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Home My WebLink AboutRESOLUTIONS-1990-026-R-90• 4/3/90 A RESOLUTION 26-R-90 • Resolution Authorizing the Execution and Delivery of A Memorandum of Intent between the City of Evanston, Illinois, and Belmont Steel Corporation Providing For the Issuance By Said City of Revenue Bonds WHEREAS, the City of Evanston (hereinafter called the "City") recognizes that it is necessary for the general welfare and economy of the public that the City endeavor to provide permanent opportunities for employment; and WHEREAS, the City is a Home Rule Unit of Government and is authorized under the provisions of Ordinance 13-0-81 adopted on March 2, 1981, (the "Enabling Ordinance"), to acquire, construct and finance economic development projects, to lease, sell or finance the same to or for any person, and to provide for the issuance of revenue bonds in conjunction therewith; and WHEREAS, the City in order to impl;e,mdnt the public purposes enumeral.:ed in the Enabling Ordinance and in furtherance thereof to induce Belmont Steel Corporation (hereinafter called the "Corporation") or its assigns, to acquire and improve an existing industrial and office building (hereinafter collectively called the "Project"), within the corporate limits of the City, has indicated its intent to issue its revenue bonds in an amount not to exceed $5,500,000 under and pursuant to the provisions of the Enabling Ordinance and to apply the proceeds therefrom to the payment of all or a portion of the costs of acquiring, constructing and equipping the Project and to lease, sell or finance the Project to or for the Corporation; and r1 L_J C 26-R-90 4/3/90 WHEREAS, the Corporation, after considering a number of • possible locations within the State of Illinois, and in reliance upon the intent of the City to finance the acquisition, construction, and equipping the Project through the issuance of revenue bonds under the provisions of the Enabling Ordinance, has determined to locate the Project within the corporate limits of the City; and � J WHEREAS, it is now deemed advisable to authorize the execution and deliver; by the City of Memorandum of Intent. expressing formally and in writing the understanding heretofore informally agreed upon by the City and the Corporation. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EVANS'.I'ON, ILLINOIS, AS FOLLOWS: SECTION ONE: The Mayor is hereby authorised and directed to execute a Memorandum of Intent by and between the City and Corporation, and the City Clerk is hereby authorized and directed to affix the seal of the City thereto and to attest the same; and said Mayor and City Clerk are hereby authorized and directed to cause said Memorandum of Intent to be delivered to, accepted and executed by the Corporation, said Memorandum of Intent, which is hereby approved and incorporated by reference and made a part of this authorizing resolution, to be in substantially the form attached hereto as Exhibit A. • SECTION TWO: This Resolution of Intent and said Memorandum of Intent, does not constitute a commitment of the City to any further action regarding the issuance of bonds; and any further action shall be considered only after evidence has been provided of the necessary and appropriate contracts, as reviewed and approved by the City. -2- 26-R-90 4/3/90 SECTION TBREE: All resolutions and orders, or parts, thereof, to conflict with the provisions of this resolution are, to the extent of such conflict, hereby repealed and this resolution shall be in immediate effect from and after its adoption. Mayor ATTEST: f 4-4 ity Clerk Adopted: L„1990 -3- MEMORANDUM OF INTENT THIS MEMORANDUM OF INTENT,, made and entered into this �� ,L1�: day of�%ir1/ 1990,by and between the CITY OF EVANSTON', a Home Rule municipality in'Cook County, Illinois I (hereinafter called the "City", and Belmont Steel Corporation 1 (hereinafter called the "Corporation") as agent or nominee. W I T N E S S E T H: �HERHAS, the CITY is� authorized under the provisions of Ordinance 13-0-81, adopted, on March 2, 1981 (the "Enabling Ordinance) to acquire, construct and finance economic development projects, to lease, sell or finance the same to or I � ' for any person,,and to provide for.the issuance of revenue bonds in conjunction therewith; and ! WHEREAS, the City, in order to implement the public I pdrpo,ses enumerated in the Enabling Ordinance and in furtherance thereof to induce the Corporation to acquire and improve an existing commercial and office building (hereinafter i collectively called the "Project"), all to be located within the corporate limits of the City, has indicated its intent to issue its revenue bonds under and pursuant to the provisions of the Enabling Ordinance and to apply the proceeds therefrom to the I payment of all or a portion of the cost of acquiring, i Construction and equipping the Project; and j WHEREAS, the Corporation after considering a number of possi;ble'locations within the State of Illinois, and in reliance uponl1the intent of the City to finance the cost of the acquisition, construction and equipping the Project through the issuance of its revenue bonds under the provisions of the Enab;ingArdinance, has determined to locate the Project within the corporate limits of the 'City; and r t i } I WHEREAS, it is now deemed advisable to express formally and in writing the understanding heretofore informally I discussed by the parties hereto recognize and intend as follows: A. The -City represents and intends: i 1. That the City is authorized by the provisions qf; the 'Enabling Ordinance to finance the acquisition, const,,ruction and equipment of the Project and, for the purpose 1 of,paying all or a portion of the cost of such acquisition, i I constiruction and equipping, including- expenses incidental thereto„ is authorized as aforesaid to issue its revenue bonds I CI, . payable from the revenues and income derived by the City'from the Project. j2'. That the City intends, subject in all respects to,tte provisions and requirements of the Enabling Ordinance and to alsale of its revenue bonds on terms satisfactory to the { Corporation, to use its best efforts to authorize, issue, sell and deliver its revenue bonds, to be issued in one or more series in an aggregate principal amount of not more than $5,500,000 (the exact principal amount to be fixed by resolution I or ordinance of the City at a later date and agreed to by the Corporation, but not to exceed the cost' of the Project and expenses;incidental thereto as estimated at the time of issuance 1 � ' of said revenue bonds) and apply the proceeds therefrom to the payment of the cost of acquiring, constructing and equipping the Project, provided that prior to the issuance and delivery of suchlrevenue bonds there shall have been entered into between the Corporationland the City appropriate contracts whereby the Corporation will agree to enter into financing agreements with the City upon terms which will comply with the provisions of the ffi Enabling Ordinance and which will provide for the payment by the Corporation of amounts which will be sufficient to enable the Ci,ty,to pay the principal of and interest on such revenue bonds. . I : 3: That the financing of the acquisition, construction and equipping of the Project by the City is for a ;I`•��• proper public corporate purpose and that 'the financing thereof for the; Corporation is necessary; to implement the public ' f purposes,enumerated in the Enabling Ordinance. 1 B. The•Corporation represents and;intends: I>' i i 1. That the Project will result in increased !; employment in the City. ' 24 That if the proposed revenue bonds (including the rate of interest thereon) of the City are satisfactory to i I i the Ciorporation; it will enter into financing agreements with the City upon terms which will be sufficient to pay the cost of I acquiring, constructing and equipping the Project as evidenced by'• s1uch revenue bonds to be issued for the account of the Project,,and will enter into such appropriate contracts with the "i City with regard to the foregoing prior to the issuance and II , •' delivery of any�such revenue bonds by the City. j 3. That the Corporation intends during the term of any such,financing agreements to cause the Project to be used or occupied'primarily for the use as a commercial and office facility. I ? �C. It ;is further recognized and' intended between the I parties hereto as follows: 1. That the revenue bonds to 'be issued by the City {i I 6hlall,ne�er constitute an indebtedness of the City or a loan of the Credit thereof within the meaning of any constitutional or statutory provision, and such fact shall be plainly stated on i the 4ace'.of each of said bonds. No holder of any of said bonds ! ' f Shall ever have the right;to compel any exercise of the taxing power, of, the City to pay said bonds or the interest thereon. The rin,cipal of, premium,i:if any, ;and, interest on such revenue '?I .bbnd to be issued to finance the cost of. the Project shall be All" se,cu�,ed.by, a pledge, either!to the purchaser and holders of said bond or to a trustee acting under an indenture of trust for the benefit of the holders of said bonds, of the revenues and income i ' i ( derived by the City from the Project and may be further secured 1 byi a �', mortgage on the Project, and shall be additionally secured i by ai pledge to said trustee of the aforesaid financing a � reements between the Cit :g y,and the Corporation. i 2; That a primary inducement.of the Corporation in {I locatlinglithe Project within the City'is the intent of the City to finance the acquisition, construction'and equipping of the I ' protect through the issuance of its revenue bonds pursuant to the provisions of the Enabling Ordinance. 1 3. That it is desirable ;that the Corporation rather than the City arrange for the`,acquisition or construction I : U of;the Projectjin order to ,ensure that the Project will conform toithe requirements of the Corporation for;whose use the Project IS t d� be designed. + 4. That this Memorandum of :Intent shall insure to the benefit of the parties hereto and their respective successors and assigns; provided, however, that in the event the i I ! b6nd6 are not issued or sold as contemplated herein there shall be no liability',on the part of the City or of the Corporation or of any of their officers or employees for such non -issuance or non- elivery, and provided further, that the Corporation shall havelthe right,iprivilege and option to assign its rights and obligations hereunder to a limited Partnership or other entity as may be organized to complete the Project, and that unless Corporation's obligations are also ;assigned, Corporation shall ' I temain liable under the Memorandum of Intent. 5. That the City shall be paid the amount of one- half;of one percent (1/2% of 1%) of, the face value of the bonds as;an issuance and service charge. Said payment shall be made from the proceeds of the bonds. That all other costs incidental to` the i'ssuance'of such revenue bonds including City attorney fees, printing; fees, and all other similar expenses shall be paiidjfrom the proceeds of said bond issue. That in no event shall, the City be liable for any costs or'expenses arising from the Issuance of` said Bonds.. ; ! I f ! i I i fl + 6.' That this Memorandum of Intent may be executed ` in separate counterparts, all of such shall be deemed a single f ! instrument �! IN WITNESS WHEREOF, the CITY OF EVANSTON, acting by and through its corporate authorities, has caused its corporate name t'o;behereunto subscribed by JOAN Wi BARR, its duly authorized Mayor, and attested under its official seal by KIRSTEN DAVIS, i t S City 'Clerk , and BELMON� STEEL CORPORATION, � I I � I j by JOS{EPH B., PRINGIE, its duly authorized President and i ! attes'ted'under its corporate seal by its Secretary or Assistant Secretary, all being done as of the year and date first above i x4ritten. t I f 7 CITY OF EVANSTON, ILLINOIS I, I • I !f ' ( SEALS) ATTEST'' I City Clerk i j , s i (SEAT) r A TEST: } " Secretary I f' iI i i s , I � I I , j f I i } i I --5^ B y : Mayor i i BELMONT;STEEL CORPORATION B) President