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HomeMy WebLinkAbout18 of 1976 - A resolution authorizing the execution of an Amended Memorandum of Agreement by and between Beehive Resolution No. 18 By Ted L. Wilson COMMISSIONER 1 Authorizing the execution of an Amended Memorandum of Agreement JI by and between Beehive Medical IElectronics, Inc. and Salt Lake City II Corporation- Presented to The loud of Commissioner AND PASSED FEB2 51976 •Vistria_.07644.td CITY RECOP- 1 i s i N Ii I; i ! • J "ay 5, 197C Beehic,e, "alical Electronics r. Larl S. Maeser :.70 West 2600 South Street Salt Lake City, Utah 84119 dear Mr. Maeser: ucres n Lffilavit of Publication, a stateweu from the newspaper for the publication and several copies of the aesolution published April 24, 1976. The City Luditor suggests that the City pay for the advertising and that you reimburse the City in the amount of $214.62. Please Lszle your check payable to Salt Lake city Corporation and :nail it to the City Recorder, 200 City and County Building, Salt Lake City, Utah S4111. I will then make sure that it is properly credited. Working with you and Mr. Wright has been very enjoyable and I wish you success in your business. Yours truly, ' • City Recorder MVd:m Encl. -3- CC: Files Auditor O°jt@@'Poy, N.� Salt Lake City, Utah ' , ro'1) Feb. 25, , 1976 The Board of Commissioners of Salt Lake City, Salt Lake County, Utah, met in regular public session at its regular meeting place in the City Hall in Salt Lake City at 10:00 o'clock A .M. , on Feb. 25 • 1976, with the following members present: Ted L. Wilson , Mayor Jennings Phillips, Jr. , Commissioner Glen N. Greener , Commissioner Herman J. Hogensen , Commissioner Jess A. Agraz , Commissioner There was absent: None • There were also present Mildred V. Higham City Recorder and Walter R. Miller Assistant City Attorney. After the meeting had been duly called to order and the roll called with the above results, and after the con- duct of other business, the Mayor announced that one of the items of business to come before the meeting was to be the consideration and adoption of a resolution authorizing the execution of a Memorandum of Agreement between Salt Lake City and Beehive Medical Electronics, Inc. , preliminary to the issuance of certain Industrial Development Revenue Bonds • by the City. Thereupon, the following resolution was introduced in written form by Mayor Ted L. Wilson was read in full and, after full discussion of the question and of the proposed Memorandum of Agreement attached as an exhibit to said resolution, pursuant to motion made by Mayor Ted L. Wilson and seconded by Jennings Phillips, Jr. , said resolution was adopted by the following vote: Aye: Ted L. Wilson, Mayor Glen N. Greener, Commissioner Jess A. Agraz, Commissioner Herman J. Hogensen, Commissioner Jennings Phillips, Jr. , Commissioner Nay: None The resolution was then signed by the Mayor in open meeting and recorded by the City Recorder. The resolution is as follows : A RESOLUTION authorizing the execution of an Amended Memorandum of Agreement by and between Beehive Medical Electronics, Inc. , and Salt Lake City, Utah. *** *** *** WHEREAS Salt Lake City, in the County of Salt Lake, State of Utah ("City") , is an incorporated municipality authorized and empowered by the provisions of Chapter 17 of -2- Title 11, Utah Code Annotated, 1953, as amended ("Act" ) , to issue industrial development revenue bonds for the purpose of defraying the cost of acquiring and improving land, buildings, machinery and equipment suitable for manufacturing, warehousing, commercial and industrial purposes and to lease the same to others for such rentals and upon such terms and conditions as the City may deem advisable; and WHEREAS adequate opportunities for industrial employ- ment are not available in the City and in order to provide for industrial development and employment opportunities for the inhabitants of the City, and to add to the welfare and prosperity of the City and of its inhabitants, the City pro- poses to acquire a plant site located within the City ("Plant Site") and to construct on the Plant Site certain manufacturing and commercial facilities and appurtenances ("Plant") , (said Plant Site and Plant being herein referred to as the "Project" ) and to lease the Project to Beehive Medical Electronics, Inc. , ("Company") , a Utah corporation; and WHEREAS the City has heretofore, by a Memorandum of Agreement with the Company dated August 7 , 1975, agreed to issue its industrial development revenue bonds in the aggregate amount of not more than $2, 300, 000 to finance the construction and acquisition of the Project; and WHEREAS in view of the unsettled condition of the municipal bond market and of other factors, the financing proposal as then contemplated has proved impracticable; and -3- • WHEREAS the Company has now submitted a revised financing proposal which contemplates the private financing of a portion of the Project and the borrowing by the City from a lending institution of an amount not exceeding $1,725, 000. 00, such loan to be evidenced by the issuance by the City of an industrial revenue bond under the Act; and WHEREAS in view of rising construction costs and the com- petitive market for the products of the Company, it remains essential that construction of the Plant commence at the earliest practicable date, but, in view of the possibility of financing facilities similar to the Project in other localities under conditions beneficial to the Company, the Company remains unwilling to award the necessary construction contracts and take other steps toward the realization of the Project without satisfactory assurances from the City that it will undertake such a borrowing; and WHEREAS it is deemed necessary and advisable for the in- dustrial development, welfare and prosperity of the City and its inhabitants that the Project be constructed in the City, and that the City take such action as may be required under the Act and other applicable statutory provisions to assist in the financing of the Project as aforesaid; and WHEREAS a form of agreement, designated as an "Amended Memorandum of Agreement, " has been prepared under which the Company has stated its willingness to arrange for the acquisition of the Plant Site, let construction contracts and commence -4- construction, and, at the time of the loan closing, con- vey the Plant Site and assign the construction contracts to the City and enter into a Lease of the Project from the City under which the Company will be obligated to pay ren- tals sufficient to pay the principal of and interest on the loan as and when the same shall become due and payable; and WHEREAS it is considered necessary and desirable and for the best interest of said City that said Amended Memor- andum of Agreement be executed for and on behalf of said City; NOW, THEREFORE, Be It and It Is Hereby Resolved by the Board of Commissioners of Salt Lake City, Salt Lake County, Utah, as follows: Section 1. That in order to assure the location of manufacturing and commercial facilities in Salt Lake City, Utah, with the resulting public benefits which will flow from the operation thereof, it is deemed necessary and advisable that the Amended Memorandum of Agreement herein- after referred to be approved and executed for and on behalf of said City with the Company. Section 2. That the Amended Memorandum of Agreement by and between Company and City, in the form and with the contents set forth in Exhibit A attached hereto, be and the same is hereby approved and the execution thereof is hereby authorized. Section 3. That the Mayor is hereby authorized and directed to execute said Amended Memorandum of Agreement -5- and the City Recorder is hereby authorized to attest the same and to affix the seal of the City thereto, said Amended Memorandum of Agreement which constitutes and is hereby made a part of this resolution to be in substantially the form, text and containing the provisions set forth in Exhibit A attached hereto. Section 4 . That all resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. PASSED AND APPROVED by the Board of Commissioners, of Salt Lake City, Salt Lake County, Utah, this 25th day of February, 1976. Mayor Attest: City Recorder Approved: ROLL CALL VOTING Aye Nay City Attorney Mr. Chairman . . Agraz Greener Hogensen Phillips Result -6-