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HomeMy WebLinkAbout11-128MARCH 22, 2011 11 -128 RESOLUTION (CARRIED 7 -0 LOST LAID OVER WITHDRAWN ) CITY OF OSHKOSH, WISCONSIN INITIAL RESOLUTION REGARDING INDUSTRIAL DEVELOPMENT REVENUE BONDS WHEREAS, the City of Oshkosh, Wisconsin, (the "City ") is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, the City is authorized by Section 66.1103(3)(b)2. to fund the whole or part of any revenue bonds previously issued by the municipality; and WHEREAS, the Town of Algoma, Wisconsin previously issued its $6,500,000 Town of Algoma, Winnebago County, Wisconsin Industrial Development Revenue Bonds (Oshkosh Community YMCA Project) YMCA 2002 Bonds (the "2002 Bonds ") to help finance the YMCA facility (the "Facility" or the "Project ") owned by the Oshkosh Community Young Men's Christian Association, Inc. (the "YMCA ") and located at 3303 West 20 Avenue, Oshkosh, Wisconsin; WHEREAS, the principal amortization of the 2002 Bonds was modified by the First Amendment to Mortgage, Loan and Revenue Agreement, Indenture, Bond & Note dated February 27, 2007; and WHEREAS, the interest rate and the principal amortization of the 2002 Bonds was further modified by the Second Amendment to Mortgage, Loan and Revenue Agreement, Indenture, Bond and Note dated August 28, 2009, which amendment was approved by the City; 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 Section 66.0301(2), Wisconsin Statutes, cities and towns may contract with each other for the joint exercise of any power or duty required or authorized by law; 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 refund the 2002 Bonds previously issued by the Town of Algoma, which refunding bonds will be issued by the City, in recognition of the fact that the facility originally financed by the 2002 Bonds is now located within the geographical limits of the City; and WHEREAS, the YMCA (as the "Eligible Participant ") desires and has requested assistance from the City to have the City issue its industrial development revenue bonds to refund the 2002 Bonds (the "Refunding "); WHEREAS, the Project is estimated to require the issuance of bonds in an amount not to exceed $2,000,000; and WHEREAS, the Eligible Participant has represented that the 2002 Bonds qualify to be refunded with industrial development revenue bonds under Wis. Stat. 66.1103(3)(b)2.; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OSHKOSH, WISCONSIN, THAT: (1) In view of the considerable benefits to be derived by the City from aiding the Eligible Participant in accomplishing the Refunding, 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 $2,000,000 (the "Bonds ") in order to refund the 2002 Bonds, which Bonds shall be payable solely out of the revenues derived from a note and mortgage or other security agreement on the Facility 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 accomplish the Refunding (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 Facility 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 BE PAYABLE SOLELY FROM SAID REVENUES, AND 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 Facility 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 City 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 Bonds 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) It had been previously determined, at the time of issuance of the 2002 Bonds, that the Facility would significantly increase the number of persons traveling to the Town (now the City) for business or recreational purposes. The City concurs that this has been the case. (8) The City of Oshkosh agrees and consents to the joint exercise of power with the Town of Algoma to issue Bonds to refund the 2002 Bonds by the issuance of Bonds by the City pursuant to Wis. Stat. 66.0301(2). (9) The City Clerk, or the law firm of Nelson & Schmeling, shall file a copy of (a) this resolution, and (b) the notice referred to in paragraph (6) above with the State of Wisconsin Secretary of Department of Commerce within twenty (20) days following the publication of such notice. adopted. (10) This resolution shall be effective for two (2) years after the date it is initially Adopted , 2011 Pamela R. Ubrig, City Clerk Approved 2011 Paul Esslinger, Mayor NOTICE TO ELECTORS OF THE CITY OF OSHKOSH, WINNEBAGO COUNTY, WISCONSIN NOTICE IS HEREBY GIVEN that the City Council of the City of Oshkosh, Winnebago County, Wisconsin, at a meeting held on March 22, 2011 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 the Oshkosh Community Young Men's Christian Association, Inc. a Wisconsin nonstock corporation, (the "Eligible Participant ") in an amount not to exceed $2,000,000. The proceeds of the Bonds will be loaned to the Eligible Participant for the purpose of financing costs related to the refunding of the outstanding balance of the $6,500,000 Town of Algoma, Winnebago County, Wisconsin Industrial Development Revenue Bonds (Oshkosh Community YMCA Project) YMCA 2002 Bonds (the "2002 Bonds "). The facility financed by the 2002 Bonds is now located within the geographical limits of the City. The Eligible Participant currently employs approximately 70 full time equivalent persons at the facility financed by the 2002 Bonds, and employs approximately 140 full time equivalent persons in the entire State of Wisconsin. As the Bonds will be used solely to refund the outstanding portion of the 2002 Bonds, no job impact, other than the maintenance of the existing jobs, is expected anywhere as a result of their issuance. THE BONDS WHEN ISSUED WILL BE SPECIAL, 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 ORIGINALLY FINANCED WITH THE PROCEEDS OF THE 2002 BONDS. 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 will 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 R. Ubrig, City Clerk