HomeMy WebLinkAbout88 of 1976 - A resolution providing for issuance of industrial revenue bonds to finance cost of manufacturing fac Resolution No. �+
B Mayor Ted L. Wilson
r
COMMISSIONER
Providing for issuance of industrial
revenue bonds to finance cost of man-
ufacturing facility for Marmon Group,
Inc. (Michigan) & Keystone Tubular
Service Corp., consisting of land,
building, improvements, machinery &
equipment at a cost of approximately
$2,000,000
?MOM. a bl n eBoardof Cep
and Qrder Fd�
DEC 2 31976
thoti
GCRDER
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1 3 ;I
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RESOLUTION NO. 88
WHEREAS, the City of Salt Lake City, Utah is authorized and
empowered under the provisions of Title 11, Chapter 17, Utah
Code Ann. 1953, as amended (the "Act") , to issue Revenue Bonds
for Industrial Development purposes; and
WHEREAS, the Marmon Group, Inc. (Michigan) , a Delaware
Corporation, hereinafter called the "Guarantor" and Keystone
Tubular Service Corp., a Delaware Corporation, qualified to do
business in the State of Utah, hereinafter called the "Company"
is a subsidiary of the Guarantor, and each has requested that
the City issue Industrial Revenue Bonds to finance the cost of
manufacturing a facility for the Company consisting of land,
building, improvements, machinery and equipment (the "Project")
at a cost of approximately $2,000,000; and
WHEREAS, the City desires 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 $2,000,000; 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 Company and the Guarantor and would not con-
stitute nor give rise to a general obligation or liability of
the City against general credit or taxing powers; 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
WHEREAS, the City, the Guarantor and the Company desire
that the purchase of the land and the purchase and construction
of the building, improvements, machinery and equipment commence
immediately.
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NOW, THEREFORE, BE IT RESOLVED by the governing body of the
City of Salt Lake City, Utah, as follows:
SECTION 1. That the governing body of the 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 Act, and that the,Project will
promote the welfare of the City.
Section 2. That the governing body of the City hereby
approves the Project for the Company and the Guarantor to be
financed out of the proceeds of approximately $2,000,000 principal
amount of the Industrial Revenue Bonds, The Marmon Group Inc.
(Michigan), Series 1976, of the Salt Lake City Corporation to
be issued pursuant to the provisions of the Act.
Section 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 relat-
ing thereto for final action by the governing body of the City.
Section 4. That this Resolution shall take effect
immediately.
Adopted by the governing body of the City of Salt Lake
City, Utah, this 23rd day of December , 1976.
Ted L. Wilso , Mayor
Attest:
61,/ tio ROLLCALL
Mildred V. H' am VOTING Aye Nay
City Recor er -
�Mr.Chairman
Agraz
Greener
Hogensen
Phillips /
Result /