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CCR1974254'0 ' e l tiESOLUTIOON 254-74 CITY OF MUSKEG0 INITIAL RESOLUTION REGARDING INDUSTRIAL REVENUE BONDS WHEREAS, this Council did on July 23, 1974 adopt a resolu- tion entitled "Resolution No. 151-74" with respect to a proposed issuance of industrial development revenue bonds in connection with a project proposed by Interstate Tool & Engineering Corporation (the "Company") ; and WHEREAS, since the adoption of such initial resolution of particularly defined, the proposed interest rate has increased, it intent, certain aspects of the proposed financing have become more hol-ders of the Company, rather than directly to the Company, and this has been proposed that the project be leased to principal stock- Council wishes to demonstrate its continuing support of the proposed financing; NOW, THEREFORE, it is resolved that the aforementioned amended and restated in its entirety to read as follows: "Resolution No. 151-74," including the premises thereof, is hereby WHEREAS, the City of Muskego, Wisconsin (the "City") is authorized by Section 66.521, Wisconsin Statutes, to acquire, construct, equip, reconstruct, improve, maintain, repair, enlarge or remodel industrial projects, and to enter into revenue producing agreements for same, in order to promote the right to gainful employment, busi- ness opportunities and general welfare of its inhabitants and to preserve and enhance its tax base, and to issue bonds to finance - costs related to such industrial projects, which bonds are to be pay- able solely out of the revenues derived pursuant to the revenue agreement pertaining to the project to be financed by the bonds so issued and which bonds may be secured by a mortgage on the project and other security; and WHEREAS, Gordon V. Kottke and Robert A. Marcott, principal Company have represented to the City that the Principal Stockholders stockholders of the Company (the "Principal Stockholders"), and the and/or the Company propose to enter into transactions involving the acquisition, construction and/or equipping of an industrial facility in the City and payment of related costs (the "Project") for an estimated maximum initial.cost of $300,000 and have had nego- tiations with the City as to the financing of such cost through the pursuant to Section 66.521, Wisconsin Statutes; issuance by the City of its industrial development revenue bonds NOW, THEREFORE, IT IS RESOLVED that: by the City from the Project, the City will work toward the con- (1) In view of the considerable benefits to be derived e e sirnation 0: a project financing agreement pursuant to which the City will (i) issue, sell and deliver to a purchaser procured by the Company industrial development revenue bonds in the aggregate amount of not to exceed $300,000 in order to finance costs related to the Project, which bonds shall be payable solely out of revenues derived from the leasing of the Project or other revenue agreement as may be permitted by law, (ii) enter into a lease or other such revenue agreement providing rental or other revenues sufficient to pay principal of and interest on the bonds when due, providing for the acquisition, construction and/or equipping of the Project by the Principal Stockholders and/or the Company and which may further pro- vide for the right of the Principal Stockholders and/or the Company to acquire the Project for an aggregate amount equal to the amount required to retire all outstanding bonds, plus One Dollar ($1.00) or such other sum as may be required by law, and (iii) mortgage the Project and assign the lease or other such revenue agreement and pledge the revenues therefrom to the bondholders or a trustee under a mortgage and indenture of trust and/or enter into other appropriate arrangements in order to further secure the payment of principal of and interest on the bonds. CONSTITUTE All INDEBTEDNESS OF THE CITY WITHIN THE MEANING OF ANY STATE CONSTITUTIONAL PROVISION OR STATUTORY LIMITATION, AND SHALL OR A CHARGE AGAINST ITS GENERAL CREDIT OR TAXING POWERS. (>) THE BONDS ISSUED TO FINANCE THE PROJECT SHALL NEVER NOT CONSTITUTE NOR GIVE RISE TO A PECUNIARY LIAEILITY OF THE CITY (3) Taxes shall be assessed to the Company and/or the Principal Stockholders with respect to the Project in the saxe manner and amount as though the Company and/or the Principal Stockholders owned the Project. authorized to negotiate the terms of a project financing agreement, and indenture of trust, if any, and any other documents required to lease or other revenue agreement, instruments of conveyance, mortgage properly coinplete the financing provided that all such terms and procedures followed shall be subject to the conditions of this reso- lution and the provisions of Section 66.521, Wisconsin Statutes, as amended, and shall not be binding unless and until: (4) The appropriate officers of the City are hereby (a) The details,of the project financing agreement and all documents ,pertinent thereto are reviewed, authorized and approved by a definitive resolution of this body; (b) The electors of the City have been given the oppor- tunity to petition for a referendum on the question of the issuance of the bonds as provided by law; 0 2 have been timely filed or if such petition has been filed the said bond issue shall have been approved by a referendum; and (c) Either no such valid petition for referendum shall ing shall have been duly executed by the parties thereto and delivered to the extent required. (d) All documents required in connection with the financ- (5) Notice of this resolution shall be published as a class 1 notice in the official newspaper of the City in the form attached hereto. (6) A copy of this resolution together with a copy of the notice referred to above shall be filed by the City Clerk with the State of Wisconsin Secretary of Business Development within 10 days following the publication of such notice. 3 I. NOTICE TO ELECTORS OF THE WAUKESHA COUNTY, WISCONSIN CITY OF MUSKEGO ~ I .. TAKE NOTICE that the Common Council of the City of Muskego, Waukesha County, Wisconsin, at a meeting held November 12, 1974, amended and restated a resolution of intent adopted July 23, 1974,'pur- suant to Section 66.521 of the Wisconsin Statutes to issue its indus- trial development revenue bonds in an amount not to exceed $300,000 for the purpose of financing costs related to a project (to con- sist of land, buildings, equipment and improvements constituting an industrial facility) in the City of Muskego and entering into a revenue producing agreement with Gordon V. Kottke and Robert A. Marcott with respect to the project. The project will be used by Interstate Tool & Engineering Corporation, whose principal stock- holders are Messrs. Kottke and Marcott. , I THE BONDS WHEN ISSUED WILL BE LIMITED OBLIGATIONS OF THE CITY, PAYABLE SOLELY OUT OF THE REVENUES DERIVED FROM THE LEASING OF, OR OTHER REVEFJUE PRODUCING AGREEmNT IJITH REGARD TO, TEE PROJECT. THE BONDS SHALL NEVER CONSTITUTE AN INDEBTEDNESS OF TEE CITY, WITHIN THE MEANING OF ANY STATE CONSTITUTIONAL PROVISION OR STATUTORY LINI- TATION, AND SHALL NOT CONSTITUTE NOR GIVE RISE TO A PECUNIARY LIA- BILITY OF THE CITY OX A CHARGE AGAINST ITS GENERAL CREDIT OR TAXING POWERS. 1 II 1 of Muskego at the Office of the City Clerk, ~182 S8200 Racine Avenue, The resolution may be inspected by any elector of the City Muskego, Wisconsin during business hours. I The Bonds will be issued without submitting the proposi- tion to the electors of the City for approval unless within 30 days 5% of the registered electors of the City is filed with the clerk from the date of this notice, a petition, signed by not less than of the City requesting a referendum upon the question of the issuance of the Bonds, in which event the Bonds shall not be issued until approved by a majority of the City voting thereon at a general or special election. 0 BY ORDER OF THE CITY OF MUSKEGO Bette J. Bowyer Clerk We, as members of the Muskego CommDn Council of said City of Muskego, constituting the Board of City Canvassers of said City, do hereby certify that the foregoing and tabular statement is correct and true as compiled from the original returns and from said returns it appears that at the election held in the City of Muskego on November 5, 1974, the votes given relating to the two referendum were as follows: QUESTION No. 1. Shall the City of Muskego increase its tax base by encouraging the expansion of exist- ing industries as well as the locating of new industries in the City by the use of industrial revenue bonds at no cost to the citizens of the City of Muskego? 0 a a - YES Ward I 2 34 Ward I1 244 Ward 111 207 Ward IV 253 Ward V 219 Ward VI 172 Ward VI1 201 - NO 256 184 158 157 224 203 123 TOTAL 1,530 1,305 QUESTION No. 2. Shall the City of Muskego aid the Muskego Rendering Company, Inc., in financing the construction and equipping of a rendering plant located in the City by issuing $1,000,000.00 of industrial development revenue bonds pursuant to Section 66.521 of the Wisconsin Statutes, which bonds shall never constitute an indebtedness of the City and shall not constitute a charge against the general credit or taxing powers of the City? FOR BONDS Ward I 183 Ward 11 176 Ward 111 182 Ward IV 200 Ward V 158 Ward VI 126 Ward VI1 155 AGAINST BONDS 289 233 172 204 278 240 150 TOTAL 1 , 180 1,566 Page 2. a WITNESS UNDER OUR HANDS THIS DAY OF , 1974. ATTEST : a City Clerk Y Ald. Richard M. Knudsen ad (2 dm Ald. Aaymond A. Wallner Ald. Edwin P. Dumke /A&& Charles C. Colburn