CCR1974151RESOLUTION #151-74
RESOLUTION RELATING TO THE FINANCING OF AN
INDUSTRIAL PROJECT FOR INTERSTATE TOOL & ENGINEERING CO..
@ construct a new plant in the City of Muskego (the "Municipality")
WHEREAS, Interstate Tool & Engineering Co. ("Company") intends to
and would thereby contribute to the well being of the Municipality
in tenns of the gainful employment of its citizens and preservation
and enhancement of its tax base; and
WHEREAS, in connection with the construction and equipping of the
new plant, Company has represented to the Municipality that it would
be an encouragement and an inducement for Company to expand its
operations in the Municipality if this project could be financed with
industrial development revenue bonds; and
WHEREAS, the project is described as follows: land, buildings and
equipment all of which together comprise a new manufacturing facility
(herein collectively called the "project") ; and
WHEREAS, the cost of the Project is presently estimated to be not
greater than $300,000.00; and
WHEREAS, it is in the best interests of the Municipality to promote,
attract, stimulate, rehabilitate and revitalize commerce, industry
and manufacturing, to promote the betterment of th environment of
the Municipality and to stimulate a large flow of private investment
funds into the Municipality; and
WHEREAS, it is the finding and determination of this Council that
it is desirable for the Municipality to encourage Company to condust
operations in the Municipality so that the Municipality may derive
substantial municipal benefits, including retention of and more steady
employment for its citizens, maintenance or increase iniits tax base
resulting in greater support for minicipal services, stimulation of
existing and new businesses, stimulation of private investment funds
from financial institutions; and
WHEREAS, the Municipality, as a municipal corporation organized and
existing under and pursuant to the laws of the State of Wisconsin, is
authorized by Section 66.521 of the Wisconsin Statutes to:
(1) Construct, equip, acquire by gift or purchase
reconstruct, improve, maintain or repair industrial
projects, and enlarge or remodel industrial projects;
(2) Issue industrial development revenue bonds to
finance the costs of the above; and
(3) Enter into lease or lease purchase agreements
with any person for the industrial project.
NOW, THEREFORE, BE IT RESOLVED, by the Common Coucnil of the Munic-
ipality as follows:
Resolution #151-74 - Cont'd.
Page 2.
1. Subject to the conditions enumerated hereafter, this
Council agrees that the Municipality shall work toward the con-
summation of a Plan of Financing pursuant to which the Municipality
shall: (a) purchase and/or cause to be constructed and installed
the Project at a price not exceeding $300,000.00; (b) issue industrial
development revenue bonds in an aggregate amount equal to the cost
of the Project and not to exceed $300,000.00 (the "Industrial Bonds")
in order to finance said project, which bonds shall be payable solely
out of the revenues derived from the leasing or sale of the Project;
price sufficient to pay when due the principal of an interest on
the Industrial Bonds so issued; (d) provide for a rate or rates of
interest on said Industrial Bonds of not less than 3% nor more than
8%, the actual effective rate to be approximately that payable on
similar tax exempt bonds secured by an obligation of companies of
equivalent credit to Company; (e) provide for a sale price for said
Industrial Bonds of not less than the par value thereof; (f) provide
for said Industrial Bonds with annual maturities comnencing not
later than 15 years after the date thereof; and (g) provide for a
final maturity of said Industrial Bonds not less than 5 nor more
than 25 years after the date thereof.
@
@ (c) lease or sell the Project to Company at a rental or installment
2. The aforesaid Plan of Financing contemplates and is
conditioned upon the following:
(a) That the Industrial Bonds shall never constitute and
indebtedness of the Municipality within the meaning of any
state constitutional provision or statutory limitation;
(b) That the Industrial Bonds shall not constitute
or a charge against its general credit or taxing powers;
nor give rise to a pecuniary liability of the Municipality
(c) The Company shall be subject to property taxation
in the same amount and to the same extent as though Company
were the owner of the Project;
(d) That Company shall find a purchaser for all of the
Industrial Bonds;
(e) That the out-of-pocket costs in connection with
the issuance and sale of the Industrial Bonds shall be paid
either from the proceeds of said bonds or by Company.
3. The appropriate officials of the Municipality are
hereby authorized to negotiate the terms of the Plan of
Financing and to execute an agreement with Company and the
prospective purchaser(s) of the bonds setting forth said
terms.
4. The Plan of Financing shall not be finally implemented
unless and until: (a) the details and mechanics of same are
(b) the electors of the Municipality shall have been given the
opportunity to petition for a referendum on the matter of the
aforesaid bond issue as required by law; and (c) either no such
a authorized and approved by a further resolution of this Council;
Resolution 11151-74 - Cont'd.
Page 3.
petition shall be timely filed OK such petition shall have been
filed and said referendum shall have approved the bond issue.
The Plan of Financing, however, shall be implemented prior to
the completion of the Project, and not later than December 1,
1975.
DATED THIS 13 DAY OF Dl.
8
, 1974.
FINANCE COMMITTEE
Jerome J. Gottfried
Edwin P. Dumke
ATTEST:
u City Clerk