicable provisions of Federal law including Section 103 of the Internal Revenue Code of 1986, as amended, have been complied with. (6)Notice of the adoption of this resolution of intent shall be published as a Class 1 notice in the official newspaper of the City, The Oshkosh Northwestern, in the form attached hereto. (7)The City Clerk shall file a copy of (a) this resolution, and (b) the notice referred to in paragraph (6) above with the State of Wisconsin Department of Commerce within twenty (20) days following the publication of such notice. (8)This resolution shall be effective for three (3) years after the date it is initially adopted. Adopted _______________________, 2006 ________________________________________ Pamela Ubrig, City Clerk Approved ______________________, 2006 ________________________________________ William Castle, Mayor NOTICE TO ELECTORS OF THE CITY OF OSHKOSH, WINNEBAGO COUNTY, WISCONSIN NOTICE IS HEREBY GIVEN that the Common Council of the City of Oshkosh, Winnebago County, Wisconsin, at a meeting held on May 9, 2006, adopted a resolution of intent pursuant to Section 66.1103 of the Wisconsin Statutes to issue its industrial development revenue bonds (the "Bonds") on behalf of Muza Metal Products Corp., a Wisconsin corporation, and/or an entity affiliated with Muza Metal Products Corp. through common ownership or control, (hereinafter collectively referred to as the “Eligible Participant”) to help finance the expansion, improvement, construction and/or equipping of a manufacturing facility located in the City, such expansion, improvement, construction and/or equipping is hereinafter referred to as the "Project". The amount of the Bonds will not exceed $3,000,000. The proceeds of the Bonds will be loaned to the Eligible Participant for the purpose of financing costs related to the Project. Under the terms of the proposed Bond issue, the City will enter into a revenue producing agreement with the Eligible Participant with respect to the use of the Project. The Project to be financed with the proceeds of the Bonds is expected to help create approximately thirty eight (38) full-time equivalent jobs with the Eligible Participant at the Project Site in the City, and to maintain approximately one hundred thirty nine (139) current full- time equivalent positions with the Eligible Participant at the Project Site. No jobs are expected to be eliminated at the Project Site or elsewhere in the State of Wisconsin. No direct job impact is expected in the State of Wisconsin at any location other than the Project Site. THE BONDS WHEN ISSUED WILL BE LIMITED OBLIGATIONS OF THE CITY, PAYABLE SOLELY OUT OF THE REVENUES DERIVED FROM A NOTE AND MORTGAGE AGREEMENT, OR OTHER SECURITY AGREEMENT, OR OTHER REVENUE PRODUCING AGREEMENT WITH REGARD TO THE PROJECT. THE BONDS SHALL NEVER CONSTITUTE AN INDEBTEDNESS OF THE CITY, WITHIN THE MEANING OF ANY STATE CONSTITUTIONAL PROVISION OR STATUTORY LIMITATION, AND SHALL NOT CONSTITUTE OR GIVE RISE TO A PECUNIARY LIABILITY OF THE CITY OR A CHARGE AGAINST ITS GENERAL CREDIT OR TAXING POWERS. The resolution may be inspected by any elector of the City of Oshkosh, at the Office of the City Clerk, 215 Church Avenue, Oshkosh, Wisconsin, during business hours. The Bonds will be issued only after a public hearing of the nature required by Section 147(f)(2)(B)(i) of the Internal Revenue Code of 1986, as amended, but without submitting the proposition to the electors of the City for approval unless within 30 days from the date of publication of this notice, a petition conforming to the requirements of Wis. Stat. 8.40, signed by not less than five percent (5%) of the registered electors of the City is filed with the City Clerk requesting a referendum upon the question of the issuance of the Bonds, in which event the public hearing referred to above may not be held and the Bonds shall not be issued unless and until approved by a majority of the City voting thereon at a general or special election. Dated: _____________________ BY ORDER OF THE CITY OF OSHKOSH Pamela Ubrig, City Clerk