CCR1977224RESOLUTION 224-77
OF MUSKEGO INITIAL RESOLUTION REGARDING
INDUSTRIAL REVENUE BONDS
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, business
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 payable 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, Glenn R. Simpson, Jr. and Frank Nelson, principal
stockholders of the Company (the "Principal Stockholders"), and the
company have represented to the City that the Principal Stockholders - 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 $400,000 and have had negotiations
with the City as to the financing of such cost through the issuance
by the City of its industrial development revenue bonds pursuant to
Section 66.521, Wisconsin Statutes: ..
NOW, THEREFORE, IT IS RESOLVED THAT:
(1) In view of the considerable benefits to be derived by the
City from the Project, the City will work toward the consummation of
a project financing agreement pursuant to which the City will (i)issue,
sell and'deliver to a purchaser procured by the Company industrial de-
velopment revenue bonds in the aggregate amount of not to exceed
r$400,000 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 provide 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. -
(2) THE BONDS ISSUED TO FINANCE THE PROJECT SHALL NEVER CONSTITUTE
AN INDEBTEDNESS OF THE CITY WITHIN THE MEANING OF ANY STATE CONSTITU-
TIONAL PROVISION OR STATUTORY LIMITATION, AND SHALL NOT CONSTITUTE NOR
GIVE RISE TO A PECUNIARY LIABILITY OF THE CITY OR A CHARGE AGAINST ITS
GENERAL CREDIT OR TAXING POWERS.
i; .
Ppsol. 224-77
Pg. 2
(3) Taxes shall be assessed to the Company and/or the principal
Stockholders with respect to the Project in the same manner and amount
as though the Company and/or the Principal Stockholders owned the
Project.
(4) The appropriate of€icers of the City are hereby authorized
to negotiate the terms of a project financing agreement, lease or other
revenue agreement, instruments of conveyance, mortgage and indenture of
trust, if any, and any other documents required to properly complete
the financing provided that all such terms and procedures followed
shall be subject to the conditions of this resolution and the provisions
of Section 66.521, Wisconsin Statutes, as amended, and shall not be
binding unless and until:
(a) - The details -of the:project~ financing agreement and all ~
documents pertinent-thereto-are -revi-ewed;”authori~zed. and approved by a
definitive resolution of this body;
(b) The electors of the City .have been given the opportunity to
petition for a referendum on the question of the issuance of the bonds
as provided by law;
- - (c) Either no such valid petition for referendum shall have been
timely filed or if such petition has been filed the said bond issue
shall have been approved by a referendum; and
- (dj-:A11 .documents required in connection with the financing shall
have been duly executed by the parties thereto and delivered to the
extent required. -. ..
(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.
ATTEST
. .,- e
NOTICE TO ELECTORS
OF THE
CITY OF MUSKEG0
WAUKESHA COUNTY, WISCONSIN
TAKE NOTICE that the Common Council of the City of Muskego,
Waukesha County. Wisconsin, at a meeting held October 11. 1977.
adopted a resolution pursuant to Sec 66.521 of the Vis. Statutes to issue
its industrial development revenue bonds 'in an amount not to exceed
(to consist of land, buildings, equipment and improvements consti-
tuting an industrial facility) in the City of Muskego and entering
into a revenue producing agreement with ,Glenn R. Simpson and Frank
Nelson with respect to the project. The project will be used by
Glenn R. Simpson and Frank Nelson, whose principal stockholders are
Simpson-Nelson Corporation.
' $400,000 for the purpose of financing cost6 related to .a project
THE BONDS WHEN ISSUED WILL BE LIMITED OBLIGATIONS OF THE CITY,
PAYABLE SOLELY OUT OF THE REVENUES DERIVED FROM THE LEASING OF, OR
BONDS SHALL NEVER CONSTITUTE AN INDEBTEDNESS OF THE CITY, WITHIN
THE MEANING OF ANY STATE CONSTITUTIONAL PROVISION OR STATUTORY LIMI-
TATION, AND- SHALL NOT CONSTITUTE NOR GIVE RISE TO A PECUNIARY
LIABILITY OF THE CITY OR A CHARGE AGAINST ITS GENERAL CREDIT OR
TAXING POWERS.
:OTHER REVENLTE .PRODUCING AGREEMENT WITH REGARD TO, THE PROJECT. THE
The resolution may be inspected by any elector of the City of
Muskego at the Office of the City Clerk, W182 S8200 Racine Avenue,
Muskego, Wisconsin during business hours.
The bonds will be issued without submitting the proposition to
the electors of the City forapproval unless within 30 days from the
date of this notice, a petition, signed by not less than 5% of the
registered electors of the City is filed with the Clerk of the City
lequesting 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.
Date: ,I \x IC71 7 I
BY ORDER OF THE CITY OF MUSKEGO