Loading...
Resolution 3497 - Approving Glacier Park Project and Revenue Bonds209. RESOLUTION NO. 3497 RESOLUTION RELATING TO A PROJECT AND REVENUE BONDS UNDER TITLE 90, CHAPTER 5, PART 1, MONTANA CODE ANNOTATED; APPROVING AND AUTHORIZING THE GLACIER PARK COMPANY PROJECT AND INDUSTRIAL DEVELOPMENT REVENUE BONDS THEREFOR. BE IT RESOLVED by the City Council of the City of Kalispell, Montana, as follows: SECTION I. This Council by Resolution No. 3483 duly adopted on August 15, 1983, called a public hearing on a proposed project; (the Project) under Title 90, Chapter 5, Part 1, Montana Code Anno-_ tated (the Act), consisting of the acquisition of land and the ac- quisition and construction of a 200,000 square foot commercial shopping center facility (the Project) with certain related and incidental improvements, fixtures and personal properties. The Project will be located in an area bounded by Main Street on the east, Center Street on the south, Railroad Street on the north and Fifth Avenue West on the west and in the City Urban Renewal Area of the City. The Project will be owned by the Glacier Park Company or a related entity (the Borrower). The revenue bonds shall be issued in the maximum aggregate face amount of $10,000,000 as authorized by the Act, to defray the costs of the Project. SECTION II. At the public hearing duly called, noticed and held as required by the Act all persons who appeared were afforded an opportunity to express their views with respect to the proposal to undertake and finance the Project. Based on the public hearing, any written comments filed with the City Clerk and such other facts and circumstances as this Council deems relevant, this Council here- by 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 thereby to acquire, construct and improve the Project, issue revenue bonds to defray all or a portion of the costs thereof and enter into a loan agreement with the Borrower providing for loan payments from the Borrower to' thâ–ºe" City in amounts at least sufficient to provide for the full and prompt payment of principal of and in- terest on the bonds as due and requiring the Borrower to pay all costs of maintaining and insuring the Project, including taxes thereon; b) in authorizing the acquisition, construction and improvement of the Project, the issuance of revenue bonds and the execution of a loan agree- ment with the Borrower, this Council's purpose 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, commercial shopping center facility within the City, thereby improving employment opportunities for present and future residents, promoting and stimulating economic activity within the City and increasing and providing a better balance for the tax base of the City and overlapping taxing jurisdictions; 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. SECTION III. This Council hereby approves the Project and the issuance of the City's Industrial Development Revenue Bonds (Glacier Park Company Project) Series 1983 (the Bonds) in the maximum ag- gregate face amount of $10,000,000 for the purpose of defraying all or a portion of the cost of acquiring, constructing, improving and 21d. equipping the Project, including all costs authorized by Section 90-5-109 of the Act. The Bonds shall mature over a term not to exceed 30 years and shall bear interest at a rate or rates allow- able by law and contain such other terms and provisions as shall be agreed upon by this Council and the Borrower. The Borrower shall, pursuant to a loan agreement (the Loan Agreement), agree to acquire, construct, improve and equip the Project; to operate and maintain the Project and keep it properly insured; to pay all taxes and assessments on or against the Project; and to make loan payments sufficient to pay the principal of, premium, if any, and interest on the Bonds, all costs and expenses of the City and any trustee in connection with the Project and to establish and main- tain all necessary reserves therefor. The debt service on the Bonds shall be guaranteed (the Guaranty) by the Borrower and there shall be a pledge and assignment of certain of the City's interests in the Loan Agreement under an Assignment (the Assignment) and there shall be a security interest in the Project under a Trust Indenture and Security Agreement (the Trust Indenture) to secure the Bonds. SECTION IV. Dorsey & Whitney, as bond counsel to the City, is authorized in cooperation with the City Attorney and the Borrower to prepare forms of the Loan Agreement, Trust Indenture and Guaranty, Bonds and any other documents necessary to provide for financing of the Project for review and approval of the final terms and condi- tions thereof by this Council. SECTION V. The adoption of this resolution does not constitute a guarantee or a firm commitment that the City will issue the Bonds as requested by the Borrower. The City retains the right in its sole discretion to withdraw from participation and accordingly not issue the Bonds should the City at any time prior to the is- suance thereof determine that it is in the best interests of the City not to issue the Bonds or should the parties to the transaction be unable to reach agreement as,the terms and conditions of any of the documents required for the transaction. PASSED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AND APPROVED BY THE MAYOR THIS 19TH DAY OF SEPTEMBER, 1983. ATTEST: Marj ie Giermann City Clerk -Treasurer STATE OF MONTANA . ss. County of Flathead ) I, Marjorie Giermann, Acting City Clerk -Treasurer of the City of Kalispell, Montana, do hereby certify that the foregoing Reso- lution No. 3497 was regularly placed on its final passage and adoption, and was passed and adopted by the City Council of said City at a regular meeting thereof held on the 19th day of September, 1983. IN WITNESS WHEREOF, I have hereunto set my.hand and affixed the Seal of said City this 19th day of September, 1983. Marjor' Giermann City Clerk -Treasurer REVIEWED AS TO FORM: