Loading...
CCR1978053. ~. .. .- - . - dmr031378 COMMON COUNCIL OF THE CITY OF MUSKEGO. WISCONSIN Resolution No. #53-78 INITIAL RESOLUTION RELATING TO INDUSTRIAL DEVELOPMENT REVENUE BOND FINANCING ON BEHALF OF PRECISION SCREW THREAD CORP. ." - " pality") is a municipal corporation organized and existing under WHEREAS, the City of Muskego, Wisconsin (the "Munici- 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: finance all or any part of the costs of the construction, (a) issue industrial development revenue bonds to equipping, reequipping, acquisition, purchase, installation, reconstruction, rebuilding, rehabilitation, improving, or remodeling of a project which qualifies under the Act and supplementing, maintaining, repairing, enlarging, extending the improvement of the site therefor: and participant pursuant to which the eligible participant (b) enter into a revenue agreement with an eligible 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 and interest on said industrial development revenue bonds; corporation, and Glenn R. Simpson, Jr., a principal shareholder WHEREAS, Precision Screw Thread Corp., a Wisconsin of said corporation (hereinafter said corporation and said individual being individually and collectively referred to as "Eligible Participant") have been considering undertaking a Municipality that it would be an encouragement and induce- capital project in the Municipality, and have represented to the ment for it to proceed if the project could be financed with industrial development revenue bonds; and the manufacture of screw thread products and related products WHEREAS, the project would be for the purpose of and would consist of approximately 5.8 acres of land, a new industrial building and equipment (hereinafter called the "Pro- ject") ; and WHEREAS, the Eligible Participant has estimated that the cost of the Project would be approximately $550,000 but, with allowance for modifications, design changes, and inflation could be as high as $600,000; and pality to promote, attract, stimulate, rehabilitate and revita- WHEREAS, it is in the public interest of the Munici- ment of the environment and the economy of the Municipality and lize commerce, industry and manufacturing, to promote the better- 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 this body that the Municipality would derive public benefits WHEREAS, it is the finding and determination of from the Project and its operation by the Eligible Participant, including by way of illustration but not limitation the fol- lowing: 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 with and the preservation and enhancement of the Municipality's tax resultant beneficial effects on the economy in the Municipality: base; and WHEREAS, it is the finding and determination of this body that the public interest will be served if the Munici- pality were to encourage and induce the Eligible Participant to undertake the Project in the Municipality; NOW, THEREFORE, BE IT RESOLVED: graph 2, the Municipality shall pursue and consummate a financing 1. Subject to the conditions specified in para- having the following elements: (a) The Municipality shall issue industrial develop- ment revenue bonds pursuant to the Act in such amount not in -2- excess of $600,000 as the Eligible Participant shall re- quest. provided, however, that the actual amount shall not be greater than the then estimated aggregate cost of pro- viding the Project and paying the costs incident to the financing (said bonds being hereinafter called the "Bonds"). derived from the Eligible Participant or otherwise provided (b) The Bonds shall be payable solely out of revenues ment purchase or similar agreement (hereinafter called the for pursuant to the terms of a lease, sale, loan, install- "Revenue Agreement") to be entered into between the Munici- pality and the Eligible Participant. (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. (d) The aonds shall have such maturities, interest rates and redemption features as the Eligible Participant shall propose, provided that such terms shall be substan- tially similar to the terms of similar bonds by secured the obligations of companies having substantially equivalent credit to that of the Eligible Participant. shall be on the following conditions: 2. The issuance of the Bonds by the Municipality the Municipality within the meaning of any State constitu- (a) The Bonds shall not constitute an indebtedness of 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 Participant shall be subject to property taxation in the same amount and to the same extent as though the Eligible participant were the owner of the Project. (d) The Eligible Participant shall be responsible for finding a purchaser or purchasers for all Of the Bonds. issuance and sale of the Bonds shall be paid either from the (e) The out-of-pocket costs in connection with the proceeds of the Bonds or by the Eligible Participant. -3- 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. the delivery of the Bonds shall be accompanied with the (9) The Bonds shall be issued pursuant to the Act, and unqualified approving legal opinion of Messrs. Foley 6 Lardner, bond counsel, Milwaukee, Wisconsin, or such other acceptable to the Municipality and the Eligible Participant. nationally recognized firm of bond attorneys as shall be 3. The Clerk shall cause notice of adoption of this Resolution to be published once in The Muskego Sun, (the Munici- pursuant to Chapter 985 of the Wisconsin Statutes) in substan- pality's official newspaper, for the publication of notices copy of such public notice together with a copy of this Resolu- tially the form attached to this Resolution, and shall cause a tion to be filed with the Secretary of Business Development of the State of Wisconsin within 10 days following publication of such not ice. 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 March 14, 1979, 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 242-77 adopted October 25, 1977, and Resolution 224-77 adopted October 11, 1977, which are hereby repealed. -4- [Form of Notice to be Published by the Clerk] NOTICE TO ELECTORS OF THE CITY OF MUSKEGO TAKE NOTICE that the Common Council of the City of March, 1978, adopted an initial resolution, pursuant to Section Muskego, Wisconsin, at a lawful meeting held on the 14th day of 66.521 of the Wisconsin Statutes, authorizing the issuance of not to exceed $600,000 principal amount of industrial development revenue bonds on behalf of Precision Screw Thread Corp., a Wisconsin corporation and Glenn R. Simpson, Jr., a principal shareholder of said corporation, or any combination of the foregoing (hereinafter called the "Eligible Participant"). The purpose of the bond issue is to finance the construction, acquisi- tion and installation costs of a project 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 BONDS SHALL NOT CONSTITUTE AN INDEBTEDNESS OF THE CITY OF MUSKEGO; NOR SHALL THE BONDS GIVE RISE TO ANY PECU- NIARY LIABILITY OF THE CITY; NOR SHALL THE BONDS BE A CHARGE AGAINST THE GENERAL CREDIT OR TAXING POWER OF THE CITY. MTHER, THE BONDS SHALL BE PAYABLE SOLELY FROM THE REVENUES AND OTHER AMOUNTS DERIVED OR RESULTING FROM A REVENUE AGREEMENT TO BE ENTERED INTO WITH THE ELIGIBLE PARTICIPANT. and may be inspected by any elector of the City at the City Hall, The aforesaid initial resolution is a public document during business hours. TAKE FURTHER NOTICE THAT THE ELECTORS OF THE CITY OF MUSKEGO MAY PETITION FOR A REFERENDUM ON THE QUESTION OF THE BOND ISSUE. Section 66.521(10)(d) of the Wisconsin Statutes, provides: "(d) The governing body may issue bonds under this section without submitting the proposition to the electors of the municipality for approval unless within 30 days from resolution for such bonds, a petition, signed by not less the date of publication of notice of adoption of the initial than 5% of the registered electors of the municipality, or, if there is no registration of electors in the municipality, by 10% of the number of electors of the municipality voting determined under s. 115.01(13), is filed with the clerk for the office of governor at the last general election as of the municipality requesting a referendum upon the question of the issuance of the bonds. If such a petition majority of the electors of the municipality voting thereon is filed, the bonds shall not be issued until approved by a at a general or special election." APPROVAL OF RESOLUTION BY MAYOR "_ The attached Resolution No. 53-78 , entitled - " - - INITIAL RESOLUTION RELATING TO INDUSTRIAL DEVELOPMENT REVENUE BOND FINANCING ON BEHALF OF PRECISION SCREW THREAD CORP. which was adopted by the Common Council of the City of Muskego, Wisconsin, on March 14, 1978, is hereby approved. Dated March 14, 1978. CERTIFICATIONS BY CLERK 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 records; that said transcript hereto attached is a true, correct the transcript hereto attached with the aforesaid corporate and complete copy of all the cor orate records in relation to the adoption of Resolution No. 53-78 entitled: INITIAL RESOLUTION RELATING TO INDUSTRIAL DEVELOPMENT REVENUE BOND FINANCING PRECISION SCREW THREAD CORP. ON BEHALF OF I do hereby further depose and certify as follows: 1. Said resolution was considered for adoption by the Common Council at a meeting held in the City Hall at P.M. on March 14, 1978. Said meeting was a regular meeting of the Common Council and was held in open session in compliance with Subchapter IV of Chapter 19 of the Wisconsin Statutes. 2. Said resolution was on the agenda for said meeting and public notice thereof was given not less than 24 hours prior 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 meetings and by notice to the official newspaper of the City. those news media who have filed a written request for notice of who chaired the meeting. Upon roll I noted and recorded that the 3. Said meeting was called to order by Mayor Gottfried followinq Aldermen were Dresent: ~ . Ford Pienkos ". ~-2.""" Dke ."L "" Schamberg, Tomczyk, Wallner "_ and VanLanen and that the following Aldermen were absent: and business were taken up during the course of the meeting with- I noted and recorded that a quorum was present. Various matters out intervention of any closed session. One of the-matters taken up was said resolution which was introduced by and its adoption was moved by Ald. Schaumberg ~ ~- , and seconded by Ald. Ford ~ ~~ .. Following discussion and after all Aldermen who desired to do so had expressed their views upon roll being called and the continued presence of a for or against said resolution, the question was called and quorum being noted, the recorded vote was as follows: Aye: Ford Til" - ___~_ VanLanen Pienkos ScFiiin6erg "_ " "" __ "" "" Tomcz& Wallner ~ - Nay: "" "~ "" Abstain: ~" Whereupon the Mayor declared said resolution adopted, and I so recorded it . March 14, 1978, and I have so recorded. 4. Said resolution was approved by the Mayor on 5. I have caused the "Notice to Electors" to be published in the form and place specified in said resolution; and 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 hereto on this day of , 1978. [Municipal Seal] Clerk STATE OF WISCONSIN ) COUNTY OF WAUKESHA ) 1 ss Subscribed and sworn to before me this day, the date last above written. -. Notary Piblic MY commission expires: ~ [Notarial Seal]