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HomeMy WebLinkAboutORDINANCES-1981-088-O-81i 88-0-81 8/ 13/ 81 88-0-81 AN ORDINANCE Authorizing the Financing of Industrial Development Facilities Constituting an "Economic Development Project" within j the meaning of Ordinance No. 13-0-81 Adopted by the City Council on March 2, 1981; Authorizing ' the Issuance of Not to Exceed $2,400,000 Industrial Development Revenue Bond (Pelouze Scale Co. Project) ; in Connection therewith; Authorizing the Execution and Delivery of an Agreement Among the City of Evanston, Illinois, Pelouze Scale Co. and First National Bank and Trust Company of Evanston Providing for the Making of a Loan to Pelouze Scale Co. from the Proceeds of said I Bond, the Security for said Bond, the Sale of said i! Bond to First National Bank and Trust Company of " 'i Evanston and Related Matters. ` WHEREAS, pursuant to Ordinance 13-0-81 adopted by the City. ' Council on March 2, 1981 (the "Enabling Ordinance"), duly adopted by the City Council of the City of Evanston, Illinois (hereinafter referred to • "Issuer"), as the the Issuer is authorized to issue its revenue bonds for the purpose of financing, in whole or in part, the costs of any "economic development project", as defined in the Enabling Ordinance for the purpose of relieving the conditions of unemployment and encouraging the increase. of commerce and industry in the City of Evanston, Illinois; and WHEREAS, as a result of negotiations between the Issuer and Pelouze Scale Co. (hereinafter sometimes referred to as the "Company"), an Illinois corporation, the Company has entered into contracts for the acquisition, construction and equipping of certain industrial facilities (the "Project") in the City of Evanston, Illinois and constituting an economic development project within the meaning of the Enabling Ordinance and which will be of the character of accomplish the purposes provided by the Enabling Ordinance, and the Issuer is willing to issue its revenue • bond to help finance the cost of the Project and to enter into an agree- ;' rient with the Company and First National Bank and Trust Company of Evanston,! ±' I f i i • 88-0-81 8/13/81 as the institutional lender (the "Institutional Lender"), upon terms which will produce revenues and receipts sufficient to provide for the prompt payment at maturity of the principal, interest and redemption pre- mium, if any, on such revenue bond, all as set forth in the details and provisions of the Agreement hereinafter identified; and WHEREAS, it is necessary and proper for the interests and convenience of the Issuer and its inhabitants to authorize the financing of the Project, and the same is a matter pertaining to the government and affairs of the Issuer; and WHEREAS, it is necessary to authorize the execution of an Agreement to be dated as of September 1, 1981 (the "Agreement") among the Issuer, the Company and the Institutional Lender, under the terms of which the Issuer agrees to sell its revenue bond to the Institutional Lender, to loan the proceeds to the Company and the Company.agrees to pay to the Issuer or its assignee amounts sufficient to pay at maturity the principal, interest and redemption premium, if any, on the revenue bond hereinafter authorized and will evidence such obligations by executing its Direct Obligation Note in a principal amount equal to the principal amount of the hereinafter -defined Bond (the "Note"); and WHEREAS, it is necessary for the Issuer to execute and deliver an Assignment and Security Agreement to be dated as of September 1, 1981 (the "Assignment") to the Institutional Lender; and WHEREAS, the Issuer has caused to be prepared and presented to this meeting the following documents, which the Issuer proposes to enter i, i into: !� 1. The form of Agreement; ? 2. The form of Assignment; and !} 3. The form of the Industrial Development Revenue Bond it (Pelouze Scale Co. Project) (the "Bond"). i� -2- 0 0 88-0-81 8/13/81 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS, AS FOLLOWS: SECTION 1: That the form, terms and provisions of the proposed Agreement be, and they hereby are, in all respects approved and that the Mayor and the City Clerk of the Issuer be, and they are hereby, authorized, empowered and directed to execute, attest and deliver the Agreement in the name and on behalf of the Issuer, and there- upon to cause the Agreement to be delivered to the Company and the In- stitutional Lender; that the Agreement is to be in substantially the form presented to and before this meeting and hereby approved or with such changes therein as shall be approved by the Mayor of the Issuer, his exe- cution thereof to constitute conclusive evidence of his approval of"any and all changes or revisions therein from the form of Agreement before the • meeting; and that from and after the execution and delivery of the Agree- ment, the officials, agents and employees of the Issuer are hereby authoriz- ed, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Agreement as executed. SECTION 2: That the form, terms and provisions of the proposed Assignment be, and they hereby are, in all respects approved, and that the Mayor and the City Clerk of the Issuer be, and they are hereby, authorized, empowered and directed to execute, attest and deliver the Assignment in the name and on; behalf of the Issuer, and there- upon to cause the Assignment to be delivered to the Institutional Lender and the Assignment shall constitute a lien for the security of the Bond issued under the Agreement upon the revenues and receipts derived from the Agreement, including, but not limited to, the Note; that the Assign- ment is to be in substantially the form presented to and before this meeting and hereby approved, or with such changes therein as shall be ij - 3- a 88-0-81 8/13/81 approved by the Mayor of the Issuer, his execution thereof to constitute conclusive evidence of his approval of any and all changes or revisions therein from the form of Assignment before this meeting; and that from and after the execution and delivery of the Assignment, the officials,agents and employees of the Issuer and hereby authorized, empowered and directed t; to do all such acts and things and to execute all such documents as may ii be necessary to carry out and comply with the provisions of the Assignment as executed. SECTION 3: That the Mayor of the Issuer be and is hereby authorized, empowered and directed to cause the Bond to be prepared in the aggregate principal amount of not to exceed $2,400,000. The Bond will be dated the date of issue and will be expressed to bear interest at the rate per annum set forth in the Agreement, payable in quarterly installments of interest and semi-annual installments of principal as set forth in the Agreement, as executed, in such form and having the other terms and provisions specified in the Agreement (as executed and delivered); and that said Bond shall be executed in the name of the Issuer with the manual signatures of the Mayor and City Clerk of the Issuer, and the seal of the Issuer may be affixed thereto or imprinted thereon. SECTION 4: That the form of the Bond submitted to this meeting, subject to appropriate insertion and revision in order to comply with the provisions of the Agreement be, and the same hereby are, approved, and when the same shall be executed on behalf of the Issuer in the manner contemplated by the Agreement and this Ordinance in the aggregate principal amount of not to exceed $2,400,000, it shall re- present the approved form of Bond of the Issuer. i; ;j -4- • 88-0-81 • 8/13/81 y SECTION 5: That the Mayor or City Clerk of the Issuer be and . E ;i is hereby authorized, empowered and directed to issue and sell to the Institutional Lender the Bond in the principal amount of not to exceed $2,400,000, as provided in the Agreement, at a price j of 100% of the principal amount thereof. E� I SECTION.6: That from and after the execution and delivery of said documents, the proper officials, agents and j employees of the Issuer and hereby authorized, empowered and directed to do all such acts and things and to execute all such documents (including t a Mortgage and Security Agreement with respect to the Project) as may be necessary to carry out and comply with the provisions of said documents as" executed and to further the purposes and intent of this Ordinance, including { the preamble hereto. SECTION 7: That all acts of the officials of the Issuer which are in conformity with the purposes and intent of this Ordinance and in furtherance of the issuance and sale of the Bond in the aggregate principal amount of not to exceed $2,400,000 and the finan- cing of the Project be, and the same hereby are, in all respects, approved and confirmed. SECTION 8: That the Issuer hereby elects to have the provisions of Section 103(b)(6)(D) of the Internal Revenue Code of 1954, as amended, apply to the issue of the Bond and the Mayor or City Clerk of the Issuer are hereby authorized, empowered and directed to file such election with the Internal Revenue Service for and on behalf of the Issuer. SECTION 9: .That the provisions of this Ordinance are hereby declared to be separable, and if any section, phrase or provision shall, for any reason, be declared to be invalid, such de- claration shall not affect the validity of the remainder of the sections, phrases or provisions. -5- • • • t Z j 88-0-81 8/13/81 I SECTION 10: That the Company shall pay all fees.and expenses of the Issuer in connection with the issuance of the i Bonds including fees of Counsel of the Issuer and an administrative fee of i the Issuer in the amount of 1% of the aggregate principal amount of the Bonds issued. SECTION 11: That al.1 ordinances, resolutions, orders or parts thereof in conflict with the provisions of this Ordinance are, to the extent of such conflict, hereby repealed. SECTION 12: That this Ordinance shall be in immediate effect from and after its adoption. a• Introduced d Adopted ATTEST: , 1981 , 1981 Approved )4 , 1981 ' Mayo City C1 e'rk Approved as .to form: / CorporatioK Counsel i is i; 1 i -6-