Resolution 3370 - Approving Buttrey Food Project and Revenue BondsRESOLUTION NO. 3370
RESOLUTION RELATING TO A PROJECT AND REVENUE BONDS
UNDER TITLE 90, CHAPTER 5, PART 1, M.C.A.: APPROVING
AND AUTHORIZING BUTTREY FOOD STORES PROJECT AND IN—
DUSTRIAL DEVELOPMENT REVENUE BONDS THEREFOR
BE IT RESOLVED by the City Council of the City of Kalispell, Monana as fol-
lows:
1. This Council by resolution duly adopted on September 8, 1981, called
a public hearing on a proposed project under Title 90, Chapter 5, Part 1, M.C.A.
(the "Act"), consisting of land, buildings and improvements and personal property
deemed necessary in connection therewith (the "Project") suitable for and to be
used by guttrey Food Stores, a division of Jewel Companies, Inc. (the "Company"),
as a commercial retail food and drug facility and the issuance of revenue bonds
in the approximate principal amount of $1,500,000 as authorized by the Act, to
defray the costs of the Project.
2. At the public hearing, duly called, noticed and held as required by
the Act all persons were afforded an opportunity to be heard and based on such
hearing and such other facts and circumstances as this Council deems relevant this
Council hereby finds, determines and declares as follows:
(a) the Project, as proposed, will be suitable for use for a commercial
enterprise within the meaning of the Act and the City is authorized
to defray the costs of acquiring and improving the Project through
the issuance of revenue bonds which shall be secured by a first mort-
gage on the Project or such other security devices as may be deemed
advisable by the City,
(b) in authorizing the acquisition and improvement of the Project, the
issuance of revenue bonds and security therefor, this Council's pur-
pose is and the effect thereof will be to promote the public welfare
of the City and its residents by encouraging the location -of a revenue
producing business with the City thereby creating employment opportuni-
ties for present and future residents, promoting and stimulating eco-
nomic activity within the City and increasing and providing a better
balance for the tax base of the City and underlying taxing jurisidic-
tions; and
(c) the undertaking and approval of -the Project and the issuance of the
Bonds is in the best interest of the City and its residents.
3. The City is hereby authorized to issue approximately $1,500,000 princi-
pal amount of Industrial Development Revenue Bonds (Buttrey Food Stores Project)
Series 1981 (the "Bonds") for the purpose of defraying the cost of acquiring, con-
structing, improving and equipping the Project, including all costs authorized,
by Section 90-5--109 of the Act. The Bonds shall mature over a term of approxi-
mately 30 years and shall bear interest at such rate or rates (not exceeding legal
limitations, if any) and contain such other items and provisions as shall be
agreed to by this Council, the Company and D. A. Davidson & Co. of Great Falls,
Montana (the "Underwriter"). The Series 1981 Bonds will be loaned to the Company
pursuant to a loan agreement (the "Loan Agreement") under which the Company will
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agree to acquire, construct,
improve and equip the Project on behalf of the City;
to operate and maintain the
Project and keep it properly insured; to pay all
taxes
and assessments on or against
the Project; and to pay loan repayments sufficient
to pay the principal of and
interest on the Bonds, all costs and expenses of
the
City and Trustee in connection
with the Project and to establish and maintain
all
necessary reserves therefor.
The City's interest in the Loan Agreement shall
be
assigned to a trustee under
an Indenture of Trust (the "Indenture") to secure
the
Bonds.
4. Dorsey, Windhorst, Hannaford, Whitney & Halladay, as bond counsel to
the City, is authorized in cooperation with the City Attorney, the Company and
the Underwriter to prepare forms of the Loan Agreement, Indenture and Bonds for
review and approval of the final terms and conditions thereof by this Council.
Passed and approved by the City Council this 5th day of October, 1981.
Mayor
Clerk
E,
I, the undersigned, City Clerk of the City of Kalispell certify that the foregoing is a true
copy of the Resolution passed by the City Council of the City of Kalispell, Montana at a
regular meeting held
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City Cle• of the City of Kalispell
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