Number
171255
Version
ORIGINAL
Reference
Sponsor:
Ald. Lewis
Title
Resolution relating to the intent to issue Industrial Development Revenue Bonds for the Moldmakers Leasing & Investments Limited Partnership, L.L.P. Project.
Analysis
This resolution is the initial resolution required by Wis. Stat. § 66.1103 approving the issuance of bonds by the City of Oak Creek to finance the purchase and rehabilitation of a property located at 8501 West Tower Ave.
Body
Whereas, Section 66.1103 of the Wisconsin Statutes (the “Act”) authorizes the City of Milwaukee, Milwaukee County, Wisconsin (the “City”), to authorize the issuance and sale of bonds by the City to construct, equip, re-equip, acquire by gift, lease or purchase, install, reconstruct, rebuild, rehabilitate, improve, supplement, replace, maintain, repair, enlarge, extend or remodel industrial projects in the City; and
Whereas, Section 66.1103(3)(f) provides that a municipality also may finance an industrial project which is located entirely outside the geographic limits of the municipality, but only if the revenue agreement for the project also relates to another project of the same eligible participant, part of which is located within the geographic limits of the municipality; and
Whereas, Moldmakers Leasing & Investments Limited Partnership, L.L.P., a Wisconsin limited liability partnership, and/or one or more related or affiliated entities, and/or one or more limited liability entities to be formed (collectively, the “Borrower”), desires to complete a multi-jurisdictional project consisting of financing the (i) purchase of land and the acquisition of an existing approximately 67,780 square foot manufacturing facility located at 303 Marquette Avenue in the City of Oak Creek, Wisconsin (the “Oak Creek Facility”) which is leased by WS Packaging Group, Inc. and used in its printing business, (ii) purchase of land and the acquisition of an existing approximately 76,478 square foot manufacturing facility located at 8501 West Tower Avenue in the City of Milwaukee, Wisconsin which is leased by Converted Products, Inc. and used in its paper converting business (the “Milwaukee Facility” and collectively with the Oak Creek Facility, the “Facilities”), (iii) rehabilitation and improvements to the Facilities and (iv) payment of certain costs of issuance (collectively, the “Project”); and
Whereas, The cost of the Project is presently estimated to be greater than $7,000,000, and the amount proposed to be financed with one or more series of tax-exempt and/or taxable industrial development revenue bonds does not exceed $7,000,000; and
Whereas, The proposed Project is a multi-jurisdictional project which is located in the City and the City of Oak Creek, and the Borrower has requested that the City and the City of Oak Creek each approve an initial resolution providing for the financing of the Project in an amount not to exceed $7,000,000; and
Whereas, The City of Oak Creek considered an initial resolution on November 21, 2017 providing for the financing of the multi-jurisdictional Project in an amount not to exceed $7,000,000; and
Whereas, The City of Oak Creek shall be the issuer of said industrial development revenue bonds; and
Whereas, The Borrower has requested that the City now approve an initial resolution providing for the financing of the multi-jurisdictional Project; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee that based upon representations of the Borrower, it is the finding and determination of the Common Council that the Project is a qualified “project” within the meaning of the Act and that the Borrower is an “eligible participant” within the meaning of the Act. The City recognizes and agrees that upon the approval of the Common Council of the City of Oak Creek, the City of Oak Creek shall:
(a) Finance the Project in an amount not to exceed $7,000,000; and
(b) Issue industrial development revenue bonds in one or more series of tax-exempt and/or taxable bonds (the “Bond(s)”), in an amount not to exceed $7,000,000 in order to finance costs of the Project, located in the City and the City of Oak Creek, pursuant to Section 66.1103(3)(f) of the Wisconsin Statutes; and be it
Further Resolved, That the aforesaid plan of financing contemplates, and is conditioned upon, the following:
(a) The Bonds shall never constitute an indebtedness of either the City or the City of Oak Creek within the meaning of any state constitutional provision or statutory limitation;
(b) The Bonds shall not constitute or give rise to a pecuniary liability of either the City or the City of Oak Creek or a charge against their general credit or taxing powers;
(c) The Project shall be subject to property taxation in the same amount and to the same extent as though the Project were not financed with industrial development revenue bonds;
(d) The Borrower shall find a purchaser for all of the Bonds;
(e) The City’s out-of-pocket costs, including but not limited to legal fees and Trustee’s fees, in connection with the authorization, issuance and sale of the Bonds shall be paid by the Borrower; and
(f) A notice of public hearing (the “TEFRA Hearing”), , required by federal law for purposes of Section 147(f) of the Internal Revenue Code of 1986, as amended, shall be published in a newspaper of general circulation in the City and the City of Oak Creek, and public hearings shall be held by both the City and the City of Oak Creek to provide interested individuals or parties the opportunity to testify with respect to the nature and location of the Project and the issuance of the Bonds to finance the Project; and be it
Further Resolved, That the aforesaid plan of financing shall not be legally binding upon the City nor be finally implemented unless and until:
(a) The details and mechanics of the same are authorized and approved by a further resolution of the City of Oak Creek which shall be solely within the discretion of the Common Council of the City of Oak Creek;
(b) The City Clerk shall cause notice of adoption of this Initial Resolutionto be published once in a newspaper of general circulation in the City, and the electors of the City shall have been given the opportunity to petition for a referendum on the matter of the aforesaid Bond issue, all as required by law;
(c) Either no such petition shall be timely filed or such petition shall have been filed and said referendum shall have approved the Bond issue;
(d) The City and the City of Oak Creek, shall have received an employment impact estimate issued under Section 238.11 of the Wisconsin Statutes;
(e) All documents required to consummate the financing have been duly authorized and delivered; and
(f) The City and the City of Oak Creek have approved the issuance of the Bonds following the TEFRA Hearing required by Section 2(f) above. The Mayor is authorized to sign the Approval of Mayor in the form attached to this file, upon verification from bond counsel that the TEFRA Hearing was held; and be it
Further Resolved, That pursuant to the Act, all requirements that the Project be subject to the contracting requirements contained in Section 66.1103 are waived, the Borrower having represented that it is able to negotiate satisfactory arrangements for completing the Project and that the City's interests are not prejudiced thereby; and be it
Further Resolved, That the City Clerk is directed, following adoption of this Initial Resolution (i) to publish notice of such adoption not less than one time in the official newspaper of the City, and (ii) to file a copy of this Initial Resolution, together with a statement indicating the date the Notice to Electors was published, with the Wisconsin Economic Development Corporation within twenty (20) days following the date of publication of such notice; and be it
Further Resolved, That this Initial Resolution is an “initial resolution” within the meaning of the Act and official action toward issuance of the Bonds for purposes of Sections 103 and 144 of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder. Furthermore, it is the reasonable expectation of the City that proceeds of the Bonds may be used to reimburse expenditures made on the Project prior to the issuance of the Bonds. The maximum principal amount of debt expected to be issued for the Project on the date hereof is $7,000,000. This statement of official intent is made pursuant to Treasury Regulations §1.150-2.
Requestor:
City Attorney
Drafter:
City Attorney: Jeremy R. McKenzie
11/27/17