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HomeMy WebLinkAbout2001-R-20COMMON COUNCIL RESOLUTION NO. ~0 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 OPERATED 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 that it 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 85,000 square foot expansion of an existing manufacturing facility, together with the purchase ofmach/nery and equipment to be utilized therein, located at 5150 Loop Road, Jeffersonville, Indiana 47130 (the "Project"), and the Commission has adopted a Resolution, containing the requisite findings of the Commission, recommending that the City adopt a resolution giving preliminaDr 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 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: MINRES/JRiU358806.I 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 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 $8,500,000 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 bonds. SECTION 5. All costs of the Project incurred for 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 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. 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. MINR£SIJRK/358806. ! -2- 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. SECTION 9. The City does not war, ant, 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 indenture 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 ora 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 I.C. 36-4-6 et seq. The foregoing was passed and adopted by the Common Council this 4th day of September, President, Common Coun~Eg__n__n__n__n_~~ City of Jeffersonvill~ Presented by me to the Mayor of the City of Jeffersonville, Indiana this B day of September, 2001, at ~0 '. ~_~.m. p _;g=~y t~i.{~er, Clerk-Treasurer City of Jeffersonville, Indiana MINR.ES/JRIO358806.1 -3- .Approved and signed by me, Th,o. mas Galligan, Mayor of the City of Jef£ersonville, Indiana this/3 day of September, 2001, at ,.~,ot~ /~.m. ~gan,~o~~ City of Jeffersonville, Ir~ana ATTEST: Peggy ~r, Clerk-Treasurer City of Jeffersonville, Indiana MINRES/JRKJ358806.1 -4- RESOLUTION NO. A RESOLUTION OF THE JEFFERSONVILLE ECONOMIC DEVELOPMENT COMMISSION PROVIDING PRELIMINARY APPROVAL OF THE ISSUANCE OF BONDS FOR THE PURPOSE OF FINANCING CERTAIN ECONOMIC DEVELOPMENT FACILITIES TO BE OWNED AND OPERATED BY EAGLE STEEL PRODUCTS, INC. RESOLVED, by the Jeffersonville Economic Development Commission (the "Commission"), as follows: WHEREAS, the City of Jeffersonville, Indiana (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 oxvned by another person; and WHEREAS, Eagle Steel Products, Inc. (the "Applicant"), has requested that the Commission give preliminary approval to the issuance of economic development revenue bonds, in an amount not to exceed $8,500,000 which request includes the financing by the Applicant for an approximately 85,000 square foot expansion of an existing manufacturing facility, together with the purchase of machinery and equipment to be utilized therein, located at 5150 Loop Road, Jeffersonville, Indiana 47130 (the "Project"); and WHEREAS, it appears from the Application submitted to the Commission, 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 from the Application submitted to the Commission, 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, the Application submitted to the Commission, 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 Commission, based upon the Application submitted to the Commission, as follows: 1. The creation and retention of opportunities for gainful employment and the creation of business opportunities to be achieved by the Project in the City will be of benefit to the health and general welfare of the citizens of the City; and it is in the public interest that this Commission take RES/JRK/358756. I such action as it lawfully may to encourage diversification of industry and promotion of job opportunities in and near said City. 2. Based solely upon information provided to it, the Authority reports, finds and determines pursuant to the provisions of the Act that: (i) The Project will consist of the acquisition, construction, installation and equipping of an approximately 85,000 square foot expansion of an existing manufacturing facility, together with the equipment and machinery to be utilized therein, located at 5150 Loop Road, Jeffersonville, Indiana 47130; (ii) The Project will be owned and operated by the Borrower for use in its business of manufacturing steel slit to precision width; (iii) No public works or services not already existing or available, or for which provision has not been made, will be made necessary or desirable on account of the Project as such facilities will be provided either by the Applicant, private utilities, or existing public facilities, or pursuant to agreements with respect to such public facilities with the City of Jeffersonville, Indiana; (iv) The total cost of the Project ~vill approximate $8,500,000 of which an amount not to exceed $8,500,000 will be financed by economic development revenue bonds; (v) The Applicant currently employs 87 persons in the City of Jeffersonville, Indiana, and anticipates employing an additional 18 persons within one year following completion of the Project, an additional 2 persons within two years following completion of the Project, and another I0 persons within three years folloxving completion of the Project. The Applicant estimates that the average hourly wage for the new employees will be $12.91 per hour, without benefits, and $17.70 per hour, with benefits; (vi) The acquisition, construction, installation and equipping of the Project will not have an adverse competitive effect on any similar facilities already constructed or operating in or about the City; (vii) The proposed financing of the Project will be of benefit to the health and general welfare of the citizens of the City; and (viii) The proposed financing of the Project complies with the purposes and provisions of I.C. 36-7-11.9 and 12 et seq., as supplemented and amended. 3. In order to induce the Applicant to proceed xvith negotiations for the Project, the Commission hereby determines that: P-.ES/JIkK/358756.[ -2- (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 as authorized by law and is mutually acceptable to the City and the Applicant; and (ii) It will adopt such 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; provided that all of the foregoing shall be as authorized by law and is mutually acceptable to the City and the Applicant. 4. 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 costs of the Project 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. 5. All action taken and approvals given by the Commission 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 Commission or the City. 6. The Commission and the City do not, by this or any other approval or finding, guarantee, warrant or even suggest that the bonds, coupons or series thereof will be a reasonable investment for any person, firm or corporation. 7. Neither the City nor the Commission shall 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 Commission and the City are in no way responsible to the holders of any bonds for any payment obligation created by the bonds. 8. The Commission and the City do 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. 9. 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 within the meaning of any constitutional or statutory provisions. 10. This resolution does not constitute a binding obligation of the Commission or the City to issue the bonds, but instead, is a preliminary approval by the Commission to proceed with RES/JRK/358756. I -3- negotiations for the financing described herein with the Applicant and a recommendation to the City that it give preliminary approval to the proposed issuance of economic development revenue bonds for financing of the Project. 11. The Secretary of the Commission is hereby directed to submit, or have submitted on the Commission's behalf, the findings contained in this Resolution to the Executive Director or Chairperson of the Plan Commission having jurisdiction over the Project and, if applicable, to the superintendent of the school corporation where the Project will be located pursuant to I.C. 36-7-12- 23(b). ADOPTED this 31st day of August, 2001. JEFFERSONVILLE ECONOMIC DEVELOPMENT COMMISSION Ron Barnes, Member Jerry Lemons, Member B arp.6 Cah/ll, M_.e&nber t7 ~Mem~/~ Barbara Wilson, Member RES/JRK/358756. I -4- EXCERPTS OF MINUTES OF A SPECIAL MEETING OF THE JEFFERSONVILLE ECONOMIC DEVELOPMENT COMMISSION HELD ON AUGUST 31, 2001 The Jeffersonville Economic Development Commission (the "Commission") held a special meeting on August 31, 2001 at 10:30 a.m.E.S.T, in the Mayor's Conference Room, City-County Building, 501 East Court Avenue, Jeffersonville, Indiana, notice of the time and place thereof having been duly given to the Commission Members by its counsel, Anne Marie Sed~vick Gatligan. The meeting was called to order by the presiding officer. The Commission Members were present or absent as indicated: Present: Absent: Consideration was then given to the request from Eagle Steel Products, Inc. (the "Applicant") for the financing of certain economic development facilities by the City of Jeffersonville, Indiana (the "City"), pursuant to and in accordance with the provisions of I.C. 36-7-I 1.9 and 12 et seq.,.as supplemented and amended (the "Act"). The Applicant has requested that the Commission give preliminary approval to the issuance of economic development revenue bonds in an amount not to exceed $8,500,000, which request includes the financing by the Applicant for certain economic development facilities consisting of the acquisition, construction, installation and equipping of an approximately 85,000 square foot expansion of an existing manufacturing facility, together with the MINRO/JRK/358769.1 -1- purchase of machinery and equipment to be utilized therein, located at 5150 Loop Road, Jeffersonville, Indiana 47130 (the "Project"). (H.I.) There was then presented a proposed resolution entitled: "A RESOLUTION OF THE JEFFERSONVILLE ECONOMIC DEVELOPMENT COMMISSION PROVIDING PRELIMINARY APPROVAL OF THE ISSUANCE OF BONDS FOR THE PURPOSE OF FINANCING CERTAIN ECONOMIC DEVELOPMENT FACILITIES TO BE OWNED AND OPERATED BY EAGLE STEEL PRODUCTS, INC." After consideration of the proposed resolution, and upon motion duly made and seconded, said resolution was approved and adopted by the following vote: Ayes: Nays: 0 Abstaining: Upon this motion and vote thereby, the Commission did adopt and approve a resolution concerning the proposed financing of economic development facilities for the Applicant in the City of Jeffersonville, Indiana. (Other Business) There being no further business, on motion duly made~ seconded and carried, the meeting of the Jeffersonville Economic Development Commission was thereupon adjourned. The foregoing excerpts of minutes are certified to be true and correct. JEFFERSONVILLE ECONOMIC DEVELOPMENT COMMiSSiON Its: ~-3 ~7_~ ~ ~ ~¢3~-'- MINKO/JKK/358769. I -2-