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HomeMy WebLinkAbout1079CITY OF KENT, WASHINGTON RESOLUTION NO. ;'1.2/?)f A RESOLUTION of the City Council of the City of Kent, Washington, approving the issuance of an indus- trial development revenue bond by the City of Kent Economic Development Corporation for $1,910,000, and approving Resolution No. 1985-~ of the City of Kent Economic Development Corporation authorizing the sale of a bond to provide funds to finance certain indus- trial development facilities for Colonial Cedar Company, Inc., in the City of Kent, Washington, and related matters; approving execution and delivery by the City of Kent Economic Development Corporation of a Bond Purchase Contract dated as of December 1, 1985, a Loan Agreement dated as of December 1, 1985, and a Depository Agreement and Assignment dated as of December 1, 1985. WHEREAS, the City of Kent Economic Development Corporation (the "Issuer") is authorized and empowered by the provisions of Chapter 300, Laws of 1981 of the State of Washington (Chapter 39.84 RCW) (the "Act"), to issue nonrecourse revenue bonds for the purpose of facilitating economic development and employment opportunities and financing all or part of the cost of acquiring and constructing industrial development facilities in the City of Kent, Washington (the "City"); WHEREAS, in order to facilitate economic development and employment opportunities, Colonial Cedar Company, Inc., a Washington corporation (the "Company"), intends to acquire and construct certain industrial development facilities (the "Project") in the City; WHEREAS, upon the request of the Company and after due consideration of the acquisition, construction and financing of the Project as promoting the purposes of the Act and the public purposes of the Issuer, the Issuer by Resolution No. 1985-37 proposes to issue and sell its revenue bond in the principal amount of $1,910,000 pursuant to the provisions of the Act for the purpose of assisting in financing the costs of the Project; and WHEREAS, the Act requires that such a proposal to issue nonrecourse industrial development revenue bonds be approved by the City inasmuch as the City exercises planning jurisdiction over the area in which the Project is located; and WHEREAS, the City Council of the City finds that all City planning requirements for the Project have been or reasonably may be expected to be satisfied and that the financing of the Project should be approved under S~ction 39.84.060 of the Act; WHEREAS, the City is the municipality under whose auspices the Issuer was created pursuant to the provisions of the Act; WHEREAS, Section 39.84.060 of the Act requires the Issuer to obtain the approval of the City prior to issuing its bonds, and Section 39.84.100(6) of the Act requires the City to approve by resolution any agreement by the Issuer to issue bonds and further requires that the City specifically approve the resolu- tion of the Issuer providing for the issuance of the bonds no more than sixty days before the date of the sale of the bonds; WHEREAS, the City has held a public hearing on the proposed issuance of industrial development revenue bonds as required by - 2 - Section 103(k) of the Internal Revenue Code of 1954, as amended; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, as follows: Section 1. The establishment and expansion of the Company's cedar wood products manufacturing business in the City and the State of Washington will result in significant benefits to the City and the State, will contribute to the alleviation of unemployment in the City and the State, will have a favorable impact upon the economy of the City and the State and will promote the welfare of the citizens of the City and the State. Section 2. The City approves the issuance and sale by the Issuer of its nonrecourse industrial development revenue bond or other obligations (the "Bond") pursuant to the provisions of the Act and further specifically approves the form of Resolution No. 1985-~ of the Issuer providing for the issuance of its Bond in the principal amount of $1,910,000 to assist in financing the cost of the Project, together with the costs incident to the authorization, sale, issuance and delivery of the Bond. Section 3. The City approves the form of and the execution and delivery by the Issuer of the Bond Purchase Contract dated as of December 1, 1985, among the Issuer, Peoples National Bank of Washington as the purchaser of the Bond and the Company as the user of the Project; the Loan Agreement dated as of December l, 1985, by and between the Issuer and the Company; a Depository Agreement and Assignment dated as of December 1, 1985, by and between the Issuer and Peoples National Bank of - 3 - Washington as Depository of the Bond proceeds; and a Deed of Trust, Security Agreement and Assignment of Rents and Leases dated as of December 1, 1985, given by the Company for the benefit of the Issuer. The Issuer may make or approve such additions, modifications and deletions in such Agreements and the Exhibits thereto and certificates and other documents required thereby as are deemed by the Issuer not to be inconsis- tent with the purpose of this Resolution and in substantial conformity with the documents hereby approved and as may be reasonable and necessary to facilitate the issuance and sale of the Bond and the loan of the proceeds thereof to the Company and the accomplishment of any matters related thereto. The foregoing resolution was adopted by the City Council of the City of Kent, Washington, and approved by the Mayor, at a regular open public meeting this 2nd day of Decmeber, 1985. May~ ATTEST: FORM APPROVED: 209lk - 4 - CERTIFICATE I, the undersigned, City Clerk of the City of Kent, Washington (herein called the "City"), DO HEREBY CERTIFY: 1. That the attached Resolution No. /D79 (herein called ' the "Resolution") is a true and correct copy of a resolution of the City as adopted at a meeting of the City Council held on~e-;z 19~ and duly recorded in my office. 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a legal quorum was present throughout the meeting arid a legally sufficient number of members of the City Council voted in the proper manner for the adoption of the Resolution; that all other requirements and proceed- ings incident to the proper adoption of the Resolution have been duly fulfilled, carried out and otherwise observed, and that I am authorized to execute this certificate. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City this ~ day of ~ , 19 (CITY SEAL) ,