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HomeMy WebLinkAbout09-355SEPTEMBER 8, 2009 09 -355 RESOLUTION (CARRIED 6 -1 LOST LAID OVER WITHDRAWN ) PURPOSE: AUTHORIZE BORROWING FROM STATE LAND TRUST / SOUTH SHORE REDEVELOPMENT PROJECT AREA INITIATED BY: CITY ADMINISTRATION WHEREAS, by the provisions of sec. 24.66 of the Wisconsin Statutes, all municipalities may borrow money for such purposes in the manner prescribed; and, WHEREAS, by the provisions of Chapter 24 of the Wisconsin Statutes, the Board of Commissioners of Public Lands of Wisconsin is authorized to make loans from the State Trust Funds to municipalities for such purposes. (Municipality as defined by Sec. 24.60(2), Wisconsin Statutes, means a town, village, city, county, public inland lake protection and rehabilitation district, town sanitary district created under sec. 60.71 or 60.72, metropolitan sewerage district created under sec. 200.05 or 200.23, joint sewerage system created under sec. 281.43 (4), school district or technical college district.) NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the City of Oshkosh that the City of Oshkosh, in the County of Winnebago, Wisconsin, is authorized to borrow from the Trust Funds of the State of Wisconsin, a sum of up to One Million Forty Nine Thousand Dollars ($1,049,000) for the purpose of financing property acquisition and demolition in the South Shore Area (TIF #20), and for no other purposes. The loan is to be payable within 10 years from the 15th day of March preceding the date the loan is made. The loan will be repaid in annual installments with interest at the rate of 4.5 percent per annum from the date of making the loan to the 15th day of March next and thereafter annually as provided by law. BE IT FURTHER RESOLVED, that there shall be raised and there is levied upon all taxable property, within the City of Oshkosh, in the County of Winnebago, Wisconsin, a direct annual tax for the purpose of paying interest and principal on the loan as they become due. BE IT FURTHER RESOLVED, that no money obtained by the City of Oshkosh by such loan from the state be applied or paid out for any purpose except for the purpose of financing property acquisition and demolition in the South Shore Area (within TIF #20) without the consent of the Board of Commissioners of Public Lands. SEPTEMBER 3, 2009 09 -355 RESOLUTION CONT'D BE IT FURTHER RESOLVED, that in case the Board of Commissioners of Public Lands agrees to make the loan, that the City Manager and Clerk of the City of Oshkosh in the County of Winnebago, Wisconsin, are authorized and empowered, in the name of the City to execute and deliver to the Commission, certificates of indebtedness, in such form as required by the Commission, for any sum of money that may be loaned to the City pursuant to this resolution. The City Manager and Clerk of the City will perform all necessary actions to fully carry out the provisions of Chapter 24 Wisconsin Statutes, and these resolutions. BE IT FURTHER RESOLVED, that this preamble and these resolutions and the "aye" and "no" vote by which they were adopted, be recorded, and that the Clerk of this City forward this certified record, along with the application for the loan, to the Board of Commissioners of Public Lands of Wisconsin. City of Oshkosh Finance Department 215 Church Ave., PO Box 1130 v� Oshkosh, WI 54903 -1130 QVHKQ H (920) 236 -5005 (920) 236 -5039 FAX ON THE WATER MEMORANDUM DATE: September 3, 2009 TO: Mark Rohloff, City Manager FROM: Peggy Steeno, Director of Finance RE: Amend Authorization to Borrow from State Trust Fund for South Shore Redevelopment Project Area Peggy A. Steeno Director As you know, we have been contacted by the State of Wisconsin, Board of Commissioners of Public Lands (aka State Trust Fund), and they are only able to loan the City $1,049,000, in 2009, instead of the requested $1,770,000 that the Council approved at the August 25 Council Meeting. As such, and since the timing of the work to be done is in both 2009 and 2010, the remaining funds, $721,000, can be borrowed as of January 1, 2010. Due to the splitting of this loan, the Council will need to re- approve the resolution they approved at the last meeting with a lower amount, $1,049,000 instead of the original $1,770,000. By way of background, the typical annual borrowing limit through the State Trust Fund is $5,000,000; however, the Board of Commissioners of Public Lands has recently adjusted limit, for 2009 only, to $2,500,000 due to current available resources. In addition to the above request, monies were borrowed earlier in the year for the purchase of Northwest Industrial Land. Please let me know if you have any questions or need additional information.