HomeMy WebLinkAboutResolutions - R-16-001 - 01/04/2016 - INDUCEMENT RESOLUTION FABRIK IRB'SRESOLUTION R-16-001
An Inducement Resolution of the City of McHenry, Illinois regarding
Industrial Development Revenue Bond Financing to Benefit
K&L Equity, LLC and Fabrik Industries, Inc.
WHEREAS, the City of McHenry, McHenry County, Illinois (the "Municipality"), a
municipal corporation and home rule unit of local government organized and existing under the
laws of the State of Illinois, is authorized by the provisions of the Constitution and laws of the
State of Illinois to issue revenue bonds;
WHEREAS, K&L Equity, LLC, an Illinois limited liability company (including other
related parties or any entity formed by it, the prospective "Borrower") has requested the
Municipality to issue industrial development revenue bonds to provide financing for a project to
be owned by the Borrower and operated by Fabrik Industries, Inc., an Illinois corporation, to
manufacture plastic injection molded components consisting of (i) the acquisition and
rehabilitation of an existing approximately 44,000 square foot facility located at 1515 Miller
Road, McHenry, Illinois (the "Acquired Facility"), (ii) the acquisition and installation of
equipment at the Acquired Facility and the Borrower's existing facility located at 5213 Prime
Parkway, McHenry, Illinois (the "Existing Facility"), (iii) a possible second phase of the project
consisting of the construction of an addition to the Acquired Facility or the Existing Facility, and
(iv) payment of costs of issuance (collectively, the "Project"); and
WHEREAS, the Municipality finds that the financing of the Project will serve the public
purposes of the Municipality; and
WHEREAS, at the direction of the Borrower, the Municipality anticipates issuing up to
$10,000,000 aggregate principal amount of industrial development revenue bonds (the "Bonds")
pursuant to The Industrial Project Revenue Bond Act (65 ILCS 5/I1-74-1 et seq.), as
supplemented and amended, and as further supplemented, and where necessary, superseded by
the powers of the Municipality as a home rule unit under the provisions of Section 6 of Article
VII of the Illinois Constitution of 1970 (collectively, the "Act"), to finance the Project on behalf
of the Borrower.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
MCHENRY, MCHENRY COUNTY, ILLINOIS, AS FOLLOWS:
1. As an inducement to the Borrower to undertake the Project, the Municipality
hereby declares its intent to issue the Bonds to finance the Project, all at the Borrower's cost and
expense and pursuant to documentation acceptable to the Municipality in its sole discretion.
2. In the event the Borrower should advance its own funds for qualifying Project
costs incurred no more than 60 days prior to January 4, 2016, the Municipality hereby declares
its intent to reimburse such qualifying costs out of Bond proceeds, if, as and when received, and
not otherwise. This declaration of intent to reimburse is made in connection with Section 1.150-
2 of the Treasury Regulations.
3. The Municipality will cooperate with the Borrower related to issuance of the
Bonds, but only on terms and conditions acceptable to the Municipality, as determined in its sole
discretion, and at the Borrower's expense. The Municipality makes no representation as to
whether Bonds can be or will in fact be issued or qualify as tax-exempt bonds under Sections
103 and 141, et seq., of the Internal Revenue Code of 1986, as amended (the "Code"), risks of
which the Borrower by the Municipality's adoption of this resolution assents. The Bonds may be
issued in one or more series of tax-exempt and/or taxable bonds, in an amount not to exceed
$10,000,000, in order to finance costs of the Project.
4. The Municipality will reasonably cooperate with the Borrower to obtain for the
Project an allocation of volume cap under Section 146 of the Code and the State of Illinois
Guidelines and Procedures for the Allocation of Private Activity Bonding Authority in
Accordance with the Tax Reform Act of 1986 and 30 ILCS 345 of the Office of the Governor
effective January 1, 2016. The Municipality makes no representation that any volume cap
allocation can or will be obtained or if obtained is sufficient, a risk of which the Borrower by the
Municipality's adoption of this resolution assents.
5. A notice of public hearing required by federal law for purposes of Section 147(f) of
the Code shall be published in a newspaper of general circulation in the Municipality, and a public
hearing shall be held to provide interested individuals or parties the opportunity to testify as to the
Project and the issuance of the Bonds.
6. This resolution is made on the condition that the Bonds shall be issued and all
costs related to the Bonds, whether or not actually issued, shall be paid by the Borrower. The
Bonds under the Act shall be payable solely and only by or on behalf of the Borrower, and shall
never constitute a debt or obligation of any kind of the Municipality, the State of Illinois, or any
other political subdivision of the State of Illinois.
Passed and Approved this 4th day of January 2016.
VOTING AYE: CONDON, PETERSON, WIMMER, CiJRRY, SCHAEFER GLAB, SANTI
VOTING NAY: NONE
ABSENT: NONE
NOT VOTING. NONE
ABSTAINED: NONE
Susan E. Low, Mayor
ATTEST:
Janice C. JqQN9 City Clerk
CERTIFICATION OF RESOLUTION
I, the undersigned, do hereby certify that I am the duly elected, qualified and acting City
Clerk of the City of McHenry, Illinois (the "Municipality"), and as such official I am the keeper
of the records and files of the Municipality and of its City Council (the "Corporate Authorities").
I do further certify that the foregoing constitutes a full, true and complete excerpt from
the proceedings of the meeting of the Corporate Authorities held on January 4, 2016, insofar as
same relates to the adoption of Resolution No. R46-001, entitled:
AN INDUCEMENT RESOLUTION OF THE
CITY OF MCHENRY, ILLINOIS REGARDING
INDUSTRIAL DEVELOPMENT REVENUE BOND
FINANCING TO BENEFIT K&L EQUITY, LLC AND
FABRIK INDUSTRIES, INC.
a true, correct and complete copy of which Resolution (the "Resolution") as adopted at such
meeting appears in the proceedings of the minutes of such meeting and is hereto attached. The
Resolution was adopted and approved by the vote and on the date therein set forth.
I do further certify that the deliberations of the Corporate Authorities on the adoption of
such Resolution were taken openly, that the vote on the adoption of such Resolution was taken
openly and was preceded by a public recital of the nature of the matter being considered and
such other information as would inform the public of the business being conducted, that such
meeting was held at a specified time and place convenient to the public, that notice of such
meeting was duly given to all of the news media requesting such notice, that the agenda for such
meeting was duly posted at the location where such meeting was held and at the principal office
of the Corporate Authorities at least 72 hours before such meeting, that said agenda contained a
separate specific item concerning the proposed adoption of such Resolution, that at least one
copy of said agenda was continuously available for public review during the entire 72-hour
period preceding such meeting, that such meeting was called and held in strict compliance with
the provisions of the Open Meeting Act of the State of Illinois, as amended, and the Illinois
Municipal Code, as amended, and that the Corporate Authorities have complied with all of the
applicable provisions of such Act and such Code and their procedural rules in the adoption of
such Resolution.
IN WITNESS WHEREOF, I hereunto affix my official signature and the seal of the City
of McHenry, Illinois, this 4th day of January 2016.
OF P,
s
Janice C. Jd
City Clerk