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FESOLUTION OF Tf1E COPS�itON COUNGIL
OF THE
CITY OF OSHKOSH
RELATING TO THE FINANCING OF AN
INDUSTP.IAL PROJECT FOIi
SNC MANUFACTIIRING CO., INC. _
An IniCial Resolutioa - authorizing not to exceed $800,000.00 City
of OshkoSh Industrial Development Revenue Bonds to finance the construction
of a manufacturing facility and equipment for use by SNC Manufacturing
Co., Inc.
WHEREAS, SfiC Pianufacturing Co., Inc., is a Wisconsin corporation
(hereinafter called the "Company"), desires to expand its manufacturing
facility in the City of Oshkosh (hereinafter called the "Municipality"),
an3 such facility would contribute to the well-being of the Diunicipality
in :erms of the gainful employment of its citizens and the preservation
and enhancement of its tax base; and
{dHEREAS, in connection wi[h the expansion of its manufactuxing
facilities, the Company has represented to the T;unicipality that it
would be an er.couragement and inducement for the Company to locate such
facilities in ttie Plunicipality if this project could be financed with
industrial development revenue bonds; and
{diIEREAS, the expansion will consist of a caarehouse facility and an
office expansion, together �aith related fixtures and equipment, all of
which will consti*_ute an addition to the manufacturing and production
facility of the Company (hereinafter called the "Project"); and
S,'HER�AS, the Project is within the definition of "industrial project"
contained in Section 66.521 (2) (b) of the Wisconsin Statutes; and
kTHEREAS, the eost of the Project is presently estimated to be not
gre2ter than $800,000, which is the amount proposed to be financed with
industrial development revenue bonds; and
WFIF.REAS, it is in the best interests of the Municipality Co promote,
attract, stimulate, rehabilitate and revitalize commerce, industry and
manufacturing, to promote the betterment'of the environment of the
Municipality� and to seimulate the floca of private investment funds into
the Municipality; and
WHEREAS, the provisions of Section 66.521 (10) (g) of the idisconsin
Statutes have been complied with; and
�dAEREAS, it is the finding and determination of this Council [hat
iC is desirable for the Piunicipality to encourage the Company to locate
its facilities in the Piunicipality so that the Municipality 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
SdHEREAS, the .funicipality, as a municipal_corporation organized and
existing under and pursuant to the laws o£ the S[ate of Wisconsin, is
authorized by Section 66.521 of the Wisconsin Statutes to:
(1) Construct, equip, acquire by gift, lease or repurchase,
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.
NO�d, THEREFOBE, BE IT RESOLDED, by the Com�on Council of the City
of Oshkosh, Wisconsin as follows:
1. In view of the aforesaid substantial benefits to the Municipality
associated with the Project, it is desirable that the Municipality
encourage and assist in the development of such facility by permitting
all or a part of the costs o£ the project to be financed zaith the proceeds
of industrial development revenue bonds pursuant to a Revenue Agreement
between the Piunicipality and the Company.
2. Subject to the conditions enumerated hereafter, this Council
agrees that the Afunicipality shall work to:aard the consucmation of a
financing arrangement pursuant to which the rlunicipality shall:
(a) Issue industrial development revenue bonds in an amount
not to exceed the cost of the Project and noC to exceed $800,000
(hereinafter called "Bonds"} in order to finance the Project, c:hich
bonds shall be payable solely out of the revenues derived from the
Revenue Agreement relating to the Project;
(b) Enter into a Revenue Agreement with the Company cahereunder
the Company agrees to pay to the Municipality an amount of funds
sufficient to pay cahen 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 tban
the par value thereof.
3. The aforesaid financing arrangement cbntemplates and is conditioned
upon the following:
(a) That the Bonds s:iall never constitute an indebtedness of
the Plunicipalit}• within th2 �eani.ng of any state constitutional
provision or staCutory li�itation;
(b) That the Bonds shall not constitute nor give rise to a
pecuniarq liability of the Municipality or a charge against its
general credit or taxing potaers;
(c) That thz Project shall be subject to property taxation in
the same an:ount 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 attorneys fees and expenses
incurred by the PSunicipality in connection with the issuance and
sale of the Bonds, shall be paid either from the proceeds of the
Bonds or by the Company.
4. The appropriate officials of the 2funicipality are hereby
authorized to negotiate the terms of the Plan of Financing and to e�cecute
an agreement caith the Company and the prospecCive purchaser(s} of the
Ronds setting fortli said terms.
5. The Plan of Pinancing shall not be binding upon the Municipality
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 Council as
provided by law;
(b) The City Clerk shall cause notice of this Resolution to
be published once in the Oshkosh Northwestern, a newspaper of
general circulation in the Municipality, and the electors of the
Municipality 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
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(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 Business Development of the State of i7isconsin
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 Municipality unless the Municipality
determines to go forward with the execution of docu�aents required for
this proposed financing and, in such event, the Municipality's obligation
sha�l be limited in the manner set forth in such documents.
8. The.Manager and City Clerk, and either of them, are hereby
aut:�orized on behalf of the Piunicipality to complete, execute and file
wi*_h the Internal Revenue Service a statement of election respecting
this propused financing in accordance cvith 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, follocaing adoption of this resolution,
to publish notice of such adoption not less than one time in the Oshkosh
Northwestern, the official necaspaper of the PSunicipality, 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 rlunicipality shall b2 filed with the City Clerk requesting
a referendum upon the question of the issuance of the Bor.ds, the issuance
of such Bonds will not be suUmitted to the electors of the Piunicipality
for approval. Said notice shall be in substantially the following form:
���ti �
NOTICG TO ELECTORS
OF THE
CITY OF OSitI:OSA
TpKE N TICE that the Common Council of the City of Oshkosh, �disconsin,
at a��`' meetin held on the �ti da of A ril 1981 ado ted a
g -.`i( - Y P . > P
resolution pursuant to Section 66.521, Wisconsin Statutes, as amended,
. �
indicating its intent to issue City of Oshkosh Industrial Development
Revenue Eonds (SNC Pfanufacturing Co., Inc., - 1981 Project) in an amount
not to exceed $800,000 for the pu:pose of financing a manufacturing
plant and office facilities and related fixtures and equipment to be
used by SNC DSanufacturing Co., Inc., as a manufacturing and product3on
facility in the City of Oshkosh.
THE BOVDS SHt1LL ATEVER CONSTITUTE EV�i INDEBTEDNESS OF THE CITY OF
OSHKOSA NOR SI�1LL THE BONDS GIVE RISE TO AI3Y PECiNIARY LIABIlITY OF THE
CITY NOR SILALL THE BONDS BE A CHARFE AGAINST THE GENERAL CREDIT OR
TA%ItiG PO4iERS OF THE CITY. THE SONDS SHALL BE PAYABLE SOLELY FRO?i THE
RE�'E_WES AND OTHER AriOLNTS DERIVED OR RESULTI\G FRQ:1 THE REVEWE AGRE�IE�iT
RELATING TO SAZD PFOJSCT BETSdEEN THE CIT] OF OSHKOSH AND SATC T�'UFACTURI\G
CO., INC.
The resolution may be inspected by any elector of the City at the
City Hall durino business hours during the thirty (3�) days following
pu5lication of this Notice. •
Ualess within thirty (30) days follocoing the publication of this
Notice a pztition signed by not less than five percent (5%) of the
registered electors of the City is filcd with the City Clexk requesting
a referendu:� upon the question of the issuance of the Sonds, the City
will issue thz Bonds without subnitting the proposition to the electors
of the City for approval. If such a petition is filed as aforesaid,
then the Bonds sha11 not be issued until approved by a majority of the
electors of the City votina thereon at a general or special election.
1981.
Converse C. Piarks, City Clerk
THIS RESOLUTIOAT INTRODUCED, AI'PROVED AND A➢OPTED
Converse C. rIarks, City Clez'k
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