2005-224
RESOLUTION 2005 - 224
CITY OF JANESVILLE, WISCONSIN
INITIAL RESOLUTION FOR REVENUE BONDS WHICH ALSO CONSTITUTES A
RESOLUTION DECLARING OFFICIAL INTENT TO REIMBURSE EXPENDITURES ON
THE PROJECT WITH PROCEEDS OF A TAX-EXEMPT BORROWING
WHEREAS, the City of Janesville, Wisconsin (the "Municipality") is authorized by
Wisconsin Statutes Section 66.1103 (the "Act") to issue Bonds to finance costs of certain
projects including manufacturing facilities; and
WHEREAS, bonds issued pursuant to the Act are to be payable from amounts paid under
a revenue agreement (as defined in the Act) relating to the project being financed and not
from tax revenues or other funds of the Municipality; and
WHEREAS, Clinton Machine Co., Inc., an Ohio corporation, Podnar Properties Limited, an
Ohio limited liability company, Terry L. Podnar and/or Mark R. Podnar (individually or as a
part of any combination, joint venture, limited liability company, limited liability partnership,
trust or partnership of which any of the above are a part, the "Borrower"), wishes to pursue
the acquisition of land in the Municipality and the construction and equipping thereon of
manufacturing facilities and related improvements (the "Project") for use in connection with
the manufacture and processing of raw metal products including non-ferrous plate,
extrusions, tubing and piping and related materials and related manufacturing and service
activities; and
WHEREAS, the Borrower has asked the Municipality to indicate its intention to provide
financing under the Act for all or a portion of the bonds and the Project before it proceeds;
and
WHEREAS, the Borrower also has presented the Municipality with evidence of its intention
to reimburse itself for expenditures relating to the Project which it pays with funds which are
not the proceeds of revenue bonds issued under the Act; and
WHEREAS, the Borrower expects the reimbursement to be funded with the proceeds of
qualified small issue private activity revenue bonds which will constitute reimbursement
bonds to be issued on its behalf with respect to the Project and has indicated that it does not
expect the aggregate principal amount of any bonds to be issued for the Project to exceed
$4,000,000; and
WHEREAS, Borrower has represented that it expects the Project to create
approximately 15 new full-time equivalent jobs in the Municipality; and
WHEREAS, the Project will benefit the Municipality.
NOW, THEREFORE, IT IS RESOLVED:
1. The Municipality hereby declares its intent to assist the Borrower with respect to
the financing of the Project by issuing the Bonds (the "Bonds") in one or more series in an
amount not to exceed $4,000,000 and, under Treas. Reg. Sec. 1.150-2, to reimburse any
expenditures made on costs of the Project prior to issuance of the Bonds with proceeds of the
Bonds.
QBMKE\58] 2087.2
2. To encourage the Borrower to undertake the Project, the Municipality will pursue a
financing plan (the "Financing") under which it will:
(a) sell to one or more purchasers procured by the Borrower bonds under the
Act;
(b) enter into one or more revenue agreements with the Borrower providing the
Municipality with revenue sufficient to pay the principal of, premium, if any, and interest on
the Bonds when due and requiring the Borrower to provide the portion of the Project to be
financed with the Bonds; and
(c) assign any revenue agreements to the holders of the Bonds or to a trustee
for their benefit and enter into any other appropriate arrangements requested by the
Borrower to further secure the payment of the Bonds.
3. The Bonds shall never constitute an indebtedness of the Municipality within the
meaning of any state constitutional provision or statutory limitation and shall not constitute or
give rise to a pecuniary liability of the Municipality or its officers or a charge against the
Municipality's general credit or taxing powers.
4. The appropriate officers of the Municipality are authorized to negotiate the terms of
the Financing and all related documents. The terms of the Financing and all related documents
will be subject to this Resolution and the Act and will not be binding until
(a) the details of the Financing and the issuance of the Bonds are approved
and authorized by further resolution of this City Council;
(b) the electors of the Municipality have been given the opportunity to petition
for a referendum as required by the Act and either (i) no petition is timely filed or (ii) if a
petition is timely filed, a referendum approves the issuance of the Bonds; and
(c) all documents required in connection with the Financing have been duly
executed and delivered by the parties.
5. The City Clerk is directed to
(a) publish the Notice to Electors in substantially the form attached to this
Resolution as a class 1 notice under Wisconsin Statutes Chapter 985, in a newspaper
eligible to make such publication for the Municipality and
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(b) file with the Secretary of the Department of Commerce of the State of
Wisconsin a copy of this Resolution and a copy of the Notice to Electors.
ADOPTED:
November 14. 2005
Motion by: Addie
Second by: DeGarmo
. .
Councilmember Aye Nay Pass Absent
--
Brunner X
Brien X
Williams X
- --._---
Wellnitz, Tim X
Wellnitz, Tom X
--
DeGarmo X
Addie X
APPROVED:
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Stev~n E. Sheiff~r, Cit; Manager
ATTEST:
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JeanAnn Wulf, City Clerk-Treasurer :r
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APPROVED AS TO FORM: C/
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City Attorney / I
Proposed by: City Manager
Prepared by: Bond Counsel
QBMKE\5812087.2