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HomeMy WebLinkAbout32549 / 83-13July 21, 1983 (CARRIED LOST LAID OVER ll 13 RESOLUTION WITHDRAWN ) There will be an initial resolution authorizing not to exceed $375,000 City of Oshkosh Industrial Revenue Bonds for use by Chamco, Inc. �. . 1 . COMMON COUNCIL OF THE CITY OF OSHKOSH Resolution No. INITIAL RESOLU'PION REGARDING INDUSTRIAL DEVELUPMENT REVENUE F30NDING ON BEHALF OF CHAMCO, INC. WHEREAS, Chamco, Inc. (hereinafter "Chamco") has been considering acquiring real estate, constructing and equipping a new i-ndustrial park facility in the City of Oshko,h, Winnebago County, Wisconsin (hereinafter the "City"); and WHEREAS, such a facility would contribute to the gainful employment, business opportunities and general welfare of the City's citizens and the preservation and enhanceaient of its tax base; and WHEREAS, in considering acquiring a site for constructing and equipping such a facility, Chamco has represented to the City that it would be an encouragement and an inducement for Chamco to locate these facilities in the City if the project could be financed with industrial development revenue bonds; and WHEREAS, the proposed project is to acquire approximately five acres of real estate, construct a building ther.eon of approxi- mately 40,000 square feet of. floor space, and equip the same for use as a facility i.n the Oshkosh Southwest Industrial Park (herein- after the "Project") aC a cost of not to exceed $375,000.00; WHEREAS, it is in the best interest of the City to promote, attract, stimulate, rehabilitate and revitalize commerce, industry, and manufacturing; to pr.omote the betterment of the environment and the economy of the City and to stimulate the flow of private investment into the community; and WHEREAS, it is tl�e findi.nq and determination of this Common Council that it is in the best interest of tiie City to encourage and induce Chamco to proceed with the Project in the Ci.ty in order to sCimulate private investment in the community; preserve and enhance its tax base; and otherwise promote the general welfare of its inhabitants; and wHEREAS, the Ci.ty is authorized by Section 66.521(3) of the Wisconsin Statutes to, in addition to the exercise of other powers: (a) Construct, equi.p, re-equip, acquire hy gift, lease or purchase, install, reconstruct, rebuild, rehabilitate, improve, supplement, replace, maintain, repair, enlarge, extend or remodel industrial projects; 4 � (b) Borrow money and issue revenue bonds to finance all or any part of the costs of the construction, equipping, re-equipping, acquisition, purchase, installation, recon- struction, rebuilding, rehabilitation, irnproving, sup- plementiny, replacing, maintaining, repairing, enlarging, extending or remodeliny of industrial projects and the improvement of sites therefor; (c) Enter into revenue agreements with eligible participants with respect to industrial projects. WHEREAS, Chamco pursuant to Section 66.521(10)(g) of the Wisconsin Statutes has filed with the Cler'k of the City and with the Wisconsin Department of Business Development a document which provides a good faith estimate of attorneys' fees which would be paid from the proceeds of tFte industrial revenue bonds; NOW, THEREFORE, BE IT RESOLVED by the Honorable Common Council of the City of Oshkosh as follows: 1. Subject to the conditions enumerated in Paragraph 2, below, this Common Council ayrees that the City shall work toward the consummation of a Plan of Financing pursuant to which the City shall: 1.01 Issue industri.al development revenue bonds in an amount equal to the cost of the Yroject, not to exceed $375,000.00 (hereinaft.er the "Bonds"), in order to finance said Project. Said IIonds sha11 be payable solely out of the revenue derived from Chamco pursuant lo the terms of a lease, sal.e, loan, installment purchase or similar agreement (hereinafter the "Revenue Agreement"); 1.02 Enter into a Revenue Agreement with Chamco whereby Chamco agrees to construct the Project and to pay the City an amount of funds sufficient to pay, when due, the principal and interest on the bonds issued for the Yroject; 1.03 St:ructure a sale of the Bonds with such maturities, interest rates, and redemption features as Chamco shall propose, provided that such terms shall be s�bstantially similar to the terms of similar bonds securiny the obligations of companies having substantia ll y equivalent credit worthiness as that of Chamco. 2. The aforesaid Plan of Financing contemplates and is cun- ditioned upon the following: 2.01 That. the Bonds shall never constitute an indebted- ness of the City withi.n the meaning of any state constituriona] provision or statutory limitation; �� 2.02 That the Bonds stiall not constitute nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers; 2.03 That the Project shall be subjecY_ to property taxation in the same amount and to the same extent as though the Project were not financed with industrial development revenue bonds; 2.04 The Project shall not be used for purposes which discriminate in access or employment based on r.ace, creed, sex, handicap, ethnic origin, age or marital stat�s; 2.05 That Chamco shall find a purchaser £or all of the Aonc9s; and 2.06 That ttie expenses incurred in connection with the issuance and sale of the f3onds shall be paid either irom the proceeds of the Bonds or by Chamco. 3. That appropriate officials of the City are hereby authorized to negotiate the terms of the Plan of Financing and to execute an agreement with Chamco and the prospective purchaser(s) of the Bonds setting forth said terms. 4. The Ylan of Financi�g shall not be legally binding upon the City nor be fi-nally implemented unless and until: 4.01 The City Clerk shall have caused notice of this resolut:ion to be publi.shed once in a newspaper of general circulation in the City and the electors of tt�e City sha ll. have been given the opportunity to petition for a referendum on The matter of the aforesaid bond issue as required by law; and 9.02 Eittier no such petition shall be timely filed or such petition sha11 have been filed and said referendum shall have approved the bond issue; and 4.03 The details and mechanics of the Plan of Financiny are auttiorized and approved by a further resolution of this Common Council. 5. The City Clerk is directed, following adoption of this resoluT_ion, to publish notice of such adoption not less than one time in the official newspaper of the City, such notice to state tl�at unless 30 days from the date of adoption of this resolution a petition signed by not less than five percent (5�) of the registered electors of the Cit:y shall be filed wiY_h the City Clerk requesting a referendum upon the question of C}ie issuance of the Bonds, the issuance of such Bor�ds will not be submitted to the electors of the City for approval. Said notice shall be substantially as follows: -3- NOTICE TO ELECTORS OF THE CITY OP' OSHKOSH TAKE NOTICE that the Common Council of the City of Oshkosh, Wi.nnebago County, Wisconsin at a lawful meetiny held on the "llst day of July, 1983, adopted a resolution pursuant. to Section 66.521 of the Wisconsin Statutes, authorizing the issuance of not to exceed $375,000.00 principal amount of City of Oshkosh Industrial kevenue Bonds on behalf of Chamco, Inc. (hereinafter "Chamco"). These Bonds are for the purpose of constructing a building upon land in the City of Oshkosh for use as a iacility in the City of Oshkosh Southwest Industrial Yark_ 1'HESF BONDS SHALl� NOT CONSTITUTE AN fNDI?R'I'EDNliSS OF THE CITY OF OSkiKOSH NOR SHALL 'PHE BONDS GIVG RISli TO ANY PECUNIARY LIABILITY OF THE CT`1'Y NOR SHALL, 1'tiE 80NDS }3E A CHARGE AGAINST THL GliNERAL CREDIT Gk 'PAXING POWER OF THF. CI'PY, RA7`IIER, THE AONDS SHALL BE PAYABLE SOLELY FROM THE REVENUES AND OTHER AMOUNTS DERIVED FROM A REVENUE AGREEMEN'P TO BE ENTERED INTO WITH CHAMCO. The initial resolution may be inspected by any elector of the City of Oshkosh during busi.ness haurs of the City Clerk, during the thirty (30) days next following publication of this Notice. TAKE FURTHER NOTICE THAT 'PHE GLECTORS OF THE CITY OF OSHKOSH MAY YE'PITION FOR A RFPEkENDUM ON '1'HE QUESTION OF THE BUND ISSUE. Section 66.521(10)(d), Wisconsin SCatutes pruvides: "(d) The governing body may issue bonds under this section without submittiny the proposition to the electors of the muni.cipality for approval unless within 30 days from the date of publication of notice of adoption of the initial reso:lution for snch bonds, a petition, signed by not less than five percent (58) of the registered electors of the munic.ipality, or iY there is no reyistration of electors in the municipality, by ten percent (10%) of the number of electors of the municipalilty votinq for the off.i.ce of governor at the last general election as determined under Section ll5.01(13), is filed with the Clerk of the cnunicipality requesting a referendum upon the question of the issuance of the bonds. If such a petition i.s filed, the bonds shall not be issued until approved by a majority of the electors of the municipality voting thereon at. a general or special election." Published: Donna C. Luebke CiT.y C1erk City Hall -4- 6. The City Clerk is anthorized to complete and file with the Internal Revenue Service a Statement of Election as may be required by Section 103(b)(6)(D) of the Internal Revenue Code and regulations thereunder. 7, This Resolution is an "initial resolution" within the meaning of Section 66.521(2)(g), Wisconsin Statutes, and a"bond resolution or other similar official action" within the meaning of Section 1.103-8(a)(S) of the Treasury Regulations promulgated under Section 103 of the Internal Revenue Code of 1954, as amended. It shall be effective immediately upon its passaqe and approval and shall remain effective until June 30, 1986, or until such late_r date as this Con�mon Council may specify by further resolution. S. The City Clerk is authorized to establish the time and place for a public heariny regarding the Yroject and to publish a notice therefor. The same official who would preside over a meeting of the City Council sha11 preside over the public hearinq. The public hearinq shall proceed under such rules of procedure as the presiding official in his/her discretion shall determine. S� 20238 �� � F'• � -?C � � � C] �. N F� � F� (D v Z � F� � W ( w �. �� � � O ci �• O � y � a � 0 � � C]Hc+H �' � O � �wam� c� [� SS F�• O cr (� pJ � i N F� N• � H W p, '!c7 � H � CJ {t} Ul • Z1 w O m 1 F� C �n � m � �r � o N• C o O (D O .'i :e �;� � f �-A �M � N N C] Cd C] a a o r• � a �1 � cr �r a� o. �c � � i--i m o w tn o �s v MM�• •• O N �3 O I�• � � � C .'� 09 �C m ,'�' �D N O � tn [n O 6' � ct � �