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HomeMy WebLinkAbout2007-R-03 h BEFORE THE COMMON COUNCIL FOR THE CITY OF JEFFERSONVILLE, INDIANA Resolution No. 2007-R- 3 RESOLUTION OF INTENT TO ISSUE ECONOMIC DEVELOPMENT REVENUE BONDS WHEREAS, the City of Jeffersonville, Indiana (the "City") is authorized and empowered by the Economic Development and Pollution Control Act, as amended, I.C. 36-7-11.9 and 36-7- 12 (the "Act"), to issue revenue bonds for the financing of "economic development facilities", as defined in the Act, to finance the acquisition, construction, installation and equipping of said facilities to be either directly owned by or leased or sold to a company, and leased or sub-leased to users of the facilities; and WHEREAS, MKM Machine Tool Co., Inc. (the "Borrower"), has advised the City that it proposes that the City issue economic development revenue obligations and loan the proceeds thereof to the Borrower for the acquisition and installation of certain economic development facilities, said economic development facilities to be the acquisition and installation of a 6- spindle CNC Machine and related equipment thereto for use at the Borrower's facility located at 100 Technology Way, Jeffersonville, Indiana (the "Project"); and WHEREAS, the diversification of industry and increase and preservation in job opportunities to be achieved by the acquisition and installation of the Project will be of public benefit to the health, safety and general welfare of the City and its citizens; and WHEREAS, it would appear that the financing of the Project would be of public benefit to the health, safety and general welfare of the City and its citizens and will contribute significantly to the creation and preservation of permanent new job opportunities; now therefore: BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF JEFFERSONVILLE, INDIANA: 1. CONFIRMA nON OF PURPOSES OF ACT. The Common Council finds, determines, ratifies and confirms that the promotion of diversification of economic development and job opportunities in or near Jeffersonville, Indiana, is desirable to preserve the health, safety and general welfare of the citizens of the City of Jeffersonville, and that it is in the public interest that the economic development commission of Jeffersonville, Indiana (the "Economic D~velopment Commission") and that said City take such action as it lawfully may to encourage diversification of industry and promotion of job opportunities in and near said City. 2. FINDINGS. The Common Council further finds, determines, ratifies and confirms that the issuance and sale of revenue bonds of the City in an amount not to exceed $2,000,000 under the Act to be privately or publicly placed, in one or more series of revenue bonds, for the acquisition and installation of the Project and the loaning of the proceeds of such financing to the Borrower for such purposes will serve the public purposes referred to above, in accordance with the Act. 3. INDUCEMENT. In order to induce the Borrower to proceed with the acquisition and installation of the Project, the Common Council hereby finds, determines, ratifies and confirms that (i) it will take or cause to be taken such actions pursuant to the Act as may be required to implement the aforesaid financing, or as it may deem appropriate in pursuance thereof; provided that all of the foregoing shall be mutually acceptable to the City and the Borrower; (ii) it will adopt such ordinances and authorize the execution and delivery of such instruments and the taking of such action as may be necessary and advisable for the authorization, issuance and sale of said economic development bonds. The City intends that this Ordinance shall constitute "official action" with respect to the issuance of bonds to finance the Project, within the meaning of Treasury Regulation Section 1.1 03-8(a)(5). 4. COSTS OF PROJECT. All costs of the Project incurred after passage of this ordinance, including reimbursement or repayment to the Borrower of moneys expended by the Borrower for application fees, planning, engineering, interest paid during construction, underwriting expenses, attorney and bond counsel fees, acquisition, construction, installation and equipping of the Project will be permitted to be included as part of the bond issuance to finance said Project, and the City will thereafter loan the proceeds of such financing to the Borrower for the same purposes. 5. LIMITED OBLIGATIONS. The bonds contemplated hereby shall not be a general obligation of the City but a limited obligation payable solely from the amounts payable by the Borrower. Neither the City, the State of Indiana nor any other political subdivision of the State of Indiana shall be obligated to pay the principal of or interest on such bonds or other costs incident thereto except from the revenues specifically pledged therefor. Neither the faith and credit nor the taxing power of the City, the State of Indiana or any political subdivision of the State ofIndiana is pledged to the payment of the principal of, or premium, if any, or interest on the bonds or other costs incident thereto. Notwithstanding anything herein to the contrary, neither the City nor any official of the City shall be liable for any act or omission of the City or such official, to the Borrower, or any owner of the bonds for failure to comply with any covenant or certifications herein made or made in any of the documents relating to the issuance of the bonds. 6. PROCEEDINGS WITH ECONOMIC DEVELOPMENT COMMISSION. The Common Council further finds that the Economic Development Commission of Jeffersonville, Indiana should proceed with its negotiations with the Borrower to prepare and submit the financing agreements and reports required by said Act, to hold a public hearing as prescribed by said Act and to transmit its resolutions concerning said proposed financing to this Common Council. 7. EXPIRA nON OF ORDINANCE. This resolution shall expire one hundred eighty (180) days after its adoption unless the Borrower either requests the County Council to "" adopt a final ordinance approving closing documents or requests an extension from the County Council, which extension shall be granted upon good cause being shown. 8. SEVERABILITY CLAUSE. If any section, paragraph, clause or provision 6fthis Ordinance shall be ruled by any court of competent jurisdiction to be invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the remaining provisions hereof. 9. CAPTIONS OF CLAUSES. The captions of this Ordinance are for convenience only and are not to be construed as part of this Ordinance nor as defining or limiting in any way the scope or intent of the provisions hereof. 10. PROVISIONS IN CONFLICT REPEALED. All ordinances, resolutions and orders, or parts thereof, in conflict with the provisions of this Ordinance, are, to the extent of such conflict, hereby repealed. 11. EFFECTIVE DATE OF ORDINANCE. This Ordinance shall take effect from and after its enactment, adoption, approval and application of Notice of Enactment and Summary hereof (including the title and certified summary of this Ordinance), which Publication is hereby approved and ordered to be made by the City Clerk, pursuant to Indiana law. PASSED AND ENACTED by the Common Council of the City of Jeffersonville, Indiana, this ~. day of ~Ovv..../ , 2007. CITY ~FFERS BLL-- Keith Fetz, President Common Council City of Jeffersonville, Indiana IANA ~ LA- . Peggy ~: City Clerk ACCEPTED AND APPROVED by me this Robe aiz, J ., Mayor City of Jeffersonville -~ ,---r-