HomeMy WebLinkAbout09-304AUGUST 11, 2009 09 -304 RESOLUTION
(CARRIED 7 -0 LOST LAID OVER WITHDRAWN
PURPOSE: RESOLUTION REGARDING AMENDMENT TO $6,500,000
TOWN OF ALGOMA, WINNEBAGO COUNTY, WISCONSIN
INDUSTRIAL DEVELOPMENT REVENUE BONDS (OSHKOSH
COMMUNITY YMCA PROJECT) YMCA 2002 BONDS BY THE
TOWN OF ALGOMA, WISCONSIN
WHEREAS, the Town of Algoma, Wisconsin has previously issued its
$6,500,000 Town of Algoma, Winnebago County, Wisconsin Industrial Development
Revenue Bonds (Oshkosh Community YMCA Project) YMCA 2002 Bonds (the "Bonds
to help finance the YMCA facility (the "Facility owned by the Oshkosh Communit�
Young Men's Christian Association, Inc. (the "YMCA and located at 3303 West 20"
Avenue, Oshkosh, Wisconsin; and
WHEREAS pursuant to the Cooperative Plan between the City of Oshkosh and
the Town of Algoma dated January 16, 2004 the Facility is now located within the
municipal jurisdiction of the City of Oshkosh; and
WHEREAS pursuant to Wis. Stat. 66.1103(3)(g) the municipal issuer of an
Industrial Development Revenue Bond is permitted, whenever it deems it necessary or
desirable in fulfillment of the purposes of any industrial development revenue bond, to
consent to modifications of interest rates paid on such bonds, a time of payment of any
instalment of principal or interest or any other term of the revenue agreement, indenture
or bonds; and
WHEREAS, the principal amortization of the Bonds was modified by the First
Amendment to Mortgage, Loan and Revenue Agreement, Indenture, Bond Note dated
February 27, 2007; and
WHEREAS Associated Bank, National Association (the "Bondowner is the
owner of 100% of the issued and outstanding Bonds; and
WHEREAS the YMCA has entered into negotiations with the Bondowner to
further modify the interest rate payable on the Note and Bonds, which the YMCA deems
to be to its best advantage; and
WHEREAS there has been submitted to the City Attorney a form of a Second
Amendment to Mortgage, Loan and Revenue Agreement, Indenture, Bond and Note
which sets forth the details of the modification described above; and
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WHEREAS the YMCA, the Bondowners and Associated Bank, National
Association as Servicer in connection with the Bonds have all consented to the
requested modification of the interest rate on the Note and Bonds; and
WHEREAS the Town of Algoma is expected to consider a resolution pursuant to
Wis. Stat. 66.0301(2) approving the joint exercise with the City of Oshkosh of the
powers necessary to approve the requested amendments to the Bonds;
NOW, THEREFORE, BE IT RESOLVED BY THIS CITY COUNCIL OF THE CITY
OF OSHKOSH, WISCONSIN, THAT:
1. Determination The amendment to the interest rate on the Note and Bonds as
set forth in the Second Amendment to Mortgage, Loan and Revenue Agreement,
Indenture, Bond and Note, as requested by Oshkosh Community Young Men's
Christian Association, Inc. and the bondholders is hereby found to be necessary and
desirable in fulfillment of the public purposes of the Bonds.
2. Intergovernmental Cooperation The City of Oshkosh agrees and consents to
the joint exercise of power with the Town of Algoma to amend the terms and conditions
of the Bonds as set forth in the Second Amendment pursuant to Wis. Stat. 66.0301(2).
3. Amendment The Second Amendment to Mortgage, Loan and Revenue
Agreement, Indenture, Bond and Note, in substantially the form presented to the City
Attorney, is hereby approved. Subject to such changes or revisions therein as Nelson
Schmeling as Bond Counsel "Bond Counsel and the City Attorney may approve, the
Mayor and the Clerk, or any of their authorized deputies if necessary, are authorized on
behalf of the Issuer to signify the City's consent to the execution of the Second
Amendment to Mortgage, Loan and Revenue Agreement, Indenture, Bond and Note by
the signatories thereto, with such revisions, changes, or deletions as may be approved
by the City Attorney. Said Mayor and Clerk and their authorized deputies and other
officials of the Issuer are hereby authorized to prepare or to have prepared and to
execute, file and deliver, as appropriate all such documents, financing statements,
opinions, certificates, affidavits, and closing or post closing as may be necessary to
signify the City's approval of the Second Amendment to Mortgage, Loan and Revenue
Agreement, Indenture, Bond and Note and to accomplish the purposes thereof.
4. LIMITATION ON LIABILITY OF CITY .THE BONDS, AS AMENDED BY THE
SECOND AMENDMENT TO MORTGAGE, LOAN AND REVENUE AGREEMENT,
INDENTURE, BOND AND NOTE, SHALL NOT BE A GENERAL OR SPECIAL
OBLIGATION OR INDEBTEDNESS OF THE CITY WITHIN THE MEANING OF ANY
STATE CONSTITUTIONAL PROVISION OR STATUTORY LIMITATION AND SHALL
NOT CONSTITUTE NOR GIVE RISE TO A PECUNIARY LIABILITY OF THE CITY OR
A CHARGE AGAINST ITS GENERAL CREDIT OR TAXING POWERS, BUT SHALL BE
PAYABLE SOLELY FROM THE PAYMENTS AND OTHER REVENUES THAT MAY BE
AVAILABLE THEREFOR FROM THE RESPECTIVE MORTGAGE, LOAN AND
REVENUE AGREEMENT AND NOTE EXECUTED IN CONNECTION WITH THE
ORIGINAL ISSUANCE OF THE BONDS, AND AS PREVIOUSLY AMENDED, AND AS
THEY ARE AMENDED PURSUANT TO THE SECOND AMENDMENT TO
MORTGAGE, LOAN AND REVENUE AGREEMENT, INDENTURE, BOND AND NOTE
OR IN THE EVENT OF DEFAULT THEREON AS OTHERWISE PROVIDED HEREIN
OR PERMITTED BY LAW.
5. This Resolution constitutes public approval by the City Council of the City of
Oshkosh, which is an elected legislative body of the City as referred to in Section 147(f)
of the Code, after a public hearing held on August 11, 2009 following reasonable public
notice.
6. No covenant, stipulation, obligation, or agreement herein contained or
contained in the Bonds or the First or Second Amendment to Mortgage, Loan and
Revenue Agreement, Indenture, Bond and Note shall be deemed to be a covenant,
stipulation, obligation, or agreement of any officer, agent or employee of the Issuer or of
this City Council in his or her individual capacity and neither the members of this City
Council nor any officer executing the consent of the City to the Second Amendment to
Mortgage, Loan and Revenue Agreement, Indenture, Bond and Note shall be liable
personally on the Bonds or be subject to any personal liability or accountability by
reason of the issuance or amendment thereof.
Adopted: August 11, 2009
Pamela R. Ubrig, City Clerk
Approved: August 11, 2009
Mark A. Rohloff, City Manager
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