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HomeMy WebLinkAbout1119CITY OF KENT, WASHINGTON RESOLUTION NO. 1119 A RESOLUTION of the City Council of the City of Kent, Washington, approving the issuance of industrial development bonds by the City of Kent Economic Development Corporation for $700,000, and approving Resolution No. 1986-45 of the City of Kent Economic Development Corporation authorizing the sale of the bonds to provide funds to finance certain industrial development facilities for Northwest Aluminum Products, Inc., in the City of Kent, Washington, and related matters; approving execution and delivery by the City of Kent Economic Development Corporation of the Indenture of Trust and Loan Agreement both dated as of December 1, 1986 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, as amended {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, Northwest Aluminum Products, Inc., a Washing~on 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. 1986-45 proposes to issue and sell its revenue bonds in the principal amount of $700,000 pursuant to the provisions of the Act for the purpose of assisting in financing a portion of 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 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; NOW, THEREFORE, - 2 - 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 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 bonds or other obligations (the "Bonds") pursuant to the provisions of the Act and further specifically approves the form of Resolution No. 1986-45 of the Issuer providing for the issuance of its Bonds in the principal amount of $700,000 to assist in financing the cost of the Project, together with the costs incident to the authorization, sale, issuance and delivery of the Bonds. Section 3. The City approves the form of and the execution and delivery by the Issuer of the following financing documents, copies of which are attached to the Issuer's Resolution No. 1986-45: 3.1 Indenture of Trust dated as of December 1, 1986, between the Issuer and First Interstate Bank of Washington, N.A. as Trustee; 3.2 Loan Agreement dated as of December 1, 1986, between the Issuer and the Company; - 3 - 3.3 Bond Purchase Agreement to be dated the date of closing between E. F. Hutton & Company Inc. as Underwriter and the Issuer; 3.4 Remarketing Agreement dated as of December 1, 1986 among E. F. Hutton & Company Inc. as Remarketing Agent, the Company, and First Interstate Bank of Washington, N.A. as Trustee; 3.5 Pledge and Security Agreement dated as of December 1, 1986, among the Company, Old National Bank of Washington and United States National Bank of Oregon as the Secured Party, First Interstate Bank of Washington, N.A. as Custody Agent, United States Trust Company of New York as Paying Agent/Registrar and E. F. Hutton & Company Inc. as Remarketing Agent; 3.6 Deeds of Trust, Security Agreements and Assignments of Leases and Rents among the=Company as the Grantor, and the Issuer, United States National Bank of Oregon and Old National Bank of Washington as the Beneficiaries, dated as of December 1, 1986; 3.7 Official Statement to be dated the date of closing to be delivered by the Issuer with the approval of the Company; together with the Exhibits, if any, thereto and the certificates and other documents, if any, required thereby (collectively - 4 - called the "financing documents"). The Issuer may make 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 substan- tial conformity with the documents hereby approved and as may be reasonable and necessary to facilitate the issuance and sale of the Bonds and the loan of the proceeds thereof to the Company and the accomplishment of any matters related thereto. Passed at a regular meeting of the City Council of the City of Kent this lst day of December, 1986. Concurred in by the Mayor of the City of Kent thisr7\~' day of December, 1986. /~~\~It\ ( ~ ).-c~~~l_ Dan/kelleher, Mayor ATTEST: APPROVED AS TO FORM: ~~ IJ1d /Lil~~'--- Adting City Attorney 2764k - 5 -