HomeMy WebLinkAbout23 of 1977 - A resolution authorizing the issuance of Industrial Revenue Bonds to Western Steel Company. Resolution No. 23
. By Jennings Phillips, Jr.
Authorizing the issuance of Industri.l
Revenue Bonds to Western Steel Comp_)y.
PNReatothelordofComm
AND PASSED
FEB 2 4 1977
i •
GiY RECORC
A.
11666,
ROLL CALL
r Salt Lake City,Utah, February 24 .,19 77
VOTING Aye Nay
Mr.Chairman . . + `
J!, — I move that)the Resolution be adopted.
jOZse
.
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Phillips RESOLUTION
Result
WHEREAS, SALT LAKE CITY CORPORATION, a municipal corporation of the State
of Utah, is authorized and empowered under the provisions of Title 11, Chapter
17, Utah Code Annotated 1953, as amended (the "Act") , for the purposes stated
therein, to issue revenue bonds for industrial development purposes; and
WHEREAS, WESTERN STEEL COMPANY, a Utah corporation, a wholly owned sub-
sidiary of JOY MANUFACTURING COMPANY, a Delaware corporation, authorized to
and doing business in Salt Lake County, State of Utah, hereinafter both called
"GUARANTOR", and each has requested that the City issue industrial revenue
bonds to finance the cost of a manufacturing facility for the company consist-
ing of land, building, improvements, machinery and equipment (the "Project")
at a cost of approximately $1,200,000; and
WHEREAS, the City desires, pursuant to Guarantors representations and
request,to issue such bonds to finance the cost of purchasing the land and
purchasing and constructing the building improvements, machinery and equipment
for the Project by the issuance of revenue bonds under the Act in the amount
of approximately $1,200,000; and
WHEREAS, such bonds would be payable solely from the rentals, revenues
and receipts delivered by the City from the lease of the Project to the Compan
and the Guarantor and would not constitute nor give rise to any general obli-
gation or liability of the City against its general credit or taxing powers
and from which, among other things, Guarantor agrees to hold City harmless;
and
WHEREAS, the payment of the principal of, and interest on, said bonds
would be guaranteed by the Guarantor; and
WHEREAS, the Company and the Guarantor have agreed to negotiate the sale
of the bonds and appoint a Utah trustee, all with the approval of the City
and in accordance with State law; and
WHEREAS, the Guarantor desires that the purchase of the land and the
purchase and construction of the building, improvements, machinery and equip-
ment commence immediately.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of Salt Lake
City, as follows:
1. That the Board of Commissioners of Salt Lake City hereby finds and
determines that the issuance of its revenue bonds to finance the cost of the
Project will be in furtherance of the public purposes set forth in the said
State Act, and that the Project will promote the welfare of the City.
2. That the Board of Commissioners of Salt Lake City hereby tentatively
approves the Project to be financed out of the proceeds of approximately
$1,200,000 principal amount of the Industrial Revenue Bonds, Series 1977, of
the Salt Lake City Corporation to be issued pursuant to the provisions of the
said Act.
3. That the City officials are hereby authorized and directed to proceed
with the necessary negotiations relating to said Project and the preparation
of the legal documents relating thereto for final action by the governing body
of the City, provided Guarantor meets all City, State and Federal statutory
requirements for the Project and issuance of said bonds.
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Passed by the Board of Commissioners of Salt Lake City, Utah, this 24th
day of February, 1977.
(ABSENT) TED L. WILSON
OR •
"6 . Ci � l "};
ISSIONER !`
CO SSI
,.r
ONER
(ABSENT) GLEN N. GREENER
COMMISSIONER
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