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HomeMy WebLinkAboutResolutions - R-83-18 - 05/31/1983 - Heritage Investment bonds . / RESOLUTION NO. "��-6 RECEIVED A RESOLUTION AUTHORIZING THE EXECUTION •,,/.AN,. 4 t 19R OF A MEMORANDUM OF AGREEMENT (SCHWEDER/ BYKOWSKI/SCHAID PROJECT) CITY QF cHEN RY WHEREAS, Theodore Schweder of 2609 West Wyandotte Avenue, McHenry, Illinois, Ronald Bykowski of 3727B West Elm, McHenry, Illinois and James Schaid of 4814 Strong Road, Crystal Lake, Illinois (together, the "Borrowers" ) wish to finance the acqui- sition of an existing site and building and the remodeling of said building for use as commercial rental spaces by various tenants and wish to have the City of McHenry, Illinois (the "Issuer" ) issue its revenue bonds to finance such acquisition and remodeling pursuant to the provisions of the Industrial Project Revenue Bond Act, Sections 11-74-1 through 11-74-14, inclusive of Chapter 24, Illinois Revised Statutes, 1981, as amended; and WHEREAS, a Memorandum of Agreement has been presented to the Issuer under the terms of which the Issuer agrees, subject to the provisions of such Agreement, to issue its revenue bonds to finance such acquisition and remodeling; NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF McHENRY, ILLINOIS, as follows: SECTION 1 : That the Mayor of the Issuer is hereby authorized to execute, and the City Clerk of the Issuer is hereby authorized to attest a Memorandum of Agreement with the Borrowers in substantially the form of such agreement appended to this Resolution as Exhibit A. SECTION 2 : That the officers and employees of the Issuer are hereby authorized to take such further action as is /r( zeS 6,(16 7 67, Gs ;�r ,„ necessary to carry out the intent and purposes of the Memorandum of Agreement as executed and to issue not to exceed $1, 000, 000 of its revenue bonds upon the terms and conditions stated in such Memorandum of Agreement for the purpose of defraying the cost of acquiring and remodeling the Project (as defined in the Memorandum of Agreement) and that the same is declared to be for a public purpose and to be a matter pertaining to the government and affairs of the Issuer. SECTION 3 : This Resolution shall be in full force and effect upon its passage and approval . PASSED this 3/,4- day of , 1983 . AYES: NAYS : ABSENT: APPROVED this 31Avr day of , 1983 . Mayor ATTEST: City Clerk -2- STATE OF ILLINOIS ) SS COUNTY OF McHENRY ) I , the undersigned, do hereby certify that I am the duly qualified and elected Clerk of the City of McHenry, in the County and State aforesaid; and as such Clerk, I am the keeper of the official journal, records and files of the Mayor and City Council of said City. I do further certify that the attached and foregoing is a full, true and correct copy of; RESOLUTION NO. A RESOLUTION AUTHORIZING THE EXECUTION OF A MEMORANDUM OF AGREEMENT (SCHWEDER/BYKOWSKI/ SCHAID PROJECT) . Passed and Approved: , 1983 as adopted by the Mayor and City Council of the City of McHenry at a legally convened meeting in the City of McHenry. I further certify that in accordance with the requirements of Ch. 102, Illinois Revised statutes, Section 41 et. seq. , public notice of the regular dates, times and places of the regular meetings of the City Council of the City of McHenry, Illinois was given at the beginning of the 1983 calendar or fiscal year of the City of McHenry, Illinois by posting a copy of such notice at the principal office of the City Council, namely the City Hall, McHenry, Illinois and by supplying copies of such notice to any news medium that has filed an annual request for such notice. Written minutes of said meeting of 1983 have been kept, and include, without limitation, the date, -3- r time and place of the meeting, the members of the governing body of the City recorded as either present or absent, and a general description of all matters proposed, discussed, or decided, and a record of any votes taken, and said minutes shall be available for public inspection within 7 days of the approval by said governing body. I further certify that all meetings of the City Council concerning the not to exceed $1, 000, 000 issue of its revenue bonds were held at times and places convenient to the public specified in the notice regarding said meetings, and that said meetings were public meetings . IN WITNESS WHEREOF, I have hereunto affixed my official signature and the corporate seal of said City of McHenry, McHenry County, Illinois this 3/'r day of ) , 1983 . City Clerk (CITY SEAL) -4- • r / VtQ RECEIVED MEMORANDUM OF AGREEMENT MAY 3 ! 1 Cli (W lieruFNRY THIS MEMORANDUM OF AGREEMENT is between the City of McHenry, Illinois (the "Issuer" ) and Theodore Schweder of 2609 West Wyandotte Avenue, McHenry, Illinois, Ronald Bykowski of 3727B West Elm, McHenry, Illinois and James Schaid of 4814 Strong Road, Crystal Lake, Illinois (together, the "Borrower" ) . 1. Preliminary Statement. Among the matters of mutual inducement which have resulted in this Agreement are the following: (a) The Issuer is authorized and empowered by the provisions of Division 74 of Article 11 of the Illinois Municipal Code, as amended, the Industrial Project Revenue Bond Act (the "Act" ) , to issue industrial development revenue bonds for the purpose of financing, in whole or in part, the cost of the acquisi- tion, purchase, construction, reconstruction, improvement, betterment or extension of any "industrial project" (as said term is defined in the Act) and to enter into a loan agreement with the Borrowers or their designee pursuant to which the proceeds of such revenue bonds may be lent to the Borrowers or their designee to finance the costs of the acquisition and remodeling of such project. (b) The Borrowers wish to obtain satisfactory assurance from the Issuer that the proceeds of the sale of the revenue bonds of the Issuer will be made available to them or their designee to finance the costs of acquiring an existing site and a building of approximately 25, 000 sq. ft. and the remodeling of said building for use as commercial rental spaces by various tenants (the "Project" ) , which Project is located between Route 120 and Old Mill Stream Drive within the territorial boundaries of the Issuer. (c) The industrial development revenue bonds of the Issuer shall be limited obligations payable solely out of the income and revenues derived by the Issuer with respect to the Project. No holder of any such bonds shall have the right to compel any exercise of the taxing power of the Issuer or any political subdivision of the State of Illinois to pay such bonds or the interest thereon or any obligation thereunder and such bonds shall not constitute an indebtedness of the Issuer or a loan of credit thereof. (d) Subject to the conditions contained herein and to the due compliance with all requirements of law, the Issuer, by virtue of such statutory authority as may now or hereafter be conferred by the Act, will issue and sell its revenue bonds in an amount not to exceed $1, 000, 000 (the "Bonds" ) to finance the costs of the Project. 2 . Undertakings on the Part of the Issuer. Subject to the conditions above stated, the Issuer agrees as follows: (a) That it will authorize the issuance and sale of the Bonds pursuant to the terms of the Act as then in force. The Issuer, however, shall have no duty to find any purchaser or purchasers for the bonds . (b) That it will, at the proper time and subject in all respects to the prior advice, consent and approval of the Borrowers, adopt or cause to be adopted, such proceedings and authorize the execution of such documents as may be necessary and advisable for the authorization, issuance, and sale of the Bonds as aforesaid, and that it will enter into a loan agreement whereby the Borrowers or their designee will pay to or on behalf of the Issuer such sums -2- as shall be sufficient to pay the principal and interest and redemption premium, if any, on the Bonds as and when the same shall become due and payable, all as shall be authorized by the Act as then in effect and mutually satisfactory to the Issuer and to the Borrowers. 3 . Undertakings on the Part of the Borrowers . Subject to the conditions above stated, the Borrowers agree as follows: (a) That they will use all reasonable efforts to find one or more purchasers for the Bonds. (b) That contemporaneously with the delivery of the Bonds, they, or their designee, will enter into a loan agreement with the Issuer under the terms of which the Borrowers or their designee will obligate itself to pay to the Issuer sums sufficient in the aggregate to pay the principal of and interest and redemption premium, if any, on the Bonds as and when the same shall become due and payable; any such loan agreement to contain such other provisions as shall be required by the Act and such other provisions as are mutually acceptable to the Issuer and to the Borrowers. 4. General Provisions. (a) All commitments of the Issuer under Paragraph 2 hereof and of the Borrowers or their designee under Paragraph 3 hereof are subject to the condition that on or before 365 days from the date hereof (or such other date as shall be mutually satisfactory to the Issuer and the Borrowers ) , the Issuer and the Borrowers or their designee shall have agreed to mutually acceptable terms and conditions of the loan agreement and of the Bonds and other instruments or proceedings relating to the Bonds. The decision not to approve or agree to any term or condition of any -3- document or not to take any action prior to issuance of Bonds shall rest solely within the complete discretion of the parties to this Agreement. (b) The Borrowers will pay the Issuer for any and all professional fees, City Council salaries and other city expenses directly or indirectly incurred by, or charged to, the Issuer in connection with the subject matter of the proposed bonds. The Borrowers will immediately deposit with the City Clerk the sum of $a,5-04,9) to be used by the Issuer toward defraying such expenses and fees . At any time that payments from said fund by the Issuer have reduced the balance therein to less than $/, o04, ev , the Borrowers shall, upon request from the City Clerk, deposit such additional sum as will restore the fund balance to the sum originally deposited. Within 90 days after the closing of the sale of said bonds, any unobligated balance remaining in said fund shall be repaid to the Borrowers or their assigns. -4- IN WITNESS WHEREOF, the parties hereto have entered into this Agreement by their officers thereunto duly authorized as of the 3/ day of , 1983 . CITY OF McHENRY, ILLINOIS (SEAL) Mayor ATTEST: City Clerk Theodore Schweder Ronald Bykowski James Schaid -5-