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HomeMy WebLinkAbout1985-R-05SUPPLEMENTAL RESOLUTION OF COMMON COUNCIL CITY OF JEFFERSONVILLE A PROPOSAL FOR A GENERAL RESOLUTION approving the findings of the Jeffersonville Economic Development Commission with respect to the issuance of revenue bonds in an amount not exceeding Six Million Five Hundred Thousand Dollars ($6,500,000) for financing of certain economic development facilities to be undertaken by Merchants Grain Elevator Partners - Series II, a Kentucky limited partner- ship, authorizing and committing the City of Jeffersonville, Indiana to proceed with such project, subject to final action by this Council with respect to the terms and conditions of such financing, and supplementing a previous resolution adopted by this Council regarding the foregoing° GENERAL RESOLUTION NO.-~/-R ~, February 4, 1985 WHEREAS, the City of Jeffersonville, Indiana ("City") is authorized by IC 36-7-12 ("Act") to issue revenue bonds for the purpose of financing the acquisition, installation, and construction of economic development facilities; WHEREAS, on May 7, 1984, this Council adopted that certain Resolution of Common council, city of Jefferson- ville (General Resolution No. ~ -R /~ ) [the "Initial Resolution"] approving a proposal of Merchants Grain Elevator Partners Series II, a Kentucky limited partner- ship ("Company"), to build in the City a facility, including certain buildings, improvements, equipment and related facilities, to be used for the purposes of loading and unloading grain and grain-related products, fertilizer and other bulk and/or bagged commodities and for the storage thereof and other activities related or incidental to the foregoing, as more particularly described on Exhibit A to the Initial Resolution (the "Initial Project"), authorized and committed the City to finance the Initial Project with the proceeds of economic development bonds to be issued by the City in an amount not to exceed Four Million Dollars ($4,000,000), and took certain other actions in connection with the foregoing as required or contemplated by the Act, all as more fully set forth in the Initial Resolution; WHEREAS, since the adoption of the Initial Resolution the Company has determined that the Initial Project should be modified to reduce the capacity of certain storage bins comprising a portion of the facilities to be financed with the proceeds of such economic development bonds and, there- fore, that such facilities are more accurately described as set forth on Exhibit A hereto (the "Project"); WHEREAS, since the adoption of the Initial Resolution the Company has determined that economic development bonds -2- in excess of Four Million Dollars ($4,000,000) will be necessary in order to finance the Project; WHEREAS, in view of the foregoing the Company has requested this Council to adopt this Supplemental Resolution of Common Council, City of Jeffersonville (the "Supplemental Resolution"); WHEREAS, the Company has proposed that the City issue its revenue bonds under the Act in an amount not to exceed Six Million Five Hundred Thousand Dollars ($6,500,000) to finance the acquisition, installation and construction of the Project under a financing agreement whereby the proceeds of such bonds would construct the Project pay the principal of, be utilized to acquire, install and and would make payments sufficient to premium, if any, and interest on such bonds; has further advised the City that a determination by the City to accept such a proposal for financing the Proj- ect will constitute a substantial inducement to the Company to continue to proceed with the Project; and the Company has agreed to pay the costs of the City whether or not such revenue bonds are issued and the financing agreement is consummated; WHEREAS, the Jeffersonville Economic Development Commission has rendered a certain Supplemental Report of the Jeffersonville Economic Development Commission concern- ing the proposed financing of the Project for the Company; -3- WHEREAS, the Jeffersonville Economic Development Commission has adopted that certain Supplemental Resolution of the Jeffersonville Economic Development Commission giving its approval to such financing of the Project, on the basis that the Project will cause additional employment opportunities in the City, will be of public benefit to the health, prosperity, economic stability and general welfare of the City and its inhabitants and complies with the purposes and provisions of the Act; and WHEREAS, subject to the required approvals under the Act, it appears that the financing of the Project will be of public benefit to the health, prosperity, economic stability and general welfare of the City and its inhabi- tants: NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Jeffersonville, Indiana: Section 1. The Council finds and determines that the financing of the acquisition, installation, construction and equipping by the Company of the Project, which will be locate~ in the City, is desirable to better and will be of benefit to the health, prosperity, economic stability and general welfare of the City and its inhabitants, and complies with the purposes and provisions of the Act, and that it is in the public interest that the City take such -4- action as it lawfully may to encourage the Company to construct the Project. Section 2. The Council further finds and determines 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, con- struction and equipping of the Project, will enable the 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 the Company to continue to proceed With the acquisition, installation, construction, and equipping of the Project, the Council hereby undertakes that: (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 Six Million Five Hundred Thousand Dollars ($6,500,000), to finance the costs of the acquisition, installation, construction and equipping of the Project, including reimbursement or repayment to the Company of any moneys expended by the Company for planning, engineering, interest during construction, underwriting and attorney and bond counsel fees, and will enter into a financing -5- agreement to use the net proceeds of such bonds to acquire, install, construct and equip the Project and lease or sell the Project to the 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 the Company to enable it to acquire, install, construct and equip the Project and repay the loan in installments 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 instruments and the taking of such actions as may be necessary or advisable for the authorization, issuance and sale of such bonds; and (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 mutually acceptable to the City and the by law and Company. 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. -6- 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 exist- ing regulations or technology, or both, provided that after such changes the Project will continue to constitute econom- ic development facilities within the meaning of the Act and any other applicable laws or regulations. Section 6. This Supplemental Resolution shall be in full force and effect immediately upon compliance with the procedures required by law. The intent of this Supplemen- tal Resolution is to modify the Initial Resolution and, except as modified hereby, the Initial Resolution shall remain in full force and effect. ATTEST:ci~er_~T~r~ ~ er -Treasurer Presented by me to the Mayor of the City of Jefferson- ville, Indiana, on this 4th day of February, 1985. -7- Approved 1985. and signed by me on this 4th day of February, City of Jeffersonville, Indiana -8- Exhibit A DESCRIPTION OF THE PROJECT The project will consist of a facility to be used for the purposes of loading and unloading grain and grain-related products, fertilizer and other bulk and/or bagged commodities and for the storage thereof and other activities related or incidental to the foregoing, including storage bins (for an approximate seven hundred thousand to one million seven hundred thousand bushel storage capacity), grain conveying equipment, dumping pits (for both rail and truck), a hydraulic truck dumper, a grain dryer with conveying system, truck scales, rail scales, office building and equipment, dust equipment, railroad track (for a capacity of approximately 100 cars), flat storage building for storage of bulk commodities other than grain (for a capacity of approximately 30,000 tons), outside ground storage facilities, a crane unloader, various other conveying equipment, including belts, site and road work, and other improvements, buildings, equipment, devices and the like which are necessary or convenient in connection with the acquisition, construction, installation or operation of the foregoing or are functionally related thereto.