HomeMy WebLinkAbout50 of 1977 - A resolution authorizing negotiations with Western Steel and Joy Manufacturing Co. for the issuance Resoluti0nNo.
f1 By Herman T.Hoeensen
, I
1 Authorizing negotiations with Western{,
Steel and Joy Manufacturing Co. for I'
the issuance of$I,000,000 in Indus-
trial Development Bonds I
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Pied b the herd of Gs+sissimais
AND PASSED
I - MAY 11 1977
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ROLL CALL f? k
VOTING Aye Nay Salt Lake City,Utah, May 11 ,1977
Mr.Chairman .. .
1 move that the Resolution be adopted.
Agraz .
Gr er A
Hogensenl cv,�t4 1P.6./
Phillips
RESOLUTION
Result
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WHEREAS, SALT LAKE CITY CORPORATION, a municipal corporation of the
State of Utah, (the "City") , is authorized and empowered under the pro-
visions 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, ("Western") , a
wholly-owned subsidiary of JOY MANUFACTURING COMPANY, a Pennsylvania
corporation, ("Joy") , authorized to and doing business in Salt Lake
County, State of Utah, previously requested that the City issue industrial
revenue bonds to finance the cost of a manufacturing facility for Western
consisting of land, building, improvements, machinery and equipment (the
"Project") , at a cost of approximately $1,200,000; said revenue bonds
were preliminarily approved pursuant to a Resolution of the Board of
Commissioners dated February 24, 1977; and
WHEREAS, Joy and Western have subsequently made a request to modify
certain technical aspects of the proposed industrial revenue bond issue
and to reduce the amount thereof to $1,000,000 principal amount; and
WHEREAS, the City desires, pursuant to representations and request
of Joy and Western to issue such bonds to finance the cost of purchasing
and constructing the building, improvements, machinery and equipment for
the Project by the issuance of revenue bonds under the Act in an amount
not to exceed $1,000,000; and
WHEREAS, such bonds will be payable solely from the revenues and
receipts from the Project and will not constitute nor give rise to any
general obligations or liability of the City against its general credit
or taxing powers and from which, among other things, Joy will agree to
hold City harmless; and
WHEREAS, the payment of principal of, and interest on, said bonds
and other charges in connection with said bonds will become the sole
obligation of Joy pursuant to a Loan Agreement with the City, secured by
a Trust Indenture by which the Promissory Note of Joy representing an
unconditional promise to pay according to its terms, is pledged to a
Trustee for the benefit of bondholders; and
WHEREAS, Joy has agreed to negotiate the sale of the bonds and
appoint a national bank headquartered in Utah as Trustee, all with the
approval of the City and in accordance with state law.
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 State Act, and that the Project will promote the welfare of
the City.
2. That the Board of Commissioners of Salt Lake City hereby tenta-
tively approves the Project to be financed out of the proceeds of
approximately $1,000,000 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. It shall not be necessary
that the City take title to the Project for the purposes of the bond
issue.
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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, including, but not limited to, a Loan
Agreement, a Trust Indenture and a Bond Purchase Agreement to be reviewed
and approved by the City Attorney's Office. Joy and Western must meet all
City, State and Federal statutory requirements for the Project and issu-
ance of said bonds.
Passed by the Board of Commissioners of Salt Lake City, Utah, this
11th day of May, 1977.
'41/a
MAYOR
COMMISSIONER
C TONE
COMMIS IONER
COMMISSIONER