CCR1977242COMMON COUNCIL
OF THE
CITY OF MUSKEGO, WISCONSIN
Resolution No. 242-77
INITIAL RESOLUTION
RELATING TO
INDUSTRIAL DEVELOPMENT REVENUE BOND FINANCING
ON BEHALF OF
PRECISION SCREW THREAD CORP.
WHEREAS, the City of Muskego, Wisconsin (the "Munici-
pality") is a municipal corporation organized and existing under
and pursuant to the laws of the State of Wisconsin and is
authorized by Section 66.521 Wisconsin Statutes, as amended
(hereinafter sometimes referred to as the "Act"), to:
(a) issue industrial development revenue bonds to
finance all or any part of the costs of the construction,
equipping, reequipping, acquisition, purchase, installation,
reconstruction, rebuilding, rehabilitation, improving,
supplementing, maintaining, repairing, enlarging, extending
or remodeling of a project which qualifies under the Act and
the improvement of the site therefor: and
(b) enter into a revenue agreement with an eligible
participant pursuant to which the eligible participant
agrees to cause said project to be constructed and to pay
the Municipality an amount of funds sufficient to provide
for the prompt payment when due of the principal of and
interest on said industrial development revenue bonds:
and
WHEREAS, Precision Screw Thread Corp., a Wisconsin
corporation, Simpson-Nelson Corporation, a Wisconsin corporation,
holders of the two aforesaid corporations (hereinafter said
and Glenn R. Simpson, Jr. and Frank Nelson, the principal share-
corporations and said individuals being individually and collec-
tively or in any combination referred to as "Eligible Partici-
pant") have been considering undertaking a capital project in
the Municipality, and have represented to the Municipality that
project could be financed with industrial development revenue
it would be an encouragement and inducement to proceed if the
bonds; and
WHEREAS, the project would be for the purpose of
the. manufacture of screw thread products and related products
and would consist of approximately 5.8 acres of land, a new
industrial building and equipment (hereinafter called the
"Project") ; and
the cost of the Project would be approximately $400,000 but, with
WHEREAS, the Eligible Participant has estimated that
allowance for modifications, design changes, and inflation
could be as high as $450,000: and
pality to promote, attract, stimulate, rehabilitate and revita-
WHEREAS, it is in the public interest of the Munici-
lize commerce, industry and manufacturing, to promote the better-
ment of the environment and the economy of the Municipality and
to stimulate a large flow of private investment funds into the
Municipality; and
this body that the Project is a qualified "project" within
WHEREAS, it is the finding and determination of
the meaning of the Act and that the Eligible Participant is an
"eligible participant'' within the meaning of the Act: and
body that the Municipality would derive public benefits from the
WHEREAS, it is the finding and determination of this
by way of illustration but not limitation the following: the
Project and its operation by the Eligible Participant, including
provision and retention of gainful employment opportunities for
the citizens of the Municipality; the stimulation of the flow of
investment capital into the Municipality with resultant bene-
ficial effects on the economy in the Municipality; and the
preservation and enhancement of the Municipality's tax base;
and
body that the public interest will be served if the Municipality
WHEREAS, it is the finding and determination of this
were to encourage and induce the Eligible Participant to under-
take the Project in the Municipality;
NOW, THEREFORE, BE IT RESOLVED:
1. Subject to the conditions specified in paragraph
having the following elements:
2, the Municipality shall pursue and consummate a financing
(a) The Municipality shall issue industrial develop-
ment revenue bonds pursuant to the Act in such amount not
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in excess of $450,000 as the Eligible Participant shall
request, provided, however, that the actual amount shall
of providing the Project and paying the costs incident
not be greater than the then estimated aggregate cost
to the financing (said bonds being hereinafter called
the "Bonds") .
(b) The Bonds shall be payable solely out of revenues
derived from the Eligible Participant or otherwise provided
for pursuant to the terms of a lease, sale, loan, install-
ment purchase or similar agreement (hereinafter called the
pality and the Eligible Participant.
"Revenue Agreement") to be entered into between the Munici-
(c) The Revenue Agreement shall require the Eligible
Participant to acquire, construct or install the Project and
to provide the Municipality with revenues sufficient to pay
when due the principal of, premium, if any, and interest on
the Bonds.
rates and redemption features as the Eligible Participant
(d) The Bonds shall have such maturities, interest
shall propose, provided that such terms shall be substan-
tially similar to the terms of similar bonds secured the
obligations of entities or persons having substantially
equivalent credit to that of the Eligible Participant.
2. The issuance of the Bonds by the Municipality
shall be on the following conditions:
(a) The Bonds shall not constitute an indebtedness of
the Municipality within the meaning of any State constitu-
tional provision or statutory limitation.
(b) The Bonds shall not constitute or give rise to a
pecuniary liability of the Municipality or a charge against
its general credit or taxing powers.
(c) If the Municipality shall hold title to the
Project while the Bonds are outstanding, the Eligible
same amount and to the same extent as though Eligible
Participant shall be subject to property taxation in the
Participant were the owner of the Project.
finding a purchaser or purchasers for all of the Bonds. (d) The Eligible Participant shall be responsible for
(e) The out-of-pocket costs in connection with the
issuance and sale of the Bonds shall be paid either from the
proceeds of the Bonds or by the Eligible Participant.
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electors of the Municipality shall have been given the
(f) Prior to the issuance of the Bonds: (i) the
opportunity to petition for a referendum on the matter of
the Bond issue as required by the Act; (ii) either no such
petition shall be timely filed or such petition shall have
been filed and said referendum shall have approved the Bond
issue; and (iii) this body, by further resolution, shall
have authorized and approved the terms of the Bonds and the
Revenue Agreement.
(9) The Bonds shall be issued pursuant to the Act, and
the delivery of the Bonds shall be accompanied with the
unqualified approving legal opinion of Messrs. Foley &
Lardner, bond counsel, Milwaukee, Wisconsin, or such other
nationally recognized firm of bond attorneys as shall be
acceptable to the Municipality and the Eligible Participant.
3. The Clerk shall cause notice of adoption of
this Resolution to be published once in The Muskego Sun (the
pursuant to Chapter 985 of the Wisconsin Statutes), in substan-
Municipality's official newspaper, for the publication of notices
tially the form attached to this Resolution, and shall cause a
copy of such public notice together with a copy of this Reso-
lution to be filed with the Secretary of Business Development of
the State of Wisconsin within 10 days following publication of
such notice.
4. This Resolution is an "initial resolution" within
the meaning of the Act and a "bond resolution or other similar
official action" within the meaning of Section 1.103-8(a)(5) of
the Treasury Regulations promulgated under Section 103 of the
Internal Revenue Code of 1954, as amended.
5. This Resolution shall be effective immediately
upon its passage and approval. Unless the Bonds shall have
given by this Resolution shall expire on October 1, 1978, or on
been issued prior thereto, the authorities and authorizations
such later date as this body may specify by resolution adopted
either before or after such date.
6. This Resolution supersedes and replaces Resolution
224-77 adopted October 11, 1977, which is hereby repealed.
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[Form of ace to be Published by th aerkl
NOTICE TO ELECTORS
CITY OF MUSKEGO
OF THE
TAKE NOTICE that the Common Council of the City of
Muskego, Wisconsin, at a lawful meeting held on the 25th day of
October, 1977, adopted an initial resolution, pursuant to Section
66.521 of the Wisconsin Statutes, authorizing the issuance of not
to exceed $450,000 principal amount of industrial development
Wisconsin corporation, Simpson-Nelson Corporation, a Wisconsin
revenue bonds on behalf of Precision Screw Thread Corp., a
corporation, Glenn R. Simpson, Jr. and Frank Nelson, the prin-
combination of the foregoing (hereinafter called the "Eligible
cipal shareholders of the two aforesaid corporations, or any
construction, acquisition and installation costs of a project
Participant"). The purpose of the bond issue is to finance the
consisting of land, building and equipment to be located in the
City and operated for the manufacture of screw thread products
and related products.
THE CITY
THE BONDS SHALL NOT CONSTITUTE AN INDEBTEDNESS OF
HE CITY; NOR SHALL THE BONDS BE A
MUSKEGO; NOR SHALL THE BONDS GIVE RISE TO ANY
CREDIT OR TAXING POWER OF THE CITY.
OTHER AMOU
NDS SHALL BE PAYABLE SOLELY FROM THE REVENUES AND
BE ENTERED
DERIVED OR RESULTING FROM A REVENUE AGREEMENT TO
0 WITH THE ELIGIBLE PARTICIPANT.
spected by any elector of the City at the City
foresaid initial resolution is a public document
iness hours.
ICE THAT THE ELECTORS OF THE CITY OF
REFERENDUM ON THE QUESTION OF THE BOND
66.521(10)(d) of the Wisconsin Statutes, pro-
The governing body may issue bonds under this
cipality for approval unless within 30 days from
hout submitting the proposition to the electors
publication of notice of adoption of the initial
for such bonds, a petition, signed by not less
of the registered electors of the municipality, or,
no registration of electors in the municipality,
he number of electors of the municipality voting
ice of governor at the last general election as
under s. 115.01(13), is filed with the clerk
municipality requesting a referendum upon the
the issuance of the bonds. If such a petition
e bonds shall not be issued until approved by a
the electors of the municipality voting thereon
or special election."
..
APPROVAL OF RESOLUTION BY MAYOR "~"
The attached Resolution No. 242- 77 , entitled
INITIAL RESOLUTION
RELATING TO
ON BEHALF OF
INDUSTRIAL DEVELOPMENT REVENUE BOND FINANCING
PRECISION SCREW THREAD CORP.
which was adopted by the Common Council of the City of Muskego,
Wisconsin, on October 25, 1977, is hereby approved.
Dated October 25, 1977.
0 CERTIFICATIONS BY CLERK 0
depose and certify that I am the duly (appointed) (elected),
I, Bette J. Bowyer, being first duly sworn, do hereby
qualified and acting Clerk of the City of Muskego, in the County
of Waukesha, State of Wisconsin, and as such I have in my posses-
sion, or have access to, the complete corporate records of said
City and of its Common Council: that I have carefully compared
the transcript hereto attached with the aforesaid corporate
and complete copy of all the cor orate records in relation to the
records: that said transcript hereto attached is a true, correct
adoption of Resolution No. 2-45-77 entitled:
INITIAL RESOLUTION
INDUSTRIAL DEVELOPMENT REVENUE BOND FINANCING
PRECISION SCREW THREAD CORP.
RELATING TO
ON BEHALF OF
I do hereby further depose and certify as follows:
1. Said resolution was considered for adoption
7:30 P.M. on October 25, 1977. Said meeting was a regular
by the Common Council at a meeting held in the City Hall at
Xing of the Common Council and was held in open session
in compliance with Subchapter IV of Chapter 19 of the Wisconsin
Statutes.
and public notice thereof was given not less than 24 hours prior
2. Said resolution was on the agenda for said meeting
to the commencement of said meeting in compliance with Section
19.84 of the Wisconsin Statutes, including, without limitation,
by posting on the bulletin board in the City Hall, by notice to
those news media who have filed a written request for notice of
meetings and by notice to the official newspaper of the City.
who
fol
3. Said meeting was called to order by Mayor Gottfried
chaired the meeting. Upon roll I noted and recorded that the
lowing Aldermen were present:
Ford, Penkos, Dumke, Schaumberg
Wallner and Van Lanen
and that the following Aldermen were absent: Tomczyk
and business were taken up during the course of the meeting
I noted and recorded that a quorum was present. Various matters
without intervention of any closed session. One of the matters
taken up was said resolution which was introduced and its
adoption was moved by Ald. Schaumberg , and seconded by
Ald. Dude . Following discussion and after all
Aldermen who desired to do so had expressed their views for or
against said resolution, the question was called and upon roll
being called and the continued presence of a quorum being noted,
the recorded vote was as follows:
Aye: Dumke, Schaumberg, Pienkos
Erd. WaLlner ana Van Lanen
-
Nay :
Abstain:
Whereupon the Mayor declared said resolution adopted, and I so
recorded it.
October 25, 1977, and I have so recorded.
4. Said resolution was approved by the Mayor on
published in the form and place specified in said resolution; and
5. I have caused the "Notice to Electors" to be
I have filed a copy of said notice as published together with 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.
. .. IN WITNESS WHEREOF, I have signed my name and affixed
the seal of the City hereto on this 26 day ofOctober I
1977.
/Q AJL .. ..
[Municipal Seal]
Clerk
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STATE OF WISCONSIN )
COUNTY OF WAUKESHA ) ) ss
Subscribed and sworn to before me this day, the
date last above written.
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