CCR1981111RESOLUTION AUTHORIZING
INDUSTRIAL DEVELOPMENT REVENUE BOND
WAUKESHA COUNTY, WISCONSIN
CITY OF MUSKEG0
(ARLEN R. DELP PROJECT)
SERIES 1981
(THE "BOND" )
WHEREAS, in a resolution (the "Initial Resolution") adopted
February 10, 1981 by the Common Council of the City of Muskego,
Waukesha County, Wisconsin (sometimes herein called the "City" or
the "Issuer"), the Issuer expressed its intent, and authorized
and directed its officers, to work toward the consummation of a
financing agreement with Arlen R Delp (the "Participant") pursuant
to which the City would issue its industrial development revenue
bonds pursuant to Section 66.521, Wisconsin Statutes, as amended
(the "Act"), in an amount not to exceed $300,000 for the purpose
City and constructing and equipping thereon a facility (which
of financing costs of, among other things, acquiring land in the
the "Project") to be initially leased to Muskego Medical Clinic S.C.
land, facility and related improvements are referred to herein as
related medical and service activities pursuant to a Lease Agreement
(the "Lessee") for use primarily as a medical clinic and for
between the Participant and the Lessee (the Lease"); and II
WHEREAS, the Participant has since determined to acquire the
the purpose of constructing and equipping the Project; and
land with other funds and will use the proceeds of the Bonds for
WHEREAS, in reliance upon the Initial Resolution, the Parti-
with the initial purchaser (the "Purchaser") for purchase of the
cipant has commenced the Project, has entered into negotiations
Bond to be so issued and caused to be prepared and herewith
submitted to this Common Council forms of the following documents:
(a) Mortgage, Loan and Security Agreement between the
Issuer and the Participant pursuant to which the Issuer
pant to finance the Project and related costs, together
agrees to loan the proceeds of the Bond to the Partici-
with the Participant's Note containing his promise to
repay such loan with interest as set forth therein
(annexed hereto as Exhibit "A" , incorporated herein by
reference and referred to herein as the "Revenue Agree-
ment" and "Note", respectively) ; and
(b) Indenture of Trust between the Issuer and Independence
Bank Waukesha N.A., Waukesha, Wisconsin, as Trustee
(annexed hereto as Exhibit "B", incorporated herein by
reference, and referred to herein as the "Indenture");
and
(c) Project Financing Agreement among the Issuer, the
bit "C", incorporated herein by reference, and referred
Participant and the Purchaser (annexed hereto as Exhi-
to as the "Agreement"); and
tion of a mortgage on and a security interest in the Pledged
Property and the pledge of the Revenue Agreement and its revenues
to the Trustee under the Indenture, as herein recited and provided,
in the judgment of this Council, will serve the intended accomplish-
ments and in all respects conform to the provisions and require-
ments of the Act; and
WHEREAS, the issuance of the Bond by the Issuer, the crea-
WHEREAS, the Participant has made representations to the
estimated cost of acquisition and construction of the Project,
Issuer (to be supported by appropriate documentation) that the
together with related costs, is an amount which will be at least
estimated to be at least 15 years; and
$300,000 and that the useful life of the Pledged Property is
WHEREAS, the Participant has represented and agreed that he
will enter into the Revenue Agreement with respect to the Project
thereto, and comply with all the terms and provisions of the Note
as described above, issue the Note, pay all expenses with respect
and Revenue Agreement so that full debt service will be provided
in order to meet payments of principal of, premium, if any, and
interest on the Bond and the Participant agrees that his repre-
sentations have been expressly relied upon by the Issuer in the
adoption of this Resolution;
CITY OF MUSKEGO, WISCONSIN, THAT:
NOW, THEREFORE, BE IT RESOLVED BY THE COMMON COUNCIL OF THE
"Bondholders", "Pledged Property", "Project Fund", "Trust Estate"
1. Definitions. The terms "Series 1981 Bond", "Bond Fund",
and "Trustee" shall have the same meanings as defined in the
Series 1981 Bond, unless the context otherwise requires
Indenture. The term "Bond" when used herein shall refer to the
2. Determination. This Board hereby finds and determines
that:
(a) the estimated cost of the Project as more particularly
defined in the Indenture including all costs in connec-
under the Act is at least $300,000;
tion therewith permitted to be financed with the Bond
(b) the useful life of the Pledged Property is not less
than fifteen (15) years;
(c) the loan payments to be made in each year as specified
in Section 3.9 of the Revenue Agreement are sufficient
to pay the principal of and interest on the Bond; and
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(d) no reserve fund need be established in connection with
the retirement of the Bond or maintenance of the Pledged
Property.
3. Issue of the Series 1981 Bond. The Issuer shall issue
its Bond in the amount of Three Hundred Thousand Dollars
($300,000) for the purpose of financing the Project and other
authorized costs. The Bond shall be sold to the Purchaser in
ment. The Bond shall be issued pursuant to the Act, shall be
accordance with the terms and conditions set forth in the Agree-
designated, in the form, and have the maturity and bear interest
of its issuance and sale. All details pertaining to the Bond as
as provided in the Indenture. The Bond shall be dated the date
provided in the Indenture are hereby adopted as and for the
details approved by this Issuer. The Bond shall not be a general
obligation or indebtedness of the Issuer within the meaning of
any state constitutional provision or statutory limitation and
shall not constitute nor give rise to a pecuniary liability of
the Issuer or its officers or a charge against its general credit
or taxing powers, but shall be payable solely from the payments
and other revenues that may be available therefor from the Revenue
Agreement and Note or in the event of default thereon as other-
wise provided herein or in the Indenture and permitted by law,
and in no event shall the Bond or the interest thereon or any
other costs or expenses in connection therewith or with the
Project ever be payable from any funds of the Issuer other than
under the Revenue Agreement and Note. The payments when paid by
the payments and other revenues to be received by the Issuer
the Participant, pursuant to the Revenue Agreement and Note,
shall be paid directly to the Trustee for the account of the
Issuer so long as the Bond shall be outstanding and unpaid. The
Bond shall be executed on behalf of the Issuer by its Mayor and
its Clerk or their authorized deputies in their absence and shall
have its corporate seal impressed or imprinted thereon. Facsimile
signatures may be used as permitted by law.
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chanaes or revisions therein as Quarles & Brady as Bond Counsel
4. Approval and Execution of Documents. Subject to such
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("Bond Counsel") or Counsel for the Issuer may-approve, the
tially their respective forms presented to this meeting and
Indenture, Note, Revenue Agreement, and Agreement, in substan-
or any of their authorized deputies if necessary, are authorized
attached hereto, are hereby approved. The Mayor and the Clerk,
on behalf of the Issuer to execute and deliver the Indenture,
Revenue Agreement, and Agreement, with such revisions, changes,
or deletions as may be approved by the signatories thereto, which
approval shall be conclusively proved by their execution of such
documents. The Mayor and Clerk and their authorized deputies and
other officials of the Issuer are hereby authorized to prepare or
to have prepared and to execute, file and deliver, as appropriate,
all such documents, financing statements, opinions, certificates,
but not limited to amendments of the Indenture and Revenue Agreement
affidavits, and closing or post-closing instruments (including
not requiring the consent of the Bondholders pursuant to Sections
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11.01 and 12.01 of the Indenture) as may be required by this
Counsel.
resolution or deemed necessary by said officials or by Bond
5. Appointment of Trustee; Funds; Investment Directions.
designated as Trustee under the Indenture. Independence Bank Waukesha N.A., Waukesha, Wisconsin, is hereby
lished with the Trustee the following trust funds:
There are hereby created by the Issuer and ordered estab-
(a) The Project Fund as described in Section IV-2 of the
and such other costs as are provided to be paid there-
Indenture to be used solely to pay costs of the Project
from in the Indenture. The Issuer hereby authorizes
and directs the Trustee (i) to withdraw sufficient
funds from said Project Fund to make the aforesaid
payments as the same become due and payable, and (ii)
to transfer from the Project Fund to the Bond Fund any
moneys which are not needed for the purposes for which
the Bond is issued in the manner and at the time pro-
vided in the Indenture.
(b) The Bond Fund as described in Section IV-1 of the
on the Bond and such other costs as are provided to be
Indenture to be used to pay the principal and interest
paid therefrom in the Indenture. The Issuer hereby
cient funds from the Bond Fund to pay the Bond, premium,
authorizes and directs the Trustee to withdraw suffi-
if any, and interest thereon as the same become due and
payable The Bondholders shall have a first lien on
be paid by the Participant for the payment of principal,
the payments in connection with the Project required to
premium, if any, and interest on the Bond under the
Revenue Agreement, Note and Indenture. Said payments
received under the Revenue Agreement and Note with
respect to the Project are hereby irrevocably pledged
for the payment of the Bond and interest thereon.
The Issuer authorizes and directs the Trustee to invest
Fund as set forth in Article 6 of the Indenture.
and reinvest moneys in the Project Fund and the Bond
The Bond and the interest thereon shall be additionally secured
6. Certain Indenture Provisions and Additional Security.
by a mortgage on and a security interest in the Pledged Property
as provided in the Revenue Agreement and Indenture, by an assign-
ment of a life insurance policy taken out on the life of the
Participant to the Trustee and by a mortgage on certain other
real estate.
* ment of the Lease by the Participant to the Trustee, by an assign-
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Agreement provides, inter alia, that:
7. Certain Provisions of the Revenue Agreement. The Revenue
(a) The maintenance and repair costs of the Pledged Prop-
erty, taxes in connection therewith, and other charges
be taken out, assumed and paid by the Participant. The
and insurance with respect to the Pledged Property will
Issuer has no obligation with respect thereto. The
proceeds of any recovery under the foregoing insurance
policies shall be used and disposed of in the manner
provided in the Revenue Agreement and the Indenture.
(b) The Participant shall make payments pursuant to the
Note and Revenue Agreement (directly to the Trustee for
deposit in the Bond Fund and for the account of the
Issuer) in the amounts sufficient for payment from the
Bond Fund when due of the principal of, premium, if
any, and interest on the Bond.
lations, obligations and agreements of the Issuer contained in
this resolution and in the Bond, the Revenue Agreement, the
stipulations, obligations and agreements of the Issuer to the
Indenture, and the Agreement shall be deemed to be the covenants,
full extent authorized or permitted by law, and such covenants,
stipulations, obligations and agreements shall be binding upon
the Issuer and its successors from time to time and upon any body
to which any powers or duties affecting such covenants, stipula-
tions, obligations and agreements shall be transferred by or in
accordance with law. Except as otherwise provided in this reso-
and liabilities imposed upon the Issuer or the officers thereof
lution, all rights, powers and privileges conferred and duties
by the provisions of this resolution, the Bond, the Revenue
Agreement, the Indenture or Agreement shall be exercised or
performed by the Issuer or by such officers, board or body as may
8. Covenants Binding Upon Issuer. All covenants, stipu-
be required-by law to exercise such powers and to perform such
duties.
No covenant, stipulation, obligation or agreement herein
contained or contained in the Bond, the Revenue Agreement, the
stipulation, obligation or agreement of any officer, agent or
Indenture or the Agreement shall be deemed to be a covenant,
capacity and neither the members of this Board nor any officer
employee of the Issuer or of this Board in his or her individual
executing the Bond shall be liable personally on the Bond or be
subject to any personal liability or accountability by reason of w the issuance thereof.
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9. Persons Responsible for Issuing the Bonds. The Mayor,
Clerk and their authorized deputies are hereby designated as the
officers responsible for issuing the Bonds within the meaning of
Section l.lO3-13(a)(2)(ii)(C) of the Income Tax Regulations. dP
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