HomeMy WebLinkAboutR-1996-101 Tax - Exempt Nonrecourse Revenue BondsRESOLUTION NO. 81-96— 101
A RESOLUTION of the City Council of the City of Yakima,
Washington approving the issuance of tax-exempt nonrecourse
revenue bonds 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 Yakima County Public Corporation (the "Public
Corporation") was formed in order to carry out the purposes of the Act, and
WHEREAS, the Public Corporation has received an application from Michelsen
Packaging Company (the "Company") regarding $4,600,000 in financing, to finance new
improvements to the Company facilities at 922 N First St , Yakima, Washington (the "Project"),
which is within the boundaries of 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 has scheduled a special meeting to approve the
issuance of nonrecourse revenue bonds in an amount not to exceed $4,600,000 (the "Bonds") to
be held on August 6, 1996, 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 revenue bonds by the Public
Corporation for such Project, and
WHEREAS, the Public Corporation, as the issuer of the 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 the Bonds;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF YAKIMA, WASHINGTON, as follows:
Section 1. The City, pursuant to Chapter 39.84 RCW, does hereby approve the issuance
of the Bonds by the Public Corporation for the purposes of financing the Project under the Act.
The Bonds are anticipated to be issued by the Public Corporation in the aggregate
principal amount of not to exceed $4,600,000 pursuant to a resolution of the Board of Directors
of the Public Corporation for the purposes of financing the Project under the Act
The proceeds of the Bonds will be loaned to the Company, pursuant to a loan agreement
with the Public Corporation, and the proceeds will be used for the purpose of paying all or a part
of the costs of a new Project within the boundaries of the City 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
-2-
CMW26F DOC 96/06/28
Section 2 This resolution is intended solely to constitute approval of the issuance of the
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 6th day of
August , 1996.
ATTEST
Clerk
CITY COUNCIL OF THE CITY OF
YAKIMA, WASHINGTON
-3-
Lynn
3-
LynnBuchanan, Mayor
CMW26F DOC 96106728
CERTIFICATE
I, the undersigned, Clerk of the City Council of the City of Yakima (the "City"), do
HEREBY CERTIFY:
1 That the attached Resolution No R_96-1 rn (herein called 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 August 6 , 1996 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
this £o day of ___, __, 1996
[SEAL]
1<eucue--„, EcaucA--/-/---' c c_
Clerk of the City Council
CMW26F DOC 96/0628
08101/1996 14:41 5099626633 KVDC PAGE 01
YAKIMA COUNTY PUBLIC CORPORATION
YAKIMA COUNTY COURTHOUSE
128 North Second Street
Yakima, WA 98901
TEI.2DHOITE: (509)962-3536 PAX: (509)962-6633
E-mail: kiyak@ellensburg. corn
VIA FAX
DATE: August 1, 1996
TO: John Hanson FAX No. (509) 576-6364
FROM: Ed Harrell, Secretary
RE: Michelsen IRB
NUMBER OF PAGES: 2 (including this page)
Following is the letter requested by Dick Zais. The Public
Hearing on issuance of Bonds for this project will be at 9:30
a.m. August 6, 1996 in the County Commissioners Hearing Room. It
would be good if someone from the City could attend. I have been
trying to contact Dan Beddeson at Michelsen Packaging to get more
information on the project but he is out until Monday. His
telephone number is 248-6270 if you or Dick would like to talk
with him.
I will also be out of the office until Monday, August 5th. If
you have any other questions please call me at 962-7536, Monday
morning.
Thank you.
08/01/1996 14:41 5099626633 KVDC PAGE 02
YAKIMA COUNTY PUBLIC CORPORATION
YAKIMA COUNTY COURTHOUSE
128 North Second Street
Yakima, WA 98901
Phone: ;509) 575-2932
August 1, 1996
Mr. Dick Zais, City Manager
City of Yakima
129 N. Second Street
Yakima, WA 98901
Dear Mr. Zais:
The Yakima County Public Corporation has been approached by
Michelsen Packaging Company for Industrial Revenue Bond financing
of an expansion project. Michelsen Packaging, located in Yakima
since 1937, uses recycled newspaper .in the manufacturing of
products for the fruit industry. In 1994 they submitted an
application for Industrial Revenue Bonds to finance a :major
expansion of their facilities at a new location in Yakima. Their
application lists the project location as 922 North First Avenue.
Michelsen Packaging is now ready to pursue this project and have
requested final authorization for issuance of the Bonds. The
project will include the acquisition, construction and equipping
of new facilities. Micheisen expects to create 25 to 40 new jobs
at this location. They anticipate no special utility needs other
than those that are already available to the site, nor will there
be any hazardous wastes or effluents created.
The Yakima County Public Corporation will hold a public hearing
and consider a Resolution authorizing issuance of the Industrial
Revenue Bonds on August 6, 1996. As stated in the letter form
Cynthia Weed of Preston, Gates, and Ellis; who serve as :Bond
Council for this project, the Resolution by the Yakima City
Council does not preclude any kind of future action by the City
in regard to issuing permits for the project.
Sincerely,
Ed Harrell, Secretary
Yakima County Public Corporation
PRESTON GATES & ELLIS
.A T T O R N E 7 S
July 1, 1996
SENT VIA FEDERAL EXPRESS
Mr Ray Paolella
City Attorney
City of Yakima
129 N 2nd St
Yakima, Washington 98901
Re Yakima County Public Corporation Variable Rate Revenue Demand Bonds, 1996
(Michelsen Packaging Project)
Dear Mr Paolella
Yakima County maintains a public corporation under RCW Ch. 39.84, Yakima County
Public Corporation (the "Public Corporation") The Public Corporation has received an
application for $4,600,000 tax-exempt financing from Michelsen Packaging Company (the
"Company) part of which is to finance improvements to its facilities within the City of Yakima
(the "Project") The Company is seeking tax-exempt financing in order to lower its costs of
borrowing, and Bank of America NW, N A. dba Seafirst Bank has issued a commitment to assist
the financing by issuing its letter of credit and placing the bonds with investors
Our law firm is acting as bond counsel for the financing, and we are preparing the bond
pi uceedings for the Pubiic Corporation. Among the preliminary approvals which must be
obtained prior to the issuance of industrial revenue bonds is the approval of the planning
jurisdiction, RCW 39 84.060 As the Project is within the boundaries of the City of Yakima, the
City Council of the City has planning jurisdiction over the Project. Therefore, we are required to
obtain the approval of the City 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 bond by the Public Corporation. Within the text of the resolution,
A PARTNERSHIP INCLLDING A PROFESSIONAL CORPORATION
ANCHOR ; G E • COELR D ALENE • LOS ANGELES • PORTLAND • SPOKANE • TACOMA • WASHINGTON D C
5000 COLL 'IBIA CENTER 701 FIFTH AVENLE SEATTLE WASHINGTON 98104-7078 PHONE (206) 623-7580 FACSIMILE (206) 623-702:
Mr Ray Paolella
July 1, 1996
Page 2
we have specifically reserved the right and authority of the City to consider independently any
subsequent development permit which may be presented for the Project
In addition, the resolution contains specific language which provides that: the City shall
have no liability under any circumstance for the payment of any debt service on the bond, 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
If the resolution meets with your approval as well as that of other City officials, we would
appreciate your assistance in adding it to the agenda for consideration by the City Council at its
meeting on July 16, 1996 or August 6, 1996 If you believe that it would be helpful for the
applicant, a representative of the Corporation, or me to attend the meeting at which the resolution
would be considered, please let us know when the meeting is scheduled to occur Following the
approval of the resolution, we will need to receive a certified copy in order to complete the
transcnpt for this issue pnor to the issuance of the bond
For your convenience, we have enclosed a diskette containing the draft resolution in Word
for Windows 2 0 format
Please do not hesitate to call for any additional information on the project or the bond
Very truly yours,
PRESTON GATES & ELLIS
CynthilM. Weed
Enclosure
cc Lynn K. Buchanan, Mayor, City of Yakima
Karen S Roberts, City Clerk, City of Yakima
Dan Beddeson, Michelsen Packaging Company
Edgar Harrell, Yakima County Public Corporation
Phillip J Baily, Bank of America NW, N A.
CMW26F DOC
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. / 7
For Meeting Of 8/6/96
ITEM TITLE: Resolution approving issuance of tax-exempt nonrecourse revenue bonds of
Yakima County Public Corporation for Michelsen Packaging Company
SUBMITTED BY: Dick Zais, City Manager
CONTACT PERSON/TELEPHONE: Ed Harrell/575-2932
SUMMARY EXPLANATION:
In 1994 Michelsen Packaging Company submitted an application for Industrial Revenue Bonds
to finance a major expansion of their facilities at a new location in Yakima (922 No. 1st Ave.).
Michelsen Packaging is now ready to pursue this project and have requested final authorization
for issuance of the bonds. The project will include the acquisition, construction and equipping of
new facilities. Michelsen expects to create 25 to 40 new jobs at this location.
On August 6th, the Yakima County Public Corporation will hold a public hearing to consider a
resolution authorizing issuance of the Industrial Revenue Bonds.
Resolution X Ordinance _ Contract — Other (Specify) Two letters
Funding Source �\
APPROVED FOR SUBMITTAL:
City Manager
STAFF RECOMMENDATION: Adopt resolution
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION:
Legal/BD
rev effective 7/21/92