HomeMy WebLinkAboutResolutions - No. IDA-11RESOLUTION NO. IDA -11
A RESOLUTION OF THE INDUSTRIAL DEVELOPMENT AUTHORITY
OF THE CITY OF LODI PROVIDING PRELIMINARY APPROVAL OF THE
ISSUANCE OF BONDS FOR THE PURPOSE OF PROVIDING FINANCING
FOR CERTAIN MANUFACTURING FACILITIES
RESOLVED, by the Industrial Development Authority of the City of
Lodi, as follows:
WHEREAS, the Industrial Development Authority of the City of Lodi
(the "Authority") is authorized pursuant to the California Industrial
Development Financing Act, commencing with section 91500 of the
California Government Code (the "Act") to issue and sell its bonds for
the purpose of providing financing for the acquisition and construction
of manufacturing facilities located within the area of operation of the
Authority; and
WHEREAS, Hix Steel, Inc. for itself or for another subsidiary of
Ferro Union Inc., Hix Steel, Inc.'s parent organization, or of another
subsidiary of Ferro Union Inc.'s parent organization, Samsteel, Inc.
(the "Owner"), has filed an application (the "Application") with the
Authority and has requested that the Authority issue and sell its bonds
for the purpose of providing financing for the acquisition and
construction of certain manufacturing facilities to be located within
the area of operation of the Authority, which facilities are described
in Exhibit "A" attached hereto and by this reference incorporated
herein (the "Project") within the area of operation of the Authority;
and
WHEREAS, the Authority may not issue bonds to finance the Project
until the Board of Directors makes certain determinations with respect
to public benefits and qualifications of the Project as required by the
Act, and the California Debt Limit Allocation Committee ("CDLAC") has
provided to the Authority pursuant to a request of the City of Lodi
(the "City") a portion of the Private Activity Bond Limit of the State
of California (the "State"); and
WHEREAS, the Board of Directors has carefully considered and
discussed the information contained in the Application and other
information it deems necessary to make such determinations; and
WHEREAS, United States Income Tax Regulations section 1.150-2
provides generally that proceeds of tax-exempt debt are not deemed to
be expended when such proceeds are used for reimbursement of
expenditures made prior to the date of issuance of such debt unless
certain procedures are followed, one of which is a requirement that
(with certain exceptions), prior to the payment of any such
expenditure, the issuer declares an intention to reimburse such
expenditure;
WHEREAS, it is in the public interest, for public benefit and in
furtherance of the public purposes of the Authority that the Board of
Directors provides preliminary approval of the issuance of bonds for
the aforesaid purposes.
NOW, THEREFORE, it is hereby FOUND, DETERMINED AND ORDERED as
follows:
Section 1. The Authority hereby preliminarily approves the
issuance and sale of tax-exempt industrial development revenue bonds of
the Authority pursuant to the Act in a principal amount not to exceed
$5,000,000 (the "Bonds") for the purpose of providing financing to the
Owner for the acquisition and construction of the Project.
Section 2. The Authority hereby determines that it will take
all action necessary or advisable in connection with the issuance and
sale of the Bonds and the execution of the financing agreements for the
Project.
Section 3. The Bonds shall be special obligations of the
Authority secured solely as set forth in the indenture authorizing the
Bonds, and shall not constitute an indebtedness of the Authority, the
City or a loan of credit thereof within the meaning of any
constitutional or statutory provisions.
Section 4. The issuance and sale of the Bonds shall be upon
such terms and conditions as may be mutually agreed upon by the
Authority, the Owner and the purchaser or purchasers of the Bonds and
shall be subject to completion of proceedings for issuance, sale and
delivery of the Bonds by the Authority.
Section 5. The proceeds of the Bonds shall include such related
and necessary issuance costs, administrative expenses, debt service
reserves and interest payments as may be required to accomplish the
financing successfully.
Section 6. The Board of Directors hereby finds that the
issuance of the bonds as described herein is a substantial inducement
to the Owner to acquire and construct the Project within the area of
operation of the Authority and that the Project will further the public
purposes of the Authority.
Section 7. The Board of Directors hereby finds and determines:
(a) That the use of the Project for an industrial
manufacturing facility is in accordance with section 91503(a) of
the Act;
(b) That the use of the Project is likely to produce
employment benefits securing or increasing the number of
employees of the Owner as more particularly set forth in the
Application;
(c) That the issuance of the Bonds by the Authority in an
amount not to exceed $5,000,000 to finance the acquisition of the
Project is likely to be a substantial factor in the accrual of
each of the public benefits resulting from the use of the Project
as proposed in the Application; and
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(d) That the proposed financing is otherwise in accord
with the purposes and requirements of the Act.
Section 8. The Secretary of the Authority is hereby directed to
publish a notice, or shall cause the same to be published, of the
receipt of the application substantially in the form of Exhibit "B"
hereto in compliance with section 91530(e) of the Government Code.
Section 9. The Authority hereby requests that the City,
pursuant to section 8869.80 et seq. of the Government Code of the State
of California (the "State Bond Act") and the rules and procedures of
the California Debt Limit Allocation Committee ("CDLAC"), make an
application on behalf of the Authority to CDLAC to obtain a portion of
the Private Activity Bond Limit Allocation of the State of California
for the Project and the Bonds. The Chairman or the Executive Director
and all other officers and representatives of the Authority are hereby
authorized and directed to participate in such application process and
any actions by the Authority or the City taken with respect thereto
prior to the date hereof are hereby ratified. The Authority hereby
requests the California Industrial Development Financing Advisory
Commission to make the determinations authorized by section 91531 of
the Act.
Section 10. The Authority hereby appoints Jones Hall Hill &
White, A Professional Law Corporation (the "Attorneys"), as bond
counsel for the Authority in connection with the issuance of the
Bonds. The form of agreement for legal services by and between the
Authority and the Attorneys on file with the Secretary of the Authority
is hereby approved and the Secretary of the Authority is hereby
authorized to execute such agreement with such changes as the Secretary
deems necessary.
Section 11. The Authority hereby declares that it reasonably
expects (i) to pay certain costs of the Project prior to the date of
issuance of the Bonds and (ii) to use a portion of the proceeds of the
Bonds for reimbursement of expenditures for the Project that are paid
before the date of issuance of the Bonds.
Section 12. The maximum principal amount of the Bonds is
$5,000,000.
Section 13. The Secretary of the Authority is hereby authorized
and directed to cause the City Council of the City, as the elected body
of the Authority, to hold a public hearing to approve the issuance of
the Bonds by the Authority as required by federal law.
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VOTE:
APPROVED AND ADOPTED THIS 6TH DAY OF APRIL, 1994 BY THE FOLLOWING
Ayes: Authorizing Members - Mann, Pennino, Snider and
Sieglock (Mayor)
Noes: Authorizing Members - Davenport
Abstain: Authorizing Members - None
Absent: Authorizing Members - None
Attest:
Jennifer Perrin
Secretary
Industrial Development Authority,
City of Lodi, California
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Jacik A. Sieglock
Chairperson, Industrial Development
Authority, City of Lodi, California
I, the undersigned Secretary of the Lodi Industrial Development
Authority, hereby certify that the foregoing is a full, true and
correct copy of Resolution No. IDA -11 duly adopted by the Board of
Directors of the Authority at a meeting thereof held on the 6th day of
April, 1994 by the following vote:
J n fifer i) Perrin, Secretary
Industrial Development Authority,
City of Lodi, California
IDA -11
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EXHIBIT A
DESCRIPTION OF PROJECT
The Project includes (a) acquisition of an approximately 19.91
acre site located at 400 South Beckman Road, Lodi, California, together
with a building thereon consisting of approximately 100,000 square feet
of manufacturing/warehousing space and approximately 3,000 square feet
of office space, (b) construction of facility improvements, and (c)
acquisition of equipment, all to be used in connection with the
processing of steel.
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EXHIBIT B
NOTICE OF FILING OF APPLICATION UNDER THE
CALIFORNIA INDUSTRIAL DEVELOPMENT FINANCING ACT
NOTICE IS HEREBY GIVEN, pursuant to section 91531(e) of the
California Government Code, that there has been filed with the
Industrial Development Authority of the City of Lodi (the "Authority")
the following described application for the issuance of bonds by the
Authority pursuant to the California Industrial Development Financing
Act.
Applicant: Hix Steel, Inc.
Facilities Proposed to be Financed: (a) acquisition of an
approximately 19.91 acre site located at 400 South Beckman Road, Lodi,
California, together with a building thereon consisting of
approximately 100,000 square feet of manufacturing/warehousing space
and approximately 3,000 square feet of office space, (b) construction
of facility improvements, and (c) acquisition of equipment, all to be
used in connection with the processing of steel.
Estimated Principal Amount of Bonds to Be Issued: $5,000,000.
Review of the File: The application and supporting information
are available in the office of the City Clerk, Lodi City hall, 221 West
Pine Street, Lodi, California, between the hours of 8:00 A.M. and 5:00
P.M. Monday through Friday.
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