HomeMy WebLinkAbout30550 / 80-09Janu�y 17, 1980 # 9 RESOLLIPION
Zhere will be a Final I�solution to issue Indt:strial F�venue Bonds
p��suari'� to Sectian 66.521 of +he '�i_sc�nsin Statutes to Sexvi� I�thc-Prir,t. Tn-.
in an acrount not to ex�ed $200,000.00.
RESOLUPION AUPHORIZII3G CITY OF pSrL'CC6H, WSNt�BACYJ �UD7PY,
FTZSC�NSIN INDU5TRLAL DEVELOPME�'^lP AE,'V�TUE BCNC6 (SERVIC�
ISTHO-PRID7I', INC. PE2Ll7ECi') SERSFS 1980 ('Ii� "BONLIS")
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RESOLUTION AUTHORIZING
CITY OF OSHICOSH, WINNEBAGO C�UNTy, WISCONSIN
INDUSTRIAL DEVELOPMENT REVENUE BONDS
(SERVICE LITHO-PRINT, INC. PROJECT)
SERIES 1980
(7'HE "BONDS")
DRAFT
1/3/80
WHEREAS, in a resolution adopted November 1, 1979 by the
Common Cotncil of the City of Oshkosh, Winnebago County, Wiscon-
sin (sometimes herein called the "City" or the "Issuer"), the
Issuer expressed its intent, and authorized and directed its
officers, to work toward the consummation of a financing agree-
ment with Service Litho-Print, Inc. (the "Company") pursuant to
which the City would issue its industrial development revenue
bonds�pursuant to Section 66.521, Wisconsin Statutes, as amended
(the Act ), in an amount not to exceed $200,000 for the purpose
of financing costs of, among other things, purchasing and installing
equipment for the plant presently operated by the Company in the
City (which financed equipmenC and related improvements are
herein called the "Project") for use in the Company's commercial
printing business and related service activities; and
Wf�REAS, in reliance upon such resolution, the Company has
commenced the Project, has enter�d into negotiations with an
initial purchaser (the "Purchaser") for purchase of the Bonds to
be so issued and caused to be prepared and herewith submitted to
this Common Council forms of the following documents:
(a) Loan and Security Agreement between the Issuer and the
Company pursuant to which the Iss?zer agrees to loan the
proceeds of the Bonds to the Company to finance the
Project and related costs, together with the Company
Note containing its promise to repay such loan with
interest as set forth therein (annexed hereto as Exhibit
"A", incorporated herein by reference and referred to
herein as the "Revenue Agreement" and "Note", respeC-
tively); and
(b) Indenture between the Issuer and Valley Bank of Oshkosh,
Oshkosh, Wisconsin, as Assignee (annexed hereto as
Exhibit "B", incorporated herein by reference, and
referred to herein as the "Indenture"); and
(c) Project Financing Agreement among the Issuer, the
Company and the Purchaser (annexed hereto as Exhibit
"C", incorporated herein by reference, and referred to
as the "Agreement"); and
Wf�REAS, the issuance of the Bonds by the Issuer, the crea-
tion of a security interest in the Project and the pledge of the
Revenue Agreement and its revenues to the Assignee under the
Indenture, as herein recited and provided, in the judgment of
this Council, will serve the intended accomplishments and in all
respects conform to the provisions and requirements of the Act;
and
Wf�REAS, the Company has made representations to the Issuer
(to be supported by appropriate documentation) that the estimated
cost of the purchase and installation of the Project, together
with related costs, is an amount which will be at least $140,000
and that the useful life of the Project is estimated to be at
least 10 years; and
Wf�REAS, the Company represents and agrees that it will en-
ter into the Revenue Agreement with respect to the Project as
described above, issue the Note, pay all expenses with respect
thereto, and comply with all Che terms and provisions o£ the Note
and Revenue Agreement so that full debt service will be provided
in order to meet payments of principal of, premium, i£ any, and
interest on the Bonds and the Company aqrees that its representa-
tions have been expressly relied upon by the Issuer in the adoption
of this Resolution;
NOW, THEREEORE, BE IT RESQLVED BY Tf� COMMON COtTNCIL OF Tf�
CITY OF OSHKOSH, WISCONSIN, THP,T:
1. Definitions. The terms "Assignee", "Series 1980 Bonds",
"Bondholder'",—"Proj ct" and "Project Fund", shall have the same
meanings as defined in the Indenture. The term "Bonds" when used
herein shall refer to the Series 1980 Bonds, unless the context
otherwise requires.
2. De�ermination. This Council he=eby finds and determines
that:
(a) the estimated cost o£ the Project including all costs
in connection therewith permitted to be financed with
the Bonds under the Act is at least $140,000;
(b) the useful life of the Project is not less than �en
(10) years;
(c) the loan payments to be made in each year as specified
in Section 3.9 of the Revenue Agreement are sufficient
to pay the principal of and interest on the Bonds; and
(d) no reserve fund need be established in connection with
the retirement of the Bonds or maintenance of the
Project.
3. Issue of Series 1980 Bonds. The Issuer shall issue its
Bonds in the amount of One Hundred Forty Thousand Dollars ($140,000J
for the purpose of financing the Project and other authorized
costs. The Bonds shall be sold to the Purchaser in accordance
with the terms and conditions set forth in the Agreement. The
Bonds shall be issued pursuant to the Act, shall be designated,
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dated, in the form, and have the maturities and bear interest as
provided in the Indenture. All details pertaining to the Bonds
as provided in the Indenture are hereby adopted as and for the
details approved by this Issuer. The Bonds shall not be a general
obligation or indebtedness of the Issuer within the meaning of
any state constitutional provision or statutory limitation and
shall not constitute nor give rise to a pecuniary liability of
the Issuer or a charge against its general credit or taxing
powers, but shall be payable solely from the payments and other
revenues that may be available therefor from the Revenue Agreement
and Note or in the event of default thereon as otherwise provided
herein or in the Indenture and permitted by law, and in no event
shall the Bonds or the interest thereon or any other costs or
expenses in connection therewith or with the Project ever be
payable from any funds of the Issuer other than the payments and
other revenues to be received by the Issuer unc�er the Revenue
Agreement and Note_ The payments when paid by the Company, pur-
suant to the Revenue Agreement and Note, shall be paid directly
to the Assignee who shall apply them to payments due on the
Bonds. The Bonds shall be executed on behalf of the Issuer by
its City Manager and its City Clerk or their authorized deputies
in their absence and shall have its corporate seal impressed or
imprinted thereon. Facsimile signatures may be used as permitted
by law.
4. Approval and Execution of Documents. Subject to such
changes or revisions therein as Quarles & Brady as Bond Counsel
("Bond Counsel") or.• Counsel for the Issuer may approve, the
Indenture, Note, Revenue Agreement, and Agreement, in substan-
tially their respective forms presented to this meeting and
attached hereto, are hereby approved. The City Manager, City
Comptroller and the City Clerk, or any of their authorized deputies
if necessary, are authorized on behalf of the Issuer to execute
and deliver the Indenture, Revenue Agreement, and Agreement, with
such revisions, changes, or deletions as may be approved by the
signatories thereto, which approval shall be conclusively proved
by their execution of such documents. said City Manager, City
Comptroller and City Clerk and their authorized deputies and
other officials of the Issuer are hereby authorized to prepare or
to have prepared and to execute, £ile and deliver, as appropriate,
all such documents, financing statements, opinions, certificates,
affidavits, and closing or post-closing instruments (including
but not limited to amendments of the Indenture and Revenue Agree-
ment) as may be required by this resolution or deemed necessary
by said officials or by Bond Counsel.
5. Funds; Investment Directions.
There is hereby created by the Issuer and ordered estab-
lished with the Assignee, subject to the provisions of the Inden-
ture, the following fund:
The Project Fund as described in Section IV-1 of the
Indenture to be used solely to pay costs of the Project
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and such other costs as are provided to be paid there-
from in the Indenture. The Issuer hereby authorizes
and directs the Assignee (i) to withdraw sufficient
£unds from said Project Fund to make the aforesaid
payments as the same become due and payable, and (ii)
to transfer from the Project Fund any moneys which are
not needed for the purposes for which the Bonds are
issued.in the manner and at the time provided in the
Indenture.
The Issuer authorizes and directs the Assignee to
invest and reinvest moneys in the Project Fund and
other funds created pursuant to the Revenue Agreement
as set forth in Article VI of the Indenture.
6. Certain Indenture Provisions and Additional Securitv.
The Bonds and the interest thereon shall be additionally secured
by a security interest covering the Project as provided in the
Revenue Agreement and Indenture.
nue
7.
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the
The Reve-
(a) The maintenance and repair costs of the Project, taxes
in connection therewith, and other charges and insur-
ance with respect to the Project will be taken out,
assumed and paid by the Company. The Issuer has no
obligation with respect thereto. The proceeds of any
recovery under the foregoing insurance policies shall
be used and disposed of in the manner provided in the
Revenue Agreement and the Indenture.
(b) The Company shall make payments pursuant to the Note
and Revenue Agreement (directly to the Assignee) in the
amounts sufficient for payment when due of the pri.n-
cipal of, premium, if any, and interest on the Bonds.
8. Covenants Bindinq U on Issuer. All covenants, stipu-
lations, obligations and agreements of the Issuer contained in
this resolution and in the Bonds, the Revenue Agreement, the
Indenture, and the Agreement shall be deemed to be the covenants,
stipulations, obliga�ions and agreements of the Issuer to the
full extent authorized or permitted by law, and such covenants,
stipulations, obligations and agreements shall be binding upon
the Issuer and its successors from time to time and upon any body
to which any powers or duties affecting such covenants, stipula-
tions, obligations and agreements shall be transferred by or in
accordance with law. Except as otherwise provided in this reso-
lution, all rights, powers and privileges conferred ar.ri duties
and liabilities imposed upon the Issuer or the officers thereof
by the provisi:ons of this resolution, the Bonds, the Revenue
Agreement, the Indenture or Agreement shall be exercised or
performed by the Issuer or by such officers, board or body as may
be required by law to exercise such powers and to perform such
duties.
�'�
No covenant, stipulation, obligation or agreement herein
contained or contained in the Bonds, the Revenue Agreement, the
Indenture or the Agreement shall be deemeed to be a covenant,
stipulation, obligation or agreement of any officer, agent or
employee of the Issuer or of this Council in his or her indi-
vidual capacity and neither the members of this Council nor any
officer executing the Bonds shall be liable personally on the
Bonds or be subject to any personal liability or accountability
by reason of the issuance thereof.
Adopted
1979
City Clerk
Approved
1979
City Manager
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