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HomeMy WebLinkAbout1083CITY OF KENT, WASHINGTON RESOLUTION NO. /{)a~ A RESOLUTION of the City Council of the City of Kent, Washington, approving the issuance of industrial develop- ment bonds by the City of Kent Economic Development Corpo- ration for $2,000,000, and approving Resolution No. 1985-40 of the City of Kent Economic Development Corporation au- thorizing the sale of the bonds to provide funds to finance certain industrial development facilities for TJ Cycles Ltd., in the City of Kent, Washington, and related matters; approving execution and delivery by the City of Kent Eco- nomic Development Corporation of the Indenture, Loan Agree- ment and Bond Purchase Contract each dated as of Decem- ber 1, 1985 and other related financing documents. 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 acquir- ing and constructing industrial development facilities in the City of Kent, Washington (the "City"); WHEREAS, in order to facilitate economic development and employment opportunities, TJ Cycles Ltd., a Washington general partnership (the "Company"), intends to acquire and construct certain industrial development facilities (the "Project") in the City; 0 121485/2771Y 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. 1985-40 proposes to issue and sell its revenue bonds in the principal amount of $2,000,000 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 Section 39.84.060 of the Act; and WHEREAS, the City is the municipality under whose auspices the Issuer was created pursuant to the provisions of the Act; and 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 -2- 121485/2771Y the resolution 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 Tax Equity and Fiscal Responsibility Act of 1982 ("TEFRA") states that no municipality may approve the issuance of industrial development revenue bonds without having first made provision for public vote or comment; WHEREAS, notice has been given in accordance with the Open Public Meetings Act, Chapter 42.30 RCW, and TEFRA of a public hearing to be held this date for the purpose of soliciting comments by citizens and affected residents in the locality of the Project regarding the issuance of the bonds by the Issuer; and WHEREAS, a public hearing was held by this City Council this date at which citizens in the locality of the Project had the opportunity to offer comments with regard to the above topics and this City Council has considered those comments; NOW, THEREFORE , BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, as follows: Section 1. The establishment of the Company's distribution 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 -3- 121485/2771Y 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 obligation (the "Bond") pursuant to the provisions of the Act and further specifically approves the form of Reso- lution No. 1985-40 of the Issuer providing for the issuance of its Bond in the principal amount of $2,000,000 to assist in financing the cost of the Project, together with the costs incident to the authorization, sales, issuance and delivery of the Bond. Section 3. The City approves the form of and the execution and delivery by the Issuer of the following financing docu- ments, copies of which are attached to the Issuer's Resolution No. 1985-40: 3.1 Indenture dated as of December 1, 1985, between the Issuer and Rainier National Bank as Initial Registered OWner and as Depositary; 3.2 Loan Agreement dated as of December 1, 1985, between the Issuer and the Company; 3.3 Bond Purchase Contract dated as of December 1, 1985, between the Issuer and Rainier National Bank, as Purchaser, and accepted by the Company; together with the Exhibits, if any, thereto and the certifi- cates and other documents, if any, required thereby (collec- tively called the "financing documents"). The Issuer may make -4- 121485/2771Y or approve such additions, modifications and deletions in the financing documents as are deemed by the Issuer not to be inconsistent with the purpose of this Resolution and in sub- stantial 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 16th day of December, 1985. ATTEST: FORM APPROVED: -5-