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Home My WebLink AboutR-2000-121 Michelsen Packaging Revenue BondRESOLUTION NO. R-2000-121 A RESOLUTION of the City Council of the City of Yakima, Washington, approving the issuance of a tax-exempt nonrecourse revenue bond of Yakima County Public Corporation for the benefit of Michelsen Packaging Company, 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 Michelsen Packaging Company, a Washington corporation (the "Company") to finance industrial development facilities located at 922 North First Avenue (the "Project") within 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 qualifies as an "industrial development facility" within the meaning of the Act; and WHEREAS, the Public Corporation is scheduled to approve the issuance of its Industrial Development Revenue Bonds, Series 2000 (Michelsen Packaging Company Project) in an amount not to exceed $4,200,000 (the "Bonds") on October 10, 2000; and WHEREAS, the Act provides that each county, city or town within whose planning jurisdiction the Project is to be located must approve the issuance of nonrecourse revenue bonds by the Public Corporation for such Project; and 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, WASHINGTON, as follows: Section 1. The City Council of the City of Yakima, Washington (the "City"), pursuant to Chapter 39.84 RCW, does hereby approve the issuance of a nonrecourse revenue bonds (the "Bonds") by the Public Corporation for the purposes of financing the above-described Project under the Act. The Bonds are to be issued by the Public Corporation in the principal amount of not to exceed $4,200,000 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 used for the purposes of paying the costs of financing the Project. 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 of the City of Yakima, Washington, this 3rd day of October, 2000. ATTEST: ietaAVA.) c City Clerk -2- YAKIMA, WASHINGTON ae- Mayor H \zpb\#forms\idb CERTIFICATE I, the undersigned, City Clerk of the City of Yakima, Washington (the "City"), DO HEREBY CERTIFY 1 That the attached Resolution No R 20a)-121 (the "Resolution") is a true and correct copy of a resolution of the City as adopted at a meeting of the City Council of the City held on October 3rd, 2000 and duly recorded in my office 2. That said meeting was duly convened and held in all respects in accordance with law, and to the extent required by law, due and proper notice of such meeting was given; that a legal quorum was present throughout the meeting and a legally sufficient number of members of the City Council of the City voted in the proper manner for the adoption of the Resolution, that all other requirements and proceedings incident to the proper adoption of the Resolution have been duly fulfilled, carried out and otherwise observed, and that I am authorized to execute this certificate IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City this day of , 2000 [SEAL] City Clerk H:\zpb1S/forms\idb Preston' Gates I Ellis LLP September 22, 2000 VIA TELEFAX AND FEDERAL EXPRESS Mr Raymond L. Paolella City Attorney City of Yakima 200 South Third Street Yakima, WA 98901 irA Re Yakima County Public Corporation Industrial Development Revenue Bonds, Series 2000 (Michelsen Packaging Company Project) - $4,200,000 (the "Bonds") Dear Mr Paolella As you may know, Yakima County maintains a Public Corporation under RCW Ch. 39 84, the Yakima County Public Corporation (the "Public Corporation") The Public Corporation has received an application for tax-exempt financing from Michelsen Packaging Company, a Washington corporation (the "Company") to finance manufacturing facilities located at 922 North First Avenue in the City of Yakima, Washington. The Company is seeking tax-exempt financing in order to lower its costs of borrowing, and Banc of America Securities LLP is acting as underwriter for the Bonds Our firm is acting as bond counsel for the financing, and we are preparing the bond proceedings for the Public Corporation. Among the approvals that must be obtained prior to the issuance of industrial revenue bonds is the approval of the planning jurisdiction, RCW 39 84 060 Because part of the Project lies within the boundaries of the City of Yakima, the City Council (the "Council") obtains planning jurisdiction over the Project Therefore, the Public Corporation is required to obtain the approval of the Council pursuant to RCW 39 84 060 While the statute (RCW 39 84 060) is silent as to the nature and extent of the approval process, we have attempted to apply it in a manner consistent with the policies of Ch. 39 84 The statute appears to contemplate more than administrative approval Therefore, we customarily obtain the approval of the legislative body of the planning jurisdiction. We have prepared and enclose a draft resolution which provides, we believe, sufficient approval for the issuance of the Bonds by the Public Corporation. The resolution 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 with the Project. This language is repetitive of Ch. 39 84, which specifically states that no public money shall ever be used to pay the debt service on this type of bond. A LAW FIRM I A LIMITED LIABILITY PARTNERSHIP INCLUDING OTHER LIMITED LIABILITY ENTITIES 701 FIFTH AVENUE, SUITE 5000 SEATTLE, WA 98104-7078 TEL: [206} 623-7580 FAX: 1206) 623-7022 www.prestongates.com Anchorage Coeur d'Alene Hong Kong Los Angeles Orange County Palo Alto Portland San Francisco Seattle Spokane Washington, DC If the form of this resolution meets with your approval, we would appreciate your assistance in adding it to the agenda for consideration by the Council at its next meeting The Public Corporation and the Company wish to close this transaction on October 19, 2000 If you believe that it would be helpful for me or for a representative of the Company or the Public Corporation to attend the Council meeting at which the resolution would be considered, please let me know when the meeting is scheduled to occur If the resolution is approved, please send me a signed, the transcript for this issue prior to the issuance of the Bond. Please do not hesitate to call me or Ilene Thomson at information on the Project or the Bonds Very truly yours, certified copy in order to complete Yakima County for any additional PRESTON GAPES & ELLIS LLP By 4-gtot. 0,249c_ Cynthia M. Weed CMW pb Enclosures cc Ilene Thomson, Yakima County Dan Beddeson, Michelsen Packaging Company Richard A. Zais, Jr , City of Yakima H \zpb\#forms\idb BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. For Meeting Of 10/3/2000 ITEM TITLE: Resolution of the City Council of the City of Yakima, Washington, approving the issuance of up to $4.2 milion tax-exempt non-recourse revenue bonds of Yakima County Public Corporation for the benefit of Michelsen Packaging Company, pursuant to RCW 39.84.060. SUBMITTED BY: Department of Community & Economic Development Department of Finance & Budget CONTACT PERSON/TELEPHONE: Glenn Tim Je 575-6040 576 - SUMMARY EXPLANATION: Michelsen Packaging Company, a Washington corporation, has applied for tax-exempt financing to The Yakima County Public corporation to reduce financing costs in connection with construction of industrial development facilities located at 922 North First Avenue, in the City of Yakima. Among the approvals that must be obtained prior to issuance of industrial revenue bonds is the approval of the planning jurisdiction. Since the facility is within the City limits, The Yakima City Council is the planning jurisdiction over the Project. Therefore, the Public Corporation is required to obtain the approval of the Council pursuant to RCW 39.84.060. The attached Resolution, (prepared by the City's Bond Counsel) if approved, would formally grant this permission. The resolution 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. Staff recommends the adoption of this resolution.as it is in the best interests of the community. Resolution X Ordinance Contract Other (Specify) Funding Source APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Adopt Resolution BOARD/COMMISSION RECOMMENDATION: COUNCIL ACTION: