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HomeMy WebLinkAbout2007-R-31 COMMON COUNCIL RESOLUTION NO 2007-R-~ A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF JEFFERSONVILLE, INDIANA PROVIDING PRELIMINARY APPROVAL OF THE ISSUANCE OF BONDS FOR THE PURPOSE OF PROVIDING FINANCING OF CERTAIN ECONOMIC DEVELOPMENT FACILITIES TO BE OWNED AND OPERA TED BY EAGLE STEEL PRODUCTS, INC. RESOLVED, by the Common Council of the City of Jeffersonville, Indiana (the "City") as follows: WHEREAS, the City is authorized by I.c. 36-7-11.9 and 12, et seq., as supplemented and amended (the "Act") to issue revenue bonds for the financing of economic development facilities, the funds from said financing to be used for the acquisition, construction, installation and equipping of said facilities, and said facilities to be either leased to another person or directly owned by another person; and WHEREAS, Eagle Steel Products, Inc. (the "Applicant"), has advised the Jeffersonville Economic Development Commission (the "Commission") and the City proposes that the City issue and sell its economic development revenue bonds for the purpose of providing financing to the Applicant for certain economic development facilities consisting of the acquisition, construction, installation and equipping of an approximately 90,000 square foot addition to an existing steel slitting manufacturing facility, including a crane and craneway with rails, of the Applicant located at 5150 Loop Road, Jeffersonville, Indiana (the "Project"), and the Commission has adopted a Resolution, containing the requisite findings of the Commission, recommending that the City adopt a resolution giving preliminary approval to a proposed issuance of economic development revenue bonds for the financing of the Project; and WHEREAS, the Project will be owned and operated by the Applicant for use as an economic development facility within the meaning of the Act; and WHEREAS, it appears that the creation and retention of opportunities for gainful employment and the creation of business opportunities to be achieved by the Project will serve a public purpose and will be of benefit to the health and general welfare of the City, and that the proposed financing complies with the provisions of the Act; and WHEREAS, it appears that the Project will not have an adverse competitive effect on any similar facility already constructed or operating in the City; FURTHER RESOLVED, by the Common Council of the City of Jeffersonville, Indiana, as follows: SECTION 1. The Common Council finds, determines, ratifies and confirms that the creation and retention of opportunities for gainful employment and the creation of business opportunities to be achieved by the Project in the City of Jeffersonville, Indiana will be of benefit to the health and general welfare of the Citizens of the City; and that it is in the public interest CV86:40048:644767: I :LOUISVILLE that the Common Council take such action as it lawfully may to encourage diversification of industry and promotion of job opportunities in and near said City. SECTION 2. The Common Council further finds, determines, ratifies and confirms that the issuance and sale of economic development revenue bonds of the City under the Act in an amount not to exceed $5,200,000 for the Project and the loan of the proceeds of the revenue bonds to the Applicant will serve the public purposes referred to above, in accordance with the Act. SECTION 3. The proposed economic development facilities will not have an adverse competitive effect on any similar facilities already under construction or in operation in the City. SECTION 4. In order to induce the Applicant to proceed with 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 reasonably required to implement the aforesaid financing, or as it may deem reasonably appropriate in pursuance thereof; provided that all of the foregoing shall be mutually acceptable to the City and the Applicant; and (ii) It will adopt such ordinances and resolutions and authorize the execution and delivery of such instruments and the taking of such action as may be reasonably necessary and advisable for the authorization, issuance and sale of said economic development revenue bonds. SECTION 5. All costs of the Project incurred for planning, engineering, interest paid during construction, underwriting expenses, attorney and bond counsel fees, and acquisition, construction, installation and equipping of the Project will be permitted to be included as part of the Project costs to be financed out of the loan of the proceeds from the sale of the bonds to the extent permitted by the Act and applicable regulations promulgated under the Internal Revenue Code of 1986, as amended (the "Code"), including those costs and expenses related to the Project and permitted under the Code to be so reimbursed, which were incurred and paid prior to the adoption of this Resolution. SECTION 6. All action taken and approvals given by the City with regard to the Applicant are based upon the evidence submitted and representations made by the Applicant, its agents and counsel. No independent examination, appraisal or inspection of the Project was made, requested, or is contemplated by the City. SECTION 7. The City does not, by this or any other approval or finding, guarantee, warrant or even suggest that the bonds (if and when issued), coupons or series thereof will be a reasonable investment for any person, firm or corporation. SECTION 8. The City shall not be obligated, directly or indirectly, to see to the application or use of the proceeds from the sale of the bonds or to see that the contemplated improvements, if any, are constructed. The City is in no way responsible to the holders of any bonds for any payment obligation created by the bonds. CV86:40048:644767: I :LOUISVILLE SECTION 9. The City does not warrant, guarantee or even suggest that interest to be paid to or income to be received by the holders of any bond, coupon, or series thereof is exempt from taxation by any local, state or federal government. SECTION 10. The bonds, if and when issued, shall be special, limited obligations of the City, payable solely from the funds provided therefor as described in the documents authorizing the bonds, and shall not constitute an indebtedness of the Commission or the City or a loan of the credit thereof. SECTION 11. This resolution does not constitute a binding obligation of the Commission or the City to issue the bonds, but instead, is a commitment by the City to proceed with negotiations for the financing described herein with the Applicant and is subject to the adoption of a bond ordinance by the City in accordance with the provisions of the Act. SECTION 12. This resolution shall be in full force and effect upon adoption and compliance with LC. 36-4-6 et seq. The foregoing was passed and adopted by the Common Council this 5th day of November, 2007. ell Presented by me to the Mayor of the City of Jeffersonville, Indiana this '7 day of November, 2007 at .m. By: Name: Its: Q , i jAO:~ LU.-L~L'!N../ Pegg'yU ilder , Clerk-Treasurer City of Jeffersonville, Indiana Jeffersonville, Indiana ATTEST: /, (j('f(1 {cU/tU Peg . ~ilder, Clerk-Treasurer City of Jeffersonville, Indiana CV86:40048:644767: I :LOUISVILLE