HomeMy WebLinkAboutR-2001-066 Seneca Foods Corporation tax-exempt non-recourse revenue bondsRESOLUTION NO. x-2001- 66
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 Seneca Foods Corporation, 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 Seneca Foods
Corporation, a New York corporation (the "Company") to finance the expansion and equipping
of its existing food processing facilities located at 2418 River Road (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
Nonrecourse Revenue Bond, Series 2001 (Seneca Foods Corporation Project) in an amount not
to exceed $3,200,000 (the "Bond") on April 24, 2001; 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 bond 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 a nonrecourse
revenue bond;
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
bond (the "Bond ") by the Public Corporation for the purposes of financing the above - described
Project under the Act.
The Bond is to be issued by the Public Corporation in the principal amount of not to
exceed $3,200,000 pursuant to a resolution of the Board of Directors of the Public Corporation
and approved by the Yakima County Commissioners. The proceeds of the Bond 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 Bond shall be payable solely from the Company's repayments of the loan under the
loan agreement. The Bond 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
Bond. 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 Bond.
Section 2. This resolution is intended solely to constitute approval of the issuance of
a nonrecourse revenue bond 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 7 day of
April, 2001.
YAKIMA, WASHINGTON
Mayor
ATTEST:
G(/„ �J ✓ GH1 c
City Clerk
-2- P: \CMW \CMW4QE 01/04/03
CERTIFICATE
I, the undersigned, City Clerk of the City of Yakima, Washington (the "City"),
DO HEREBY CERTIFY:
1. That the attached Resolution No. R-2001-66
(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 April 17 , 2001 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 cerificate.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official
seal of the City this day of , of
City Clerk
[SEAL]
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No.
For Meeting Of 04/17/2001
ITEM TITLE: Resolution of the City Council of the City of Yakima, Washington, approving the
issuance of up to $3.2 million tax-exempt non-recourse revenue bonds of Yakima County Public
Corporation for the benefit of Seneca Foods Corporation, pursuant to RCW 39.84.060.
SUBMITTED BY: Department of Community & Economic Development
Department of Finance & Budget
CONTACT PERSON/TELEPHONE: B1 575 -61L3 -
,rim Je 6-6639
SUMMARY EXPLANATION:
Seneca Foods Corporation, 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 2418 River Road, 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 tine
Resolution _X—Ordinance Contract _Other (Specify
Funding
APPROVED FOR SUBMITTAL:
® City Manager
STAFF RECOMMENDATION: Adopt Resolution
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION: Resolution adopted. RESOLUTION NO. R-2001-66