HomeMy WebLinkAbout33602 / 85-21RESOLUTION OF THE COMMON COUNCIL
OF THE
CITY OF OSHKOSH
RELATING TO THE FINANCING OF AN
INDUSTRIAL PROJECT FOR
John T. Monnett and/or INAV, LTD.
Resolution Number 21
An Initial Resolu[ion authorizing not Go exceed $550,000.00,
City of Oshkosh Industrial Development Revenue Bonds to finance
the construction of a manufacturing facility and equipment for
use by John T. Monnett and/or INAV, LTD..
WHEREAS, John T. Monnet[ and/or INAV, LTD. (hereinafter
called collec[ively and individually as "Company") desire to
construct and equip a new addition to Cheir facility for the
assembling and fabrication or manufacture of products in the City
of Oshkosh, County (hereinafter called the "Municipality"), and
such facility would contribu[e to the well-being of the
Municipality in terms of the gainful employment of i[s citizens
and the preservation and enhancement of its tax base; and
WHEREAS, in connection with the expansion of its manu-
facturing facilities, the Company has represen[ed to the
Municipality that it would be an encouragement and inducement for
the Company [o locate such facilities in the Municipality if this
Project could be financed with industrial development revenue
bonds; and
WHEREAS, the proposed project will consist of a 20,000 square
foot addition to an existing building, and the equipping the same
for sale of Light aircraft, including parts and components
(hereinafter called the "Project"); and
WHEREAS, the Project is within the definition of "industrial
project" contained in Section 66.521 (2) (b) of the Wisconsin
Statutes; and
WHEREAS, the cost of the Project is presently estimated to be
❑ot greater than $550,000.00, which is Che amount proposed to be
financed with industrial developmen[ revenue bonds; and
WHEREAS, it is in the best interests of the Municipality to
promote, attract, stimulate, rehabilitate and revitalize
commerce, industry and manufacturing, to promote the beCterment
of the environment of the Municipality, and to stimulate the flow
of private investment funds into the Municipality; and
WHEREAS, the provisions of Section 66.521 (10) (g) of the
Wisconsin Statutes have been complied with; and
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RESOLUTION # 21
WHEREAS, it is the finding and determination of this Common
Council Chat i[ is desirable foc the Municipality to encourage
the Company [o locate its facilities in the Municipality so that
the Municipality may derive subs[antial municipal benefi[,
including retention of steady employment for i[s citizens,
maintenance of or increase in its tax base resulting in greater
support for municipal services, stimulation of existing and new
businesses and s[imulation of private investment funds from
financial insti[utions; and
WHEREAS, the Municipality, as a municipal corporation
organi2ed and exis[ing under and pursuan[, to the laws of the
State of Wisconsin, is authorized by Section 66.521 of the
Wisconsin Statu[es to:
(1) Construct, equip, acquire by gift, lease or
repurchase, install, reconstruct, rebuild, rehabilitate,
improve, maintain, repair, enlarge, supplement, replace or
remodel defined industrial projects;
(2) Borrow money and issue industrial development
revenue bonds to finance the costs of the above; and
(3) Enter into revenue agreements with eligible
participants with respect to industrial projects.
NOW, THEREFORE, BE IT RESOLVED, by the Common Council of the
City of Oshkosh, as follows:
1. I❑ view of the aforesaid substantial benefits to
the Municipality associated with the Project, it is desirable
that the Municipality encourage and assist i❑ the development
of such facility by permitting all or a part of the costs of
the Project to be financed with the proceeds of industrial
development revenue bonds pursuant to a Revenue Agreemen[
between the Municipality and the Company.
2. Subject to the conditions enumerated hereafter,
this Council agrees that the Municipality shall work toward
the consummation of a financing arrangement pursuaat to which
the Municipality shall:
(a) Issue industrial development revenue bonds in an
amount not to exceed the cost of the Project and
not to exceed $550,000.00, (hereinafter called
"Bonds") in order to finance the Project, which
bonds shall be payable solely out of the revenues
derived from the Revenue Agreement relating to the
Project;
(b) Enter into a Revenue Agreement with the Company
whereunder the Company agcees to pay to the
Municipality an amount of funds sufficlenC to pay
when due the principal of and interest on the Bonds
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RESOLIfPION � 21
issued to finance the Project, and requiring the
Company to provide [he Projec[;
(c) Assign the Revenue Agreement to holders of the
Bonds or to a trustee for their benefit and enter
into any o[her appropriate arrangements requested
by the Company to further secure payment of [he
Bonds;
(d) Provide for maturities and a rate or rates of
interest on the Bonds of approximately that payable
on similar tax exempt bonds secured by an
obligation of borrowers of equivalent credit to
the Company;
(e) Provide for a sale price for the Bonds of not less
than the par value thereof.
3. The aforesaid financing arrangement contemplates
and is conditioned upon the following:
(a) That the Bonds shall never constitute an indebted-
ness of the Municipality within [he meaning of any
state constitutional provision or statutory
limitation;
(b) That Che Bonds shall not consti[ute nor give rise
to a pecuniary liability of the Municipality or a
charge against its general credi[ or taxing powers;
(c) That the Projec[ shall be subject to property
taxation in the same amount and to the same extent
as though the Project were not financed with the
industrial development revenue bonds;
(d) That [he Company shall find a prospective
purchaser(s) for all of the Bonds; and
(e) That the out-of-pocket costs, including any Trustee
fees, fees of Bond Counsel and reasonable at[orneys
fees a�d expenses incurred by the Municipality in
connec[ion with the issuance and sale of the Bonds,
shall be paid either from the proceeds of the Bonds
or by the Company.
4. The appropriate officials of the Municipali[y are
hereby authorized to negotiate the terms of the Plan of
Financing and to execu[e an agreement with the Company and
the prospective purchaser(s) of the Bonds setting forth said
terms.
5. The Plan of Financing shall not be binding upon the
Municipality nor be finally implemented unless and until:
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-27-
(a) The terms, details and
issuance of the Bonds
thereto are reviewed,
further resolu[ion of
law;
RESOLUTION # 21
mechanics regarding the
and the documen[s relating
authorized and approved by a
this Council as provided by
(b) The City Clerk shall cause notice of this
Resolution to be published once in the Oshkosh
Northwestern, a newspaper of general circula[ion in
the Municipality, and the electors of the
Municipality shall have been given the opportunity
to peti[ion for a referendum on the mat[er of the
issuance of the Bonds as required by law; and
(c) Either ❑o such petition shall be timely filed or
such petition shall have been filed and said
referendum shall have approved the issuance of the
Bonds.
6. A copy of this Resolution, together with a
statement indicating when the notice to electors referred to
hereia are published, shall be filed with the Secretary of
Business Developmen[ of the State of Wisconsin within twenty
(20) days following publica[ion of said notice.
7. The in[ent of this Resolution is ❑ot to create any
firm or binding obligation on the part of the Municipality
unless the Municipality determines to go forward with the
execution of documents required for this proposed financing
a�d, in such event, the Municipality's obligation shall be
limited in the manner set forth in such documents.
8. The City Manager and City Clerk, and either of
them, are hereby authorized on behalf of the Municipality to
complete, execute and file with the Internal Revenue Service
a s[atement of election respecting this proposed financing in
accordance with the provisions of Section 103 (b) (6) (D) of
the Internal Revenue Code of 1954, as amended, if such filing
is required.
9. The City Clerk is directed, following adoption of
this Resolution, to publish notice of such adop[ion not less
than one time in the Oshkosh Northwes[ern, the official
newspaper of the Municipality, such notice to state that
unless within thirty (30) days from the date of such
publication a petition signed by not less than ten percent
(10%) of the number of electors of the Municipality voting
for the office of Governor at the last general election as
determined under Sec. 115.01 (13) of the Wisconsin Statutes
shall be filed with [he City Clerk requesting a referendum
upon [he question of the issuance of the Bonds, the issuance
of such Bonds will ❑ot be submitted to the electors of the
Municipality for approval. Said ❑otice shall be in
substantially the following form:
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'�'��
SUB�IITTED BY
RESOLi1PI0N # 21
NOTICE TO ELECTORS
OF THE
City of Oshkosh
TAKE NOTICE, That the Common Council of the City of
Oshkosh, CounGy, at a regular meeting held on September 19,
1985, adopted a resolution pursuant to Section 66.521,
Wisconsin Sta[utes, as amended, indicating its intent to
issue City of Oshkosh Industrial Development Revenue Bonds
(John T. Monnett and/or INAV, LTD. - 1985 Project) in an
amount not to exceed $550,000.00 for the purpose of financing
a manufacturing plant addition aad related fixtures and
equipment to be used by John T. Monnett and/or INAV, LTD., as
a manufacturing and production facility in the City of
Oshkosh.
THE BONDS SHALL NEVER CONSTITUTE AN INDEBTEDNESS OF THE
City of Oshkosh NOR SHALL THE BONDS GIVE RISE TO ANY
PECUNIARY LIABILITY OF THE City NOR SHALL THE BONDS BE A
CAARGE AGAINST THE GENERAL CREDIT OR TAXING POWERS OF THE
City. THE BONDS SHALL BE PAYABLE SOLELY FROM THE REVENUES
AND OTHER AMOUNTS DERIVED OR RESULTING FROM THE REVENOE
AGREEMENT RELATING TO SAID PROJECT BETWEEN THE City of
Oshkosh AND Joh❑ T. Monnett and/or INAV, LTD..
The Resolution may be inspected by any elector of the
City of Oshkosh a[ [he office of the City Clerk during
business hours during the thirty (30) days following
publication of this Notice. The office of the City Clerk is
located at 215 Church Avenue, Oshkosh, Wisconsin 54903.
Unless within thirty (30) days following the publication
of this Notice a petition signed by not less than ten percent
(lOX) of the number of electors of the Municipality voting
for the office of Governor at the last general election as
determined under Sec. 115.01 (13) of the Wisconsin Statutes
is filed with the City Clerk reques[ing a referendum upoa Che
question of the issuance of the Bonds, the City will issue
the Bonds withou[ submitting the proposition to the electors
of the City for approval. If such a petition is filed as
aforesaid, then the Bonds shall not be issued until approved
by a majority of the electors of the City voting [hereon at a
general or special election.
THIS RESOLUTION INTRODUCED, APPROVED AND ADOPTED ON September
, 1985.
Donna C. Serwas
City Clerk
Page 5
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