HomeMy WebLinkAbout33230 / 85-19March 7, 1985
Resolution # 19
RESOLOTION OF THE COMMON COUNCIL
OF TAE
CITY OF OSHKOSH
RELATING TO THE FINANCING OF AN
INDUSTRIAL PROJECT FOR
PACUR ZNC.
Resolution Idumber 19
An IniCial kesolution authorizing not to er.ceed
$2,500,000.00, CiCy of Ochkosh 7ndustrial Development Revenue
Bonds to finance the construction of a manufacturing facility and
equipment for use by Pacur Inc.
WHEREAS, Pacur Inc. (hereinafter called "Company") desire to
construct and equip a new addition to its facility for the
manufacture of products in the City of Oshkosh, �dinnebago County
(hereinafter called the "Municipality"), and such facility would
contribute to the well-being of the t•tunicipality in terms of the
gainful employment of its ci_tizens and the preservation and
enhancement of its tax base; and
WHEREAS, i-n connection with ,the expansion of its manu-
facturing facilities, the Company has represented to the
Municipality that it would be an encouragement and inducement for
the Company to locate such facilities in the Municipality if this
Project could be financed with industrial development revenue `
bonds; and
WEIEREAS, the proposed project will consist of the construct-
ion of an addition of approximately 40,000 square feet of floor
space to an existing building, and the equipping of the same for
conducting the business of manufacturing, fabricating, and sale
of flexible packaging products (hereinafter called the
"Project"); and
WHEREAS, the Yroject is within the definition of "industrial
project" contained in Section 66.521 (2) (b) of the Wisconsi❑
Statutes; and
WHEREAS, the cost of Che Project is presently estimated to be
not greater than $2,500,000.00, which is the amount proposed to
be financed with industrial development revenue bonds; and
WHEREAS, it is in the besC interests of the Municipality to
promote, attract, stimulate, rchaUilitate and revitalize
commerce, industry and manufacturing, to promote the betterment
of the environment of tUe Piunicipality, 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 S[atutes have been complied with; and
Page 1
- 22 -
March 7, 1985
Resolution # 19
WHEREAS, it is the finding and determination of this Common
Council that it is desirable for the Municipality to encourage
the Company to locate its facilities in the Municipality so that
the Municipality may derive substantial municipal benefit,
including retention of steady employment for its citizens,
maintenance of or increase in its tax base resulting in greater
support for m�nicipal services, stimulation of existing and new
businesses and stimulation of private investment funds from
financial in&titutions; and
SdHEKEAS, the Municipality, as a municipal corporation
organized and existing under and pursuant, to the laws of the
State of Wisconsin, is authorized by Section 66.521 of the
Wisconsin Statutes 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 Uonds to finance the costs of the above; and
(3) Enter into revenue agreements with eligible
participants with respect 'to industrial projects.
NOW, THF.REFORE, BE 7T RESOLVED, by the Common Council of the
City of Oshkosh, as follows:
1. In view of the aforesaid substantial benefits to
the MuniciPality associated with the Proj^ct, it is desirable
that the Municipality encourage and assist in 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 Agreement
between the Municipality and the Company.
2. Subject to the conditions enumerated hereafter,
this Council agrees that the hfunicipality shall work toward
the consummation of a financing arrangement pursuant to which
the riunicipality shall:
(a) Issue industrial development revenue bonds in an
amount not to exceed the cost of the Yroject and
not to exceed $2,500,000.00, (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
ProjecC;
(b) Enter into a Revenue Agreement with the Company
whereunder the Company agrees to pay to the
Afunicipality an ar.iount of funds sufficient to pay
when due the principal of and interest on the Uonds
Pa�e 2
— 23 —
March 7, 1985
Resolution # 19
issued to finance the Project, and requiring the
Company to provide the Project;
(c) Assign the Revenue Agreement to holders of the
Bonds or to a trustee for their benefit and enter
into any other appropriate arrangements requested
by the Company to further secure payment of the
�onds;
(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
oUligation 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 the meaning of any
state constitutional provision or statutory
limitation;
(b) That the Bonds shall not constitute nor give rise
to a pecuniary liability of the Municipality or a
charge against its general credit or taxing powers;
(c) That the Project 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 the 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 attorneys
fees and expenses incurred by the Municipality in
connection 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 tiie Municipality are
hereby authorized to negotiate the terms of the Ylan of
Financing and to execute an agreement with the Company and
the prospective purchaser(s) of the Bonds setting forCh said
terms.
5. The Plan of Financing shall not be binding upon the
Afunicipality nor be finally implemented unless and until:
Page 3
- 24 -
March 7, 1985
(a) The terms, details and
issuance of the Bonds
thereto are reviewed,
further resolution of
laca;
Resolution # 19
mechanics regarding the
and the documents relating
authorized and approved by a
this Council as provided by
(b) The City Clerk shal�. cause notice of this
Resolution to be published once in the Oshkosh
Daily Northwestern, a newspaper of general
circulation in L-he Municipality, and the electors
of the Municipality ehall have been given the
opport:uni.ty i:o petition for a referendum on the
matter of Che issuance of the Bonds as required by
law; and
(c) F.ither no 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
herein are published, shall be filed with the Secretary of
Business Development of the State of Wisconsin within twenty
(20) days following publication of said notice.
7. The intent of this Resolution is not 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
and, 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 statement of election respecting this proposed financing in
accordance with the provis3_ons 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 adoption not less
than one time in tl�e Oshkosh Daily Northwestern, the official
newspaper of tl7e Municipality, such notice to state that
unless witliin thirty (30) days from the date of such
publication a petition signed by not less than ten percent
(l0i) of the number of electors of the PlunicipaliCy voting
for the office of Governor at the last general election as
determined under Sec. 115.01 (13) of the Sdisconsin Statutes
shall be filed with the City Clerk requestin� a referendum
upon the question of the issuance of the Bonds, the issuance
of such Bonds will not be submitted to the electors of the
Page 4
— 25 —
March 7, 1985
Resolution # 19
Municipality for approval. Said notice shall be in
substantially the following form:
NOTICE TO ELECTORS
OF THE
CITY OF OSHKOSH
TAKli NOTICE, That the Common Council of the City of
Oshlcosh, Winnebago County, at a regular meeting held on March
7, 1985, adopted a resolution pursuant to Section 66.521,
Wisconsin Statutes, as amended, indicating its intent to
iss�e City of Oshkosh Industrial Development Revenue Bonds
(Pacur Inc. — 1985 Project) in an amount not to exceed
52,500,000.00 for the purpose of financing a manufacturing
plant addiCion and related fixtures and equipment to be used
by Pacur Inc., as a manufacCUring and production facility in
the City of Oshkosh.
TAE BONDS SHALL NEVER CONSTITUTE AN INDEBTEDNESS OF THE
CITY OF OSH�OSH NOR SHALL THE BONDS GIVE RISE TO ANY
PECUNIAKY LIABILITY OP THE City NOR SHAI,L THE BONDS BE A
CHARGE AGAINST THE GENERAL CREDIT OR TAXING POWERS OF THE
City. THE RONDS SHALL BE PAYABLE SOLELY FROM THE REVENUES
ANll OTHER AMOUNTS DERIVED OR RESULTING FROM TftE REVENUE
AGREEMENT K�LATING TO SAID PROJECT BETWEEN THE CI'LY OF
OSHKOSH ANll PACUR INC.
The Resolutio.n may be inspected by any elector of the
CiCy of Oshkosh at the office of the City C1erk during
business hours during the thirty (30) days following
publication of this Notice. Tne office of the City Clerk is
located at 215 Church Avenue, Oshkosh, Wisconsin 54901.
Unless within thirty (30) days following tlie publication
of this Notice a petition signed by not less than ten percent
(10%) of the number of electors of the Municipality voting
for tl�e 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 requesting a referendum upon the
question of the issuance of the Bonds, the City will issue
the Bonds without submitting the proposition to the electors
of the City for approval. If such a petition is filed as
aforesaid, the�i the Aonds shall not be issued until approved
by a majority of the electors of the City voting thereon at a
general or special election.
Page 5
— 26 —
March 7, 1985
Resolution # 19
THIS RESOLUTION INTRODUCED, APPROVED ANll ADOPTEll ON March 7,
1985.
llonna �. 5erwas
City Clerk
SUBMITTED BY
APPP.OVED
Page 6
- 27 -
F.'. !��?`��� N
�c "` n
n � �
r � �
N , �
x' (�, r�
�
�
i-.''- . � Vl
�
�
\
N O
n rt
n w
�- o
m �
a ••
� d
�C O
N 'O
� rt
�
M LTJ H
O X �
n n c+
�U N
a az
� �� �
G � m
i-i �4 •
� �
H N G
n N �
• o0
on
� r-
O N
o r•
o�
w
H
oz
zo
m rr
�
�
m
�
r
�