HomeMy WebLinkAbout32549 / 83-13July 21, 1983
(CARRIED
LOST
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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WITHDRAWN )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.
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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;
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(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;
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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:
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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
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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
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