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Home My WebLink About97-130 Resolution No. 97-130 RESOLUTION APPROVING THE ISSUANCE AND SALE BY THE VILLAGE OF EAST DUNDEE, KANE AND COOK COUNTIES, ILLINOIS, OF NOT TO EXCEED $3, 900, 000 INDUSTRIAL DEVELOPMENT REVENUE BONDS, SERIES 1997 (KREIS TOOL & MANUFACTURING CO. , INC. PROJECT) FOR THE PURPOSE OF FINANCING ALL OR A PORTION OF THE COSTS OF ACQUIRING, CONSTRUCTING AND EQUIPPING A MANUFACTURING FACILITY TO BE LOCATED IN ELGIN, ILLINOIS, FOR THE BENEFIT OF KREIS ENTERPRISES, L.L.C. AND KREIS TOOL & MANUFACTURING CO. , INC. AND AFFILIATED ENTITIES; AND RELATED MATTERS WHEREAS, the City of Elgin, Kane and Cook Counties, Illinois (the "City" ) is a municipal corporation, political subdivision and body politic duly organized and validly existing under the Constitution and laws of the State of Illinois ; and WHEREAS, Kreis Enterprises, L.L.C. and Kreis Tool & Manufacturing Co. , Inc . (together, the "Borrower" ) has requested that the Village of East Dundee, Illinois (the "Issuer" ) issue its Industrial Development Revenue Bonds, Series 1997 (Kreis Tool & Manufacturing Co. , Inc . Project) (the "Bonds" ) in an aggregate principal amount not to exceed $3, 900, 000 to finance the costs of the acquisition, construction and equipping of a manufacturing facility (the "Project" ) consisting of land and building to be owned by Kreis Enterprises , L.L.C. , an Illinois limited liability company ( "Kreis Enterprises" ) and leased to and operated by Kreis Tool & Manufacturing Co. , Inc . , an Illinois corporation ( "Kreis Tool" ) and equipment to be owned and operated by Kreis Tool to be located at 1615-1645 Cambridge Drive in Elgin, Illinois, and to be used in the manufacture and fabrication of metal products; and WHEREAS, the City Council (the "City Council" ) of the City is an applicable elected representative of the City of Elgin, Illinois within the meaning of Section 147 ( f ) (2 ) (E) of the Internal Revenue Code of 1986, as amended (the "Code" ) ; and WHEREAS, Section 147 ( f) ( 2) (A) of the Code requires that both the Issuer of the Bonds and each governmental unit having jurisdiction over the area in which the Project is located approve the issuance of the Bonds; and WHEREAS, the Project is located within the municipal limits of the City and, therefore, the City has jurisdiction over the area in which the Project is located; and WHEREAS, pursuant to the provisions of Section 147 ( f) of the Code, and pursuant to notice duly published, the City Council conducted a public hearing on the proposal to issue the Bonds for the purpose of financing the costs of the Project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS : Section 1 . Pursuant to and for purposes of Section 147 ( f) of the 1986 Code, the City Council, as an "applicable elected representative" of the City, hereby approves the issuance of the Bonds by the Issuer in an aggregate principal amount of not to exceed $3, 900, 000, the proceeds of which will be used to finance the cost of the Project. Section 2 . The publication of the notice of the public hearing is hereby ratified, approved and confirmed, and it is the intention of the City Council that this Resolution constitute the public approval required by Section 147 ( f) of the Code. Section 3 . The Bonds will be special, limited obligations of the Issuer, the principal of, premium, if any, and interest on which will be payable solely from revenues derived from payments received from the Borrower pursuant to the terms of a Loan Agreement between the Issuer and the Borrower, and income from the temporary investment of Bond proceeds, all of which revenues are pledged to the payment of the Bonds . Neither the Bonds nor premium, if any, nor interest thereon shall ever constitute or create an indebtedness, liability or obligation of the Issuer, the City, the State of Illinois, or any political subdivision thereof within the meaning of any constitutional provision or statutory limitation or a pledge of the faith and credit or taxing power of or constitute or give rise to any pecuniary liability of any of them. s/ Kevin Kelly Kevin Kelly, Mayor Presented: May 28, 1997 Adopted: May 28, 1997 Vote: Yeas 7 Nays 0 Attest : s/ Dolonna Mecum Dolonna Mecum, City Clerk F OF f< ! City of Elgin Agenda Item No. C/ r1 0I T[D FF-' May 22 , 1997 TO: Mayor and Members of the City Council FROM: Robert 0. Malm, Interim City Manager SUBJECT: Kreis Tool & Manufacturing Industrial Development Revenue Bonds PURPOSE The purpose of this memorandum is to present information to the Mayor and members of the City Council on the Kreis Tool & Manufacturing Industrial Development Revenue Bonds . BACKGROUND It is necessary for the Elgin City Council to consider a resolution approving the issuance by the Village of East Dundee, Illinois of a not-to-exceed $3, 900, 000 aggregate principal amount of its Industrial Development Revenue Bonds, Series 1997 for the purpose of financing the costs of the acquisition, construction and equipping of a manufacturing facility to be located at 1615-1645 Cambridge Drive in Elgin, Illinois (Windsor Commerce Industrial Park) . Elgin must hold the public hearing and pass a resolution -approving the bond sale because the project is located within the City' s corpo- rate boundaries . The bonds will be special, limited obligations of the issuer, the principal of premium, if any, and interest on which will be payable solely from revenues derived from payments re- ceived from Kreis Enterprises and from Kreis Tool . Neither the bonds nor premiums, if any, nor interest, shall ever constitute or create an indebtedness, liability or obligation of the issuer, the City, the State of Illinois or any politi- cal subdivision thereof . Kreis Toll & Manufacturing May 22 , 1997 Page 2 The public hearing is necessary to allow the public an oppor- tunity to express their views on the issuance of the bonds . Respectfully submitted, Raymond H. Moller Director of Business Services and Properties J mes R. Nowicki r pf Finance Rob rt alm Interim City Manager amp Resolution No . 96-56 RESOLUTION AUTHORIZING THE EXECUTION OF A MEMORANDUM OF AGREEMENT (Bailey Development, L.L.C. Project) WHEREAS, Bailey Development, L.L.C . , an Illinois limited liability company (the "Borrower" ) wishes to finance the acquisition of approximately 12 acres of land located at the intersection of Spaulding and Gifford Roads in Elgin, Illinois and the construction and equipping of an approximately 46 , 000 square foot manufacturing facility thereon (the "Project" ) and wishes to have the City of Elgin, Illinois (the "Issuer" ) issue its industrial revenue bonds to finance the acquisition, construction and equipping of such facilities; and WHEREAS, a Memorandum of Agreement (the "Agreement" ) has been presented to the Issuer under the terms of which the Issuer agrees , subject to the provisions of such Agreement, to issue its industrial revenue bonds to finance the Project . NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, as follows : Section 1 . That the Mayor of the Issuer is hereby authorized to execute, and the City Clerk of the Issuer is hereby authorized to attest to the Agreement with the Borrower in substantially the form of such agreement appended to this Resolution as Exhibit A. Section 2 . That the officers and employees of the Issuer are hereby authorized to take such further action as is necessary to carry out the intent and purposes of the Agreement as executed and to issue not to exceed $5 , 000, 000 of its industrial revenue bonds upon the terms and conditions stated in such Agreement for the purpose of defraying the cost of the Project and that the same is declared to be for a public purpose. Section 3 . That this Resolution shall be in full force and effect upon its passage and approval . s/ Kevin Kelly Kevin Kelly, Mayor Presented: February 28 , 1996 Adopted: February 28 , 1996 Vote: Yeas 6 Nays 1 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk 1