Resolution 3511 - Authorizing Issuance of $10,000,000 Industrial Development Revenue Bonds (Mall)239.
RESOLUTION NO. 3511
RESOLUTION RtLATInG TO A PROJECT AND REVENUE BONDS
UNDER TITLE 90, CHAPTER 5, PART 1.,' MONTANA CODE
ANNOTATED; KALISPELL CENTER LTD. PROJECT AND
AUTHORIZING'THE ISSUANCE OF INDUSTRIAL DEVELOPMENT
REVENUE BONDS THEREFOR
BE IT RESOLVED by the City Council of the City of
Kalispell, Montana, as -follows:
1. This Council, on September 12, 1983 held a
public hearing on the issuance of industrial development
revenue bonds in an amount not to exceed Ten Million Dollars
($10,000,000) (the Bonds) for the purpose of financing the
cost of the acquisition of land and the acquisition and
construction of a 200,000-square-foot commercial shopping
center facility and related incidental improvements,
fixtures and personal property (the Project) for the Glacier
Park Company or a related entity (the Borrower). On
September 19, 1983 this Council adopted Resolution No. 3497
giving preliminary approval to the Project and authorizing
the issuance of the Bonds for the Project in the specified
amount.
2. It was subsequently proposed that the Borrower
be changed to Kalispell Center, Ltd., a Washington limited
partner, in which Barbieri Hospitality, inc. would be the
general partner and the Glacier Park Company would be a
limited partner. The proposed Project would remain the
same. % .. .0� -,--
3. This Council by Resolution No. a507 duly
adopted on December 19, 1983 called a new public hearing for
January 9, 1984 on th—e Project and the issuance of Bonds
therefor on behalf of Kalispell Center, Ltd.
4. 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 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 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 the City in amounts at least sufficient to provide
for the full and prompt payment of principal of and
. 240.
interest on the bonds as due and requiring the Borrower
to pay all costs of maintaining and insuring the
Project, including taxes thereon;: I
M in authorizing the acquisition, construction
and improvement of the Project, the issuance of revenue
bonds and the execution of a loan.agreement 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.
5. This Council reaffirms its previous findings
and approvals with respect to the Project, approves
Kalispell Center, Ltd. as the Borrower and.hereby approves
the Project and the issuance.of the City's Industrial
Development Revenue Bonds (Kalispell Center Ltd. Project)
Series 1984 (the Bonds) in the maximum aggregate face amount
of $10,000,000 for the purpose of defraying all or a portion
of the cost of acquiring, constructi-ngw "improving ancl
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 allowable 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 Projecti 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 maintain all necessary reserves therefor.
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.
6. 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 I
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241.
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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 conditions thereof by
this Council.
7. 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 issuance 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 AND APPROVED BY THE CITY COUNCIL OF
KALISPELL, MONTANA this day of January, 1984.
RAI
'IA
! Al
City C�brk
STATE OF MONTANA
: Ss.
County of Flathead
City Clerk of the
City of Kalis�—ell,jMontana, do hereby certify that the
foregoing Resolutibn No. 3i'll 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 __� day of January, 1984.
IN
and affixed
1984.
WITNESS WHEREOF, I have hereunto set my hand
the Seal of said City this __? day of January,
)XI .,I -- &-
City �Xerk
REVIEWED AS TO FORM:
242.
NOTICE OF PUBLIC HEARING ON THE PROPOSED ISSUANCE
BY THE CITY OF KALISPELL, MONTAIIA OF INDUSTRIAL
DEVELOPMENT REVENUE BONDS IN THE MAXIMUM' AGGREGATE
PRINCIPAL AI�OUNT OF $10,000,000 FOR KALISPELL
CENTER, LTD., A WASHINGTON LIMITED PARTNERSHIP,
FOR THE, CONSTRUCTION OF COMMERCIAL SHOPPING CENTER
FACILITY
CITY OF KALISPELL, MONTANA
NOTICE IS HEREBY GIVEN that the City Council (the
Council) City of Kalispell, Montana (the City) will meet on
January 9, 1983, at 7:30 o'clock p.m., at the Council
Chambers, City Hall, Kalispell, Montana, for the purpose of
holding a public hearing on a proposed project and the
issuance of industrial development revenue bonds therefor
under Title 90, Chapter 5, Part 1, Montana Code Annotated.
The proposed project (the Project).will-consist of the
acquisition of land and the acquisitiOTF-and constructiorCof
a 200,000 square foot commercial shopping center facility
and related and incidental improvements, fixtures and
personal property. The-Project-i4ill 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 Kalispell Center, Ltd., a
Washington limited partnership, in which.Barbieri
Hospitality, Inc. will be the general partner and the
Glacier Park Company will be a limited partner (the
Borrower). it is proposed that the City issue and sell
industrial development bonds (the Bonds) in the maximum
aggregate principal amount of $10,000,000 to finance costs
of acquiring and constructing the Project and�to pay costs
and expenses incident to the issuance, sale and security of
the Bonds. The proceeds of the Bonds would be loaned to the
Borrower which would be obligated to acquire and construct
the Project, to repay the loan at the times and in the
amounts sufficient to pay the principal and interest on the
Bonds as due and to pay all costs and expenses incident to
ownership of the, -Project. -- #. -
The Bonds, if issued, would be special, limited
obligations of the City payable solely from the loan
repayments to be made by the Borrower and proceeds realized
from other security, if any, granted therefor. The Bonds
will not constitute not give rise to a pecuniary liability
of the City or charge against its general credit or taxing
powers.
All Persons interested in addressing the Council
on the Project or Bonds may appear at said time and place or
may file written notice with the City Clerk prior to . the
date of hearing set forth hereinabove.
Dated: be-e-em be-r
BY ORDER OF THE CITY COUNCIL
OF KALISPELL, MONTANA
rity C� lerk
Publication Dates:
December 20, 27, 1983
January 3, 1984