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Home My WebLink About32391 / 83-14May 5, 1983 (CARRIED PURPOSE: INITIATED BY LOST I�\[�Ii]U9:� # 14 3��l��li[�Pl WITHDRAWN ) APPROVE INITIAL RESOLUTION FOR INDUSTRIAL REVENUE BONDS FOR PACUR, INC. PACUR, INC. BE IT RESOLVED by the Common Council of the City of Oshkosh that the following attached initial resolution to authorize not to exceed $1,500,000 City of Oshkosh Industrial Revenue Bonds to finance the expansion of a manu- facturing facility for use by Pacur, Inc. is hereby approved. SUBHITTED BY APPRO'J�,'D - 21 - � An $1,500,000 to finance Pacur, Inc. Resolution # 14 RESOLUTION OF THE CZTY COUNCIL OF THE CITY OF OSHKOSH RELATING TO THE FINANCIL7G CF AN INDUSTRIAL PROJECT FOR PACUR, INC. Initial Resolution - authorizing not to exceed City of Oshkosh Industrial Development Revenue Bonds the expansion of a manufacturing facility for use by S4fIEREAS, Pacur, Inc., a�4isconsin corporation (herein called the "Company"), desires to expand its manufacturing facility in the City of Oshkosh (hereinafter called the "City"), and such improvement would contribute to the well-being of the City in terms of the gainful employment of its citizens and the preservation and enhancement of its tax base; and WHEREAS, in connection with the expansion of its manufacturing facility, the Company has represented to the City that it would be an encouragement and inducement for the Company to expand such facility in the City if this project could be financed with industrial development revenue bonds; and LIHEREAS, the project is described as follows: building addition and related equipment for the manufacturing facility of the Company (herein collectively called the "Project"); and 67HEREAS, 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 not greater than $1,500,u00, which is the amount proposed to be financed with industrial development revenue bonds; and WHEREAS, it is in the best interests of the City to promote, attract, stimulate, rehabilitate and revitalize commerce, industry and manufacturing, to promote the betterment of the environment of the City, and to stimulate the flow of private investment funds into the City; and WHEREAS, it is the finding and determination of this City Council that it is desirable for the City to encourage the - 22 - Resolution # 1� Company to improve its facilities in the City so that the City may derive substantial municipal benefits, including retention of steady employment for its citizens, maintenance of or increase in its tax base resulting in greater support for municipal services, stimulation of existing and new businesses and stimulation of private investment funds from financial institutions; and WHEREAS, the City, as a municipal corporation organized and existing under and pursuant to the laws of the State of �Qisconsin, is authorized by Section 66.521 of the Wisconsin Statutes to: (1) Construct, equip, acquire by gift, lease or purchase, 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 City Council of the City of Oshkosh, Wisconsin as follows: 1. Zn view of the aforesaid substantial benefits to the City associated with the Project, it is desirable that the City 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 City and the Company. 2. Subject to the conditions enumerated hereafter, this City Council agrees that the City shall work toward the consummation of a financing arrangement pursuant to which the City shall: (a) Issue industrial development revenue bonds in an amount not to exceed the cost of the Project and not to excess $1,500,000 (the "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; -2- -23- Resolution # 14 (b) Enter into a Revenue Agreement with the Company whereunder the Company agrees to pay to the City an amount of funds sufficien� to pay when due the principal of and interest on the Bonds issued to finance the Project; (c) 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; (d) Provide for a sale price for the Bonds of not less than the principal amount thereof. 3. The aforesaid financing arrangement contemplates and is conditioned upon the following: (a) That the Bonds shall never constitute an indebtedness of the City 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 City 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 industrial development revenue bonds; (d) That the Company shall find a prospective purchaser(s) for all of the Bonds; (e) That the out-of-pocket costs, including any Trustee fees, fees of Bond Counsel and reasonable attorney fees and expenses incurred by the City, in connection with the issuance and sale of the Bonds shall be paid either from the proceeds of the Bonds or by the Company; and -3- _ zq _ Resolution # 14 (f) That the Bonds shall be issued within one year of the date of this Initial Resolution, at which time this Initial Resolution shall expire unless this City Council shall provide for its continued effectiveness. 4. The appropriate officials of the City are hereby authorized to negotiate the terms of the Plan of Financing and to execute 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 City nor be finally implemented unless and until: (a) The terms, details and mechanics regarding the issuance of the Bonds and the documents relating thereto are reviewed, authorized and approved by a further resolution of this City Council as provided by law; (b) The City Clerk shall cause notice of this resolution to be published once in a newspaper of general circulation in the City and the electors of the City shall have been given the opportunity to petition for a referendum on the matter of the issuance of the Bonds as required by law; and (c) Either 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 was published, shall be filed with the Secretary of Development of the State of LVisconsin within twenty (20) days following p�blication of said Notice. 7. The intent of this resolution is not to create any firm or binding obligation on the part of the City unless the City determines to go forward with the execution of documents required for this proposed financing and, in such event, the City'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 City to conplete, � -25- execute and file with of election respecting with the provisions of Revenue Code of 1954, Resolution # 14 the Internal Revenue Service a statement this proposed financing in accordance Section 103(b)(6)(D) of the Internal 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 the official newspaper of the City, such notice to state that unless within thirty (30) days from the date of such publication a petition signed by not less than five percent (5$} of the registered electors of the City shall be filed with the City Clerk requesting 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 City for approval. Said Notice shall be in substantially the following form: NOTICE TO ELECTORS OF THE CITY OF OSHKOSH TA�E NOTICE that the City Council of the City of Oshkosh, 69isconsin, at a regular meeting held the Sth day of D4ay, 1983, adopted a resolution pursuant to Section 66.521, F7isconsin Statutes, as amended, indicating its intent to issue City of Oshkosh Industrial Development Revenue Bonds (Pacur, Inc. Project) in an amount not to exceed $1,500,000 for the purpose of financing an expansion of a manufacturing facility and the acquisition and installation of related equipment to be used by Pacur, Inc. 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 GENERAI. CREDIT OR TAXING POWERS OF THE CITY. THE BONDS SHALL BE PAYABLE SOLELY FROM THE REVENUES AND OTHER AMOUNTS DERIVED OR RESULTING FROM THE REVENUE AGREEMENT RELATING TO SAID PROJECT BETWEEN THE CITY OF OSHKOSH AND THE ELIGIBLE PARTICIPANT, PACUR, INC. The resolution may be inspected by an elector of the City at the City Hall during business hours during the thirty (30) days following publication of this Notice. Unless within thirty (30) days following the publication of this Notice a petition signed by not less than five percent (5�) of the registered electors of the City is -5- - 26 - Resolution # 14 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, then the Bonds shall not be issued until approved by a majority of the electors of the City voting thereon at a general or special election. Donna C. Luebke, City Clerk * * * THIS RESOLUTION INTRODUCED, APPROVED AND ADOPTED MAY 5, 1983. William Frueh, City Manager Donna C. Luebke, City C1erk S� - 27 - � R �.... _._... _ .. .. i'. �. � .. "�� : � �� x � w n � � � � � � o � •• rt �a N m rn v ��'� ro�� o 0 H� �b ��O � rt � w� � r r• rt �� F�-' � v .J �