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HomeMy WebLinkAbout1985-R-02RESOLUTION OF COMMON COUNCIL CITY OF JEFFERSONVILLE A PROPOSAL FOR A GENERAL RESOLUTION approving the finding of the Jeffersonville Economic Development Commission with respect to the issuance of revenue bonds in an amount not exceeding THREE HUNDRED TWENTY FIVE THOUSAND DOLLARS ($325,000) for financing of certain economic Development facilities to be undertaken by HUBER TIRE COMPANY, and authorizing and committing the City to proceed with such project, subject to final action by this Council with respect to the terms and conditions of such financing and approval of the project after a proper public hearing pursuant to Section 103(K) of the Internal Revenue Code. WHEREAS, the City of Jeffersonville, Indiana ("City"), is authorized by IC 36-7-1 ("Act") to issue revenue bonds for the purpose of financing the acquisition, installation, and construction of economic development facilities;' WHEREAS, the City has been advised that there is under consideration a proposal of HUBER TIRE COMPANY to build in Jeffersonvil~ Indiana, a 16,000 square foot Bandag Cold Process tire retread plant and warehouse and distribution tires, and related faciliites hereto; facility for automotive and truck ("Project") described in Exhibit A WHEREAS, HUBER TIRE COMPANY has proposed that the City issue its revenue bonds under the Act to finance the acquisition, installation and construction of the Project under a financing agreement whereby the proceeds of such bonds would be utilized to acquire, install and contruct the Project and HUBER TIRE COMPANY would make payments sufficient to pay the principal of, premium, if any, and interest on such bonds; HUBER TIRE COMPANY has further advised the City that a determination by the City to accept such a proposal for financing the Project will constitute a substantial inducement to HUBER TIRE COMPANY to proceed with the Project; and HUBER TIRE COMPANY has agreed to pay the costs of the City whether or not such revenue bonds are issued and the financing agreement consummated; WHEREAS, the Jeffersonville Economic Development Commission has rendered a report of the Jeffersonville Economic Development Commission concerning the proposed financing of economic develop- ment facilities for ~UBER TIRE COMPANY and the Jeffersonvi~le City Plan Commission has been given an opportunity to comment thereon; WHEREAS, the Jeffersonville Economic Development Commission has adopted a resolution giving its approval to such financing of the Project, on the basis that the Project will cause additional employment opportunities in Jeffersonville, Indiana, and will be of public benefit to the health, prosperity, economic stability and general welfare of the City and its inhabitants; and WHEREAS, subject to the required approvals under the Act, it appears that the financing of the Project will be Of -2- public benefit to the health, prosperity, economic stability and general welfare of the City and its inhabitants: NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Jeffersonville, Indiana: Section 1. The Common Council finds and determines that the construction of 16,000 square foot Bandag Cold Process tire retread plant and warehouse and distribution facility for automotive and truck tires, and related faciliites in Jeffersonville, Indiana, by the acquisition, installation, construction and equipping of the Project is desirable to better the health, prosperity, economic stability and general welfare of the City and its inhabitants, and that it is in th~ public interest that the City take such action as it lawfully may to encourage ~UBER TIRE COMPANY to construct the 16,000 square foot Bandag Cold -Process tire retread plant and Warehouse and distr'ibutlon facility for automotive and truck tires, and related facililtes. Section 2. The Common Council further finds and deter- mines that the issuance and sale of revenue bonds of the City under the Act, and the use of the net proceeds derived therefrom to finance the acquisition, installation and construction of the Project, will enable HUBER TIRE COMPANY to construct the Project and thereby serve the public purposes referred to above in accordance with the Act. Section 3. In order to induce HUBER TIRE COMPANY to proceed with the acquisition, installation and construction of the Project, the Common Council hereby undertakes that: -3- (i) It will authorize and issue one or more series of revenue bonds of the City pursuant to the Act, in an aggregate principal amount not exceeding THREE HUNDRED TWENTY FIVE THOUSAND DOLLARS ($325,000), to finance the costs of the acquisition, installation, construction and equipping of the Project, including reimbursement or repayment to HUBER TIRE COMPANY of any monies exp~nded by HUBER TIRE COMPANY for planning, engineering, interest during construction, underwriting and attorney and bond counsel fees, and will enter into a financing agreement to use the net proceeds of such bonds to acquire, install and construct the Project and lease or sell the Project to HUBER TIRE COMPANY for specific rent or purchase price payments sufficient to pay the principal of, premium, if any, and interest on such bonds, or to lend such net proceeds to HUBER TIRE COMPANY to enable him to acquire, install and construct the Project and repay the loan in install- ments sufficient to pay the principal of, premium, if any, and interest on such bonds; (ii) It will adopt such ordinances and resolutions and authorize the execution and delivery of such instru- ments and the taking of such actions as may be necessary or advisable for the authorization, issuance and sale of such bonds; and -4- (iii) It will take or cause to be taken such other actions as may be required to implement the aforesaid or as it may deem appropriate in pursuance thereof, provided that all of the foregoing shall be authorized by law and mutually acceptable to the City and HUBER TIRE COMPANY be subject to the public hearing and public approval requirements of Section 103(K) of the Internal Revenue Code. Section 4. It is hereby recognized that the issuance and sale of revenue bonds by the City under the Act for the purposes set forth herein shall be subject to the City's obtaining such approvals as may be required under the Act. Section 5. To the extent permitted by the Act, such changes may be made in the Project as are deemed necessary or desirable, or as may be required in light of then existing regula- tions or technology, or both, provided that after such changes the Project will continue to constitute economic development facilities within the meaning of the Act and any other applicable laws or regulations.~ Section 6. This Resolution shall be in full force and effect immediately upon compliance with the procedures required by law. ~. ~C~. ~.~S~//r~j r~ P r e s ~d ing 0 ficer Clerk-Treasurer -5-