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HomeMy WebLinkAbout26907 RESOLUTION NO. 26907 A RESOLUTION REGARDING THE ISSUANCE OF NOT TO EXCEED $800,000 IN AGGREGATE PRINCIPAL AMOUNT OF INDUSTRIAL DEVELOPMENT REVENUE BONDS (WATERLOO STEEL AND EQUIPMENT PROPERTIES, INC. PROJECT) SERIES 1980 OF THE CITY OF WATERLOO, IOWA, DIRECTING PUBLICATION OF NOTICE OE INTENTION TO ISSUE, AND CALLING A PUBLIC HEARING ON THE PROPOSAL TO ISSUE SAID BONDS AND AUTHORIZING EXECUTION OF A MEMORANDUM OF AGREEMENT. WHEREAS, the City of Waterloo, Iowa (hereinafter referred to as the "City" ) is a municipal corporation organized and existing under the Constitution and laws of the State of Iowa , and is authorized and empowered by Chapter 419 of the Code of Iowa ( hereinafter referred to as the "Act" ) , to issue Indus— trial Development Revenue Bonds and loan the proceeds from the sale of said Bonds to one or more parties to be . .used to defray all or a portion of the cost of acquiring , constructing , improving and equipping a "Project" as that term is defined in the Act, for the purpose of securing and developing industry and trade within or near the City in order to create jobs and employment opportunities and to improve the economic welfare of the residents of the City and of the State of Iowa ; and WHEREAS, the City has been requested by Waterloo Steel and Equipment Properties , Inc. , ( hereinafter referred to as the "Company" ) , to authorize and issue its Industrial Development Revenue Bonds pursuant to the provisions of the Act for the purpose of defraying all or a portion of the cost of the acquisition, construction , improving and equipping of an -3- r industrial development project located within the City of Waterloo, Iowa, consisting of the acquisition of land and an existing building thereon, the renovation and improving of said existing building , and the acquisition and installation of machinery and equipment therein, all to be suitable for use in the fabrication of steel and related manufacturing processes ( hereinafter referred to as the "Project" ) , which Project will be owned and operated by Company; and WHEREAS, said Project will maintain and probably increase employment opportunities for residents of the City and the surrounding area; will enhance the tax base of the City and overlapping taxing jurisdictions and will provide and induce other public benefits flowing from the conducting of increased industrial operations w1rich will add to the welfare and prosperity of the City and its inhabitants ; and WHEREAS the City has determined that the amount necessary to defray all or a portion of the cost of acquisition, con- struction, improving and equipping the Project, including necessary expenses incidental thereto, will require the issuance by the City of not to exceed $800, 000 aggregate principal . amount of its Industrial Development Revenue Bonds Pursuant to the provisions of the Act, and it is proposed that the City loan said amount to Company under a Loan Agreement between the City and Company pursuant to which loan payments will be made by the Company in amounts sufficient to pay the 4 principal of and interest and premium, if any, on said Bonds, as and when the same shall be due ; and WHEREAS, the Bonds, if issued , shall be limited obligations of the City, and shall not constitute nor give rise to a pecu- • niary liability of the City or a charge against its general credit or taxing powers, and the principal of and interest and premium, if any, on the Bonds shall be payable solely out of the revenues derived from the Project to be financed by the Bonds; and WHEREAS, regulations promulgated under Section 103 of the Internal Revenue Code of 1954 , as amended , may require that the Issuer of such Bonds adopt a Resolution with respect to such Bonds or take "some other similar official action" toward the issuance of such Bonds prior to the commencement of construc- tion or acquisition relating to the proposed Project, and it is intended that this Resolution shall constitute. "some other similar official action" toward the issuance of the Bonds within the meaning of said federal income tax regulations ; and WHEREAS, there has been presented to the Council a Memo- randum of Agreement , attached hereto as Exhibit "A" which sets forth certain mutual undertakings and agreements between the City and Company, relating to the further processing and issu- ance of said Bonds, and the City believes it desirable and in its best interest that said Memorandum of Agreement be executed for and on behalf of the City; and w R WHEREAS, before the Bonds may be issued , it is necessary to conduct a public hearing on the proposal to issue the Bonds, all as required and provided by Section 419. 9 of the Act. NOW, THEREFORE, Be It and It Is Hereby Resolved by the City Council of the City of Waterloo, Iowa , as follows : Section 1. .A public hearing shall be conducted on April 7, 1980, at 7: 00 o' clock P.M. , before this City Council in the Council Chambers at the City Hall in the City of Waterloo, Iowa , on the proposal to issue not to exceed $800, 000 aggregate principal amount of the City' s Industrial Development Revenue Bonds (Waterloo Steel and Equipment Properties, Inc . Project) Series 1980, pursuant to the provisions of the Act, for the purpose of defraying all or a portion of the cost of acquiring , constructing , improving and equipping the Project, including necessary expenses incidental thereto, and all local residents who appear at said hearing shall be given an opportunity to express their views for or against the proposal to issue such Bonds; and at said hearing , or any adjournment thereof , this City Council shall adopt a Resolution determining whether or not to proceed with the issuance of said Bonds. Section 2. The Acting City Clerk of the City is hereby directed to publish one time, not less than fifteen ( 15 ) days prior to the date fixed for said hearing , in the Waterloo Daily Courier, a legal newspaper published and having a general cir- culation within the City, a Notice of Intention to issue said Bonds in substantially the following form : • 1 NOTICE OF PUBLIC HEARING ON INTENTION TO ISSUE INDUSTRIAL DEVELOPMENT REVENUE BONDS (WATERLOO STEEL AND EQUIPMENT PROPERTIES, INC. PROJECT) Notice is hereby given that a public hearing will be con- ducted before the Council of the City of Waterloo, Iowa , in the Council Chambers at the City Hall in said City at 7 : 00 o' clock P.M. , on April 7, 1980, on the proposal to issue not to exceed $800, 000 principal amount of the City' s Industrial Development Revenue Bonds (Waterloo Steel and Equipment Properties, Inc . Project) Series 1980, pursuant to the provisions of Chapter 419 of the Code of Iowa , for the purpose of defraying all or a portion of the cost of acquiring , constructing , improving and equipping an industrial development project within said City, consisting of the acquisition of land and an existing building thereon, the renovation and improving of said existing building , and the acquisition and installation of machinery and equipment therein, all to be suitable for use in the fabrication of steel and related manufacturing processes. The proposed facility will be owned by Waterloo Steel and Equipment Properties , Inc. It is contemplated that a Loan Agreement will be entered into between the City and Waterloo Steel and Equipment Properties , Inc . , under which the City would loan to said Company the proceeds from the sale of the Bonds in- return for loan payments from the Company sufficient to pay the principal of and interest and premium, if any, on such Bonds as the same shall fall due . Such Bonds, if issued , and the interest thereon will be Payable solely out of the revenues derived from the said Loan Agreement and shall never constitute an indebtedness of said City within the meaning of any state constitutional provision or statutory limitation, and shall not constitute nor give rise to a pecuniary liability of said City or a charge against its general credit or taxing powers. All local residents who appear at said hearing shall be given an opportunity to express their views for or against the proposal to issue said Bonds, and at said hearing , or any adjournment thereof, the Council of said City shall adopt a resolution determining whether or not to Proceed with the issuance of said Bonds. By Order of the City Council . Larry P. Burger City Clerk -7- i !R'`"`fA. ✓,.l `:�/' ':sdld4Aa+'�ir.'«,,:-.,.. $.. + ,p r p w ». Section 3. The City recognizes that regulations Promul- i *< gated under Section 103 of the Internal Revenue Code of 1954, as amended, may require the taking by this City Council of official action or "some other similar official action" , if interest on Industrial Development Revenue Bonds issued by the -City and used to acquire, construct, improve and equip such industrial development project is to be exempt from federal income taxes. In order to preserve such exemption , this Reso- ' -, lution is intended to constitute solely for federal income tax purposes official action or "some other similar official action" with respect to the issuance of such Bonds. Section 4 . That in order to assure the acquisition , con- struction, improvement and equipping of these industrial faci- lities in the City of Waterloo, Iowa , with the resulting public benefits which will flow from the operation thereof, it is deemed necessary and advisable that the Memorandum of Agree- ment , in the form attached hereto as Exhibit "A" , be approved and that the Mayor of the City be and hereby is authorized and directed to execute said Memorandum of Agreement and the City Clerk of the City be and hereby is authorized to attest the same and to affix the seal of the City thereto and said Memo- 4. randum of Agreement is hereby made a part of this Resolution. x Section 5. In order that the Project will not be unduly delayed , Company is hereby authorized to make such commitments , expenditures and advances toward payment of the costs of the $ Project as it considers appropriate, subject to reimbursement 9 J t