HomeMy WebLinkAboutResolutions - R-91-16 - 06/05/1991 - Sale of Bonds for Madey EntR-91-16
RESOLUTION OF THE CITY OF MCHENRY,
ILLINOIS AUTHORIZING THE ISSUANCE AND SALE OF
ITS INDUSTRIAL DEVELOPMENT REVENUE BONDS,
SERIES 1991 (MADEY ENTERPRISES, INC. PROJECT)
WHEREAS, the City of McHenry, Illinois (the "City")
is a political subdivision and a non -home rule unit of local
government of the State of Illinois; and
WHEREAS, pursuant to the Industrial Project Revenue
Act, Paragraphs 11-74-1 through 11-74-14, inclusive, of
Chapter 24, Illinois Revised Statutes, as amended (the
"Act"), the City is authorized and empowered to issue its
revenue bonds to finance the acquisition and construction of
capital projects suitable for use by any manufacturing,
industrial research or commercial enterprises, for the
benefit of residents of the City; and
WHEREAS, to accomplish the purposes of the Act and
promote a public purpose by increasing and retaining
employment within the boundaries of the City, the City has
agreed to issue its $2,065,000 Industrial Development Revenue
Bonds, Series 1991 (Madey Enterprises, Inc.) (the "Bonds") in
order to finance the acquisition, construction and equipping
of an industrial manufacturing facility (the "Project")
within the boundaries of the City to be owned by Madey
Enterprises, Inc., an Illinois corporation ("Borrower") and
leased to Polymer Color, Inc., an Illinois corporation
("Polymer"); and
WHEREAS, copies of the following documents are
before this meeting.
(a) Loan and Security Agreement between the City
and Borrower (the "Loan Agreement");
(b) Secured Promissory Note from Borrower to the
City;
(c) Mortgage from Borrower to the City;
(d) Assignment of Rents and Leases from the
Borrower to the City;
(e) Guaranty from Polymer, Benjamin Madey and
Sandra Madey to the City; and
(f) Bond form.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND THE
CITY COUNCIL OF THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS
THAT:
1. Bonds. In order to provide funds to finance
the acquisition, construction and equipping of the Project,
the City hereby authorizes and approves the issuance of the
Bonds in an aggregate principal amount of $2,065,000, which
Bonds shall be designated "City of McHenry, Illinois
Industrial Development Revenue Bonds, Series 1991 (Madey
Enterprises, Inc. Project)". The Bonds shall be issuable as
fully registered bonds without coupons; shall bear interest
from their date on the unpaid principal thereof at the rate
set forth in the Loan Agreement and the Bonds, as executed
and delivered; shall have a stated maturity and shall be
payable as to principal and interest from their date of
initial issuance at the times and in the amounts set forth in
the Loan Agreement and Bonds as executed and delivered; and
shall be subject to redemption prior to maturity at the
times, under the circumstances, in the manner and at the
redemption prices set forth in the Loan Agreement and Bonds,
as executed and delivered. The Bonds and the interest
thereon shall be limited obligations of the City, payable
from the income and revenues to be derived by the City
pursuant to the Loan Agreement and the Note. Bonds and the
interest thereon shall never constitute an indebtedness of
the City or a loan of credit thereof within the meaning of
any constitutional or statutory provision, nor an obligation
or commitment by the City to expend any of its funds other
than (i) the proceeds of the sale of the Bonds, and (ii) the
income and revenues derived by the City pursuant to the Loan
Agreement and the Note. The Bonds shall be sold at a price
of 100% of the aggregate principal amount thereof plus
accrued interest, if any.
2. Loan Agreement. The Issuer hereby approves
and authorizes performance of the Loan Agreement, in
substantially the form submitted at this meeting, and the
Mayor and the City Clerk are hereby authorized to execute and
deliver the Loan Agreement, in any number of counterparts,
for and on behalf of the City in substantially such form with
such changes therein, additions thereto and omissions
therefrom as those executing the Loan Agreement shall
approve, their execution and delivery thereof constituting
the conclusive approval of the City of any such changes,
additions and omissions.
3. Approval and Execution of Documents. Subject
to such changes or revisions therein as the officers of the
City executing such documents may approve, the Bonds, the
Loan Agreement, and all exhibits to such documents in
substantially their respective forms presented to this
meeting are hereby approved and the Mayor and the Clerk of
the Issuer hereby are each individually authorized to approve
any such changes or revisions and the execution of the Bonds
and the Loan Agreement by the Mayor and the Clerk shall be
conclusive evidence of the approval of any such changes. The
Mayor and the Clerk and their authorized deputies and other
officials of the City are hereby authorized to prepare or to
have prepared and to execute, file and deliver, as
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appropriate, all such other documents, financing statements,
opinions, certificates, affidavits, and closing instruments
as may be required by this resolution or deemed necessary by
said officials or by Bond Counsel or Counsel for the City.
4. Incorporation of Recitals. The recitals in
the "WHEREAS" clauses of this Resolution are hereby found and
determined to be the findings of the City and are
incorporated herein by specific reference, thereby becoming a
part hereof.
5. Effective Date. This Resolution shall be in
full force and effect immediately upon its adoption.
Passed this 5th day of June, 1991.
Voting Aye: Adams, Bolger, Lieder, Locke, Patterson, Serritella. Smith
Voting Nay: None
Abstaining: None
Absent: Donahue
ATTEST:
FJW10526.RES\061291\dwr
Approved this 5th day of June, 1991
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Mayor