HomeMy WebLinkAboutRevenue Bond Financing for Koch Label Co.+468
RESOLUTION/MUNICIPAL ORDER NO. 609
A RESOLUTION/MUNICIPAL ORDER OF THE BOARD OF
COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, GIVING
PRELIMINARY APPROVAL TO INDUSTRIAL BUILDING REVENUE
BOND FINANCING FOR KOCH LABEL CO., INC.; AUTHORIZING
INITIATION OF ACQUISITION AND CONSTRUCTION OF SUCH
,;: INDUSTRIAL BUILDING PROJECT; AGREEING TO UNDERTAKE THE
ISSUANCE OF INDUSTRIAL BUILDING REVENUE BONDS AT THE
APPROPRIATE TIME; AND TAKING OTHER PRELIMINARY ACTION.
WHEREAS, it has been determined that the City of Paducah,
Kentucky (the "Issuer"), may assist Koch Label Co., Inc., presently
of Evansville, Indiana, or an affiliated entity (the "Company"), by
causing the acquisition and construction of an industrial building
project as described in Exhibit A attached hereto (the "Project")
and by entering into at the appropriate time a lease or loan
agreement with the Company pertaining to the Project, all pursuant
to authority of Sections 103.200 to 103.287, inclusive, of the
Kentucky Revised Statutes, as amended (the "Act"), and in
furtherance of the purposes of the Act and the ensuing public
benefit to the residents of the Issuer and its environs, such lease
or loan agreement to be upon such terms and conditions as the Act
may require and the Issuer may deem advisable; and
WHEREAS, the Issuer is authorized by the Act to issue its
revenue bonds for the purpose of defraying the costs of acquiring
and constructing the Project; discussions have occurred between the
Company and the Issuer incident to the issuance of such revenue
bonds by the Issuer; it is the intention of the Issuer, and the
,r~,_, Issuer has agreed and hereby agrees with the Company, to issue such
i bonds upon compliance by the Company with such reasonable conditions
`_,..~' and obligations as the Issuer may require and subject to the
approval by the Issuer of the terms of all agreements, ordinances
and other documents incident to such bond issue; and the Issuer has
authorized the Company to proceed with initiation of the Project,
subject to reimbursement of the initial costs of the Project from
the proceeds of such bonds, as, if and when issued; and
WHEREAS, based upon the Company's estimate of the aggregate
costs of the Project, the Issuer proposes to issue its industrial
building revenue bonds (the "Bonds") in an aggregate amount up to
$10,000,000 to pay the costs of the Project, including costs
incident to the authorization, sale and issuance of the Bonds and
other financing costs, but with such other financing and
contributions from the Company as may be necessary; and the Bonds
will be payable solely from payments to be made by the Company under
the contemplated lease or loan agreement and will not be payable
from any funds or assets of the Issuer whatsoever; and
WHEREAS, the Issuer proposes to enter into at the
appropriate time a lease or loan agreement with the Company with
respect to the Project whereby the Company will covenant and agree
to pay amounts sufficient to provide for the payment of principal of
and premium, if any, and interest on the Bonds together with all
trustee's and paying agent's fees in connection with the Bonds and
any other related charges as the same come due and payable;
~~..,Y
NOW, THEREFORE, THE BOARD OF COMMISSIONERS OF THE CITY OF
PADUCAH, KENTUCKY, DOES HEREBY ORDER AS FOLLOWS:
Section 1. It is hereby found, determined and declared
that (i) the recitals set forth in the preambles to this
Resolution/Municipal Order, which are hereby incorporated in this
Section by reference, are true and correct; (ii) the total amount of
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money necessary to be provided by the Issuer through the issuance of
the Bonds for the acquisition and construction of the Project will
not exceed $10,000,000; (iii) the Company has represented it will
have sufficient financial resources to acquire and construct the
Project and to place it in operation and to continue to operate,
maintain, and insure the Project throughout the term of the Bond
issue, meeting when due the obligations of the proposed lease or
loan agreement; and (iv) sufficient safeguards will be provided by
the lease or loan agreement to insure that all money provided by the
``~"' Issuer from the proceeds of the sale of the Bonds will be expended,
by way of direct expenditure or reimbursement, solely and only for
the purposes of the Project.
Section 2. It is hereby found, determined and declared
that the costs of acquiring and constructing the Project will be
paid out of the proceeds of the Bonds, such proceeds to be
supplemented by contributions of the Company as may be necessary to
complete the Project as the Project is described in the lease or
loan agreement to be executed by and between the Issuer and the
Company at the appropriate time pursuant to the Act; that none of
the Bonds will be general obligations of the Issuer; that neither
the Bonds nor the interest thereon shall constitute or give rise to
any pecuniary liability whatsoever of the Issuer or any charge
against its general credit or taxing power; that the Bonds and the
payment of interest thereon shall be secured and payable solely and
only by a pledge of amounts to be paid by the Company or otherwise
to be available under such lease or loan agreement; and that no part
of said costs will be payable out of any general funds, assets,
properties or other contributions of the Issuer. It is acknowledged
and intended that interest on the Bonds will be excluded from gross
income for federal and Kentucky income tax purposes, subject to
certain conditions.
,, ,...
Section 3. Because the Project will be acquired and
constructed to conform to the requirements of the Company, it is
hereby found, determined and declared that acquisition and
construction of the Project should be undertaken or caused to be
undertaken by the Company forthwith, and accordingly, the Company is
hereby authorized to formulate and develop plans and specifications
for the Project and to enter into such contracts and undertakings as
may be required for the acquisition and construction of the
Project. Payments or reimbursements to or on behalf of the Company
after the receipt of the proceeds of the sale of the proposed Bonds
by the Issuer shall be made as set out in the lease or loan
agreement to be entered into by the Issuer and the Company at the
appropriate time pursuant to the Act.
Section 4. The Company is authorized and directed to take
any other legal action necessary and customary in order to satisfy
any prerequisites to the issuance of the Bonds. Counsel for the
Issuer and its officers are authorized and requested to assist the
Company in any appropriate manner.
Section 5. No funds of the Issuer shall be expended on the
Project, except such as are derived from Bond proceeds.
Section 6. All resolutions/municipal orders of the Issuer
,. ~r.
or parts thereof in conflict herewith are, to the extent of such
~,,,~ conflict, hereby rescinded.
Section 7. This Resolution/Municipal Order shall be in
full force and effect from and after its adoption.
ADOPTED by the Board of Commissioners of the City of
Paducah, Kentucky, at a meeting held on October 8, 1991, signed by
470
the Mayor as evidence of his approval, attested by the City Clerk,
and declared to be in full force and effect.
GERRY B . P~IONTGOMERY
Mayor
~,
Attest:
Lenita Smith
City Clerk
CERTIFICATION
"Issuer"), and as such I further certify that the foregoing is a
true, correct and complete copy of a Resolution/Municipal Order duly
adopted by the Board of Commissioners of the Issuer at a meeting
properly held on October 8, 1991, signed by the Mayor and now in
full force and effect, all as appears from the official records of
the Issuer in my possession and under my control.
I, the undersigned, do hereby certify that I am the duly
qualified and acting Clerk of the City of Paducah, Kentucky (the
IN WITNESS WHEREOF, I have hereunto set my hand this 8th
day of October, 1991.
(SEAL)
Lenita Smith
City Clerk
Exhibit A
Project Description
The Project, which consists of a new manufacturing plant
for use by the Company in the production and processing of printed
labels for commercial products and other printed materials,
comprises an industrial building encompassing approximately 100,000
square feet, as substantially improved, appurtenances thereto and
site improvements on a 14-acre tract at Coleman Road and Ky. Hwy.
305 in Coleman Industrial Park in the City of Paducah, Kentucky,
together with major new manufacturing machinery and equipment
including without limitation two new printing presses and related
equipment.
Preliminary cost estimates are as follows:
Land, building and improvements $ 3,800,000
Equipment 6,200,000
Estimated Total $10,000,000
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