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HomeMy WebLinkAbout47 of 1976 - A resolution authorizing the acquisition of equipment, real estate and certain improvements thereto, Resolution No. By Jennies Phillips, Jr. COMMISSIONER I 1 Resolution authorizing the acquisiti• ,of equipment, real estate and certai 1 improvements thereto, authorizing :the issuance and sale of $2,500,000 1,1Industrial Development Revenue Bonds - Royal Industries Project - Safelita Industries, Inc. Series 1976, of ' Salt Lake City, authorizing the i, execution and delivery of a Mortgage Land Indenture of Trust securing :+I said bonds. fi t i Presented to the Board of Commissioners , AND PASSED JUL2 01976 ' • CITY ROGOPt" jii (All exhibits and closing papers in connection with this issue of Industrial Bonds are filed in 1 special file for Royal Ind. - SafelitaInd, - industrial bonds) — : i Salt Lake City, Utah July 20 , 1976 The Board of Commissioners of Salt Lake City, Salt Lake County, Utah, met in regular public session at its reg- ular meeting place in Room 301, in the City and County Build- ing in Salt Lake City, Utah at 10:00 o'clock A .M. on July 20, 1976, with the following members cresent: ROLL CALL Ted L. Wilson, Mayor VOTING Aye Nay Jess A. Agraz, Commissioner Mr.Chairman Agraz Glen N. Greener, Commissioner Greener Herman J. Hogensen, Commissioner Hogensen Jennings Phillips, Jr., Commissioner Phillips There were absent: NONE There were also present: Mildred V. higham, City Recorder and Roger F. Cutler, City Attorney. After the meeting had been ;,}1y called to order, the roll called with the above results, and the minutes of the pre- ceeding meeting read and approved, and after the conduct 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 issuance by the City of $2,500,000 Industrial Development Revenue Bonds (Royal Industries Project), Series 1976, and the execution of various other documents in connection with the foregoing. Thereupon, the following resolution was introduced in written form by _JENNINGS PHILLIPS, JR. , was read in full and, after full discussion of the cuestion and of the various documents attached as exhibits to said resolution, pursuant to a motion made by Mayor Ted L. Wilson and seconded by rnm_ Tan„ingc vh-flips, J said resolution was adopted by the following vote: Aye: Ted L. Wilson, Mayor • Jess A. Agraz, Commissioner Glen N. Greener, Commissioner Herman J. Hogensen, Commissioner Jennings Phillips, Jr., Commissioner Nay: None The resolution was then signed by the Mayor in open meeting and attested by the City Recorder, the seal of Salt Lake City, Utah was impressed thereon and recorded by the City Recorder. The resolution is as follows: A RESOLUTION authorizing the acquisition of equipment, real estate and certain improve- ments thereto and the equipping of an indus- trial building on said real estate, author- izing the issuance and sale of $2,500,000 Industrial Development Revenue Bonds (Royal Industries Project), Series 1976, of Salt Lake City, Salt Lake County, Utah, authoriz- ing the execution and delivery of a Mortgage and Indenture of Trust securing said bonds, authorizing the execution and delivery of a Lease Agreement between said City, as lessor, and Royal Industries, Inc. , as lessee, and authorizing the execution and delivery of various documents in connection with the foregoing and related matters. *** *** *** *** -2- WHEREAS, Salt Lake City, in the County of Salt Lake, 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 "Act"), to issue its revenue bonds for the pur- pose of providing funds to acquire and improve 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 pros- perity of the City and its inhabitants, the City proposes to acquire within the City a plant site together with a building suitable for industrial, manufacturing and commercial purposes located thereon, and to acquire or construct improvements, machinery and equipment deemed necessary in connection there- with, and to lease said site, building, improvements, machinery and equipment (the "Project") to Royal Industries, Inc., a Delaware corporation, ('Royal Industries"); and WHEREAS, the 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 bonds, and to secure payment of such bonds as provided in the Act; and -3- WHEREAS, the City finds that it is proper, necessary " And desirable to issue its Industrial Development Revenue Bonds (Royal Industries Project), Series 1976 (the "Bonds"), in the principal amount of $2,500,000 for the purpose of providing funds to cause the acquisition, construction, and equipping of the Project; and WHEREAS, the issuance of the Bonds, the acquisition, construction and equipping of the Project and the leasing thereof to Royal Industries will relieve conditions of unemploy- ment, encourage the increase and development of industry and commerce, increase the tax base within Salt Lake City and the State of Utah and promote the health, welfare and safety of the citizens of Salt Lake City and the State of Utah; and WHEREAS, it is necessary to authorize the execution of a Lease Agreement, dated as of June 1, 1976 (the "Lease Agreement") between the City, as lessor, and Royal Industries, as lessee, under the terms of which Royal Industries will lease the Project for rentals sufficient to pay principal of, premium, if any, and interest on the Bonds; and WHEREAS, it is necessary for the City to execute and deliver a Mortgage and Indenture of Crust dated as of June 1, 1976 (the "Indenture") to The Liberty National Bank and Trust Company of Oklahoma City, Oklahoma City, Oklahoma, as trustee for the bondholders (the "Trustee"); and WHEREAS, it is necessary for the City to authorize the sale of the Bonds to First Municipal Corp. , Wichita, Kansas (the "Underwriter"); and WHEREAS, it is necessary for the City to authorize the execution and delivery of an 0''" al Statement -4- (the "Official Statement") and to authorize its use by the Underwriter in connection with the sale of the Bonds; and WHEREAS, it is necessary for the City to authorize the acceptance of an Inducement Letter from Royal Industries (the "Inducement Letter"); and WHEREAS, it is necessary for the City to authorize the execution and delivery of other certificates, documents and papers and the performance of acts necessary or convenient in connection with the issuance and sale of the Bonds and the implementation of this resolution; and WHEREAS, there have been prepared and presented to the Board of Commissioners the following documents: 1. Form of proposed Lease Agreement (Exhibit A). 2. Form of proposed Indenture (Exhibit B). 3. Form of Bonds (contained in Indenture). 4. Form of proposed Official Statement (Exhibit C). 5. Form of proposed Inducement Letter (Exhibit D). NOW, THEREFORE Be it Resolved by the Board of Com— missioners of Salt Lake City, Salt Lake County, Utah: Section 1. That there is hereby authorized and directed the execution, issuance and sale of $2,500,000 Industrial Development Revenue Bonds (Royal Industries Pro— ject), Series 1976 of Salt Lake City, Salt Lake County, Utah, dated June 1. 1976, for the purposes expressed in the preamble hereto, in coupon form, registrable as to principal only, or in fully registered form, bearing interest at the respective rates and maturing on June 1 of each of the years and in the -5- principal amount set opposite each year in the following.' schedule: Principal Interes` Principal Interest Year Amount Rate Year Amount Rate 1977 $ 50,000 6-1/4% 1987 $125,000 7-1/2% 1978 75,000 6-1/4% 1988 125,000 7-1/2% 1979 75,000 6-1/4% 1989 125,000 7-1/2% 1980 75,000 7% 1990 150,000 7-3/4% 1981 75,000 7% 1991 150,000 7-3/4% 1982 75,000 7% 1992 200,000 7-7/8% 1983 100,000 7-1/4% 1993 200,000 7-7/8% 1984 100,000 7-1/4% 1994 200,000 7-7/8% 1985 100,000 7-1/4% 1995 200,000 7-7/8% 1986 100,000 7-1/4% 1996 200,000 7-7/8% and having the form, details and specifications set out in the Indenture. Section 2. That there is hereby authorized and directed the acquisition and equipping of the Project as pro- vided in the Lease Agreement and the leasing of the Project to Royal Industries pursuant to the Lease Agreement. Section 3. That the Lease Agreement substantially in the form attached hereto as Exhibit A is hereby authorized to be executed, acknowledged and delivered on behalf of the City by the Mayor and City Recorder and said officers are hereby authorized and directed to cause the Lease Agreement to be accepted, executed and acknowledged by Royal Industries, after which the Lease Agreement shall to recorded in the mortgage records of Salt Lake County, -=tah. The Lease Agree- ment shall constitute and is hereby mare a part of this authorizing resolution and a copy of the Lease Agreement is available for public inspection at the office of the City Recorder. -6- Section 4. That for the purpose of further securing the Bonds and to provide the details thereof and to prescribe the terms and conditions on which the Bonds are to be secured, executed, authenticated, accepted and held, the Indenture sub- stantially in the form attached hereto as Exhibit B is hereby authorized to be executed, acknowledged and delivered on behalf of the City by the Mayor and City Recorder and said officers are hereby authorized and directed to cause the Indenture to be accepted, executed and acknowledged by the Trustee there- under after which the Indenture shall be recorded in the mortgage records of Salt Lake County, Utah. The Indenture shall constitute and is hereby made a part of this authorizing reso- lution and a copy of the Indenture is available for public inspection at the office of the City Recorder. Section 5. That the sale of the Bonds to the Underwriter at the price of 100%, plus accrued interest from June 1, 1976 to the date of delivery, is hereby authorized, approved and confirmed. Section 6. That the Official Statement substantially in the form attached hereto as Exhibit C (a copy of which is available for public inspection at the office of the City Recorder) is in all respects hereby authorized, approved and confirmed, and the Mayor is hereby authorized to execute the Official Statement, and the Underwriter is hereby author- ized to use the Official Statement in reselling the Bonds; provided that this approval and authorization does not extend to the information concerning Royal Industries contained in -7- the Appendix to the Official Statement, but nothing herein shall be construed as prohibiting the Underwriter from includ- ing such information therein for use in reselling the Bonds pursuant to authorization from Royal Industries. Section 7. That the Inducement Letter substantially in the form attached hereto as Exhibit D (a copy of which is available for public inspection at the office of the City Recorder) is in all respects hereby authorized, approved and confirmed and the Inducement Letter is hereby accepted and the Mayor and City Recorder are hereby authorized and directed to execute and acknowledge the Inducement Letter to evidence such acceptance. Section 8. That the Mayor, 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 deem- ed necessary in order to effect the issuance and sale of the Bonds, and the execution and delivery of the Lease Agreement and the Indenture and to implement and carry out all matters herein authorized and the intent and purpose of this resolution. 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. -8- Section 10. That the provis_ons 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 remain- der of the sections, phrases and prov'sions. Section 11. That all resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Section 12. That immediately after its adoption this resolution shall be signed by the Mayor and City Recorder, shall be recorded in a book kept for that purpose and shall take immediate effect. Passed and approved July 20 , 1976. Mayor Attest: 7yr.:,,ed„ e rda City Recec ord (SEAL) -9- (Other business not pertinent to the above appears io the minutes of the meeting). Pursuant to motion duly made and carried, the meeting of the Board of Commissioners was adjourned. Mayor Attest: 12Cha 7/ ---le City Recorde -10- STATE OF UTAH COUNTY OF SALT LAKE ) I, Mildred V. Higham, the duly qualified and acting City Recorder of Salt Lake City, 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 the meeting of the Board of Commissioners of Salt Lake City held on July 20 , 1976, 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 20 day of July, 1976. City Record Af (SEAL)