CCR1978183_-
/*- dmr090778
COMMON
OF
COUNC 1 L
THE
CITY OF MUSKEGO
RESOLUTION NO. 333-$78
~ ~ "" ~- ~~___ - . - . . - ~" . . -. . ~ "~ "" . . -.
BOND RESOLUTION AUTHORIZING
$550,000
CITY OF MUSKEGO, WISCONSIN
INDUSTRIAL DEVELOPMENT REVENUE BONDS,
SERIES A
(PKECISION SCREW THREAD CORP. PROJECT)
WHEREAS, the 'City of Muskego, Wisconsin (the
"Municipality"), is a municipal corporation organized and
existing under and pucsuan.t to the laws of the'State of
Wisconsin and is authorized by Sect'ion 66.521 Wisconsin
Statutes, as amended (hereinafter s,ometimes referred to
as the "Act"), to: I e
(a) issue industrial development revenue
bonds to finance a11 or any part of the
costs of the construction, equipping,
reequipping, acquisition, purchase,
installation, reconstruction, rebuilding
maintaining, repairing, enlarging, extending
rehabilitation, improving', supplementing,
or remodeling oE 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
said project to be constructed and to pay
the eligible participant agrees to cause
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, Glenn K. Simpson, Jr., an individual
resid'ing in the State of Wisconsin (hereinafter referred to
as the "Borrower"), has heretofore requested the Munici-
pality to issue industrial development revenue bonds to
Act; and
finance a project as an eligible participant under the
'i
WHEKEAS? this body has heretofore Eound and deter-
mined thaL said project would consist of approximately 5.8
acres ol Land and a new industrial building and equipment for
the purpose of manufacturing screw thread products and related
'projecL" wiLhin Lhe meaning of the Act and that the Borrower
roducts (hereinafLer called the "Project") and is a qualified
is an eligible participant" within the meaning of the Act;
and
I,
WHEREAS, on March 14, 1978, this body adopted an
iniLial resolution pursuant to the Act wherein it was resolved
thaL the Municipality would issue industrial development revenue
of certain condiLions including the approval by this body of the
bonds LO finance the Project, subjecl however, to the satisfaction
Lerms of Lhe bonds and the revenue agreement described in said
iniLial resolucion: and
WHEREAS, on March 22, 1978, notice of the adoption
of Lhe initial resolution was published in accordance with
Section (10) ol Lhe Act, and no sufficient pecilion has been
filed with the Clerk requesting a referendum on the question of
the issuance of said industrial development revenue bonds;
and e
pa1.i~~ provide for Lhe issuance of $550,000 principal amount of
induslrial deveLopmenL revenue bonds upon Lhe Lerms set forth in
Lhis Hesolution (as herein described, the "Series A Bonds"): and
WHEREAS, Lhe Borrower has now requested that the Munici-
WHEKEAS, in connection therewith Lhe Borrower has
Series A Bonds, as follows:
presenled the Municipality with proposed documentation for the
(a) a Bond Purchase Agreement, to be dated as of the
daLe of adopt ion of [his Bond ResoluLion (the
"Bond Purchase AgreemenL"), to be entered into
by and among the~Municipality, Lhe Borrower,
Precision Screw Thread Corp., a Wisconsin cor-
pora~ion (the "Lessee") and First Wisconsin
NationaL Hank of Milwaukee, Milwaukee, Wisconsin
and condiLions on which the Municipality will sell (the "Bond Purchaser"), setting forLh the terms
and the Bond Purchaser will Durchase Lhe Series A
1 'a I Bonds; and
(b) an Indenture of TrusL, LO be dated as of
I September 1, 1978 (the "Indenture"), to be
~
I (Lhe "TrusLee"). providing for the creation
entered inLo between the MunicipaliLy and
Lhe corporate Lrustee hereinafter designated
of Lhe Series A Bonds, the terms thereof
and the security therefor: and * -2-
a Loan Agreement, to be dated as of Septem-
ber 1. 1978 (the "Loan Agreement"), to be
entered into between the Municipality and
Series A Bond proceeds to the Borrower
the borrower providing for a loan of the
on repayment terms scheduled to provide
the Municipality with revenues sufficient
to retire the Series A Bonds in accordance
with their terms; and
a Promissory Note, to be dated September 1,
1978 (the "Promissory Note"), to be issued
Municipality in the principal amount of
by the Borrower payable to the order of the
$550,000 as evidence of the borrowing pro-
vided for in the Loan Agreement and to be
assigned by the Municipality to the Trustee;
and
a Mortgage, to be dated as of September I, 1978 (the "Mortgage"), from the Borrower
to the Municipality, and from the Munici-
pality to be assigned to the Trustee, pro-
viding collateral security for the
performance of the Borrower's obligations
under the Loan Agreement: and
a Lease, dated as of May 1, 1978 (the
"Lease"), entered into by and between
the Borrower and the Lessee.
WHEKEAS, in accordance with the Act, this Resolution
and the aforesaid instruments and documents, the Series A Bonds
and interest thereon shall never constitute an indebtedness of
the Municipality within the meaning of any State constitutional
give rise to a pecuniary liability of the Municipality or a
provision or statutory limitation and shall not constitute or
charge against its general credit or taxing powers; and
WHEKEAS, it is in the public interest of the Municipality
to encourage and promote the development of projects such as the
Project in order to realize public benefits such as, but not
limited to, the provision and retention of gainful employment
opportunities for the citizens of the Municipality; the stimula-
tion of the flow of investment capital into the Municipality e
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with resultant beneficial effects on the economy in the Muni-
cipality; and the preservation and enhancement of the Munici-
pality's tax base; and
WHEREAS, the development of the Project and the
will. in the judgment of this body, serve the intended accom-
issuance of Honds to finance the Project as herein recited
plishments of public purpose and in all respects conform to
the provisions and requirements of the Act;
NOW, THEREFORE, BE IT RESOLVED:
and determined'Tn3- is -hmgcTared:
1. Find%s and Determinations. It has been found
that the Project is a qualified "project"
under and for the purposes of the Act:
that the Borrower is a qualified "eligible
participant" under and for purposes of
the Act;
ments ol ;I "revenue agreement" under and that the Loan Agreement meets the require-
for purposes of the Act ;
that the estimated aggregate cost of providing
the Project and paying the costs incident to
the financing is not less than $550,000; and
that the payments required to be made by
the Aorrower under the Loan Agreement are
su€ficient in amount to pay when due the
principal of, premium, if any, and interest
on the Series A Bonds.
pality shall borrow, b~t~niy-~n~a~nne-~~n recited, the
2. Authorization to Borrow and to Lend. The Munici-
sum of $550,000 €or the purpose of (i) financing the costs
of providing the Project, (ii) paying the costs of issuing
and selling the Series A Bonds, and (iii) paying such other
costs related thereto as are permitted to be paid with bond
proceeds under the Act. Said borrowing shall be accomplished
through the sale of the Series A Bonds issued pursuant to the
Act. The Municipality shall lend the sum of $550,000 to the
Borrower pursuant to the terms of the Loan Agreement, which
by the Mortgage.
borrowing shall be evidenced by the Promissory Note and secured
- "" .. . - -. .
Series A bonds^ ~~eate;r-~~-i~suance--~~-~ies A Bon s
3. Uesiknation, Denomination, Tenor and Matirity of
~ e -4 -
shall be issued in the principal amount of $550,000 and shall
be des iRnaLed :
CITY OF MUSKEGO, WISCONSIN
INDUSTRIAL DEVELOPMENT KEVENUE BONDS, SERIES A
(PRECISION SCREW THREAD CORP. PROJECT)
The Series A Bonds shall bear interest from their date at
and shall be payable in 240 consecutive monthly installments
the rate of seven and one-half percent (7-1/2%) per annum
of principal and interest each in the amount of $4,430.00.
except thaL the amount of the final payment shall be the en-
tire remaining unpaid principal balance plus accrued and un-
paid interest, commencing October 1, 1978 and continuing on
the firsL day of each month thereafter through and including
September I, 1998. Each monthly payment shall be applied
firsc to inLerest then due and secondly to principal.
The Series A Bonds shall be issuable as a single fully
regisLered typewritLen bond without coupons. The Series A Bonds
and the interest thereon shall be transferable by and shall be
payable to che registered owners thereof in the manner and with
the effect provided in the Indenture. The principal of, premium,
if any, and interesL on the Series A Bonds shall be payable in
lawful money of the United States of America at the principal
corporate crust office of the Trustee, as paying agent, or the
office of any successor or additional paying agent de,signated by
the MunicipaliLy and approved by the Borrower.
The Series A Bonds shall be dated September 1, 1978.
The Series A Bonds shall be letLeFed with the prefix "R" and
consecutively numbered from 1 upwprds in the order of their
issuance. I
The Series A Bonds shall be issued in the form therefor
LIS sel forLh in Lhe Indenture, with such insertions Lherein as
and with such corrections therein, if' any, as the approving bond
shall be necessary LO comply with'the terms of this Resolution
ResoluLion, the Indenture and Lhel Act.
atLorney may require Eor conformity with the terms of this
The Series A Hondsall"6e executed on -of the Munici-
4. Execution and __ Authentication of Series A Bonds.
with the manual signature of iLs Clerk and shall have impressed,
pali~y with Lhe manual signature of its Mayor, countersigned
Lhe MunicipaliLy. No Series A Bond shall be issued unless
imprinted or otherwise reproduced thereon the official seal of
first authenticaced by the Trustee, to be evidenced by the
manual signature of an authorized officer of the Trustee on
each Series A Bond.
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5. Deslgnation oE Trustee. The Municipality hereby
0 designates and rlppo~nts First Wlsconsin Trust Company, Milwaukee,
Wisconsin, Lo petEorm the Eunctions of the Trustee bond registrar
and paying agenc under Lhe Indenture.
" . . ". - ""
A Bonds may be"TGGe-moT"%e to time under the Indenture
6. Additional Bonds. Bonds in addition to Lhe Series
subject to the terms and condiLions therein provided and subject
to Lhe approval of this body. IE so issued, such additional
Bonds shall rank equally and on a parity with the Series A Bonds.
The Series A Bonds and any such additional Bonds are hereinaEter
collectively referred co as rhe "Bonds".
7. Series A Ronds as Limited 0blig;tions. The Series A
Bonds and inLeresi"~hereo~-s~~~~-oevere or e considered a
general obligaLion of the Municipality or an indebtedness of the
Municipality within Lhe meaning oE any State constitutional
give rise to a pecuniary liabiliLy oE the Municipality or a
provision or statutory limitation and shall not constitute or
charge agains~ iLs general credit or axing powers.
Series A Bonds shlT7ie~lmi~~~o~~e"unicipaIity
payable by iL solely From revenues consisting of (i) income and
revenue derived by or for the account of the Municipality from
or for the account of Lhe Borrower pursuant to the terms of
che Promissory Note and Lhe Loan Agreement (except certain
Laxes, expenses and indemnity payments which may become due
to the Municipality), (ii) all net proceeds realized upon
recourse to the MorLgage and any other collateral given to
and (iii) moneys held in trust funds created under the
secure the Borrower's obligaLions under Lhe Loan Agreement,
IndenLure.
8. Source of Payment; Pled e of Revenues. The
miunl, if any, and interes~ on the Bonds, the Municipality shall
pledge and assign LO Lhe TrusLee all oE its right, title and
inLeresL in and LO Lh'e Promissory Note, the Loan Agreement (ex-
cepL lor its riRhLs Lo receive and enforce payment of certain
~axes, expenses and indemniLy payments from the Borrower as set
EorLh in Lhe Indenlure and the Loan Agreement), the Mortgage and
Lhe Lrust funds held by Lhe Trustee under the Indenture.
As security of the payment of Lhe principal of, pre-
The Series A BOnd:<- s~;~T-b-"-s~~-~~~-To redempL:-oTpr ior to
maLuriLy as provided in Lhe Indenture and summarized below:
9. KedenTtion of Series A Bonds Prior to Maturity.
(a) ~ MandaLory .s~r ~ .- Kedevtion -~ in ." Event of Tax Violation.
les A Bonds shall besubject6 mandatory
redemption in whole upon the occurrence of a
"Tax Violation'' (relating to interest on the
-6-
Series A Bonds) as defined in the Indenture at
to the redemption date.
100% of principal amount. plus accrued interest
(b) kcional Redemption. There shall be an op-
tioi;ar-cylT-at the election of the Borrower, in
whole a~ any time or in part in inverse order
of malurity on any payment date, at a redemption
'price of 100% of principal amount redeemed,
plus accrued interest to the redemption date.
Notice of any redemption of Series A Bonds prior to stated
maturity shall be given in the manner provided in the Indenture.
A Bonds called for redemption as aforesaid shall be payable
The principal of, premium, if any, and interest on Series
solely from moneys held by the Trustee under the Indenture and
available therefor, including moneys derived from the Borrower
for such purpose pursuant to the Loan Agreement.
10. CreaLion of the Construction Fund. There is .. - ." ." " hereby created by Lhe Municipality and ordered established
with Lhe Trustee, a trust Eund to be designated with the names
of the MunicipaLiLy and the Lessee which shall be used to
pay (or reimburse the Borrower for) the costs of providing the
Project and such ocher costs in connection with Lhe Project
and the issuance and sale of the Series A Bonds as are permitted
Lo be paid from the proceeds of the Series A Bonds under the Act,
the Loan Agreement and the Indenture. There shall be deposited
sale of the Series A Honds less the portion thereof consti-
in said Construction Fund the entire proceeds received upon
tuting accrued interesl. The Municipality hereby authorizes and
directs the Trustee Lo withdraw funds from said Construction Fund
for disbursement Lo or at Lhe order of the Borrower pursuant to
requisition of che Borrower as provided in the Indenture and Loan
Agreement.
a
11. CreaLion of Bond Fund. There is hereby created
by Lhe Municipam-yTnidered established with the Trustee,
pality and the Lessee which shall be used to pay the principal
a trust fund to be designated with the names of the Munici-
hereby authorizes and directs the Trustee to withdraw sufficient
oE, premium, i€ any, and interest on the Bonds. The Municipality
any, and interes~ on Lhe Series A Bonds as the same become due
funds Erom said Bond Fund to pay the principal of, premium, i€
and payable. 0
12. Other Trust Funds. There is hereby created
by the MunicipaliLy and ordered established, if necessary,
with the Trustee funds in which there shall be deposited such
net proceeds of certain sales, insurance and condemnation awards
." . - "
e -7-
e
n
1 e
b
D
as may be provided in the Loan AgreemenL and Lhe IndenLure.
The Trustee is auLhorized to wilhdraw funds from said trust
funds for application as provided in Lhe Loan Agreement and the
Indenlure.
as part of che~EmEundsT;eld b 13. InvestmenL of Trust Funds. Any moneys held
Y the Trustee under the
upon reques~ by the Borcowec in (i) securities which are direct
Indeniure hereof may be invested and reinvested by the Trustee
general ohligaLions of the UniLed States of America, (ii)
securities which are unconditionally guaranteed as to both
obligaLions of any of the following: Banks for Cooperatives,
principal and interesL by the United States oE America, (iii)
Banks, Federal InLermediate Credit Banks, Federal National
Federal Financing Bank, Federal Land Banks, Federal Home Loan
MorLRage AssociaLion, Export Import Bank oE the United States or
CovernmenL Na~ional Mortgage Association, (iv) bank repurchase
agreements Eully secured by obligaLions of the United States of
America, and (v) inlerest-bearing accounts, time deposits and
cercificatcs of deposit issued by any bank, trust company or
national banking association (including the Trustee) which has
ap,gregaLe capi~al, surplus and undivided profiLs in excess oE
$500.000, but in no event shall the amount invested at any one
Lime in inLeresL-bearing accounLs, time deposiLs and certiEicates
of deposit or any par~icular bank, trust company or national
banking association equal or exceed 20% of the capital, surplus
and undivided profiLs of such bank, trust company or national
banking association.
14. Determina~ion ol Revenue Payment. The amount
necessary in eacl year LO pay TfYe principal of, premium, if
any, and interesL on Lhe Series A Bonds is Lhe sum of (i)
Lhe amounL o€ principal becoming'due in such year in accordance
wiLh paragraph 3 OF Lhis Resolution (as reduced from time LO
OF Series A Bonds in accordance wiLh the Indenture); plus (ii)
Lime by reason of prior redempL ions and open market purchases
year in accordance wiLh a call for redemption made in accord-
Lhe principal amount of Series A Bonds to be redeemed in such
ance with paragraph 9 of Lhis Resolution and the Indenture,
plus Lhe premium, if any, payable with respect thereto: plus
(iii) the amoun~ of inLeresL on the Series A Bonds becoming due
paragraph 3 of Lhis Resolution. in such year in accordance with the interesL rate specified in
.. ~
necessary revenue payments, it shall suffice herein and in
the Loan Agreement LO state Lhat Lhe Borrower shall be obligated
to pay the MunicipaliLy (or uhe Trustee for the account of the Municipality) amounLs sufficient LO pay when due the principal
of, premium, if ;dny, and interest on the Bonds.
In expressing the Borrower's obligation to make the
e -a-
The Loan Agreement contains provisions, adequate
in the judgment of Lhis body, requiring the Borrower to provide
for the maintenance of the Project and the carrying of all
proper insurance with respect thereto. Consequently, the
Borrower need not be required to pay amounts into any reserve
funds for the retirement of the Series A Bonds OK for the
maintenance of the Project.
15. Award of Series A Bonds: Execution and Deliver
of Lhe Bond Purchase Agreement. The Borrower has negotiated or
the sale of the Series A Bonds to the Bond Purchaser desienated
in the Bond Purchase Agreement at' a price of 100% of the
principal amount of the Series A Bonds, plus accrued interest to
Lhe date of delivery. Given the purposes of the financing and
the involvement of the Municipality therewith, it is the determi-
nation of this body that the Series A Bonds shall be hereby
awarded to the Bond Purchaser at the price aforesaid with
delivery to follow in the manner, at the time and subject to the
conditions seL forth in the Bond Purchase Agreement. As evidence
thereof, the Mayor and the Clerk are hereby authorized and
directed for and in the name of the Municipality to execute,
affix with the official seal of the Municipality and deliver the
Bond Purchase Agreement in the form presented herewith, or with
approved by the Mayor and Clerk consistent with this Resolution
such inserLions therein or corrections thereto as shall be
conclusive evidence o€ their approval of any such insertions
and the terms of the Act, their execution thereof to constitute
and corrections.
Y
16. ExecuLion and Delivery of the Loan Agreement
and the Indenture; Assignment of the Promissory Note and the
Mort a e. The terms and provisions of the Promissory Note, the iG" eteement. the Morteaee and the Indenture are herebv a~-
proved..' The Mayor and the Clerk are hereby authorized fbr Hnd in
the name of the Municipality to execute, affix with the official
seal of the Municipality and deliver the Loan Agreement, the
Mortgage in the respective forms thereof presented herewith, or
Indenture and the assignments of the Promissory Note and the
with such insertions therein or corrections thereto as shall be
approved by the Mayor and Clerk consistent with this Resolution
and the terms of the Act, their execution thereof to constitute
conclusive evidence of their approval of any such insertions
and corrections.
.> u
17. Execution and Delivery of the Series A Bonds.
The Mayor and Lhe Clerk are hereby authorized €or and in the
name of the Municipality to execute the Series A Bonds
in the manner authorized by paragraph 4 of this Resolution.
Subject to the terms and conditions of the Bond Purchase Agree-
ment, the Municipality shall deliver the Series A Bonds to the
Bond Purchaser.
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Clerk and the appro-p~ia~-e-~~u-tiesand ofEicials of the Munici-
18. General Authorizations. The Mayor and the
a pality in accordance with their assigned responsibilities are
hereby each authorized to execute, publish, file and record
pursuant to Wis. Stats. $893.23) and records and to take such
such other documents, instruments, notices (including notice
other actionsas shall"be necessary or desirable to accomplish
the purposes of this Resolution and to comply with and perform
the obligations of the Municipality under the Series A Bonds,
the Bond Purchase Agreement, the Loan Agreement and the Inden-
ture.
If the Mayor or the Clerk shall be unable by reason
of death, disability, absence or vacancy of office to perform
in timely Eashion any o€ the duties specified herein (such as the
execution of Series A Bonds, the Bond Purchase Agreement, the
Loan Agreement, the Indenture or the assignments of the Promis-
sory Note and the Mortgage), such duties shall be performed by
the officer OK ofEicial succeeding to such duties in accordance
with Law and in the ordinances of the Municipality.
shall be effect'ive"i~uponit-s passage and approval.
To the extent that any prior resolutions of this body are
inconsistent with the provisions hereof, this Resolution
shall control and such prior resolutions shall be deemed amended
to such extent as may be necessary to bring them in conformity
with this Resolution.
19. Ef€ective Date; Conformity. This Resolution
* * * * *
The foregoing resolution of the Common Council of
the City of Muskego, Wisconsin, was adopted, approved and
recorded on " , 1978.
~ __ "" Mayor
-1.0-
CERTIFICATIONS BY CLERK
depose and certify Lhat 1 am the duly (appointed) (elected),
qualified and acting Clerk of the City of Muskego, in the
County of Waukesha, State of Wisconsin, and as such I have in my
possession, or have access to, the complete corporate records of
compared the transcript hereto attached with the aforesaid
said City and of its Common Council; that I have carefully
corporate records; that said transcript hereto attached is a
true, correct and complete copy of all the corporate records in
relation to the adoption of Resolution No. /%3+7gentitled:
I, Bette J. Bowyer, being first duly sworn, do hereby
BOND RESOLUTION AUTHORIZING
$550,000
CITY OF MUSKEGO, WISCONSIN
INDUSTRIAL DEVELOPMENT REVENUE BONDS,
SERIES A
(PRECISION SCREW THREAD CORP. PROJECT)
I do here by^ further depose and certify as follows:
1. Said resolution was considered for adoption
by the Common ouncil at a meeting held in the City Hall at 9:~ P.M. on 2 1978. Said meeting was a regular
meeting of the &6iimon Council and was held in open session
Statutes.
in compLiance with Subchapter IV of Chapter 19 of the Wisconsin
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
by posting on the bulletin board in the City Hall, by notice to
19.84 of the Wisconsin SLatutes, including, without Limitation,
, those news media who have filed a written request for notice of
meetings and by notice to the official newspaper of the City.
who chaired the meeting. Upon roll I noted and recorded that the
following Aldermen were present:
3. Said meeting was called to order by Mayor Gottfried,
- fJbL"- OLke " /jhwo7CI jh//ne/l/ P1 f n35" ""LYLdK-" ~"
~
and Lhat the following Aldermen were absent:
I noted and recorded that a quorum was present. Various matters
and business were taken up during the course of the meeting
-i-
e
wi~hout intecvention of any closed session. One of the matters
taken up was said resolution which was introduced and its adop-
t ion was moved by Aldecman Plehkkos , and seconded by
Alderman &,,&u /'ORA
Aldermen XoTsired to do so had expressed their views for
. Following discussion and after all
or against said cesolution, the question was called and upon roll
being called and the continued presence of a quorum being noted,
the recorded vote was as follows:
owas P& 1qw,
-
Nay : 0 -
Abstain: ". "" " "_
Whereupon the Mayor declared said resolution adopted, and I so
recorded it. 4f,/,z., 1978, and I have so recorded.
the seal of the City hereto on chis __- Ta*day of
4. Said cesolution was approved by the Mayor on
IN WITNESS WHEREOF, I have igned my name and affixed
[Municipal Seal] -
Clerk -
STATE OF WISCONSIN )
COUNTY OF WAUKESHA ) 1 ss
Subscribed and sworn to before me this day, the
date last above written.
Ktary PUW "
My commission expires:
[Notarial Seal]