HomeMy WebLinkAbout26400-07.09.1979 RESOLUTIONNO. 26400
RESOLUTION OF INTENTION TO ISSUE NOT TO EXCEED $500,000.00
AGGREGATE PRINCIPAL AMOUNT OF INDUSTRIAL DEVELOPMENT
REVENUE BONDS (KIRK GROSS PROJECT) SERIES 1979
OF THE CITY OF WATERLOO, IOWA
WHEREAS, the City of Waterloo, Iowa, (hereinafter referred to as the
"City") , is a municipal corporation organized and existing under the laws of
the Constitution 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 industrial 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 costs of acquiring 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 public and employment
opportunities and to improve the economic level of the residents of the City
and of the State of Iowa; and
WHEREAS, the City has been requested by Kirk Gross Co. , hereinafter
referred to as the "Company") , to authorize and issue its industrial develop-
ment revenue bonds pursuant to the provisions of the Act for the purpose of
defraying all or a portion of the cost of an industrial development project
located within said City, consisting of the acquisition of land and a build-
ing and improvements thereon and acquisition and installation of certain
facilities suitable for use in the warehousing of office products, (herein-
after referred to as the "Project") , which Project will be owned and operated
by the City; and
WHEREAS, said Project will create additional employment opportunities
for residents of the City and surrounding areas, and enhance the tax base of
the City and overlapping taxing jurisdiction and will provide and induce
other public benefits flowing from the conducting of increased industrial
and manufacturing operations which 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 costs of acquiring and equipping the Project, in-
cluding necessary expenses incidental thereto, will require the issuance
by the City of $500 ,000 aggregate principal amount of its industrial develop-
ment revenue bonds, pursuant to the provisions of the Act, and
WHEREAS, it is proposed to defray the cost of the Project through
the issuance of not to exceed $500,000 of the City's industrial develop-
ment revenue bonds and to loan said amount to the Company under a loan
agreement between the City and the Company, pursuant to which loan payments
will be made in amounts sufficient to pay the principal of and interest and
premium, if any, on said bonds , if 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 pecuniary liabilities 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, the Company has requested that the Council take additional
action relating to the further processing and issuance of the City's indus-
trial development revenue bonds (Kirk Gross Co. Project) Series 1979, and
the City believes it desirable and in its best interests that said additional
action be taken, and
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 pro-
vided by Section 419.9 of the Act.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
WATERLOO, IOWA, AS FOLLOWS:
Section 1 . A public hearing shall be conducted at a time and place
to be later fixed by resolution of this City Council on the proposal to
issue not to exceed $500,000 aggregate principal amount of the City's in-
dustrial development revenue bonds (Kirk Gross Co. Project) Series 1979,
pursuant to the provisions of the Act, for the purpose of defraying all or
a portion of the cost of acquiring 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. That in order to assure the acquisition and equipping of
these industrial and manufacturing facilities 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 Council take and it does now
take additional action to cause its bonds to be authorized, issued and sold
in an aggregate principal amount not to exceed $500 ,000, in order to finance
all or a portion of the Project subject to the above mentioned public hearing
and further subject to the condition that the City and the Company shall have
agreed to mutually acceptable terms for the bonds and for the sale and de-
livery thereof, and mutually acceptable terms and conditions , or documents
and proceedings necessary to the lawful issuance of said bonds.
Section 3. In order that the Project will not be unduly delayed, the
Company is hereby authorized to make such commitments , expenditures and ad-
vances toward payment of the costs of the Project as it considers appropri-
ate, subject to reimbursement from the proceeds of the bonds when and if
delivered, but otherwise without liability on the part of the City.
Section 4. All resolutions and orders or part thereof, in conflict
herewith, are to the extent of such conflict, hereby repealed and this
resolution shall be in full force and effect immediately upon its adoption.
PASSED and APPROVED this "' t, , day of , 1979,
Mayor
ATTEST:
City Clerk