22 of 1981 - A RESOLUTION authorizing the financing of commercial facilities, including land, building and equipm Salt Lake City, Utah
March 25, 1981
The Municipal Council of Salt Lake City, Salt Lake
County, Utah, met in special public session on the 25th day of
March, 1981, at the hour of 6:00 o'clock P.M., at the Wasatch
elementary school, No. 30, R Street, in Salt Lake City, Utah.
The meeting was duly called to order by the Chairman
of the Municipal Council with the following members of the
Municipal Council being present, constituting a quorum of the
Municipal Council:
Palmer DePaulis Chairman
Ione M. Davis Councilmember
Ronald J. Whitehead Councilmember
Sydney R. Fonnesbeck Councilmember
Edward W. Parker Councilmember
Alice Shearer Councilmember
Absent: Grant Mabev
There were also present:
Katherine L. Barsnick Acting City Recorder
Roger Cutler City Attorney
EXHIBIT "B"
Thel6ity Recorder then presented to the Municipal Council an
affidavit evidencing the giving of not less than twenty-four
(24) hours public notice of the agenda, date, time and place of
the March 25, 1981 meeting of the Municipal Council in compliance
with the requirements of Section 52-4-6(2), Utah Code Annotated,
1953, as amended, by (1) posting written notice of the meeting
at the principal office of the Municipal Council at the City
Hall, and (2) providing notice to at least one newspaper of •
general circulation within the general geographic jurisdiction
of said City, or to a local media correspondent. The affidavit
was ordered recorded in the minutes of the meeting and is as
follows:
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•
STATE OF UTAH )
SS.
COUNTY OF SALT LAKE
I, the undersigned, the duly qualified Acting City
Recorder of Salt Lake City, Salt Lake County, Utah, do hereby
certify according to the records of said City in my official
possession, and upon my own knowledge and belief, that in
accordance with the requirements of Section 52-4-6(2), Utah
Code Annotated, 1953, as amended, I gave not less than twenty-
four hours public notice of the agenda, date, time and place
of the March 25, 1981 public meeting held by the Municipal
Council of Salt Lake City, Salt Lake County, Utah by:
(a) causing a Notice of Public Meeting to be posted
at the principal office of the Municipal Council at Room 200,
City and County Building, in Salt Lake City, Utah, on March j3,
1981, at least twenty-four (24) hours before the convening of the
meeting, in the form attached hereto as Exhibit A; said Notice
of Public Meeting; having continuously remained so posted and
available for public inspection during the regular office hours
of said City until the convening of the meeting; and
(b) causing a copy of the Notice of Public Meeting in
the form attached hereto as Exhibit A to be provided on March 6
1981, at least twenty-four (24) hours before the convening of the
meeting, to The Salt Lake Tribune, a newspaper of general circu-
lation within the geographic jurisdiction of said City, and to
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each local media correspondent, newspaper, radio station or
television station which has requested notification of meetings
of the Municipal Council.
IN WITNESS WHEREOF, I have hereunto subscribed my
official signature and impressed hereon the official seal of
Salt Lake City, Salt Lake County, Utah, this 25th day of
March, 1981.
Acting City Recorder,
Salt Lake City, Utah
(SEAL)
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EXHIBIT A
[Attach Notice of Public Meeting]
Y.
•
NOTICE OF SPECIAL MEETING
PUBLIC NOTICE IS HEREBY GIVEN that a Special Meeting will be held by the City
Council of Salt Lake City, Utah,on Wednesday,March 25, 1981,at 6:00 p.m., in the
Auditorium of the Wasatch Sellout at 30 'R' Street In Salt Lake City,Utah.
AGENDA
CONSIDER RESOLUTION APPROVING LOAN AGREEMENT AND BOND PURCHASE
AGREEMENT FOR THE ISSUANCE OF$3,000,000 INDUSTRIAL REVENUE
BONDS FOR SMI TN'S MANAGEMENT CORPORATION.
March 23, 1981
DATED
Ac[1 nB_City Recorder
STATE OF UTAH
as.
COUNTY OF SALT LAKE )
On Rho 23rd dar ofMaOLh.14NL I personally delivered a copy of the
foregoing notice to the Mayor and City Council and posted copies of the same in
conspicuous view, at the following times and locations within tho rt,., ....��...__._
Thereupon, after the conduct of other business, the
following resolution was introduced in writing by
Palmer DePaulis
, was read in full and pursuant to motion
duly made by Alice Shearer and seconded by Edward W. Parker
and was adopted by the following vote:
AYE: Palmer DePaulis
Ronald J. Whitehead
Sydney R. Fonnesbeck
Alice Shearer
Edward W. Parker
Tone M. Davis
NAY Grant Mabey (ABSENT)
NONE
The resolution was then signed by the Chairman of the Council in open
meeting and was recorded by the Acting City Recorder. The
resolution is as follows:
A RESOLUTION authorizing the financing of 1
commercial facilities, including land, building 1
and equipment, by the issuance and sale of
10.75% $3,000,000 Industrial Development Revenue lj
Bonds (Smith's Food King Properties, Inc. Project),
due April 1, 2001, of Salt Lake City, Salt Lake
County, Utah, authorizing the execution and delivery
of a Loan Agreement between said City and Smith's
Food King Properties, Inc., an Indenture of Trust
from said City to First Security Bank of Utah,
N.A., as Trustee, and a Bond Purchase Agreement
among said City, Smith's Management Corporation
and Nationwide Mutual Insurance Company, and
authorizing all further action necessary or appro—
priate in connection with the foregoing f-inancing. -
*** *** *** ***
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WHEREAS, Salt Lake City, Salt Lake County, State of
Utah (the "City"), is authorized and empowered by the provisions
of the Utah Industrial Facilities Development Act, Chapter 17
of Title 11, Utah Code Annotated, 1953, as amended (the "Financing
Act"), to issue its revenue bonds for the purpose of providing
funds to finance the acquisition, installation and equipping of
facilities suitable for commercial purposes; and to enter into
agreements to provide for the payment of such revenue bonds
upon such terms and conditions as the City may deem advisable; and
WHEREAS, Smith's Food King Properties, Inc., a Utah
corporation (the "Company"), desires to acquire, install and equip
a supermarket facility (the "Project") located within the City
and to have the City issue its revenue bonds to finance the cost
of the Project pursuant to the provisions of the Financing Act;
and
WHEREAS, the Financing Act authorizes the City to
issue its revenue bonds for the purpose of defraying the cost
of financing the Project and all expenses incurred in connection
with the authorization, sale and issuance of such revenue bonds,
and to secure payment of such revenue bonds as provided in the
Financing Act; and
WHEREAS, the City finds that it is proper, necessary
and desirable, and in furtherance of the purposes of the Financing
Act, to issue its 10.75% Industrial Development Revenue Bonds
(Smith's Food King Properties, Inc. Project), due April 1, 2001
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(the "Bonds"), for the purpose of providing funds to finance
the acquisition, installation and equipping of the Project; and
WHEREAS, pursuant to and in accordance with provisions
of the Financing Act, the City is now prepared to proceed with
the financing of the Project and to issue and sell the Bonds,
such Bonds to be limited obligations of the City and not to
constitute nor give rise to a general obligation or liability of
the City or a charge against its general credit or taxing powers;
and
WHEREAS, there have been prepared and presented to this
meeting the following documents:
1. form of proposed Bond Purchase Agreement among
the City, Smith's Management Corporation and
Nationwide Mutual Insurance Company, as Purchaser,
attached hereto as Exhibit B;
2. form of proposed Loan Agreement between the City
and the Company attached hereto as Exhibit C;
3. form of proposed Indenture of Trust from the City
to First Security Bank of Utah, N.A., as Trustee
(containing the proposed form of Bonds) attached
hereto as Exhibit D;
NOW, THEREFORE, BE IT RESOLVED by the Municipal Council
of Salt Lake City, Salt Lake County, Utah, as follows:
Section 1. That there is hereby authorized and directed
the execution, issuance and sale of $3,000,000 10.75% Industrial
Development Revenue Bonds (Smith's Food King Propoerties, Inc.
Project), due April 1, 2001, for the purposes expressed in the
preamble hereto, in fully registered form, without coupons, dated
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and numbered as provided in the Indenture and in substantially
the form set out in the Indenture. The Bonds mature in 240
equal monthly instalments, including principal and interest, of
$30,456.87 each on May 1, 1981 and the first day of each calendar
month thereafter to and including April 1, 2001.
Section 2. That pursuant to,the Financing Act, the
City does hereby authorize the financing of the acquisition,
installation and equipping of the Project in accordance with the
terms of the Loan Agreement and the Indenture of Trust and does
hereby determine the same to be in furtherance of the public
purposes set forth in the Financing Act.
Section 3. That the Mayor and the Acting City Recorder
are hereby authorized and directed to execute and deliver on
behalf of the City a Bond Purchase Agreement, Loan Agreement,
Indenture of Trust and Bonds substantially in the respective forms
presented to this meeting and hereby approved with such changes
therein as may be approved by said officials, execution thereof
to constitute conclusive evidence of their approval of any such
changes.
Section 4. That First Security Bank of Utah, N.A.,
Salt Lake City, Utah, is hereby designated as Trustee, paying
agent and bond registrar for the Bonds under the Indenture.
Section 5. That the sale of the Bonds to Nationwide
Mutual Insurance Company at the price of par and accrued interest,
if any, in accordance with the Bond Purchase Agreement is hereby
authorized, approved and confirmed.
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Section 6. That the City hereby elects to have the
provisions of Section 103(b)(6)(D) of the Internal Revenue Code
of 1954, as amended, apply to the Bonds authorized by this reso-
lution, and the Mayor or the Acting City Recorder is hereby
authorized and directed to file or cause to be filed an appro-
priate statement relating to such election with the Internal
Revenue Service.
Section 7. That the Mayor, the Acting City Recorder
and such other officers and officials of the City as may be
appropriate are hereby authorized to execute and deliver for and
on behalf of the City any and all additional certificates,
documents or other papers and do any and all things deemed necessary
in order to effect the issuance and sale of the Bonds and the
execution and delivery of the Loan Agreement, the Indenture and
the Bond Purchase Agreement and to implement and carry out all
matters herein authorized and the intent and purpose of this
resolution.
Section 8. That the Acting City Recorder is hereby
authorized and directed to file in the office of the City Recorder,
for inspection by any interested person, copies of the Bond Pur-
chase Agreement, Loan Agreement and Indenture of Trust, together
with copies of the Indenture of Mortgage and Deed of Trust from
the Company to First Security Bank of Utah, N.A., and the Lease
Agreement between the Company and Smith's Management Corporation,
which are referred to in the Bond Purchase Agreement.
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Section 9. That after the Bonds are issued, this
resolution shall be and remain irrepealable until the Bonds and
the interest thereon shall have been fully paid, cancelled
and discharged.
Section 10. That the provisions of this resolution
are hereby declared to be separable and if any section, phrase
or provision shall for any reason be declared to be invalid,
such declaration shall not affect the validity of the remainder
of the sections, phrases and provisions.
Section 11. That within the meaning of the Utah
Public Officers' and Employees' Ethics Act (Title 67, Chapter
16, Utah Code Annotated, 1953), no "public officer" or "public
employee" of the City, or any member of the Municipal Council,
has a "substantial interest" in or is an officer, director, agent,
employee or owner of Smith's Food King Properties, Inc. or of
Smith's Management Corporation, or has any direct or indirect
pecuniary interest in any contract, lease, purchase, sale or
employment made or to be made in connection with the proposed
transaction contemplated by the documents referred to in
Section 3 hereof.
Section 12. That all resolutions and parts thereof
in conflict herewith are hereby repealed to the extent of such
conflict.
Section 13. That immediately after its adoption, this
resolution shall be signed by the Chairman of the Municipal
Council and Acting City Recorder, shall be presented to the Mayor,
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-who shall evidence his approval by signing said resolution, shall
be recorded in a book kept for that purpose, and shall take
immediate effect.
PASSED AND APPROVED this 25th day of March, 1981.
e.")�. ;
Ch irman of the Run cipal Council,
Salt Lake City, Salt Lake County,
Utah
(SEAL)
�Attested and Countersigned:
Acting City Recorder, Salt
Lake City, Salt Lake County,
Utah
Ap ov d:
yor,Salt Lake City, Salt
Lake County, Utah
Approved as to form:
Salt Lake,City Att ney
By /
(Other business not pertinent to the above
appears in the minutes of the meeting).
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Pursuant to motion duly made and carried, the meeting
of the Municipal Council of Salt Lake City, Utah was adjourned.
Ch irman, Municipal Council
Attest:
Acting City Recorder
•
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EXHIBIT B
[Attach Bond Purchase Agreement Here]
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EXHIBIT C
[Attach Loan Agreement Here]
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EXHIBIT D
[Attach Indenture Here]
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STATE OF UTAH
) SS.
COUNTY OF SALT LAKE )
I,Katherine L.-Barsmack the duly qualified and Acting
City Recorder of Salt Lake City, Salt Lake County, Utah, do
hereby certify, according to the records of said City in my
official possession, that the above and foregoing constitutes
a true and correct copy of excerpts from the minutes of a
regular meeting of the Municipal Council of Salt Lake City
held on March 25, 1981, including a resolution adopted at said
meeting, as said minutes and resolution are officially of record
in my possession.
IN WITNESS WHEREOF, I have hereunto subscribed my
official signature and impressed hereon the corporate seal of
Salt Lake City, Utah, this 25th day of March, 1981.
Acting Ci y Recorder
(SEAL)
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Resolution No. ''
By City Ceuneii
Authorizing the issuance and sale of
10.75%$3,000,000 Industrial Devel-
opment Revenue Bonds to Smith's
Food King Properties, Inc. Project;
approving Loan Agreement, Indenture
of Trust, and a Bond Purchase Agree-
ment.