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HomeMy WebLinkAboutS7-81 • ORDINANCE NO. S7-81 AN ORDINANCE PROVIDING FOR THE FINANCING BY THE CITY OF ELGIN, KANE AND COOK COUNTIES, ILLINOIS, OF A PROJECT, AUTHORIZING THE ISSUANCE OF A $900,000 ECONOMIC DEVELOPMENT REVENUE BOND (MODERN TRACK MACHINERY, INC. PROJECT) AND CONFIRMING SALE THEREOF, AND AUTHORIZING EXECUTION OF A LOAN AGREEMENT, A BOND PURCHASE AGREEMENT AND RELATED DOCUMENTS. WHEREAS, the City of Elgin, Kane and Cook Counties, Illinois (the "Municipality" ) is a duly constituted and existing municipality and a "home rule unit" within the meaning of Section 6, Article VII of the Constitution of the State of Illinois; and WHEREAS, the Municipality, pursuant to its powers as a "home rule unit" as implemented by its Ordinance No. S2-80 adopted on February 13, 1980 (the "Act" ) , is authorized and empowered to issue its revenue bonds to finance the costs of "economic development projects" , as defined in the Act , to the end that the Municipality may be able to retain employment, to relieve conditions of unemployment and to encourage the increase of industry within the State of Illinois; and WHEREAS, the Municipality has previously entered into a Memorandum of Agreement dated as of June 10, 1981, with Modern Track Machinery, Inc. , a Delaware corporation (the "Borrower" ) , whereby the Borrower agreed to acquire a building and equipment and other facilities (the "Project" ) located within the boundaries of the Municipality and the Municipality agreed to issue its revenue bonds under the Act to finance the costs of the Project; and WHEREAS, as a result of the Memorandum of Agreement , the Borrower has entered into contracts for the acquisition and con- struction of, and pursuant thereto has or will acquire and construct, the Project, and it is proposed that the Municipality shall enter into a Loan Agreement (the "Agreement" ) with the Borrower pursuant to which the Municipality shall lend the Borrower a sum sufficient to reimburse the Borrower or pay for a portion of the costs of such acquisition and construction and the Municipality is willing to issue its revenue bonds upon terms which will be sufficient to make such loan to the Borrower to finance such portion of the costs of the Project as evidenced by such revenue bonds, all as set forth in the details and provisions of the Agreement; and WHEREAS, it is estimated that the portion of the costs of the Project to be financed by the Municipality, including costs relating to the preparation and issuance of the revenue bonds , will be not less than $900,000; and "Municipality" means the City of Elgin, Kane and Cook Counties, Illinois and its successors and assigns. "Note" means the Promissory Note attached as Exhibit A to the Agreement whereby the Borrower promises to make install- ment payments on the Note in satisfaction of the Borrower' s debt to the Municipality under the Agreement. "Ordinance" means this Ordinance. "Project" means the land, building, equipment and other facilities described in Exhibit B to the Agreement a g portion of the costs of the acquisition and construction of which are to be reimbursed to the Borrower with moneys received under the Agreement. "Prime Rate" means the interest rate publicly announced as such by the American National Bank and Trust Company of Chicago from time to time. "Purchaser" means American National Bank and Trust Company of Chicago. AUTHORIZATION OF THE PROJECT Section 2. In order to promote the general welfare of the Municipality and its inhabitants by retaining existing levels of employment, eventual relieving i g of conditions of unemployment and encouraging the increase of industry, the Project is hereby authorized to be financed as described herein. The estimated cost of the Project in the amount of $900,000 will be provided by the issuance of the Bond hereinafter authorized and the loan of the proceeds thereof to the Borrower. It is hereby found and declared that the financing of the Project for the Borrower and its use thereof as referred to in the preamble of this Ordinance is necessary to accomplish the public purposes described in this Section, in the preamble hereto and in the Act. AUTHORIZATION AND PAYMENT OF BOND Section 3. For the purpose of financing a portion of the costs of the Project, there is hereby authorized to be issued by the Municipality its Economic Development Revenue Bond (Modern p ( r Track Machinery, Inc. Project) in the principal sum of $9 00,000. p p $900, 00. The Bond shall be issued in the form set forth in the Bond Purchase Agreement; shall be dated the date of delivery and payment therefor; and shall be issued as a single fully registered Bond. The Bond -3- • SALE OF THE BOND; LOAN OF SALE PROCEEDS Section 6. (a) The sale to the Purchaser of the Bond pursuant to the terms and conditions of the Bond Purchase Agree- ment is hereby approved by the City Council. (b) The loan of the proceeds of sale of the Bond to the Borrower and the execution by the Borrower of the Note pursuant to the Loan Agreement to evidence such loan is hereby approved by the City Council. (c ) The deposit of the Bond proceeds pursuant to the Depositary Agreement is hereby approved by the City Council. EXECUTION OF DOCUMENTS Section 7. The Agreement, the Bond Purchase Agreement, the Depositary Agreement, the Assignment and the provision for indorsement of the Note in substantially the form in which the same have been presented to the City Council together with such changes thereto as shall be approved by the officers signing the same, such approval to be evidenced by their execution thereof, and which are now on file in the official records of the Munici- pality are hereby authorized and approved. The Mayor is hereby authorized and directed to execute the Agreement, the Bond Purchase Agreement, the Depositary Agree- ment, the Assignment and the indorsement of the Note for and on behalf of the Municipality, and the City Clerk is hereby authorized - to attest the same and to affix thereto the corporate seal of the Municipality. PERFORMANCE PROVISIONS Section 8. The Mayor and the City Clerk for and on behalf of the Municipality be, and each of them hereby is, authorized and directed to do any and all things necessary to effect the per- formance of all obligations of the Municipality under and pursuant to this Ordinance , the making of the loan, the execution and delivery of the Bond and the performance of all other acts of whatever nature necessary to effect and carry out the authority conferred by this Ordinance. The Mayor and the City Clerk be, and they are hereby, further authorized and directed for and on behalf of the Municipality, to execute all papers, documents, certificates and other instruments that may be required to carry out the authority conferred by this Ordinance or to evidence said authority and to exercise and otherwise take all necessary action to the full realiza- tion of the rights, accomplishments and purposes of the Municipality -5- STATE OF ILLINOIS ) SS COUNTY OF KANE ) I, the undersigned City Clerk of the City of Elgin, Kane and Cook Counties, Illinois, in the county and state aforesaid , do hereby certify that the foregoing constitutes a true, correct and complete copy of an Ordinance duly and finally adopted by the governing body of said Municipality at a duly convened regular meeting held on December 9 , 1981. I do further certify that the deliberations of the governing body on the adoption of said Ordinance were taken openly; that said meeting was held at a specified time and place convenient to the public; that notice of said meeting was duly given; and that said meeting was called and held in strict accordance with the provisions of "AN ACT in relation to meetings", approved July 11, 1957, as ant`eiLed, and that said governing body has complied with all of the *plicable provisions of said Act and its procedural rules in the adoption of said Ordinance . IN WITNESS WHEREOF, I have hereunto affixed my official signature and the corporate seal of said City this 9th day of December , 1981. s ' Marie Yearman City Clerk (SEAL) -7-