CCR1978033~
RESOLUTION 33-78
CITY OF MUSKEGO, WISCONSIN
INITIAL RESOLUTION REGARDING I( ,&' IINDUSTRIAL DEVELOPMENT REVENUE BONDS
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I WHEREAS, ithe City of Muskego, Wisconsin (the "City"), is
authorized by Section 66.521, Wisconsin Statutes, as amended
(the "Act"), tb, among other powers, (i) construct, equip, re-
equip, acquirelby gift, lease or purchase, install, reconstruct,
rebuild, rehabiilitate, improve, supplement, replace, maintain,
repair, enlarge, extend or remodel industrial projects, (ii)
enter into revenue producing agreements for the same in order to
promote the right to gainful employment, business opportunities
and general welfare of its inhabitants and to preserve and en-
hance its tax base, (iii) borrow money and 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, :in :the event of - default ,of such agreement, as may .
be authorized by this Council and permitted by law, and which
bonds may be secured by a mortgage and/or security interest in
the project or other security; and
WHEREAS, Edward H. Lanke and Erla M. Lanke, his wife, (the
"Lankes") have represented to the City that they need to construct
an industrial building in the City to be initially used by Wisconsin
Coil Spring, Inc., a Wisconsin corporation (the "Company") in
connection with the manufacture of springs and wire products and
.related manufacturing activities (which building and related
cost not to exceed $250,000; and has had negotiations with the improvements are herein called the "Project'!), for an estimated
City as to the feasibility of undertaking the Project in the City
or elsewhere and as-to the financing of part or all of the costs
of the Project through the issuance by the City of its industrial
development revenue bonds pursuant to the Act.
NOW, THEREFORE, BE IT RESOLVED by this Common Council of the
City of Muskego:
(1) In view of the considerable benefits to be derived by
the City from the development of the Project in the City, and
to induce and encourage the Lankes to undertake the Project in
the City, the City intends to consumnate a Project Financing Agree-
ment pursuant to which the City shall
(a) issue, sell and deliver to purchasers procured
by the Lankes industrial development revenue bonds in the
aggregate amount of not to exceed $250,000 in order to
finance costs related to the Project, which bonds shall be
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' * agreement with respect to the Project and in the event of
payable solely from the revenues derived from a revenue
default of such agreement, as may b? authorized by this
Council and permitted by law;
P (b) acquire part or all of the Project, if necessary
and proper pursuant to such Project Financing Agreement;
with respect to at least that part of the Project financed
by industrial revenue bonds, providing revenues sufficient
to pay principal of, and interest on, the bonds when due,
of part or all of the Project by the Lankes and which may
tha.t part of the Project whic'h the City: shall- have acquire+-- .:
further provide. for thetrright of, the Lankes to acqui.re .. .
previously;. for the aggregate amount equal to the^ amount "-I
required to retire all the outstanding bonds plus One Dol-lar
($1) or such other sum as may be required by law;
(c) enter into a revenue agreement with the Lankes
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I providing for construction, acauisition and/or installation
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(d) assign the revenue producing agreement and pledge
the revenues and other amounts therefrom to the bondholders
or to a trustee under an indenture of trust and enter into
such other appropriate arrangements which may be deemed
necessary, if any, including but not limited to, the.
granting'~of a mortgage and/or security -interest in part or '-
principal of, premium, if any, and interest on the bonds.
all of the, Project, in order to further secure payment of
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(2) The bonds issued to finance costs of the- Project shall
never constitute an indebtedness-of the City wit-hin the meaning-
of any state constitutional provision or statutory limitation
and shall not constitute or give rise to a pecuniary liability
powers.
3 of the City or a charge against its general credit or taxing
,
(3) If the City owns any part of the Project, taxes shall
be assessed to ,the user of such part of the Project in the same
manner and amount as though such user owned such part.
(4) The appropriate officers of the City are hereby autho-
rized to negotiate the terms of the Project Financing Agreement,
revenue producing agreement, any instruments of conveyance, in-
denture of trust, if any, and any other documents required to
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NOTICE TO ELECTORS OF
THE CITY OF MUSKEGO,
WAUKESHA COUNTY, WISCONSIN
TAKE NOTICE that the Common Council of the City of Muskego,
Waukesha County, Wisconsin at a lawful meeting held on the 2r day of February, 1978, adopted an initial resolution,
pursuant to Section 66.521 of the Wisconsin Statutes, as amended,
setting forth the intent of the City to issue industrial develop-
ment revenue bonds in an amount not to exceed $250,000 for the
purpose of financing costs related to the construction of a
building to be initially us,ed by Wisconsin Coil Spring, Inc., a
Wisconsin corporation, in connection with the manufacture of
springs and wire'products and related manufacturing activities
Erla M. Lanke, his wife, with respect to such financing.
and to enter into a revenue agreement with Edward H. Lanke and
THE BONDS SHALL BE PAYABLE-SOLELY FROM THE.REVENUES AND - ~
OTHER .AMOUNTS ~DERIVED- OR :.RESULTING -FROM- A REVENUE AGREEMENT '.-.
OF SUCH AGREEMENT,. AS OTHERWISE AUTHORIZED BY THE .CITY-OF ElUSKEGO
WITH RESPECT TO THE FINANCED~ PROJECT OR, IN THE EVENT OF DEFAULT.
AND PERMITTED BY'LAW. THE BONDS SHALL NOT CONSTITUTE AN INDEBT-
EDNESS 'OF THE CITY OF MUSKEGO WITHIN THE MEANING OF ANY STATE
CONSTITUTIONAL PROVISION OR STATUTORY LIMITATION, AND SHALL NOT
CONSTITUTE OR GIVE RISE TO A PECUNIARY LIABILITY OF THE CITY OR
A CHARGE AGAINST: ITS GENERAL CREDIT OR TAXING POWERS.
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The resolution may be inspected by any elector of the City
at the office oflthe City Clerk, City Hall, Muskego; Wisconsin
during business hours.
The bonds .will be issued without submitting the .proposition
to .the electors ,of the City' ,for- approval unless within .30 -days
from the date of publication of this notice a petition, signed
by not less than 5% of the registered electors of ,the City, is
filed with the City Clerk requesting a referendum upon the
question of the issuance of the bonds. If such petition is filed, i
the bonds shall not be issued until approved by a majority of I
the electors of the City voting thereon at a general or special
election. ,
Dated February 28 , 1978. ,
Bette J. Bowyer city Clerk
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a properly complete the financing provided that all such terms,
documents and procedures shall be subject to the conditions of
this Resolution and the provisions of the Act and shall not be
binding unless and until:
(a) the details of the Project Financing Agreement
and all documents pertinent thereto are reviewed, autho-
rized and approved by resolution of this Council;
(b) the electors of'the City shall have been given
the opportunity to petition for a referendum on the matter
of the aforesaid bond issue as required by the Act;
(c). ' either no such petition shall be timely filed
or such peti~tion 'shall have .been so filed -and -said refer-;;-
enduni.shal1 ihave .approved -the bond fssue; and . ~~ .
(d) ,all documents required in connection with the
financing shall have been duly executed by the parties
thereto and del'ivered to the extent required. .
(5) The City Clerk is hereby directed to publish notice
of adoption of this Resolution as a class 1 notice under Chapter
985, Wis. Stats., (relating to publication of official notices)
in the official newspaper of~the City in substantially the form
attached to-this Resolution.
(6)-~ The. City Clerk .is hereby directed to file with the
secretary^ .of .Business --Development--of the Stdte. of .Wisconsin -a '-
notice of its adoption within ten days following publication of
such notice.
- copy~of this Resolution together with a copy of the public ..
Adopted February 28 , 1978
Bette J. Bowyer Cl%y Clerk