HomeMy WebLinkAbout27253 / 74-31cc.ao....) '�31
M.«•'
SEr 1 91974
COMMON COUNCIL
OF THE
CZTY OF OSHKOSH
# 31 RESOLUTION
StiITIAL RESOT.UTiCN REiAT1fiG i"v TdE FiNANCIYG
� OF AN INDUSTRIAL PROJECT FOR
SQUARE D COMPANY and/or SORGEL ELECTRIC CORPORATION
WHEREAS, Square D Company, a Michigan corporation,
and/or Sorgel Electric Corporation, a.Wisconsin corporation,
("Company") have been coneidering the construction, acquisition
and/or expansion of industrial faci7,ities, witich if located
in the City of Oahkoah ("MUnicfpality") wou7.d cantribute
to the gainful employment, business opportunitiea and general
welfsre of its citizens and the pxeservxtian and enhancement
pt iCS tax base; and �
WHEREAS, in connection with T.he construction,
acquiaition and/or expansion of the faci,lities, Company has
represented�to the Municipality that it would be an encouragement
and an inducement for Company [o locate these facilities in the
Municipality if this project could be financed with industrial
development revenue bonda; and
rvdF.^�,:�5, tca proje=r i» deacxi.bed as follows:
land, a building having a manufacturir.g area o£ approxic�ately
240 feet by 360 feet, an aCtached office having an area of -
approximately 15000square feet and equipment all of which
together will comprise a facility f.or the manufacture of
transformers and related products (herein collectively called
the "Project"); and
WHEREAS, the cost of the Project is presently estimated
to be $1,750,000, and in a11 likelihood will not be greater
than $2,000,000; and
WHEREAS, it is in the best interests o£ the Municipality
to promote, attract, atimulate, rehabilitate and revitalize
covm�erce, ind}iatry and manufacturing, to promote the betterment
of the environment and the economy o£ the Municipality and to
etimulate a large flow of private inveatment funds into the
Municipality; and
ivZiE+�iLS, i1 is i;he finding and determina'rion of this
Co�on Council that it is desirable for the Municipality to
encourage and induce the Company to locate the Project in the
Municipality in order ta benefit the Municipality by: providing
gainful employment for its citizens; stimulating private invest-
m�nt funds from financial institutions for existing and new
businesa; and preserving or enhancing its tar. base to the end of
providing greater support for municipal servi.ces; and
- 37 -
WHEREAS, the Municipality, as a municipal corporation
organized and exiating under and pursuant to the laws of
the State of Wiaconain, is authorized by Section 66.521 of
the Wisconain Statutea, gs amended, to:
� (1) Conatruct, equip, reequip, acquire by gi.ft,
lease or purchase, install, recronstruct, rebuild,
rehabilitate, improve, supplement, replace, mai.ntain,
repe+_r, enlaroe, extend cr rema3el li�3ustrial proj�cts; .
(2) To borrow money and issue revenue bonds;
and
(3) Enter into revenue agreements with eligible
participants with respect to the industria.l projecY.
NOW; THEREFORE, BE IT RESOLVED, by the Co�mnon Counci.I
of the Municipality as follows:
1. Subject to [he conditions enumerated hereafter,
this Common Council agrees that Che Municipality shall
consummate a Plan of Financing pursuant to which the Municipality ,
ahall: (a) require that the Company acqui.re or constrvct the
Project; (b) iasue industrial development revenue bonds in an
aggregate amount not greater than the costs�of provid'ang the
Project and, in any event, not to exceed $2,000,000 (the
"Industrial Bonds") in order to finance the Project, which �
Industrial Bonds shall�be payable so7.ely ouL of the revenuea
derived froa the Company �vrs±�ar*_ ta the texbs of s leese,
sale, lean, inatallmeat purcnase or similar agreement (the
"Revenue Agreement"); (c) enter into tbe Revenue Agreement
with Company pursuant to which Company shall provide.revenues
sufficient to pay when due the principal of, premium, i,f any,
and interest on "the Industrial Bonds; (d) provide for a rate or
ratea of interest on said Induatrial Bonds of not less than
37, nor more than 9%, the actual effective rate to be approximately
that payable on similar tax exempt bonds secured by an obligation �
of companies of equivalent credit to Company; (e) provide for
a sale price for said Industrial Bonds of not less than 957,
of the par value thereof; (f) provide for said Industrial Bonds
with annual maturitiea or sinking fund payments coaunencing
not later than 17 years after the date thereof and interest
payments co�encing not later than two years afte.r the date
thereof; and (g) provide £or a final maturity of said Industrial
Bonds not less than 5 nor more than 27 years after the date
thereof. , � -
_ . ,� -:... �n.;;t���
2. The aforesaid Plan of Financing contemtilates -
and is conditioned upon the following: . �
(a) That the Industrial Bonds shall not
constitute an indebted:ess of the Muaicipality
withi.n the meaning of �ny state con�titutional
provi3ion or sta�turory ?!mi*_ation;
- 36 -
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(b) That the Induatrial Bonds shall not
constitute nor give rise to a pecuniary liability
of the Municipality or a charge against its
general credit or taxing powers;
(c) That if the Municipality shall hold
title to the Projett while the Industrial Bonds
>re outstanding, Compan� shall be s�6ject to propezty
taxation in the same amovnt and to the same extenY.
as though Company were the owner of the Project;
(d) That Company sha11 Eind a purchaser
for a11 of the Industrial Bonds; �
(e) That the out-of-pocket costs in
connection with the issuance and sale of the
Industrial Bonds shall be paid either from the
proceeds of�the Industrial Bonds or by Company.
3. The appropriate officials of the Municipality
are hereby authorized to negotiate the terms of the Plan of
Financing and to execute an agreement with Company and the
prospective purchaser(s) of the Industrial Bands setting
forth said terme.
4. The Plan of Financing ahall not be finally
implemented unlesa and tmtil: (a) the details and mechanics
of same are authorized and approved by a further r.esoluT.ion
of chis (:onanon Council; (b) the electors of the Municipalitq
shall have been given the opportunity t_o petition for a
referend� on the matter of the aforesaid bond issue as
required by law; and (c) either no such petition shall be
timely filed or such petition Fhall have heen filed and said
referendum shall have approved the bond issue. Unless
extended by further resolution of this Common Council, the Plan of
Financing shall be implemented prior to the completion of
the Project and not later than Suly 1, 1975.
5. The Clerk ahall cause notice of adoption of this
Reaolution to be published once in the "Oshkosh Daily Northwestern",
(the Municipality's official newspaper; for the publication of
notices pursuant to Chapter 985 of the Wisconsin Statutes) in
the form set forth following paragraph 6 of this Resolution,
and ahall cause a copy of such public notice together with a
copy of this Resolution to be filed with the Secretary of
Business Deve�opment of the State of Wisconsin within 10
days following publication of such notice.
6. All resolutions or parts thereof in conflict
herewith be and the same are hereby repealed; and this
Resolution ahall be effective upon its passaee and annr�..n
I SUBMITTED BY
- 39 -
APPROYF.D
ATTACHMENT TO RESOLOTION #31
OF THE SEPTEMBER 19� 1974
�OUNCIL MEETING OF THE OSHKOSH
COMMON COONCIL
NOTICE TO ELECTORS
OF THE
CITY OF OSHKOSH
TAKE NOTICE that the Co�on Council of the City of
Oahkosh, Wisconsin, at a lawful meeting held on the '�^-.r�.
day of -�;,-r , 1974, adopted a resolution,
pursuant to Section 66.521 of the Wisconsin Statutes, authorizing
the issuance of not to exceed $2,000,000 principal amovnt
of City of Oshkosh Induatrial Development Revenue Bonds (Square D
Company and/or Sorgel Electric Corporation Project). These
Bonds are for the purpose of financing a facility to be located
in the City of Oak�koah, Wiaconsin for the manufacture of trana-
formers and related producta on behalf of SQUARE D COMPANY
and/or SORGEL ELECTRIC CORPORATION.
� TNE BONDS SHALL NOT 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 POWER OF THE CITY.
The resolution may be inspected by any elector of
the City of Oshkosh at the City.Hall, 215 Church Avenue, �
during businesa houra during the thirty�days next following
publication of this Notice. �
TAKE FURTHER NOTIC� THAT TAE ELECTORS OF THE
CITY OF OSHKOSH MAY PETITION FOR�A REFERENDUM ON THE QUESTION
OF THE BOND ISSUE. Section 66.521 (10)(d), Wisconsin Statutea,
provides:
"(d) The goveming body may issue�bonds under this
aection without aubmitting the proposition to the electors
of the municipality for approval unleas within 30 days
from the date of publication of notice of adoption of
the initial resolution for such bonds, a petition, signed
by not lesa than 5% of the registered electors of the
municipality, or, if there ie no registration of electors �
in the municipality, by 10% of the number of electors of
the municipality voting for the office of governor at
the last general election as determined under a. 115.01 (13),
is filed with the clerk of the municipality requesting a
referendum upon 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
municipality voting thereon at a general or special election."
�4iGlU2EG� � Y� L�t
/s/ Converse C. M �k's
City Cle±-1:
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EXTRACTS FROM MINUTES OP MEETING
CDMMON COUNCIL
OF THE
CITY OF OSHKOSH
WISCONSIN
The Common Council (^Governing soay") of the City
of Oshkosh, Sdisconsin.("Municipality") met in regular session
at 7:00 o'clock p.M, on September 19, 1974, at the City
Hall in the Municipality. The meeting was called to order
and there were present Jorgenson, Donald, President, in the
chair and the following named Councilmen: 1) McIlree,
Kathryn E., 2) Moser, Robert H., 3) ur en, Byron L.,
Absent: None
t.
The Governing Body investigated and found that
Square D Company and/or Sorgel Electric Corporation has been
considering the construction, acquisition and/or expansion
of certain new industrial facilities in the Municipality
and has indicated that it would be an inducement and an
encouragement so to do if the Municipality were to assist
in the financing by issuing industrial development revenue
bonds. There followed a discussion concerning the�nature
of the proposed new industrial facilities and the desirability
of having such facilities located in the Municipality. The
President announced that any Councilmen in attendance would
now be given an opportunity to express their views for or
against the proposal to issue the bonds. After all Council-
men, who desired to do so, had expressed their views for
or against the nroposal to issue the bonds, Singstock
introduced Resolution No. 31 entitled:
INITIAL RESOLUTION RELATING TO THE FINANCING �
OF AN INDUSTRIAL PROJECT FOR �-
SQUARE D COMPANY and/or SORGEL ELECTRIC CORPORATION
and moved its adoption, seconded by McIlree
After due consideration of the resolution by the Governing Body,
the President put the question on the motion and upon the roll
being called the following Councilmen voted:
Aye: McIlree Pitz Jorgenson
Moser Singstock
urken Teichmiller
. ........ . . .. . .. ..
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iM'3`ix� 0%Y N`�. � '� qv
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Nay: None
Whereupon the President declared said resolution
duly adopted and signed his approval thereto.
�r � * � *
Upon motion and vote the meeting adjourned.
�1 .2r„��.. ,
� e 'de�--
Attest:
/ i �
Clerk
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�.� . _ .,� _ .
COMMON COUNCIL
OF THE
CITY OF OSHKOSH
INITIAL RESOLUTION RELATING TO THE FINANCING
� OF AN INDUSTRIAL PROJECT FOR
S UARE D COMPANY and/or SORGEL ELECTRIC CORPORATION
WHEREAS, Square D Company, a Michigan corporation,
and/or Sorgel Electric Corporation, a Wisconsin corporation,
("Company") have been considering the construction, acquisition
and/or expansion of industrial facilities, which if located
in the City of Oshkosh ("Municipality") would contribute
to the gainful employment, business opportunities and general
welfare of its citizens and the preservation and enhancement
of �its tax base; and �
WHEREAS, in connection with the construction, -
acquisition and/or expansion of the facilities, Company has
represented to the Municipality that it would be an encouragement
and an inducement for Company to locate these facilities in the
Municipality if this project could be�financed with industrial
development revenue bonds; and
WHEREAS, the project is described as follows: �
land, a building having a manufacturing area of approximately
240 feet by 360 feet, an attached office having an area of
approximately 1500 square feet and equipment all of which
together wi11 comprise a facility for the manufacture of
transfoxmers and related products (herein collectively called
the "Project"); and ��
WHEREAS, the cost of the Project is presently estimated
to be $1,750,000, and in all likelihood will not be greater
than $2,000,000; and � .
WHEREAS, it is in the best interests of the Municipality
to promote, attract, stimulate, rehabilitate and revitalize
commerce, industry and manufacturing, to promote the betterment
of the environment and the economy of the Municipality and to
stimulate a large.flow of private investment funds into the
Municipality; and .
WHEREAS, it is the finding and determination of this
Common Council that it is desirable for the Municipality to
encourage and induce the Company to locate the Pxoject in the
Municipality in order to benefit the Municipality by: providing
gainful employment for its citizens; stimulating private invest-
ment funds from financial institutions for existing and new
business; and preserving or enhancing its tax base to the end of
providing greater support for municipal services; and
-3-
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WHEREAS, the Municipality, 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
Che Wisconsin Statutes, �s amended, to:
(1) Construct, equip, reequip, acquire by gift,
lease or purchase, install, reconstruct, rebuild, �
rehabilitate, improve, supplement, replace, maintain,
repair, enlarge, extend or remodel industrial projects;�
(2) To borrow money and issue revenue bonds;
and
(3) Enter into revenue agreements with eligible
participants with respect to the industrial project.
� NOW, THEREFORE, BE IT RESOLVED, by the Coa�on Council
of the Municipality as follows: �
1. Subject to the conditions enumerated hereafter,
this Common Council agrees that the�Municipality shall
consummate a P1an of Financing pursuant to which the Municipality
shall: (a) require that the Company acquire or construct the
Project; (b) issue industrial development revenue bonds in an
aggregate amount not greater than the costs of providing the
Project and, in any event, not to exceed $2,000,000 (the
"Industrial Bonds") in order to finance the Project, which
Industrial Bonds shall be payable solely out of the revenues
derived from the Company pursvant to the terms of a lease,
sale, loan, installment purchase or similar agreement (the
"Revenue Agreement"); (c) enter into the Revenue Agreement
with Company pursuant to which Company shall provide�revenues
sufficient to pay when due the principal of, premium, if any,
and interest on the Industrial Bonds; (d) provide for a rate or
rates of interest on said Industrial Bonds of not less than
3% nor more than 9%, the actual effective rate to be approximately
that payable on similar tax exempt bonds secured by an obligation
of companies of equivalent credit to Company; (e) provide for
a sale price for said Industrial Bonds of not less than 957,
of the par value thereof; (f) provide for said Industrial Bonds
with annual maturities or sinking fund payments covunencing .
not later than 17 years after the date thereof and interest
payments co�encing not later than two years after the date
thereof; and (g) provide for a final maturity of said Industrial
Bonds not less than 5 nor more than 27 yerxrs after the date
thereof.
2. The aforesaid Plan of Financing contemplates
and is conditioned upon the following:
� (a) That the Industrial Bonds shall not
constitute an indebtedness of the Municipality
within the meaning of any state constitutional
provision or statutory limitation;
-4-
(b) That the Industrial Bonds shall not
constitute nor give rise to a pecuniary liability
of the Municipality or a charge against its
general credit or taxing powers; .
(c) That if the Municipality shall hold
title to the Project while the Industrial Bonds
are outstanding, Company shall be subject to prpperty
taxation in the same amount and to the same extent
as though Company were the owner of the Project;
(d) That Company shall find a purchaser
for all of the Industrial Bonds; .
(e) That the out-of-pocket costs in
connection with the issuance and sale of the
Industrial Bonds shall be paid either from the
proceeds of the Industrial Bonds or by Company.
3. The appropriate officials of the Municipality
are hereUy authorized to negotiate the terms of the Plan of
Financing and to execute an a�reement�with Company and the
prospective purchaser(s) of the Industrial Bonds setting
forth said terms. .
4. The P1an of Financing shall not be finally �
implemented unless and until: (a) the details and mechanics
of same are authorized and approved by a further resolution
of this Common Council; (b) the electors of the Municipality
shall have been given the opportunity to petition for.a
referendum on the matter of the aforesaid bond issue 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 bond issue. Unless
extended by further resolution of this Common Council, the Plan of
Financing shall be implemented prior to the completion of
the Project and not later than July 1, 1975.
5. The Clerk shall cause notice of adoption of this .
Resolution to be published once in the "Oshkosh Daily Northwestern",
(the Municipality's official newspaper, for the publication of
notices pursuant to Chapter 985 of the Wisconsin Statutes) in
the form set forth following paragraph 6 of this Resolution,
and shall cause a copy of such public notice together with a
copy of this Resolution to be £iled with the Secretary of
Business Development of the State of Wisconsin within 10
days following publication of such notice. �
6. All resolutions or parts thereof in conflict
herewith be and the same are hereby repealed; and this
Resolution shall be effective upon its passage and approval.
-5-
NOTICE�TO ELECTORS
OF THE
CITY OF OSHKOSH
TAKE NOTICE that the Common Council of the City of
Oshkosh, Wisconsin, at a lawful meeting held�on the 19th
day of September � , 1974, adopted a resolution, �
pursuant to Section 66.521 of the Wisconsin Statutes, authorizing
the issuance of not to exceed $2,000,000 principal amount
of City of Oshkosh Industrial Development Revenue Bonds (Square D
Company and/or -Sorgel Eleatric Corporation Project). These
Bonds are for the purpose of financing a facility to be located
in the City of Oshkosh, Wisconsin for the manufacture of trans-
formers and related products on behalf of SQUARE D COMPANY
and/or SORGEL ELECTRIC CORPORATION. .
THE BONDS SHALL NOT CONSTITUTE AN INDEBTEDNESS OF
THE CITY OF OSHKOSH NOR SHALL TkIE BONDS GIVE RISE TO ANY
PECUNIARY LIABILITY OF THE CITY NOR SHALL THE BONDS BE A
CHARGE AGAINST THE GENERAL CREDIT OR TAXING POWER OF THE CITY.
The resolution may be inspected by any elector of
the City of Oshkosh at the City Hall, 215 Church Avenue,
during business hours during the thirty days next following
publication of this Notice. .
TAKE FURTHER NOTICE THAT THE ELECTORS OF THE
CITY OF OSHKOSR MAY PETITION FOR A REFERENDUM ON THE QUESTION
OF THE BOND ISSUE. 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 municipality for approval unless within 30 days
from the date of publication of notice of adoption of
the initial resolution for such bonds, a petition, signed
by not less than 5% of the registered electors of the
municipality, or, if there is no regist;ation of electors
in the municipality, by 10% of the number of electors of
the municipality voting for the office of governor at
the last general election as determined under s. 115.01 (13),
is filed with the clerk of the municipality requesting a
referendum upon the question of the issuance of the bonds.
I£ such a petition is filed, the bonds shall not be issued
until approved by a majority of the electors of the
municipality voting thereon at a general or special election.
/s/ Converse C. Marks
City Clerk
QS
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Action of the Common Council with respect to:
"INITIAL RESOLUTION RELATING TO THE FINANCING
OF AN INDUSTRIAL PROJECT FOR
SQUARE D COMPANY and/or SORGEL ELECTRIC CORPORATION"
Passed and approved September 19 , 1974
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Attested and recorded September 19 , 1974
�("(/�'I''A/.—s. %�L¢�`�//li"✓'�G.:s
Clerk�—
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I, Converse C.�Marks, being £irst 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 Co�on Council and officers; 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. 31 entitled:
INITIAL RESOLUTION RELATING TO THE FINANCING
OF AN INDUSTRIAL PROJECT FOR '
SQUARE D COMPANY and/or SORGEL ELECTIRC CORPORATION
and that in accordance with paragraph 5 of said Resolution,
I caused the "Notice to Electors" to be published in the
form provided and�-I filed a copy of said notice as published
and a copy of said Resolution with the Secretary of the
Department of Business Development of the State of Wisconsin
within 10 days following the publication of said notice.
� WITNESS my hand and the corporate seal of said.
Common Council hereto affixed at Oshkosh, Wisconsin, this
26th day of September , 1974•
�GA,f7, .[� G,o.
Cler
STATE OF WISCONSIN
SS
COUNTY OF WINNEBAGO
[SEAL OF MUNICIPALITY]
Subscribed and sworn to before me this day, the date
last above written.
�
Notary ublic
My co issio exp res: S��
[Notarial SealJ �
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ACKNOWLEDGEMENT OF INTENTION '
The undersigned acknowledges that the foregoing
Resolution of the Coimnon Council of the City of Oshkosh,
Wisconsin, entitled:
INITIAL RESOLUTION RELATING TO THE FINANCING
OF AN INDUSTRIAL PRO,TECT FOR
SQUARE D COMPANY and/or SORGEL ELECTRIC WRPORATION
was presented to said Cov�on Council at its request. The
undersigned further acknowledges its present intention to
construct the Project referenced in said Resolution if the
City of Oshkosh will issue the Industrial Bonds on
the conditions provided in said Resolution. �
Dated September 19 , 1974.
SQIIARE D COMPANY
By
Its
SORGEL ELECTRIC CORPORATION
By
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