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HomeMy WebLinkAbout31604 / 81-20d t7ovember S, 1981 � Zp RESOLUTION PURPOSE: RESOLUTION AUTHORIZING INDUSTRIAL DSVELOPMENT BONDS - LISKAR INVESTMENTS PROJECT ZNITIATED BY: LZSKAR INVESTTfENTS BE IT RESOLVED by the Co�on Council of the City of Oshkosh that the attached Resolution Authozizing $425,000.00 City of Oshkosh, Wisconsin, Industrial Development Revenue Bonds for the Liskar Investments Project is hereby approved. -20- ��/7��1,�; a rdt110481 CITY COUNCIL OF THE � CITY OF OSHKOSH RESOLUTION N0. BOND RESOLUTION AllTHORIZING $425,000 CITY OF OSHKOSH, WISCONSIN INDUSTRIAL DEVELOPMENT REVENUE BONDS, SERIES B (LISKAR INVESTMENTS PROJECT) WHEREAS, the City of Oshkosh, Wisconsin (the "Munici- pality"), is a municipal corporation organized and existing under and pursuant to the laws of the State of Wisconsin and is autho- rized by Section 66.521, Wisconsin Statutes, as amended (the "Act"): (a) to issue industrial development revenue bonds to finance a11 or any part of the costs of the construction, equipping, ieequipping, acquisition, purchase, i�stallation, recon- struction, r.ebuilding, rehabilitation, improving, supplementing, maintaining, repairing, enlarging, extending or remodeling of a project which qualifies under the Act and the improvement of the site therefor; and (b) to enter into a revenue ap,reement with an eligible participant pursuant to which the eligible participant agrees to cause said project to be constructed and to pay the Municipality an amount of funds sufficient to provide for the prompt payment whe❑ due of the principal of and interest on said industrial development revenue bonds; and WHEREAS, Liskar Investments, a limited partnership formed under the laws of the State of Wisconsin (the "Borrower"), has heretofore requested the Municipality to issue industrial development revenue bonds to finance a project on behalf of the Borrower as an eligible participant under the Act; and [dHEREAS, on August 20, 1981 this body found and deter- mined that said project consisting of the expansion, improvement and equipping of an existing building for the purpose of the manufacture of flexible packaging products (the "Project") is a qualified "project" within the meaning of the Act and that the Botrower is an "eligible participant" within the meaning of the Act; and WHEREAS, on August 20, 1981, this body adopted an initial resolution pursuant to the Act wherein it was resolved that the Municipalitiy would issue industrial development revenue bonds to finance the Project, subject however, to the satis- faction of certain conditions including the approval by this body of the terms of the bonds and the revenue agreement described in said initial resolution; and WHEREAS, on August 20, 1981, this body adopted a resolution relating to waiver of Section (11)(b)1. of the Act and in that resolution provided that the revenue agreement shall contain anti-discrimination clauses which shall be approved by the Municipality; and WHEREAS, on September 2, 1981, notice of the adoption of the initial resolution �aas published in accordance with Section (10)(b) of the Act, and notice of adoption of the waiver resolution was published in accordance with Section (11)(b)2. of the Act, and no sufficient petition has been filed with the Clerk requesting a referendum on the question of the issuance of said industrial development revenue bonds; and �dHEREAS, on December 22, 1978, the Municipality issued $380,000 principal amount of industrial development revenue bonds (the "Series A Bonds"), dated December 1, 1978, pursuant to an Indenture of Trust (the "Original Indenture"), a Loan Agreement (the "Original Loan Agreement") and secured by a Mortgage (the "Original Mortgage"), each dated as of December 1, 1978; and WHEREAS, in connection with the issuance of the Series A Bonds, the Borrower executed a promissory note in the amount of $380,000 (the "Series A Promissoty Note"); and WHEREAS, the Original Indenture provi�es for tihe issuance of additional bonds for the purposes of financing the costs of constructing improvements ot additions to the project which was financed with the Series A Bonds; and WHEREAS, the Borrower has noca requested that the Municipality provide for the issuance of S425,000 principal amount of industrial development revenue bonds upon the terms set forth in this Resolution (as herein described, the "Series B Bonds"); and -2- WHEREAS, in connection therewith the Borrower has presented the Municipality with proposed documentation for the Series A Bonds, as follows: • (a) a Bond Purchase Agreement, to be dated as of the date of adoption of this Bond Resolution (the "Bond P�rchase Agreement"), to be entered into by and among the Municipality, the Borrower, Banner Packaging, Inc., a Wisconsin corporation, Ronald E. Socale and Frank J. Kearny III, individuals residing in the State of idisconsin, (the "Guarantors") and the various institutional investors identified therein (hereinafter referred to as the "Bond Purchasers"), setting forth the terms and conditions on which the Municipality will sell and the Bond Puichasers will purchase the Series B Bonds; and (b) a First Supplemental Indenture of Trust, to be dated as of Novenber 1, 1981 (the "First Supplemental Indenture" and together with the Original Indenture hereinafter called the "Indenture"), to be entered into between the Municipality and the corporate trustee hereinafter designated (the "Trustee"), providing for the creation of the Series B Bonds, the terms thereof and the security therefor; and (c) a First Supplemental Loan Agreement, to be dated as of November 1, 1981 (the "First Supplemental Loan Agreement" and together with the Original Loan Agreement hereinafter called the "Loan Agreement"), to be entered into between the Municipality and the Borrower providing for a loan of the Series S Bond proceeds to the Borrower on repayment terms scheduled to provide the Municipality with revenues sufficient to retire the Series B Bonds in accordance with their terms; and (d) a Promissory Note, to be dated November 1, 1981 (the "Series B Promissory Note" and together with the Ser.ies A Promissory A'ote hereinafter called the "Promissory Notes"), to be issued by the Botrower payable to the order of the �funicipality in the principal amount of $425,000 as evidence of the bor- towing provided Lor in the First Supplemental Loan Agreement and to be assigned by the Municipality to the Trustee; and �G� (e) a First Supplemental Mortgage and Assignmeot of Rents, to be dated as of November 1, 1981 (the "First Supplemental Mortgage" and togethei with the Oiiginal Mortgage herein- after called the "Mortgage"), from the Borrower to the Municipality, and from the Municipality to be assigned to the Trustee, providing collateral security for the per- formance of the Boriower's obligations under the Loan Agreement; and (f) First Supplemental Guaranty Agreements, to be dated November 1, 1981, from each Guarantor to the Trustee (the "First Supplemental Guaranty Agreements"); and WHEREAS, in accordance wiCh the Act, this Resolution and the aforesaid instruments and documents, the Series B Bonds and interest thereon shall never constitute an indebtedness of the Municipality within the meaning of any State constitutional provision or statutory limitation, shall not constitute or give rise to a pecuniary liability of the Municipality or a charge against its general credit ot taxing powers, and shall not consl-itute or give iise to any personal liability of any member of this body or of any officers or employees of the P1unicipality on the Series B Bonds or for any act or omission related to the authorization or issuance of the Series B Bonds; and WHEREAS, it is in the public interest of the Munici- pality to encourage and promote the development of projects such as the Project in order to realize public benefits such as, but not limited to, the provision and retention of gainful employment opportunities for the citizens of the Municipality; the stimula- tion of the flow of investment capital into the Municipality with resultant beneficial effects on the economy in the Municipality; and the preservation and enhancement of the Municipality's tax base; and WHEREAS, the development o£ the Project and the issuance of Series B Bonds to finance the Project as herein recited will, in the judgment of this body, serve the intended accomplishments of public purpose and in all respects conform to the provisions and requirements of the Act; NOW, THEREFORE, BE IT RESOLVED: 1. Findin s and Determinations. It has been [ound and determined and is ere y eclare : (a) that the Project is a qualified "project" under and for the purposes of the Act; -4- (b) that the Borrower is a qualified "eligible participant" under and for, purposes of the Act; (c) that the Loan Agreement meets the require- ments of a"revenue agreement" under and for purposes of the Act; (d) that the estimated aggregate cost of pro- viding the Project and paying the costs incident to the financing is not less than $425,000; (e) that the payments required to be made by the Bortower under the Loan A�reement are sufficient in amount to pay when due the principal of, premium, if any, and interest on the Series B Bonds; (f) that the Loan Agreement contains anti- disctimination clauses cahich are hereby expressly approved by the Municipality; and (g) that all conditions set foith in said Initial Resolution have been satisfactorily met. 2. Authorization to Borrow and to Lend. The Munici- pality sha11 Uorrow, but only in the manner herein recited, the sum of $425,000 for the purpose of (i) financing the costs of providing the Project, (ii) paying the costs of issuing and selling the Series B Bonds, and (iii) paying such other costs related theieto as are permittied to be paid with bond proceeds under the Act. Said borrowing shall be accomplished through the sale of the Series B Bonds issued pursuant to the Act. The Municipality shall lend the sum of S425,000 to the Borrocaer pursuant to the terms of the Loan Agreement, which borrowing shall be evidenced by the Series B Promissoiy Note and secured by the �1ortgage and the First Supplenental Guaranty Agreements. 3. Designation, Denomination, Tenor and Maturity of Series B Ronds Created �r Issuance. The Series B Bonds shall be issued in the prinr_ipal amount of S425,000 and sha11 be desig- nated: CITY OF OSHKOSH, ?dISCONSIN 1NDUSTRIAL DEVELOPMENT KEVF,NllE BONDS, SERIES B (LISKAR INVESTMENTS PROJECT) -5- The Series B Bonds shall mature in accordance with the schedule provided in the table beloW: Maturity Date Piincipal ovember 1 of the Year) Amount 1982 $ 5,000 1983 10,000 1984 10,000 1985 15,000 1986 15,000 1987 20,000 1988 20,000 1989 25,000 1990 30,000 1991 35,000 1992 40,000 1993 45,000 1994 50,000 1995 55,000 1996 50,000 The Series B Bonds shall bear interest from their date at a rate which is seventy-five percent (75%) of the rate announced by First Wisconsin National Bank of Milwaukee, Milwaukee, Wisconsin from time to time as its prime rate (the "Prime Rate") with the rate applicable to the Series B Bonds changing simultaneously with changes in the Prime Rate; provided, however, that the interest rate on the Series B Bonds shall never fall beloca ten percent (10%) per annum. Interest shall be payable on May 1, 1982, and semiannually thereafter on the first day of May and Novenber in each calendar year until paid. The Series B Bonds shall be issuable as fully regis- tered typewritten bonds without coupons in denominations of $5,000 or any integral multiple thereof. The Series B Bonds and the interest thereon shall be transferable by and shall be payable to the registeied owners thereof in the manner and with the effect provided in the Indenture. The principal of, premium, if any, and interest on the Series B Bonds shall be payable in lawful money of the llnited States of America at the principal corporate trust office of the Trustee, as paying agent, or the office of any successor or additional paying agent designated by the Municipality and approved by the Borrower. The Series B Bonds shall be dated Nove;nUer 1, 1981, except in the case of Series B Bonds issued and authenticated after the first interest payment date which shall be dated in accordance with the provisions therefor provided in the In- denture. The Series B Bonds shall be lettered caith the prefix "BR" and numbered consecutively from 1 upwards in the order of their issuance. � The Series B Bonds shall be issued in the form thetefor as set forth in the Indenture, with such insertions therein as shall be necessary to comply with the terms of this Resolution and with such corrections therein, if any, as the approving bond attorney may require for conformity with the terms of this Resolution, the Indenture and the Act. 4. Execution and Authentication of Series S Bonds. The Series B Bonds shall be executed on behalf of the Munici- pality with the facsimile or manual signature of its City Manager, countersigned with the manual signature of its Clerk and shall 6ave impressed, imprinted or otherwise reproduced thereon the official seal of the Municipality or a facsimile thereof. No Series B Bond shall be issued unless first authenticated by the Trustee, to be evidenced by the manual signature of an authorized officer of the Trustee on each Series B Bond. 5. Designation of Trustee. The �funicipality hereby confirms its appointment of First Wisconsin National Bank of Oshkosh, Oshkosh, Wisconsin, to perform the functions of the Trustee, bond registrar and paying agent under the Indenture, which appointment was made in a resolution adopted by this body on December 21, 1978. 6. Additional Bonds. Bonds in addition to the Series A Bonds and Series B Bonds may be issued from time to time under the Indenture subject to the terms and conditions therein provided and subject to the approval of this body. If so issued, such additional Bonds shall rank equally and on a parity with the Series A Bonds and Series B Bonds. The Series A Bonds, Series B Bonds and any such additional Bonds are hereinafter collectively referred to as the "Bonds". 7. Series B Bonds as Limited Obligations. The Series B Bonds and interest thereon shall never be or be considered a general obligation of the Municipality or an indebtedness of the Municipality within the meaning of any State constitutional provision or statutory limitation and shall not constitute or oive rise to a pecuniary liability of the Municipality or a charge against its general czedit or Laxing powers. 8. Source of Payment; Pledge of Revenues. The Series B Bonds s1�a11 be limited obligations o� the Municipality payable by it solely from revenues and income derived by or for the account of the Municipality ftom or for the account of the Borrocaer pursuant to the teims of the Promissory Notes, the Mortgage and the Loan Agreement; including, without limitation, (i) all payments by the Borrower on the Promissory I�'otes or pursuant to the terms in the Loan Agreement, (ii) all cash and -7- securities held from time to time in the Trust Funds, and the investment earnings thereon and (iii) all amounts derived by recourse to the Mortgage or the First Supplemental Guaranty Agreements; but excluding any amounts derived by the Municipality for its own account putsuant to the terms in the Loan Agreement. As security for the payment of the principal of, premium, if any, and interest on the Bonds, the Municipality has already, pursuant to the Original Indenture, pledged and assigned to the Tzustee all of its right, title and interest in and to the Promissory Notes, the Loan Agreement (except for its rights to receive and enforce payment of certain taxes, expenses and indemnity payments from the Borrower as set forth in the Indenture and the Loan Agreement), the Mortgage and the trust funds held by the Trustee under the Original Indenture. As further security for the payment of the principal of, premium, if any, and interest on the Bonds, the Municipality shall confirm that the aforesaid pledge and assignment to the Trustee included all of its right, title and interest in and to the Series B Promissory Note, the First Supplemental Loan Agree- ment (except for its right to secure and enforce payment of certain taxes, expenses and indemnity payments from the Borrower as set forth in the Indenture and the Loan Agreement), the First Supplemental Mortgage and the trust funds held by the Trustee under the First Suppleme�tal Indenture. 9. Redemption of Series B Bonds Prior to Maturity. The Series B Bonds sha11 be subject to rede�ption prior to maturity as provided in the Indenture. Notice of any redemption of Series B Bonds prior to stated maturity sha11 be given in the manner provided in the Indenture. The pLincipal of, premium, if any, and interest on Series B Bonds called for redemption as aforesaid shall be payable solely from moneys held by the Trustee under the Indenture and available therefor, including moneys derived from the Borrower for such purpose pursuant to the Loan Agreenent. 10. Creation of the Construction Fund. There is hereby created by the yunicipality and ordered established with the Trustee, a trust fund to be designated with the names of the Municipality and the Borrower which shall be used to pay (or reimburse the Borrower for) the costs of providing the Project and such other costs in connection with the Project and the issuance and sale of the Series B Bonds as are permitted to be paid from the proceeds of the Series B Bonds under the Act, the Loan Agreement and the Indenture. Theie sha11 be deposited in said Construction Fund the entire proceeds received upon sale of the Series B Bonds less the portion thereof constituting accrued � interest. Trustee to buisement sition of Agree�ent. The Municipality hereby authorizes and directs the withdraw funds from said Construction Fund for dis- to or at the order of the Borrower pursuant to requi- the Rorrower as provided in the Indenture and the Loan 11. Creation of Bond Fund. There was created under the Original Indenture, a trust fund to be designated with the names of the Municipality and the Borrower which is and shall be used to pay the principal of, premium, if any, and interest on the Bonds. The Municipality hereby authorizes and directs the Trustee to withdraw sufficient funds from said Bond Fund to pay the principal of, piemium, if any, and interest on the Series A Bonds and Series B Bonds as the same become due and payable. 12. Other Trust Funds. There is hereby cLeated by the Municipality and ordered established, if necessary, with the Trustee funds in which there shall be deposited such net proceeds of certain sales, insurance and condemnation awards as may be provided in the Loan Agreement and the Indent�re. The Trustee is authorized to withdraw funds from said trust funds for application as provided in the Loan Agreement and the Indenture. 13. Investment of Trust Funds. Any moneys held as a part of the trust funds held by the Trustee undet the Indenture may be invested and reinvested by the Trustee upon request by tne Boirower in "Qualified Investments" as specified in Section 5.15(b) of the Original Indenture. 14. DeCermination of Revenue Payment. The a?nount necessary in each year to pay the principal of, premium, if any, and interest on the Series B Bonds is the sum of (i) the a�ount of principal becoming due in such year in accordance with the table in paragraph 3 of this Resolution (as reduced from time to time by reason of prior redemptions and open market purchases of Series B Bonds in accordance with the Indenture); plus (ii) the principal amount of Series B Bonds to be redeemed in such year in accordance with a call for redemption �ade in accordance with paragraph 9 of this Resolution and the Indenture, plus the premium, if any, payable with respect thereto; plus (iii) the amount of interest on the Series B Bonds becoming due in such year in accordance with the interest rates specified in para�raph 3 of this Resolution. In expressing the Borrower's obligation to make the necessary revenue payments, it shall sutfice herein and in the Loan Agreement to state that the Borrower shall be obligated to pay the Municipality (or the Trustee for the account of the Municipality) amounts sufficient to pay when due the ptincipal of, premiiim, if any, and interest on the Bonds. � The Loan Agreement contains provisions, adequate in the judgment of this body, requiring the Botrower to provide for the maintenance of the Project and the carrying of all proper in- surance with respect thereto. Consequently, the Borrower need not be required to pay amounts into any reserve funds for the retireme�t of the Series B Bonds or for the maintenance of the Project. 15. Award of Series B Bonds; Execution and Delivery of the Bond Purchase A reement. The Borro�ver has negotiated for the sa e o t e Series B Bon s to the Bond Purchasers at a price of 100% of the principal amount of the Series B Ronds, plus accrued interest to the date of delivery. Given the purposes of the . financing and the involvement of the Municipality therewith, it is the determination of this body that the Series B Bonds shall be hereby awarded to the Bond Purchasers at the price aforesaid with delivery to follow in the manner, at the time and subject to the conditions set forth in the Bond Purchase Agreement. As evidence thereof, the City Manager and the Clerk are hereby authorized and directed for and in the name of the Municipality to execute, affix with the official seal of the ^9unicipality and delivet the Bond Purchase Agreement in the form presented here- with, or with such insertions therein or corrections thereto as shall be approved by the City Manager and Clerk consistent with this Resolution and the terms of the Act, their execution thereof to constitutie conclusive evide�ce of their approval of any such insertions and corrections. 16. Execution and Delivery of the First Supplemental Loan A reement and the First Supplemental Indenture; Assignment o the Series B Promissory Note, the First Supplemental Mort�age and the First Supplemental Guaranty Agreements. The terms and provisions of the Series B Promissory Note, the First S�pplemental Loan Agreenent, the First Supplemental P1ortgage, the �irst Supplemental Guaranty Agreeme�ts and the First Supplemental Indenture are hereby approved. The City Manager and the Clerk are hereby authorized for and in the name of the Municipality to execute, affix with the official seal of the Plunicipality and deliver the First Supplemental Loan Agreement, the First Supple- mental Indenture and the assirn�ents of the Series B Pzonissory Note and the First Supplemental htortgage in the respective forms thereof presented herewith, or with such insertions therein oi corrections thereto as shall be approved by the City Manager and C1erk co�sistent with this Resolution and the terms of Che Act, their execution thereof to constitute conclusive evidence of their approval of any such insertions and corrections. 17. Execution and Delivery of the Series B Bonds. The City Manager and the Clerk are hereby authorized for an in the -10- name of the Municipality to execute the Series B Bonds in the manner authorized by paragraph 4 of this Resolution. Subject to the terms and conditions of the Bond Purchase Agreement, the Municipality shall deliver the Series B Bonds to the Bond Pur- chasers. 18. General Authorizations. The City Manager and the Clerk and the appropriate deputies and officials of the Munici- pality in accordance with their assigned responsibilities are hereby each authorized to execute, publish, file and record such other documents, instruments, notices (including notice pursuant to Wis. Stats. §893.77) and records and to take such other actions as shall be necessary or desirable to accomplish the puiposes of this Resolution and to comply with and perform the obligations of the Municipality under the Series B Bonds, the Loan Agreement and the Indenture. In the event that the City Manager or the Clerk shall be unable by reason of death, disability, absence or vacancy of office to perform in timely fashion any of the duties specified herein (such as the execution of Series B Bonds, the Bond Pur- chase Agreement, the First Supplemental Loan Agreement, the First Supplemental Indenture or the assignments of the Series B Promis- sory Note and the First Supplemental Mortga,�e), such duties shall be performed by the officer or official succeeding to such duties in accordaoce with 1aw and the ordinances of the Municipality. 19. Effective Date; Conformit}�. This Resolution shall be effective immediately upon its passage and approval. To the extent that any prior resolutions of this body are inconsistent with the provisions hereof, this Resolution shall control and such prior resolutions shall be deemed amended to such extent as may be necessary to bring them in conformity with this Reso- lution. T X T T � The foregoing resolution of the City of Oshkosh, �disconsin, was adopEed, on Novee�ber 5, 1981. -11- City Council of the approved and recorded r er CERTIFICATIONS BY CLERK I, Converse C. Marks, being first duly sworn, do hereby depose and certify that I am the duly appointed, qualified and acting Clerk of the City of Oshkosh, in the County of Winnebago, State of Wisconsin, and as such I have in my possession, or have access to, the complete corporate records of said City and of its City Council; that I have carefully compared the transcript hereto attached with the aforesaid corporate records; that said transcript hereto attached is a true, correct and complete copy of all the corporate records in relation to the adoption of Resolution No. entitled: BOND RESOLUTION AUTHORIZING $425,000 CITY OF OSHKOSH, WISCONSIN INDUSTRIAL DEVELOP�fENT REVENUE BONDS, SERIES B (LISKAR INVESTMENTS PROJECT) I do heteby further depose and certify as follows: 1. Said resolution caas considered for adoption by the City Council at a meeting held in the City Hall at P.M. on November 5, 1981. Said meeting was a regular meeting of the City Council and cvas held in open session in compliance with Subchapter IV of Chapter 19 of the [disconsin Statutes. 2. Said resolution was on the agenda for said meeting and public notice thereof was given not less than 24 hours prior to the commencement of said meeting in compliance with Section 19.84 of the Wisconsin Statutes, including, withuut limitation, by posting on the bulletin board in the City Hall, by notice to those news media who have filed a written request for notice of meetings a�d by notice to the official newspaper of the City. 3. Said meeting was called to order by Dan H. Kutchera, Mayor, who chaired the meeting. IJpon roll I noted and recotded that the follocving council me�bers were present: and that the follocaing council members were absent: -i- I noted and recorded that a quorum was present. Various matters and business were taken up during the course of the meeting without intervention of any closed session. One of the matters taken up was said resolution which was introduced and its adop- tion was moved by Council Member , and seconded by Council Member Following discussion and after all council members who desired to do so had expressed their views for or against said resolution, the question was called and upon toll being called and the continued presence of a quorum being noted, the recorded vote caas as follows: Aye: Nay: Abstain: Whereupon the Mayor declared said resolution adopted, and I so recorded it. IN WITNESS WHEREOF, I have signed my name and affixed the seal of the City hereto on this day of , 1981. [Municipal Sea1] er STATE OF LdISCONSIN ) ) SS COUNTY OF ) Subscribed and sworn to before me this day, the date last above written. 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