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HomeMy WebLinkAbout32019 / 82-22July 15, 1982 1� 22 RESOLUTION PURPOSE: INITIAL RESOLUTION FOR ZNDUSTRIAL DEVELOPMENT REVENUE BONDS INITZATED BY: FOX VALLEY CARDIOVASCUI.AR ASSOCIATES $E IT RESOLVED by the Co�on Council o£ the City of Oshkosh that the initial resolution authorizing City of Oshkosh industrial revenue bonds in an amount not to exceed $750,000.00 to finance the construction of the clinic facility and the installation of related equipment to be owned by Fox Valley Cardiovascular Associates is fiereby approved. SUBMITTED BY ". PF??07F'0 - 22 - i .. � ti RESOLUTION OF THE CITY COUNCIL OF THE CITY OF OSHKOSH RELATING TO THE FINANCING OF AN INDUSTRIAL PROJECT FOR FOX VALLEY CARDIOVASCULAR ASSSOCIATES - BUILDING PARTNERSAIP AND FOX VALLEY CARDIOVASCULAR ASSOCIATES - EQUIPMENT PARTNERSHIP An Initial Resolution - authorizing not to exceed $750,000 City of Oshkosh Industrial Development Revenue Bonds to finance the construction of a clinic facility and the acquisition and installation of related equipment to be owned by Fox Valley Cardiovascular Associates - Building Partnership and Fox Valley Cardiovascular Associates - Equipment Partnership, respectively. WHEREAS, Fox Valley Cardiovascular Associates - Building Partnership and Fox Valley Cardiovascular Associates - Equipment Partnership, Wisconsin general partnerships (herein called the "Company"), desires to construct and equip a clinic 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 WAEREAS, in connection with the construction and equipping of the clinic facility, the Company has represented to the City that it would be an encouragement and ind�cement for the Company to construct and equip such facility in the City if this project could be financed with industrial development revenue bonds; and WHEREAS, the project is described as follows: land, building, and equipment which will constitute a clinic facility (herein collectively 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 not greater than $750,000, 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 m WHEREAS, it is the finding and determination of this City Council that it is desirable for the City to encourage the Company to construct and equip a clinic facility in the City so that the City may derive substantial municipal benefits, including retention of steady employment for its citizens, main- tenance 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 WAEREAS, the City, 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 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. In 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 exceed $750,000 (the "Bonds") in order to finance the Project, which bonds shall be payable solely out of the -2- revenues derived from the Revenue Agreement relating to the Project; (b) Enter into a Revenue Agreement with the Company whereunder the Company agrees to pay to the City an amount of funds sufficient 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 par value 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; and (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 (f) That the Bonds shall be issued within one year of the date of this Initial -3- 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 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 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 Mayor and City Clerk, and either of them, are hereby authorized on behalf of the City to complete, execute and file with the Internal Revenue Service a statement of election -4- 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 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 wi11 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 TAKE NOTICE that the City Council of the City of Oshkosh, Wisconsin, at a regular meeting held the 15th day of July, 1982, adopted a resolution pursuant to Section 66.521, Wisconsin Statutes, as amended, indicating its intent to issue City of Oshkosh Industrial Development Revenue Bonds (FOx Valley Cardiovascular Associates - Building Partnership and Fox Valley Cardiovascular Associates - Equipment Partnership Project) in an amount not to exceed $750,000 for the purpose of financing the construction of a clinic facility and the acquisition and installation of related equipment to be owned by Fox Valley Cardiovascular Associates - Building Partnership and Fox Valley Cardiovascular Associates - Equipment Partnership, respectively, 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 CHARGE AGAINST THE GENERAL CREDIT OR TAXING POWERS OF THE CITY. THE BONDS SHALL BE PAYABLE SOLELY FROM THE REVENUES AND OTHER AMOUNTS DERZVED OR RESULTING FROM THE REVENUE AGREEMENT RELATING TO SAID PROJECT BETWEEN THE CITY OF OSHKOSH AND FOX VALLEY CARDIOVASCULAR ASSOCIATES - BUILDING PARTNERSHIP AND FOX VALLEY CARDIOVASCULAR ASSOCIATES - EQUIPMENT PARTNERSHIP. The resolution may be inspected by any 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 publica- tion of this Notice a petition signed by not less than five per- -5- cent (58) of the registered electors of the City 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, 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. Converse C. Marks, City Clerk * * * THIS RESOLUTION INTRODUCED, APPROVED AND ADOPTED JULY 15, 1982. /- � J � � � riF/',��CC4� � �l/�. Z{-C' Converse C. Mark�s-�City Clerk �.� NOTICE TO ELECTORS OF THE CITY OF OSHKOSH TAKE NOTICE that the City Council of the City of Oshkosh, Wisconsin at a lawful meeting held on July 15, 1982, adopted a resolution, pursuant to Section 66.521 of the Wisconsin Statutes, as amended, waiving the public bidding and non-discximination provisions with respect to an issue of industrial development revenue bonds on behalf of Fox Valley Cardiovascular Associates - Building Partnership and Fox Valley Cardiovascular Associates - Equipment Partnership. The resolution read in its entirety as follows: CITY OF OSHKOSH, WISCONSIN RESOLUTION WAIVING PUBLIC BIDDING AND NON-DISCRIMINATION REQUIREMENTS FOR FOX VALLEY CARDIOVASCULAR ASSOCIATES - BUILDING PARTNERSHIP AND FOX VALLEY CARDIOVASCULAR ASSOCIATES - EQUIPMENT PARTNERSHIP ZNDUSTRIAL DEVELOPMENT REVENUE BOND PROJECT WHEREAS, the City of Oshkosh, Wisconsin (the "Municipality"), has by resolution of its City Council expressed its intent to issue bonds pursuant to Section 66.521, Wisconsin Statutes, in an amount not to exceed $750,000 for the purpose of financing on behalf of Fox Valley Cardiovascular Associates - Building Partnership and Fox Valley Cardiovascular Associates - Equipment Partnership, Wisconsin general partnerships (the "Company") the construction of a clinic facility and the acquisition and installation of related equipment (the "Project"); and WHEREAS, Section 66.521(11)(b)1., Wisconsin Statutes, (i) provides that construction work which is let by contract and which has an estimated cost exceeding $5,000 may be financed with industrial revenue bonds only if the contract is let to the lowest responsible bidder and proposals for the contract are advertised by publishing a class 2 notice under Ch. 985 and (ii) prohibits discrimination in subcontracting, access, or employment based on race, creed, sex, handicap, ethnic origin, age, or marital status with regard to construction, use, and operation of projects financed under the Act; and WHEREAS, the Company has made representations to the Municipality (i) that compliance with the notice and public bidding requirement in the first sentence of Section 66.521(11)(b)1., Wisconsin Statutes, may impair the prompt and efficient completion of the Project (a) because of the delays associated with those requirements and (b) because compliance with those requirements may prohibit the Company from using the contractors which, in the Company's judgment, are best suited to do work on the Project regardless of whether they are the "lowest responsible bidder" as that term is used in Section 66.521(11)(b)1., Wisconsin Statutes, and (ii) that while the Company supports non-discrimination policies of the type enunciated by the statute, the Company would prefer to handle the non-di.scrimination aspects of the Project by contract because there� has been no judicial interpretation of what is require�d under the non-discrimination provisions of Section 66.521(11)(b)l., Wisconsin Statutes, or what the x-emedies may be for the failure to comply with them and because a prospective bondholder must be able to satisfy itself that the validity of the bonds will not be subject to attack for failure of the Company to comply with uninterpreted statutes; and WHEREAS, Section 66.521(11)(b)2., Wisconsin Statutes, provides the Municipality with authority to waive the public bidding and non-discrimination requir.ements of Section 66.521(11)(b)1., Wisconsin Statutes; NOW, THEREFORE, BE IT RESOLVED by this City Council of the City of Oshkosh: 1. This City Council hereby finds (i) that the imposition of the public notice and bidding requirements of Section 66.521(11)(b)1., Wisconsin Statutes, may impair the prompt and efficient completion of the Project (a) because of the delays associated with those requirements and (b) because compliance with those requirements may prohibit the Company from using the contractors which, in the Company's judgment, are best suited to do work on the Project regardless of whether they may be the "lowest responsible bidder" as that term is used in Section 66.521(11)(b)1., Wisconsin Statutes, and (ii) that the non-discrimination requirements of Section 66.521(11)(b)1., Wisconsin Statutes, are more appropriately handled by contract with the Company because there has been no judicial interpretation of what is required under the non-discrimination provisions of Section 66.521(11)(b)1. or what the remedies may be -2- for the failure to comply with them prospective bondholder must be able that the validity of the bonds will attack for failure of the Company to uninterpreted statutes. and because a to satisfy itself not be subject to comply with 2. For the reasons stated above, this City Council pursuant to the authority granted to it by Section 66.521(11)(b)2., Wisconsin Statutes, hereby waives the requirements of Section 66.521(11)(b)1., Wisconsin Statutes, with regard to the Project, provided that the revenue producing agreement for the financing shall contain a non-discrimination provision satisfactory to the Municipality; FURTHER RESOLVED, that the City Clerk is hereby directed to publish this resolution as a class 1 notice under Ch. 985, Wisconsin Statutes (relating to publication of official notices) in the official newspaper of the Municipality pursuant to such chapter. Adopted July 15, 1982 ,�� ��n � �r �n��,�t � � � Converse C. Mar�lta, ity Clerk -3- N N � uf � �xv m o +� •.� w ro }a -e� i� 1 U ni O � � N H O � � m� � � N � � � �I � � � O .. ao � 6 �d .� v +� RS � �� � � H H N «S F' �V � a U O ?i �'. rl 4) O N � •� > � +� a� ro o A� � �i Q .� � � � O m N a r-I � .� +� .� a H � `�� � �� X �n % v � rl � V � � �r� h U