Number
010351
Version
ORIGINAL
Reference
Sponsor
THE CHAIR
Title
Resolution authorizing execution of the First Supplemental Indenture of Trust and the First Amendment to Loan Agreement relating to Industrial Development Revenue Bonds, Series 1998 (Service Heat Treating, Inc. Project). (DCD)
Analysis
This resolution approves an amendment to the amortization schedule for the industrial revenue bonds issued for Service Heat Treating, Inc. in 1998.
Body
Whereas, Pursuant to an Indenture of Trust, dated as of May 1, 1998 (the "Indenture"), between the City of Milwaukee, Wisconsin (the "City"), and M&I National Trust Company, West Bend, Wisconsin, as trustee (the "Trustee"), the City issued $3,000,000 principal amount of its Industrial Development Revenue Bonds, Series 1998 (Service Heat Treating, Inc. Project) (the "Bonds") as authorized by Section 66.1103, Wisconsin Statutes, of which $2,600,000 principal amount remains outstanding on the date of this resolution; and
Whereas, Pursuant to a Loan Agreement dated as of May 1, 1998 (the "Loan Agreement") between the City and Service Heat Treating, Inc., a Wisconsin corporation, and Service Continuous, Inc., a Wisconsin corporation (the "Borrowers"), the City loaned the proceeds of the Bonds to the Borrowers, and the Borrowers agreed to provide the City with funds sufficient to pay the principal of and interest on the Bonds when due; and
Whereas, The Borrowers have requested a change to the principal maturity schedule to defer the principal payment due on June 1, 2001 over the remaining principal payment dates; and
Whereas, The Borrowers have presented the Common Council of the City of Milwaukee with a form of a First Supplemental Indenture of Trust (the "First Supplemental Indenture") and a First Amendment to Loan Agreement (the "First Amendment to Loan Agreement"), copies of which are attached to this Common Council File; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee that:
1. Subject to obtaining all consents required under the Indenture and the Loan Agreement, the First Supplemental Indenture and the First Amendment to Loan Agreement, in substantially the forms presented to the Common Council, are approved. The Mayor, the City Clerk and the City Comptroller, or any of their deputies if necessary, are authorized and directed on behalf of the City to execute, seal and deliver the First Supplemental Indenture and the First Amendment to Loan Agreement, with such revisions, additions, or deletions, on either document, as may be approved by the officials signing said document, which approval shall be conclusively proved by their execution and delivery. Such officials are authorized to execute, either manually or by facsimile, and deliver replacement bonds in the aggregate principal amount of $2,600,000, representing the remaining principal balance outstanding on the Bonds, in exchange for the then outstanding Bonds.
Such officials are authorized to execute and deliver replacement assignments of the Promissory Note in the aggregate principal amount of $2,600,000, representing the remaining principal balance outstanding on the Promissory Note, in exchange for the then outstanding Promissory Note. Such officials are also authorized to prepare or to have prepared such other documents, opinions, certificates and closing or post-closing instruments as may be required by this resolution or as may be deemed necessary by such officials, counsel for the City or bond counsel.
2. The appropriate officials of the Department of City Development are authorized to hold a public hearing on the question of the amendment to the terms of the Bonds so as to fulfill the public approval requirement of Section 147(f) of the Internal Revenue Code of 1986, as amended. Notice of the public hearing shall be published as a class 1 notice in the official newspaper of the City at least 14 days prior to the scheduled date for such hearing.
3. This resolution shall be effective immediately upon its adoption. To the extent that any prior resolutions by the Common Council of the City of Milwaukee are inconsistent with the provisions hereof, this resolution shall control and such prior resolutions shall be deemed amended to such extent as may be necessary to bring them in conformity with this resolution.
Drafter
DCD:JS:js
06/19/01/A