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89 of 1979 - Resolution authorizing the issuance of $1,600,000 Industrial Revenue Bonds to Shire Warehouse Associ • recerlber 23, 1979 Honorable Jennings Phillips, Jr. Commissioner of Public Affairs and Finance 211 City and County Building Salt Lake City, Utah Dear Commissioner Phillips: The rcard of City Commissioners, at its meeting today, passed Resolution No. 89 of 1979, authorizing the issuance of$1,600,000 Industrial Revenue Bonds to Shire Warehouse Associates. Yours truly, $///► • r City Recorder ms CC: Auditor Attorney Treasurer Shire Warehouse _Files -2 ROLL CALL / SJc 1._;.e City. l'ta,`.,_ - -- December 26_ , '-°79_ . \l VOTING. I -'.yc _;_a}' Mr. Chairman .1. 7 Resolution No. 89 of 1979, authorizing the issuance of$1,600,000.00 Agraz I 11 Industrial Revenue Bonds to Shire Warehouse Associates, was passed. Greener y Campbell ti Phillips Result / • Acting Co i ssione ffa' s and Finance (S'e°`tUre) Passed by the Bard of Commissioners of Salt Lake City,Utah, Gq Recorder t.ie}or • ij RESOLUTION OF SALT LAKE CITY STATE OF UTAH RESOLUTION NO. 89/1979 A RESOLUTION AUTHORIZING THE ISSUANCE OF NOT EXCEEDING $1,600,000.00 PRINCIPAL AMOUNT OF INDUSTRIAL REVENUE BONDS OF SALT LAKE CITY, STATE OF UTAH, FOR THE PURPOSE OF FINANCING THE ACQUISITION AND/OR CONSTRUCTION OF A WAREHOUSE FACILITY; AUTHORIZING THE EXECUTION OF A FINANCING AGREEMENT AND RELATED DOCUMENTS: PROVIDING FOR A NOTE FROM SHIRE WAREHOUSE ASSOCIATES, A PLEDGE THEREOF AND OTHER TERMS FOR SECURITY OF SAID INDUSTRIAL REVENUE BONDS; PROVIDING FOR THE REMEDIES OF THE HOLDER OF SAID INDUSTRIAL REVENUE BONDS AND FOR THE RIGHTS AND DUTIES OF A TRUSTEE UNDER A TRUST INDENTURE; AND OTHERWISE APPROVING SUCH ACTIONS AS MAY BE NECESSARY FOR ISSUANCE OF SAID BONDS. WHEREAS, Salt Lake City, State of Utah (the "City" herein) desires to promote, stimulate and develop the general economic welfare and prosperity of the City and to achieve greater industrial development of the State of Utah; and WHEREAS, the City is authorized pursuant to the provisions of the Utah Industrial Facilities Development Act, found in Chapter 17 of Title 11, Utah Code Annotated, 1953, as amended, (sometimes referred to herein as the "Act") to issue Industrial Revenue Bonds for the purpose of financing the acquisition and construction of warehouse facilities, (all herein sometimes referred to as the "Project"); and WHEREAS, the City has determined to issue Industrial Revenue Bonds in the aggregate principal amount of not exceeding $1,600,000.00 for the purposes of financing the acquisition and construction of the Project hereinafter described, together with expenses related to the issuance and sale of the Bonds; and WHEREAS, the City, by a resolution dated October 11, 1979, expressed an intent to finance acquisition and construction of such warehouse facility for use by Shire Warehouse Associates (hereinafter the "Company") , the costs of which in whole or in part are to be derived through issuance of Industrial Revenue Bonds not to exceed $1,600,000.00 principal amount in aggregate; and WHEREAS, upon fulfillment of all conditions hereof, the City proposes to enter into a Financing Agreement with the Company. Under said Financing Agreement the City will finance part of the Project for the Company in consideration of (1) certain note payments which will be sufficient to pay the principal of and interest and other fees and charges pertaining to said Industrial Revenue Bonds, (2) additional covenants of the -2- Company as will be set forth in detail in said Financing Agreement; and (3) security for the benefit of bondholders through pledge and assignment of said note and a Trust Indenture representing, among other things, a trust deed and security agreement against the Project; and WHEREAS, the City proposes to sell all of the Industrial Revenue Bonds to be issued under authority of this Resolution to a purchaser who has been or will be obtained through private negotiation. The issuance of Industrial Revenue Bonds and sale thereof are intended to be conducted in such manner as to be exempt from registration under the Securities Act of 1933, the Securities Exchange Act of 1934, the Trust Indenture Act of 1939, the Utah State Securities Act, and other similar laws. The term "Purchaser" as used herein shall include all bondholders, if more than one may exist from time to time. WHEREAS, the plan to proceed with the Project, including financing the acquisition and construction of the facility, has been and hereby is approved by the City, there being no other or further governing body or governmental entity of any kind required under law to provide approval thereof; and WHEREAS, the property on which the Project is to be located is within the boundaries of the City, shall be acquired by the Company and will thereafter be owned by the Company for purposes of this Bond issue, and the use of the Project as -3- • contemplated by the Company is consistent with all zoning laws and other ordinances of the City; and WHEREAS, the City finds that it will be desirable to appoint a Trustee to administer the funds and discharge the fiduciary duties related to said Industrial Revenue Bonds and the City also deems it advisable and in its best interest to enter into and execute the Financing Agreement and the Trust Indenture to provide for the issuance of said Industrial Revenue Bonds, to secure payment of same, and to describe the rights and duties of the Trustee. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF SALT LAKE CITY, STATE OF UTAH, THAT: Section 1. Project Authorized. The financing of the acquisition and construction of the Proiect are hereby authorized in accordance with law. Said Project shall consist of certain real property located in Salt Lake City, together with a warehouse facility constructed thereon. Section 2. Bonds Authorized. For the purposes of paying (or reimbursing to the Company) all or part of the costs of the acquisition and construction of the Project and all costs incidental thereto including costs of financing through the subject Bonds, the City hereby authorizes the issuance of Bonds described as "Salt Lake City Industrial Revenue Bonds," Dated as of December 1, 1979, Shire Warehouse Associates Proiect) -4- (collectively called the "Bonds" herein) in the aggregate principal amount of not exceeding $1,600,000.00. Said Bonds may be issued and sold at par all at one time or in increments from time to time, under terms which may be more fully defined in the Trust Indenture, and shall be issued in denominations as may be agreed with the Purchaser. Each of the Bonds may be dated as of December 1, 1.979 or as of such other date as may be agreed with the Purchaser, and will bear interest commencing as of the date shown on each Bond. The Bonds will mature serially over their respective maturities. Principal and interest shall be payable to the holders of such Bonds semiannually. Section 3. Source of Payment. The principal of and interest on the Bonds authorized to bP issued pursuant to this Resolution, shall be payable solely from the note payments from the Company or other revenues from the Project including other funds which may be held from time to time by the Trustee for such purposes, and payment thereof shall be secured as provided herein. Nothing in this Resolution or any documents issued or executed under authority hereof shall be construed in any manner to impose any financial obligation or liability whatever on the City and no part of the payment of expenses, principal, interest or other charges on the Bonds shall be or become a charge against -5- any revenues or taxes of the City other than revenues constructively received by the City through the Trustee pursuant to the Financing Agreement. Section 4. Disposition of Proceeds. The proceeds from the sale of Bonds to be issued under authority hereof shall be applied for the purposes for which the Bonds are issued as herein described, and shall be disbursed through the Trustee. If for any reason any portion of the proceeds actually received from sale shall be applied to the payment of the principal of and/or the interest on the Bonds, the resulting prepayment shall be in inverse order of maturities. The purposes for which the Bonds shall be issued shall include, without limitation, the actual entire or partial costs of financing the acquisition and improvement of the real estate needed for the Project and acquiring or constructing all or part of the building, and other appurtenances thereto, and may include reimbursement to the Company for all costs actually paid after October 11, 1979, to the extent of costs allowable hereunder. The allowable Project costs shall also include all fees and costs of architects, engineers and contractors, and all expenses in connection with authorization, sale and issuance of Bonds, including Bond Counsel fees, corporate counsel and other legal fees, appraisal fees, title insurance premiums, financial and accounting advisors' fees or bond purchase commitment fees, if any, trustees' and paying agents' fees, -6- printing costs, advertising costs, the interest on the Bonds accruing from the date of issuance thereof to the date of sale thereof, if any, and all other lawful costs and expenses necessary or convenient to the authorization, acquisition, construction and financing of the Project, which may be lawfully incurred prior to construction, but after October 11, 1979, during construction and for a reasonable period of time after completion of such construction. Section 5. Professionals Employed. The Board of Commissioners hereby authorizes, ratifies and confirms the employment by the Company, acting for the City solely for purposes of this Bond issue, and acting on its own behalf as user of the Project, for the purposes of proceeding with the Project, and the Bond issue: (a) As Trustee and paying agent under the Trust Indenture authorized herein, First Security Bank of Utah, National Association, through its Corporate Trust Department at Salt Lake City, or in the event that Bank cannot serve, any other financial institution authorized by law to hold trusts of the nature herein described; (b) Such other and further persons, firms or corporations, including, but not limited to, architects, engineers, contractors, financial advisors, attorneys for the company and other agents reasonably necessary or convenient for -7- the purpose of authorizing, acquiring, planning, constructing, financing and utilizing the Project or any parts thereof; and (c) The law firm of Ray, Quinney & Nebeker, of Salt Lake City, Utah, which shall act as Bond Counsel in preparation of principal documents and rendering the legal opinion for the benefit of Bond Purchasers. Section 6. Sale of Bonds. At any time after this Resolution is duly adopted, and subject to the conditions hereof, the City, through its duly authorized officers, shall have authority to issue and sell the Bonds. It is the intent of this Resolution to authorize sale of the Bonds in such denominations as the City or its authorized officers shall determine upon consultation with the Company and the Purchaser, and as authorized in this Resolution, with the effect that the Bonds shall be issued and sold, and proceeds received therefrom, for the purposes of financing the Project and payment of such expenses as are authorized hereunder to be paid from proceeds of the Bonds. All Bond proceeds shall be held initially by the Trustee, and disbursed or otherwise administered in accordance with the Trust Indenture, consistent with the purposes described in this Resolution. In the event less than the full Bond issue is sold initially, and if additional proper expenses shall subsequently become necessary for completion or payment of the Project or -8- portions thereof, the City, without the necessity of further resolution, shall be empowered to issue and sell additional bonds up to the aggregate principal amount of the $1,600,000.00 authorized hereby, if and on the condition that it shall have contracted with the Company for the note payments sufficient to service all such additional indebtedness and expenses to be incurred in connection therewith. In the event less than the full issue of Bonds is sold initially, each Bond so issued and sold shall nevertheless maintain its designated maturity until paid, and the Company together with the Bond Purchaser and the Trustee shall agree upon any adjustments which must be made in the aggregate or overall payment schedules, giving due consideration for the amount of the monthly payments which must then be made by the Company to the Trustee for the Bond Fund. The issuance and sale of such Bonds and solicitations therefor, may be effected to or through the Purchaser without registration of the Bonds as securities, pursuant to exemptions provided under Section 3(a) (2) of the Securities Act of 1933 and Section 3(a) (12) of the Securities Exchange Act of 1934, exemptions from the qualification provisions of the Trust Indenture Act of 1939 and similar exemptions under applicable state law. Section 7. Form of Bonds. The Bonds shall be substantially in the wording as shown in the form incorporated in -9- this Section 7 of this Resolution with completion of such blanks or substitutions as necessary prior to issuance and sale of each Bond. Each issued Bond shall bear interest at the rate specified for the series of which it forms a part, with principal and interest payable semiannually, with maturities on an amortized basis providing for substantially equal semiannual payments of interest and principal over the respective terms, or otherwise as may be agreed between the Purchaser, the Company and the Trustee. The principal and interest on each of the Bonds shall be payable to the holder thereof in United States money, without discount or premium, through the office of the paying agent to be established, on the dates and in the manner heretofore stated. All Bonds issued under authority hereof shall contain the following certificate plainly stated on the face of each Bond, certified by the recorder of the City at the time of issuance: THIS BOND REPRESENTS A LIMITED OBLIGATION OF SALT LAKE CITY AND DOES NOT CONSTITUTE OR GIVE RISE TO A GENERAL OBLIGATION OR LIABILITY OF SALT LAKE CITY OR A CHARGE AGAINST ITS GENERAL CREDIT OR TAXING POWERS. THIS BOND IS ONE OF THE BONDS FORMING A PART OF THE ISSUE AND SERIES DESCRIBED HEREIN AND REFERRED TO IN THE TRUST INDENTURE. (SAMPLE - DO NOT SIGN] Each Bond shall also contain in the text language to the following effect. -10- Pursuant to the authority vested in Salt Lake City under Section 11-17-13, Utah Code Annotated, 1953, as amended, the City acting for and on behalf of the State of Utah, does hereby pledge to and agree with the holder of this Bond that the State of Utah will not alter, impair or limit the rights vested hereby until this Bond and all interest payments thereon have been fully met and discharged. The Bonds shall not be redeemable earlier than maturity except at the times and on the conditions to be stated in the issued Bonds. The officers of the City required to sign in execution, attestation or certification of the Bonds and interest coupons, if any, may do so by facsimile signature printed or engraved thereon, except that at least one of the signatures of the City Recorder shall be manual on each Bond. In addition, the official corporate seal of the City may be printed or engraved on the Bonds and coupons, if any, where required. The Bonds may be issued with or without coupons attached, as agreed between the Company, the Purchaser and the Trustee. The Bonds may be authenticated by the Trustee if requested by the Purchaser. -11- UNITED STATES OF AMERICA STATE OF UTAH COUNTY OF SALT LAKE SALT LAKE CITY INDUSTRIAL REVENUE BOND DATED DECEMBER 1, 1979 PART OF AN ISSUE IN THE PRINCIPAL AMOUNT NOT TO EXCEED $1,600,000.00 Salt Lake City, a body politic of. the State of Utah (the "City" herein) , for value received, acknowledges itself to be indebted and hereby promises to pav to the holder hereof from the source as hereinafter provided, on , 19 , the principal, sum of $ , and in like manner to pay interest on said sum from the date hereof at the rate of eight and one-half percent (8-1/2%) per annum on June 1, 1980, and semiannually thereafter on December 1 and June 1 of each year until said principal sum is paid, except as the provisions hereinafter set forth regarding redemption prior to the maturity may become applicable hereto; both -12- principal of and interest on this Bond are payable in lawful money of the United States of America through the office of the paying agent and trustee, First Security Bank of Utah, National Association, Corporate Trust Department, Main at First South Office, 79 South Main Street, Salt Lake City, Utah 84111 (the "Trustee" herein) . This Bond is part of an authorized issue of Bonds limited in aggregate principal amount of $1,600,000.00, issued and authorized to be issued for the purposes of paying all or part of the costs of financing the acquisition and/or improvement of land and a warehouse facility in Salt Lake City, Utah, for the purposes of providing the same for use by Shire Warehouse Associates, a Utah general partnership (the "COMPANY") , including the warehouse and other appurtenances (all herein sometimes referred to as the "Project") , or the reimbursement to the COMPANY of any interim construction costs used for such purposes, pursuant to a Financing Agreement ("Agreement" herein) by and between the City and the COMPANY and paying all expenses in connection with the authorization, sale and issuance of the Bonds. All of said purposes are accomplished for the promotion, stimulation and development of the general economic welfare and prosperity of the citizens of the City and to achieve greater industrial development in the State of Utah. -13- • • The Bonds are issued pursuant to and subject to the provisions of: (a) the Utah Industrial Facilities Development Act, Chapter 17 of Title 11, Utah Code Annotated, i953, as amended; (b) a Resolution heretofore enacted by the City on October 11, 1979; (c) the Trust Indenture, also authorized by said Act and said Resolution, by and between the City, the COMPANY and the Trustee; and (d) the aforementioned Agreement, and to all amendments and supplements thereto. Reference is made to all such documents for the provisions, among others, with respect to the nature and extent of the security, the rights, the duties and obligations of the City, the COMPANY and the Trustee and the holders of the Bonds and the terms upon which the Bonds are or may become issued and secured. The principal and interest due or to become due on this Bond and the issue of Bonds of which it forms a part are payable solely from the payments to be derived from the Note of the Company and the Agreement pertaining to the Project, and the payment of said principal and interest has been and is secured by a pledge and assignment of the Note and all such payments, together with a lien on all property forming a part of the Project, all of which is more fully defined in the Trust Indenture. The Bonds and interest coupons appertaining thereto, if any, are limited obligations of the City as herein elsewhere certified and do not now and shall never constitute an -14- indebtedness of the City within the meaning of any state constitutional provisions or statutory limitations appertaining to municipal indebtedness, and the obligations represented by the Bonds shall not give rise to any pecuniary liability of the City whatsoever. Note payments sufficient for the prompt payment when due of the principal and interest on the Bonds are to be paid by the COMPANY for the account of the City and remitted directly to Trustee for deposit in a fund created for this purpose designated "Salt Lake City Industrial Revenue Bonds Fund -- Shire Warehouse Associates Project", to be used for timely Bond payment. Pursuant to the authority vested in the City under Section 11-17-13, Utah Code Annotated, 1953, as amended, the City acting for and on behalf of the State of Utah, does hereby pledge to and agree with the holder of this Bond that the State of Utah will not alter, impair or limit the rights vested hereby until this Bond and all interest payments thereon have been fully met and discharged. Interest accruing on this Bond will be paid only on presentation and surrender of the attached interest coupons, if any, as they respectively become due (or if no coupons are attached, payment of interest will be made when due according to the proper calculation thereof by the paying agent or pursuant to a previously accepted schedule). The principal of this Bond shall be payable to the proper owner and holder thereof upon presentation and surrender of this Bond. -15- The provisions hereof shall in no manner be construed to authorize public distribution of or public trading in this Bond or of the issue or any of the series of which it forms a part, except in accordance with applicable state and federal law. The Bonds are issued without registration under exemptions provided in Section 3(a) (2) of the Securities Exchange Act of 1934, the qualification provisions of the Trust Indenture Act of 1939 and similar exceptions under applicable state law. The holder of this Bond shall have no right to enforce the provisions of the Trust Indenture or to institute action to enforce the covenants therein, or to take any action with respect to any event of default thereunder, or to institute, appear in or defend any suit or other proceedings with respect thereto, except as provided therein, all of which actions may be taken only through or with the approval of the Trustee. This Bond and the issue of which it forms a part shall be noncallable and nonredeemable. It is hereby certified, recited and declared that all acts, conditions and things required to exist, happen and be performed precedent to and in execution and delivery of the Trust Indenture and the issuance of this Bond do exist, have happened and have been performed in due time, form and manner as required by law and that the issuance of this Bond and the issue of which it forms a part does not violate or contravene any constitutional -16- • or statutory limitation of any other Bond, contract or other evidence of indebtedness or obligation to which the City is a party. IN WITNESS WHEREOF, Salt Lake City, State of Utah, has caused this Bond to be duly executed by its Mayor and duly attested by its Recorder, thereunto duly authorized, end its corporate seal to be affixed hereto, and has caused the interest coupons attached hereto, if any, to be executed by the signatures of said officers, by facsimile or otherwise, al]. dated as of the 1st day of December, 1979. SALT LAKE CITY By [SAMPLE - DO NOT SIGN1 Mayor ATTEST: By [SAMPLE - DO NOT SIGN1 Recorder THIS BOND REPRESENTS A LIMITED OBLIGATION OF SALT LAKE CITY AND DOES NOT CONSTITUTE OR GIVE RISE TO A GENERAL OBLIGATION OR LIABILITY OF SALT LAKE CITY OR A CHARGE AGAINST ITS GENERAL CREDIT OR TAXING POWERS. THIS BOND IS ONE OF THE BONDS FORMING A PART OF THE ISSUE AND SERIES DESCRIBED HEREIN AND REFERRED TO IN THE TRUST INDENTURE. By [SAMPLE - DO NOT SIGN1 Recorder -17- Section 8. Bonds as Eligible Investments. It is hereby declared to be the intent of this Resolution that the Industrial Revenue Bonds issued under authority hereof shall be securities in which all public officers and public bodies of the State of Utah and its political subdivisions may invest and may accept on deposit in accordance with law, together with creating hereby an eligible investment for all insurance companies, credit unions, building and loan associations, trust companies, banking associations, investment companies, executors and trustees and other fiduciaries, pension profit-sharing and retirement funds and all other such public or quasi-public organizations specified by statutes of the State of Utah. Section 9. Tax Exemptions. It is hereby declared to be the intent of this Resolution that the Bonds issued under authority hereof and the interest income therefrom, shall be exempt from all taxes imposed by the State of Utah or any political subdivisions thereof. It is further declared to be the intent hereof that the interest income from the Bonds shall be exempt from taxation under the Internal Revenue Code. The City is hereby instructed to execute and file with the Internal Revenue Service Center where the Company files its federal tax returns, as regulations may prescribe, such statements of election as may be required to secure the exemption under the provisions of Section 103 of the Internal Revenue Code and regulations promulgated -18- thereunder, which statements may be based in part on information to be furnished by the Company. All normal tax benefits, such as depreciation deductions, investment tax credits, sales and other tax deductions, and the like, shall belong to the Company. The Project and real and personal property included therein shall not be exempt from ad valorem and similar taxes imposed by the State of Utah and any political subdivision thereof (except to the extent therein of any nominal interests of the City) , it being the intent hereof that no exemption shall extend to the economic and beneficial interests of the Company or any other person, firm or corporation, all of which private interests in the Project or any of the property used in connection therewith shall be subject to ad valorem taxation in accordance with law. Section 10. Construction Contracts or Mortgages. The City hereby authorizes, ratifies and confirms the contracting by the Company with such contractors, subcontractors or vendors as may be or may have been selected by the Company for the purpose of constructing or completing construction of the buildings, equipment, fixtures and other appurtenances to be used for or in connection with the Project. The City hereby disclaims any objections to such contracts heretofore lawfully entered into. If construction has been partially completed prior to adoption hereof, the Bond proceeds may be used for the purposes of paying -19- • • any remaining financing, construction or acquisition costs and/or reimbursing the Company for such allowable costs as it may have paid consistent with Section 4 of this Resolution. It shall not have been necessary for the Company or the City to require public bidding with respect to any contracts for the acquisition, construction, equipping or financing of the Project or any part thereof, or in connection with any of the contracts heretofore or subsequently entered for such purposes. The City authorizes the Company to enter into contracts with any substitute, successor or additional contractors or vendors as circumstances may require for the purposes hereof. The Company and/or the contractors, as applicable, shall cause to be obtained and/or continued for the Project builders' risk insurance against fire, windstorm and other usual casualties for the full insurable value of the improvements during construction as well as public liability coverage for the contractors, the Company and the City during and after construction as their interests may appear, and the costs thereof shall be deemed one of the included and allowable Project costs under Section 4 of this Resolution. Section 11. Trust Indenture and Financing Agreement. The City hereby authorizes and instructs the Mayor to execute, and the Recorder to attest under the corporate seal of the City, the following additional documents, all of which shall contain such terms and provisions furthering the Project and financing thereof -20- as may be mutually agreeable to the City, the Company and the Purchaser: (a) Trust Indenture, which shall provide that First Security Bank of Utah, National Association, or any other financial institution lawfully competent, shall be Trustee for the purpose of holding the proceeds of the sales of the Bonds, investing in accordance with law the unneeded portion of said proceeds and distributing from time to time to the Company or to the contractors and other persons to whom the Company has become indebted such proceeds as may be necessary to pay all of the costs of the Project as more fully defined in Section 4 of this Resolution. Said Trustee shall further be entitled to administer the trust estate which shall come into its possession or control, including but not limited to the note payments from the Company under the Financing Agreement and the pledge of the same made to secure payment of the principal, interest, premium, if any, fees and other costs under the Bonds, and any proceeds of reinvesting the estate, with due accounting upon request of the City for all funds handled by it. Said Trust Indenture shall contain provisions in the nature of a deed of trust and a security agreement by which all of the interests of the Company in the real property underlying the Project financed by the Bonds, shall be encumbered and conveyed in trust, and the personal property and fixtures financed by the Bonds shall become subject to a security -21- interest, for the purpose of securing payment of principal, interest, premium, if any, fees and other costs under the Bonds and for other appropriate purposes relating to protection of the City and the holders of said Bonds. Said Trust Indenture shall be duly recorded on the records of the Salt Lake County Recorder and perfection of personal property security interests shall be handled in accordance with the Uniform Commercial Code. (b) Financing Agreement, by which the Project shall be held and used by the Company in consideration of the issuance of the Bonds by the City, and the covenants of the Company evidenced by one or more promissory notes for such amounts as may be sufficient over the term of the Bonds to pay all principal, interest, fees and other costs under the Bonds. Such note payments shall be made monthly to the Trustee, acting on behalf of the City, in sufficient amount to enable the Trustee to make the semiannual payments of principal, interest, premium, if any, fees and other costs under the Bonds. The Financing Agreement shall contain additional covenants of the Company as may be required by the City and for the assurances of the holders of the Bonds. The Company shall execute a certificate and deliver the same to the Trustee indicating the exact date it accepts completion of construction and takes possession of the building. In addition, the Company will certify to the Trustee the completion of acquisition and installation of equipment, fixtures -22- • and appurtenances financed by the Bonds. Said certificates shall be without prejudice as to the right of the Company to pursue contractors, suppliers or other third parties for any defect, breach of warranty or contract or otherwise in connection therewith. The Financing Agreement may further provide that the Company, at its own expense, may make alterations, additions and improvements to the Project and install equipment thereon which shall not impair the value thereof, and that the Company shall be fully responsible for making all repairs and sustaining the maintenance of the Project and all property in connection therewith during the term of the Bonds, including payment of such insurance coverage as the City and the holder of the Bonds shall require. All improvements to the buildings and fixtures attached thereto shall be covered by the lien of the Trust Indenture. All replacements of equipment or appurtenances shall be of the same or better qualify, may be made without prior approval of the City, Trustee or Purchaser and will come under the lien or security interest of the Trust Indenture. The Financing Agreement shall further provide that the Company shall be responsible and shall pay any and all taxes levied on the Project or any other assessments or costs in connection therewith which would be normal incidents to ownership of private property. -23- The Financing Agreement may provide for leasing to third parties by the Company of all or part of the Project, provided that the Company shall in no manner be relieved of any obligations under the note and Financing Agreement. The Financing Agreement shall further provide for such terms and conditions as may be mutually agreed between the City, the Purchaser and the Company for the protection of the City and the Purchaser, and providing such remedies on default thereof as may be required or allowed by law in the transaction. (c) Other documents, which shall be reasonably necessary or convenient for carrying out the purposes of this Resolution, the Project and the financing thereof, including such further assurances for the benefit of the holders of the Bonds as the Purchaser may require and as may be agreeable to the City and the Company. Section 12. Binding Covenants. All covenants, stipulations, obligations and agreements contained in this Resolution, the Trust Indenture, the Financing Agreement and other documents executed in connection therewith shall be deemed to be obligations and covenants of the City and binding upon the City, none of which, however, shall create any general obligation of the City or constitute a charge on its taxable property. Except as otherwise provided in this Resolution, all rights, powers and -24- privileges conferred and duties and liabilities imposed upon the City by all of such documents shall be exercised or performed by the Mayor with the attest or concurrence of the Recorder except where applicable statutes or regulations would require action by the entire Board of Commissioners or other officers. No obligation or covenant of the City contained in any of such documents shall be deemed an obligation or covenant of any officer, agent or employee of the City in his or her individual capacity and neither the members of the Board of Commissioners nor any officers of the City issuing or executing the Bonds shall be personally liable on the Bonds or subject to accountability by reason of the issuance thereof. Section 13. Severability. In case any one or more of the provisions of this Resolution, the Trust Indenture, the Financing Agreement, or other documents executed in connection therewith, or of any of the Bonds to be issued under authority hereof, shall for any reason be held by any court of competent jurisdiction to be illegal or invalid, such illegality or invalidity shall not affect any of the other provisions of this Resolution or of any such documents or of the bonds or coupons thereof, and this Resolution and all such documents shall be construed and enforced as if such illegal or invalid provision or provisions had not been contained therein. -25- Section 14. Conditions Precedent. All acts, conditions and things relating to the passage of this Resolution, to provide authority for issuance of the Bonds and execution of the Trust Indenture, Financing Agreement and other documents necessary in connection therewith, required by the Constitution or the Act or other laws of the State of Utah, which must happen, exist and be performed precedent to the passage hereof and the providing said authority, have happened, do exist and have been performed as required by law. Section 15. Officers and Successors. The members of the Board of Commissioners, the Mayor, the Recorder and all other applicable officers, attorneys, and other agents or employees of the City are hereby authorized and instructed to do all acts and things required of them by this Resolution, the Trust Indenture, the Financing Agreement and other documents executed in connection therewith, including the Bonds, for the full punctual and complete performance of all of the terms, covenants and agreements contained therein and constituting obligations of the City. In the event the Mayor, the Recorder, or any other officer of the City shall be replaced hereafter by election, resignation, removal or otherwise, or in the event a designated officer is at any time unable to act by reason of illness, disability or absence from the State of Utah, then in either such event, the duly elected, appointed or acting successor or lawful substitute, as the case -26- may be, shall be entitled to act, including in the execution of Bonds and other documents, and such act or signature shall be fully effective and binding on the City. Section 16. Interpretation. This Resolution, the Trust Indenture, the Financing Agreement, the Bonds and other documents executed in connection therewith shall be interpreted and construed in accordance with the laws of the State of Utah, with the intent and purpose that all such documents shall carry forth the matters necessary for the acquisition, construction and financing of the Project, the issuance and payment of the Bonds and performance of all other obligations of the City herein contained or referred to. Liberal construction of all thereof shall be observed for the assurance and protection of the holders of the Bonds, and any ambiguities or minor errors herein shall not invalidate this Resolution or the effect of publication hereof, and the further documents in furtherance of the Bond issue may be executed in substantial compliance herewith. The terms "purchasers", "holders" or "bondholders" as used herein shall include both the plural and the singular, as applicable. The titles to the various sections contained in this Resolution are for ease of reference only and shall not be considered part of this Resolution if any therein suggests a meaning contrary to the express language of this Resolution. -27- Section 17. Publication. The City shall pursuant to Section 11-17-16 of the Act, and/or pursuant to other City ordinances, rules or regulations, provide for publication of this Resolution in a newspaper of general circulation in Salt Lake County, Utah on the first reasonably possible day of publication following final passage of this Resolution. For a period of thirty (30) days after the date of such publication, any person in interest shall have the right to contest the legality of this Resolution or any Bonds which may be authorized hereby, any provisions made for the security in payment of the Bonds or of any Agreement or Trust Indenture authorization herein; and after the expiration of said thirty (30) days, no person shall have any cause of action whatever to contest the regularity, formality or legality of this Resolution or of any agreement or document authorized hereby. Provided, however, that the Bonds or any of them may be issued at any time after such publication without any waiting period if, in the written opinion of Bond Counsel, no legal impairment of the issued Bonds will be suffered. Section 18. Effective Date. This Resolution shall take effect upon expiration of the 30th day following publication of this Resolution as above provided. SALT LAKE TY ATTEST: By Recorder ed L. Wilson, Mayor * * * * * * * * * * * * * * * * -28- STATE OF UTAH ss. COUNTY OF SALT LAKE I, Mildred V. Higham, a duly chosen, aualified and acting Recorder of Salt Lake City, State of Utah, do hereby certify that the foregoing twenty eight (28) pages, including six (6) pages of Bond Form, are a true and correct copy of a Resolution adopted by the Board of Commissioners of Salt Lake City in proceedings at a regular meeting of said Commission at its Chambers in Salt Lake City, Utah, held pursuant to due, legal and timely notice served upon all Commission members, on Monday , the 24th day December of Nxauamhe , 1979, at the hour of 4:15 o'clock p .m., as recorded by me in the regular official book of records of the proceedings kept in my office and that said proceedings were duly had and taken as therein shown, and that the meeting therein shown was duly held and the persons therein named were present at said meeting and voted as therein shown. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Salt Lake City this 26th day of Ngucr, 1979. 274'-ddia.1O /Vw GC�tvl� Mildred V. Higham, order (SEAL) 3 -29- 141 REMARKS ; Resolutio-, No. By David C. Campbell Authorizing the issuance of$1,600,000 Industrial Revenue Bonds to Shire Warehouse Associates. II; i Ij p tt;R 3000d of Commissiona Ali P.=oa",>W ?) / 4 '�'-1< is 4.` if coy ReCE� I. II I 1116...t t —