Loading...
Resolution 3379 - Issuance of Revenue Bonds - Outlaw Inn Projecty r x RESOLUTION NO. 3379 A RESOLUTION PROVIDING FOR THE ISSUANCE OF CITY OF KALISPELL, MONTANA, INDUSTRIAL DEVELOPMENT REVENUE BONDS (OUTLAW INN PROJECT), SERIES 1981, AND AUTHORIZING THE PREPARATION OF DOCUMENTS AND INSTRUMENTS RELATING THERETO. WHEREAS, the City of Kalispell, Montana (the City), acting through its City Council (the Council), is authorized by the provisions of Part 1 of Chapter 5 of Title 90, Montana Code Annotated 1979, as amended (the Act), to acquire projects consisting of real and personal properties suitable for use of commerical enterprises, to lease such projects to others upon such'ternis and conditions as the Council may deem advisable and as shall not conflict with the provisions of the Act, to enter into agreements to loan the proceeds of its revenue bonds to others for the purpose of defraying the:costs of acquiring or improving such projects upon terms the Council considers advisable and not in conflict with the provisions of the Act, and to issue revenue bonds For the purpose of defraying the costs of acquiring or improving such projects; and WHEREAS, Outlaw Inn, a Montana general partnership (the Company), proposes to acquire certain real property, construct improvements thereon and install therein equipment and other personal property, all suitable and to be used as a motel facility and as part of a convention -motel facility (the Project), located within the City; and WHEREAS, the Company has represented to the City that the Project will be designed to qualify as a "project" with the meaning of tha Act: and WHEREAS, the Company has requested the City to issue and sell its revenue bonds in an aggregate principal amount not to exceed $2,800,000 pursuant to the provisions of the Act for the purpose of financing the Project; and WHEREAS, prior to the issuance of the Bonds the City will consider and approve by resolution the final details of the Bonds and will authorize and approve, subject to the conditions of this Resolution, all acts and the execution of all documents and instruments necessary or desirable in connection with the issuance thereof. _ ; 8 0 , NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA, THAT; Section 1. The Council hereby finds, intends and declares that this Resolution shall constitute its official binding commitment to issue the Bonds, subject to the terms hereof and thereof, and that the adoption of this Resolution is and constitutes the taking of affirmative official action by the City, acting by and through the Council, toward the issuance of the Bonds. The Council further finds, intends and declares that the acquisition and construction of the Project and the leasing of the Project to the Company or the loaning of the proceeds of the Bonds to the Company for the purpose of defraying the costs of acquiring the Project is in the public interest of the City and its citizens. In authorizing the Project the C ity's purpose is, and in its judgment the effect thereof will be, to promote the public welfare by encouraging the location and retention of a significant commercial facility within the City, -thereby increasing the development and use of the available resources of the City and the State of Montana, improvingemployment opportunities of present and future residents of the City and increasing and providing a better balanced tax base from which essential governmental services may be funded. Section 2. In order to insure the completion of the Project and the public benefit which is expected from the operation thereof, the City, subject to the terms and conditions of the Memorandum of Agreement between the City and the Company attached hereto as Exhibit A (the Memorandum of Agreement) and by this reference made a part hereof will from time to time issue the Bonds' pursuant to the provisions of the'Act in a principal amount necessary to pay the cost of financing the Project, together with the costs incident to the authorization, issuance and sale of the Bonds, which Bonds will not exceed in aggregate principal amount the scam of $2, 800, 00.0. 1 t D . Section 3. The Bonds shall bear such interest rates, be in such denominations, bear such dates, mature at such dates, be in such form, carry such registration privileges, be executed in such manner, be payable at such place and be subject to such terms of redemption consistent with the Act as shall be authorized and approved by resolution of the Council adopted prior to the issuance of the Bonds. Section 4. Any mortgage, trust indenture, lease, purchase agreement, loan agreement, security agreement, rental. agreement, or other agreement or security device, or any combination thereof, entered into in connection with the acquisition of the Project (the Financing Agreements) and any other documents relating to the Project and the Bonds shall also be authorized and approved prior to the issuance of the Bonds. Section 5. The proceeds of the Bonds will be used to finance the acquisition of the Project. The major components of the Project are described in a schedule attached hereto as Exhibit B and by this reference made a part hereof. Section 5. The City will enter into mutually agreeable Financing Agreements with the Company with respect to the Project as more fully described in the Memorandum of Agreement. Section 7. The form of the Memorandum of Agreement is hereby approved, and the Mayor and the City Clerk are hereby authorized and directed to execute the Memorandum of Agreement on behalf of the City. Section 8.- The entire cost of financing the acquisition of the Project will be paid from the proceeds of the sale of the Bonds or from other Company funds. None of the Bonds will be general obligations of the City. Neither shall any of the Bonds, including interest thereon, constitute the debt or indebtedness of the City within the meaning of any limitation of the Constitution or statutes of the State of Montana nor give rise to a pecuniary liability of the City or -a charge against its general credit or taxing powers. The Bonds shall be payable solely from and secured by a pledge of the revenues derived from and payable pursuant to the Financing Agreements. U Section 9, Nothing contained in this Resolution or the Memorandum of Agreement shall constitute a debt or indebtedness of the City within the meaning of the Constitution or statutes of the State of Montana nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers. ADOPTED AND APPROVED this 2nd day of November, 1981. CITY OF KALISPELL, MONTANA By: lrat�J b . M yor r ATTEST: _ ._ ... City C erk 1 (SEAL) the undersigned, City Clerk of the City of Kalispell certify that the foregoing is a txua v�y of the resolution passed by the City Council of the City of Kalispell, Montana at a r-gular meeting held � _ City Cle of the City of Kalispell 1 1 1.