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HomeMy WebLinkAboutCity Council Committees - Economic Development Corporation - 12/02/1985 (3) - -r CITY OF KENT ECONOMIC DEVELOPMENT CORPORATION SPECIAL MEETING December 2, 1985 The special meeting was called to order by Vice Chairman Bailey at 6: 40 p.m. Present: BOARD MEMBERS: Tom Bailey Leo Powers Walt Ramsey OFFICERS: P. Stephen DiJulio, General Counsel Marie Jensen, Secretary of the Board Bill Tonkin, Roberts & Shefelman, Bond Counsel ALSO PRESENT: Dick Cushing, City Administrator Cynthia Weed, Preston..Thorgrimson Walt Ramsey, new Board member replacing Mike Miller, was welcomed. COLONIAL CEDAR Bill Tonkin introduced Resolution 1985-37 approving the documents for the issuance and sale of a bond in the amount of $1,910, 000 for Colonial Cedar, for acquisition and additions to their Kent plant. Powers moved to adopt Resolution 1985-37. Ramsey seconded and the motion carried. Tonkin noted that the purchaser was Peoples National Bank with a floating interest rate, with a final maturity of 15 years. This transaction is expected to close on December 16. HOLMAN DISTRIBUTION CENTER Tonkin introduced Resolution 1985-38 approving the documents for the issuance and sale of a bond in the amount of $4, 500,000 to build an additional warehouse at Holman' s existing facility in Kent. It was noted that Holman Distribution was established in Oregon in the early 1900 ' s. Powers moved to adopt Resolution 1985-38. Ramsey seconded and the motion carried. Tonkin explained that the bond would be sold to First Interstate Bank of Oregon, with a floating interest rate and a final maturity of 20 years. Tonkin noted that there was no problem with having the trustee out-of-state, and it was expected that the transaction would close on December 11. WORLDWIDE DISTRIBUTORS, INC. At the suggestion of DiJulio, Powers moved to set a special meeting for December 16, 1985 at 6: 30 p.m. to consider the Bond Resolution of Worldwide Distributors, Inc. Ramsey seconded and the motion • carried. . Page 2 REYNOLDS ALUMINUM Cynthia Weed introduced Resolution 1985-39 approving the documents for issuance and sale of bonds in the amount of $750,000 for waste- water treatment pollution control equipment for the Kent plant. She noted that this was one of nine issues across the country in process to purchase this equipment. She noted that the bonds are proposed to be sold with the backing of a letter of credit issued by National Westminister Bank of New York and that the bonds would mature in the year 2015. The issue is expected to close on December 11. The underwriter is Goldman Sachs Company and the trustee is Texas Commerce Bank of Houston. Weed confirmed for Ramsey that Reynolds was negotiating with the Department of Ecology about the pollution control equipment. Powers moved to adopt Resolution 1985-39. Ramsey seconded and the motion carried. Upon questions Weeds explained that the first recourse of the bond holder would be against the letter of credit from National Westmini- ster Bank, then to Reynolds. She noted that if an alternate letter of credit were to be issued, it would require the City' s approval. MINUTES Powers moved to approve the minutes of the Special Meeting of November 18, 1985, without comment. Bailey seconded and the motion carried. NEXT MEETING A special meeting will be held on December 16, 1985 at 6:30 p.m. to consider a Bond Resolution for Worldwide Distributors, Inc. MARIE JE SECRETARY OF THE BOARD