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HomeMy WebLinkAboutR-1999-154 Issuance of tax-exempt variable rate demand industrial development revenue refunding bondsRESOLUTION NO. R-99-154 A RESOLUTION of the City Council of the City of Yakima, Washington, approving the issuance of tax-exempt variable rate demand industrial development revenue refunding bonds of Yakima County Public Corporation for the benefit of John I. Haas, Inc., pursuant to RCW 39.84.060. WHEREAS, the Legislature of the State of Washington has provided for the creation of public corporations by municipalities, including counties, pursuant to Chapter 300, Laws of Washington, 1981 (Regular Session) codified as Chapter 39.84 RCW, as amended (the "Act"), for the purpose of facilitating economic development and employment opportunities in the State of Washington; and WHEREAS, pursuant to the Act, the Board of Commissioners of Yakima County have created and approved the charter of a public corporation, designated as the "Yakima County Public Corporation" (the, "Public Corporation") to carry out the purposes of the Act; and WHEREAS, the Public Corporation has received an application from John I. Haas, Inc., a Delaware corporation (the "Company") for the refunding and extension of maturity of the Public Corporation's outstanding Tax -Exempt Adjustable Mode Industrial Development Revenue Bonds, Series 1989 (John I. Has, Inc. Project) (the "1989 Bonds") outstanding in the amount of $10,000,000 (the "Project") originally issued to finance the acquisition, construction and equipping of facilities for manufacturing located at 1112 North 16th Avenue in the City of Yakima, Washington (the "City"); and WHEREAS, the Public Corporation and its bond counsel have reviewed the application of the Company and have determined that the Project and the refunding of the 1989 Bonds qualify as "industrial development facilities" within the meaning of the Act; and WHEREAS, the Public Corporation is scheduled to approve the issuance of its Variable Rate Demand Industrial Development Revenue Refunding Bonds, Series 1999 (John I. Haas, Inc. Project) in an amount not to exceed $10,000,000 (the "Bond") on November 16, 1999; and WHEREAS, the Act provides that each county, city or town within whpse planning jurisdiction the Project is to be located must approve the issuance of nonrecourse revenue bonds by the Public Corporation for such Project; and Legal/BD RESOL.-TUBONDS WHEREAS, the Public Corporation, as the issuer of the nonrecourse revenue bonds for the Project, has requested the approval of the City pursuant to the Act; and WHEREAS, the City has been assured that there will be no financial liability accruing to the City as a result of such approval and that this approval shall constitute approval solely for the purpose of permitting the Public Corporation to proceed with the issuance of such nonrecourse revenue bonds; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: Section 1. The City Council of the City of Yakima (the "City"), pursuant to Chapter 39.84 RCW, does hereby approve the issuance of nonrecourse revenue bonds (the "Bonds") by the Public Corporation for the purpose of financing the above-described Project under the Act. The Bonds are to be issued by the Public Corporation in the aggregate principal amount of not to exceed $10,000,000 pursuant to a resolution of the Board of Directors of the Public Corporation and approved by the Yakima County Commissioners. The proceeds of the Bonds are to be loaned to the Company pursuant to a loan agreement, and use for the purposes of paying all or a part of the costs of refunding and extending the maturity of the 1989 Bonds. The Bonds shall be payable solely from the Company's repayments of the loan under the loan agreement. The Bonds shall not constitute an obligation of the City, and no tax funds or other revenues of the City shall be used to pay the principal of, premium, if any, or interest on the Bonds. Neither the faith and credit nor any taxing power or revenues of the City shall ever be pledged to pay the principal of, premium, if any, or interest on the Bonds. Section 2. This resolution is intended solely to constitute approval of the issuance of nonrecourse revenue bonds within the meaning of RCW 39.84.060. This approval shall not in any way be deemed to be a review or final approval of any development permit for the Project which may be in process, or may be submitted at a future date. ADOPTED BY THE CITY COUNCIL this / day of December, 1999. ATTEST: CITY CLERK LegallBD RESOL.-TJBONDS JOHN PUCCINELLI MAYOR • r BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 1 For Meeting Of 12/7/99 ITEM TITLE: Resolution of the City Council of the City of Yakima, Washington, approving the nue g issuance of tax-exempt variable rate demand for the benefit of John I Haas, Inc.development , pursuant to RCWnds of the 39.84 060. Yakima County Public Corporation SUBMITTED BY: Department of Community & Economic Development Department of Finance & Budget CONTACT PERSONTT1"ELEPHONE: Glenn Rice/ 575-6040 Tim Jens n 6-6639 S1JMMARY EXPLANATION: In 1989, J.I. Haas, Inc.,through the Yakima County Public Corporation, issued ten million dollars in Tax - Exempt Industrial Development Revenue Bonds to fund the construction and equipping of facilities for manufacturing located at 1112 North 16th Ave. Yakima, WA. The Company is now seeking to refund the original issue with tax-exempt refunding bonds, to take advantage of savings currently available in the market. Since the facility is within the City limits, Yakima City Council must give its permission to refund the original issue. The attached Resolution, (prepared by the City's Bond Counsel), contains specific language that provides that the City shall have no liability under any circumstance for the payment of any debt service on the Bonds, nor shall it incur any liability in connection to the Project. This language is repetitive of RCW Ch. 39.84, which specifically states that no public money shall ever be used to pay the debt service on this type of bond. The City and J.I. Haas have enjoyed a very cooperative and mutually beneficial relationship. In 1994 a Davis -Bacon issue arose related to the Haas Project, and Haas' staff were very cooperative, even sharing the costs with the City, for necessary remedial action. The Council recognized this cooperation with a public proclamation for good corporate citizenship and helping to make this public-private venture a success. As a result of Haas' Project several good new jobs were created in Yakima that still exist today. This Resolution continues an existing approval given originally in 1989. Resolution X Ordinance Contract Other (Specify) Funding Source APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Adopt Resolution 4111 BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: