HomeMy WebLinkAbout30161 / 79-15NL3y 17, 1979 # 25 RESOLVPION
7here will l�e an Initial Fesolution to issu� not r:c�re ti7<<n $450,OOO.tI";
City of C�h;:osh Industrial Revenue Bonds for Badger Mill Supply Corporation
ancl/or Ibnald [9. Schroeder and/or Arler.e M. Schro�cler.
SUB'�ST'iED Bl
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COht[40N COUNCIL OF THE CITY OF OSHKOSTI
ResOlution tlo. 15
It]Ii'IAL RESOLUTIODI REGARDING
IPIDOSTRIAL DEVGLOPLIENT REVEitUE F30NDING ON
EE�IAL,E' OF BAUGER PIILL SUPPLY CORPORATIOCI AP7D/OR
DOJIALD W. SCHROEDER AND/OR ARLENE M. SCHROEDER
WHEREAS, Badger [Iill Supply Corporation and/or ponald 4I.
Scnroeder and/or Arlene M. Schroeder (hereinafter, "Company"
�oill be used to refer to all of said personsj has been consideriny
acquiring real estat�, constructing and e7uipping a necv faciliey
for the storage and distribution of industrial materials, components
and equipnent (used in assembling, fabricating, manufacturing and
orocessing products of agriculture or manufacture) in the City of
Oshkosh, P7inr.ebago County, �Pisconsin (hereinafter, the "City");
ar.d,
WIiEREnS, such a facility �vould contribute to the gainful
er.�ploymerit, business ooportunities and general welfare of the City's
citizens ar,d the preservation and enhancement of its tax base;
Gi�� �
WEIEREAS, in considering acquiring a site for constructing
ar.d equipping such a facility, the Company has represented to the
City that it saould be an encouragement and an inducement for the
Co�pany to locate these facilities in the City if the project
could he financed with industrial development revenue bonds; and,
S•7FIEf2GeS� tihe oroposed j�roject is to acquire aoproximately
4.2 acres cf real estate, construct a building thereon of aopro�imately
15,000 squar� feet of floor spzce, and equip the same for conducting
ti�e Comoany's business of supplying tools and consumable materials
tc assemblers, fabricators, manufactureers and processers (hereinafter,
t;;e "Project") at a co;t of not to exceed 5450,OQ0; and,
WHEF:EAS, it is in the best interest of the City to promote,
attract, stimulate, rehabilitate and revitalize commerce, industry
a:d manufacturing; to promote the betterment of the environment
and the eco,iomy of tne City; and to stimulate the flow of private
i-:vestment into the community; and,
�� �
i y
WHGRE��S, it is the finding and determination of this Comr�on
Council that it is in t!ie best interest. of the City to encouraqc
a:;d induce the Company to oroceed with the Project in tl�e City in
order to provide and retain gainful er„nloyment for its citizens;
stimulate nrivate investment in the comnunity; preserve and
e:,hance its tax base; and otti�rc�ise p�oisote t'r:=� r��neral �:relfare
c` its in`,:�bitan�s; ar�d, ,
WEIEf:EF�S, the City, as a municipal corporation organized and
e�isting under and pursuant to the la�7s of the State of tdisconsin,
is authorized by Section 66.521(3) of the Wisconsin Statutes Co,
in addition to the exercise of other powers:
(a) Construct, equio, reequip, acquire by gift,
lease or purchase, install, reconstrucr, rebuild, rehabilitate,
impro��e, supplement, replace, maintain, repair, enlarge,
extend or reiaodel industrial projects.
(b) IIorrow noney and issue revenue bonds to
finance all or any part of the costs of the construction,
equipping, reequipping, acquisition, purchase, installation,
reconstruction, reUuilding, rehabilitation, improviny,
supplenen�ing, replacing, maintaining, repairing, enlarging,
extending or remodeling of industrial pro}ects and the
improvement of sites therefor.
(c) Enter into revenue agreements with eligible
participants with respect to industrial projects.
idOPI, TIiFREFORr., T3E IT RESOLVED, by the Honorable Common
Council of the City of Osh}:ost� as follows:
1. Su�ject to the conditions ene:aerated in Paragraph 2.
belocv,,this Common Council agrees that the City shall work to4rard
the consummation ot a Plan of Pinancing pursuant to which the City
shall:
(a� Issue industrial developm�nt r.evenue bonds in
an aiaount equal to the cost of the Project, not to exceed $45�,00�
(hereinafter ti�e "BOnds"), in ord�r to finance said Project.
Said �onds shall be payable solely out oF the revenues
derived from the Company pursuant to the terms of a lease,
sale, loan, installment purchase or simile.r agreement (hereinafter
the "R�venue Agreenent");
(b) Enter into a Recenue Agreement with the
Cornpan;� s�hereby the Co;�pany agrees to construct the Project
and to pay the City an amount of funds sufficient to �ay,
when due, the principal of and interest on the Bonds �:�
issuea for the Project;
\Z ��1 y
(c) Structure a sale of the Bonds with such
riaturities, interest rates and redemption features as the
Company shall proposc, procided that such terms shall be
substantially similar to the terms oE similar bonds securing
the obl��a±ions of companies ha��ing suhsY_antially equivalent
credi.t c;,�:�.thin^s� o£ that o_` th� Co;,pany.
2. The aforesaid Plan of Financing contemplates and is
conditioned upon the follocaing:
(a) That the Bonds shall never constitute an
indebtedness of the City �vithin 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 po;oers;
(c) That the Project shall be subject to prop�rty
taxation in the same amourt and to the same extent as though
the Project were not financed caith industrial development
revenue bonds;
(d) That the Company shall find a purchaser for
all of the Bonds; and
(e) That the outrof-pocket costs, including any
trustee fees, in connection with the issuance and sale of
the IIonds shall be paid either from the proceeds of the
Bonds or by the Company.
3. The appropriate officials of the City are hereby authorized
to negotiate the terms of the Plan oP Financing and to execute an
agreement with the Comoany and the prospective purchaser(s) oi
the E3onds setting forth said terms.
4, The Plan of Financinq s%rall not be legally bindiny upon
the City nor. be finally impleme,�ted unless and until:
(a) The City Clerk shall have caused notice of this
resolution to be puUlished once in a newspaper of general
circulation in the City ano the elect�rs of the City shall
have been given the opporti�nity to petition for a referendum
on the �natter of the aforesaid bond issue as required by
lacv; at:d
.
(b) Either no such ��;tition shall. he time]y filed
or such petition shall have been filed and said referendurn
shall `�ave ao,�xoved the bor:d i� �ua; � nd
;c) Tne ;.�tails �:nc] r:,ecnanics of ths Plan oL
Financing are authorized and apgrove3 by a iurther resolution
oi this ConMOn Council.
� 5. Tne City Clerk is directed, following adoption of this
r�solution, 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 30 days from tihe date of adoption of this
resalution a petition signed by not less than five percent (Sv)
of the registered electors af the City shall be filed with *_he City
Clerk requesting a referendum upon the question of the issuance
of thc Bonds, the issuance of such,F3onds will not be submitted to
the electors of the City for apQrovaL Said notice shall be in
substantially the form attached as Exhibit A and incorpUrated
herein by reference.
6. This Resolution is an "initial resolution" within the
m�ar.ing of Section 66.521(2)(g), j�7isconsin Statutes, and a"bond
resolution or other similar official action" �iithin the meaning
oL Section 1.103-8(a)(5) of the Treasury Fegulations promulgated
under Section 103 of the Internal Revenue Code of 1954, as arnended.
It shali b� effective immediately upon its �assage and approval
and remain 2ffective until tfay 31, 1JII2 or until such later date
as this Com,�on Counc.'tl may specify by further resolution.
Adopted this da}� of , 19 .
NOTICE TO ELECTORS
OF Tf:E
CITY OF OSHICOSA
TARE P70TICE that the Conmon Council of the City of Oshkosh,
Sdinnebago County, Wisconsin, at a lawful meeting held on the 17th day
of tlay 1979, adopted a resolution pursuant to Section 66.521 of the
Plisconsin Statutes, authorizing the issuance of not to exceed $450,000
principal amount of City of Oshkosh Industrial Revenue Bonds on behalf
of Badger Mill Supply Corporation ana/or ponald P7. Schroeder andjor
Arlene r1. Schroeder (hereinafter "Company" will be used to refer to
any or all of said persons}. These Bonds are for the purpose of
acq�iring approximately 4.2 acres of real estate, construct a building
thereon of approximately the Company's business of supplyinq tools
and consumable materials to assemblers, fabricators, manufacturers
and processers.
THE 60tIDS SHALL NOT COLv'STITUTE AN INDEBTGDNESS OF THE CITY OF
OSIiI:OSEl nOR SHALL Ti3E BONDS GIVE RTSE TO ANY PEC(7idZARY LIABILITY
OF TEIE CITY idOR SHALL TEIE BOATDS BE A CHARG� AGASNST THE GENERAL
CREDIT OR TAXIP7G P047ER OF THE CITY. RAiHER, THE BONDS SHALL BE
PAYABLE SOL,ELY FP.O[4 THE REVEPSUES AND OTfIGP, P.[�"i0UP3TS BERIVED FROil A
R6VED]UE AGREEt'I�N^1 TO BE ENTERED INTO P7ITIi THE COf-iPAY7Y.
The initial resolution may be inspected by any elector of
the City of Oshkosh , during
business hours during the thirty days next following pnblication oi
this P7otice.
TAKE FURTHER NOTICE TEiAT TiIE ELECTQnS OF THE CITY OF OSfiF:OSH
NIAY PETITIOP] FOR A REFERE�IDU�`1 OPI THE �UES�IOP1 OF THE BOND IuSUE.
Section 66.521(10)(d), Wisconsin Statutes, provides:
"(d) The governing body may issue bonds under this section
without submitting the proposition to the electors of the nunicipality
for approval unless cvithin 30 days from the date of pnblication
of notice of adoption of the initial resolution for such bonds, a
petition, signed by not less than So- of the registered electors
of the municioality, or, if there is no registration of electors
in the municipality, by 10� of the number of electors of the
municipality voting for the office of goverr�or at the last general
election as determined under Sec. 115.01(13), is filed �aith the
clerk of the municipality requesting a referendum unon the question
of the issuance of the bonds. If such a petition is filed, the
bonds shall not be issued until approved by a majority of the
electors of the nunicioality voting thereon at a general or special
election."
Converse P•iarks
City Cler;c
Pub: June 11 1979 Exhibit F� Cit� Hall
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