HomeMy WebLinkAboutCity Council Committees - Economic Development Corporation - 09/18/1990 SPECIAL MEETING OF THE ECONOMIC DEVELOPMENT CORPORATION
September 18, 1990
Proper legal notice having been given, a special meeting of the City of
Kent Economic Development Corporation was called to order at 5 : 30 p .m.
in the second floor conference room of the Kent City Hall .
PRESENT:
Chairman of the Board Jim White, Boardmembers Steve Dowell and Jon John-
son, Corporate Counsel Bill Williamson, City Attorney Roger Lubovich,
Bond Counsel David Thompson of Preston Thorgrimson, and Deputy City Clerk
Brenda Jacober.
BAER FAHILY PARTNERSHIP:
Thompson distributed copies of the EDC resolution and explained that
this is a meat processing facility which packages fresh and frozen meat
and distributes it to restaurants , airlines and catering companies . He
noted that the Baer family has had an operation in Kent for some time,
and that the bonds would provide for expansion of the Kent facility and
relocation of the Seattle facility to the Kent location. He noted for
Dowell that they employ approximately forty people .
Thompson noted that the resolution approves other documents , one of
• which is an indemnification and compensation agreement which makes clear
that there can be no obligation on the part of the City. He noted for
Lubovich that the City's only obligation would be whatever is passed
through the City through the bond process , and that a small fee is
collected. Upon Lubovich' s question, Thompson noted that there is no
outside liability as far as performance on the bond. He also noted that
the City assigns its rights , under these documents , directly to the bank,
and gives them the right to collect on the bonds as well as the obliga-
tion to handle the collection. He noted for Dowell that it is a ten-
year bond. Thompson clarified for Lubovich that the trust and security
agreement signs fixtures and equipment over to the bank. He noted that
Ron Baer and his mother both personally gurantee the debt . He explained
that the Baer Family Partnership owns the land and will own the building
and lease the facility and equipment to the corporation. He noted for
Dowell that these are non-recourse bonds , and that the bank can foreclose
on the property or go after the guarantors , but not the City. He
explained that fees come to the Economic Development Corporation on an
annual basis , based on a percentage of how much of the bonds are still
outstanding.
Dowell moved to approve Resolution 1990-50 authorizing the bonds as
described. Johnson seconded and the motion carried unanimously .
ADJOURNMENT:
The meeting adjourned at 5 :45 p :m. 7
Brenda Jacob
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Deputy City ,Cle k