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HomeMy WebLinkAbout1983-03-17AMEFOEC. FITZGEAAID I ChOOr(SrON T4INUTES OF SPECIAL I4EETINS CF DIRECTORS THE ECONOMTC DEVELOPMENT COPPORATION OF THE CITY OF MERIDIAN A special meeting of the Board of Directors of the Economic Development Corporation of the City of l4eridian convened at 5:20p.m. on l'larch 17, 1983, at the Meridian City HaII, l.leridian, Idaho. I\lembe rs present were Walter l4orrow, Joseph Glaisyer, Grant Kingsfort Morgan Edwards and Wally Lovan. There $/e re no Board members absent, Upon motion duly made by crant Kingsford and seconderl by WalIy Lovan, and unanimously passed, Morgan Edwards assumed the duties of temporary Cha i rman . Upon motion duly made by Joseph Glaisyer and seconded by Waltet ib rrorl,, crant Kingsford assumed the duties of temporary Secretary. It was noted by the members of the Board that Notice of the Special l.leeting had been duly and properly given and posted. Upon motion duly made by Board member, Joseph G1aisyer, and seconded by Board member, Grant Kingsford, the following resolution was un an imo us l-1, adopted : BE IT RESOLVED, that and the same hereby Corporation. the are, Bylaws submitted at this adopted as the Bylaws of meeting be, this The meeting then proceeded to the election of officers to serve until the next annual meeting of the Corporation. Upon r,rotion duly made by Lovan and unanimously passed, and he assumed his duties. l,'!o rrorv and seconded by Wal ly Glaisyer was elected P residen tVlalter Jo s eph Upon motion duly made by Wally Lovan and seconded fry Grant Kingsford and unanimously passed, Morgan Edwards was elected Vice- President and he assumed his duties. Upon motion duly made by l,torgan Edwards and seconded by Grant Kingsford and unanimously passed, t^lalter t'to rrow vras elected Assis- tant Secretary-Treasurer and he assumed his duties. Upon motion duJ.y made by Board member wally Lovan and seconCod by Board mernber Morgan Edwards, and carried by vote of the membersof the Board, the following resolution was unanimously adopted: wHEREAS, Farmers & t4erchants state Bank, lleridian Branch ris located in close proximity to Ehe City HaII of the CitT of Meridian, fdaho, and is the bank of the City and the City has had a good banking relationship with said hank, and upon the suggestion of Board member and Presiderrt of the Corporation, Joseph Glaisyer, and f,illEREAS, it is understood that the bond transactions ofthe corporation would not necessari ly have to be rradewith the bank chosen to handlo the accounts of the Cort)o ration , P O. 8o! 427 t!642 T.l.9hon. !{a-aa6 r Upon mol-ion duly made by Morgan Ed\^rards, and seconded by Ilally Lo \ran and unanimously passed, Grant Kingsford was elected Secretar,,/- Treasurer and he assumed his duties. I I I i I I I I I I I i I l.aaosE. fIIZGEFA!O I CAOOXSTON P.O. aor a2, (l.a2 BE IT RESOL!',E D , that MERIDIAN, IDAHO, bC. a depository for the Corporation, and for IIA RI\,I-E RS & YE RCHAN']'S STATE BANK, and it is hereby is selected as monies, funds and credit of thisgeneral banking purposes. Upon motion duly made by Board member !VaII1, 16vsn 6n6 seconded by Morgan Edwards, and carried by vote of the rnembe rs of the Board, the following resolution was unanimously ad.opted: BE IT RESOLVED, that both the Presi-dent and Secretary,/ Treasurer of the Corporation shalI be required tosign checks of the Corporation. Upon motion duly made by Board member Grant Kingsford and seconded by Board member l,torgan Edwards, and carried by vote of the members of the Board, the following resolution was unanimously adop te d : BE IT RESOLVED, that no j-ndebtedness shalI be incurred by the Corporation without action thereupon by the Board of Directors of the Corporat j-on or ratification thereof over a specific amount wllich specific amount shall bethe sum of $500.00, and any indebtedness to be incurred by the Corporation over and above that maximum amount shall be incurred only after action thereupon bl, the Boand of Di rectors. Upon motion duly made by Board member crant l(ingsford and seconded by Board member Wally Lovan, and carried by vote of the members, the follovring resolution was unanimously adopted: BE IT BESOLVED, that Viayns 5. Crooskton, .rr. is appointed as the attorney for the Corporation. Upon rrrotion duly made by Board member Grant Kingsford and seconded by Board member, Morgan Edwards, and carried by vote ofthe members of the Board, the following resolution was unanimously adopte d: BE IT RESOLVED, that according to the laws of the State of Idaho, no salaries shall l:e paid to any member of the Board of Directors of the Corporation, PROVIDED, HOI,IEVE R,that the members of the Board of Directors shall be fully reimbursed by the Corporation for their expenses andout-of-pocket costs incurred in carrying out theirresponsibilities to the Corporation. Upon motion duly made by Board member Grant l(ingsford and seconded by Board member Wafly Lovan, ancl carried by vote of thc members of the Board, the following resolution vias unanimously adopted: I I i BE IT RESOLVED, that there shall be charged an initialapplication fee by the Corporation of S500.00, r,rhich sumshall be refundable back and applied to the administrationfee charge<1 upon the signing of the fnducement Resolution i I I i I I l 'P.O.AoraLT ll,l2 I.l.phon. 0a&aaCl and that the administrative fee of EIixir Industrieswill be l/4 of 1t as long as the bonds remain outstanding, that Exlixer rndustries lriII be biIled annuaIIy, if necessary, its pro-rata share of issuer's operating expenses based upon the relative proportion of bonds issued to finance all pro-jects, and that in no event shaII that amount exceed $1,000.00 per annum. Upon rnotion duly made by Board member Grant Kingsford and seconded by Board member wally Lovan, and carried by vote of the members of the Board, the following resolution was unanimously adopted: BE IT RESOLVED, that a corporate seal, the impression of which shall be affixed to the margin hereof, is and the same shall be the corporate seal of the corporation, and shaL1 read as fol lows : THE ECONOMIC DEVELOP}'IENT CORPORATION OF TIIE CITY OF I,IERI DIAN with the.word "SEAL" appearing in the center thereof; that such seal shall be held with the books of the Corporation with the Se cre tary/Trea s ure r and placed on any and all appropriate instruments and documents of the Corporation requiring its SeaI. Upon notion duly made by Board member Grant Kingsford and seconded by WaIIy Lovan, and carried by vote o,: the members of the Board, the following resolution $ras unanimously adopted: BE IT RESoLITED, that the application submitted to the Corporation by ELIXER INDUSTRIES be approved. Upon notion duly made by Board member Grant Kingsford seconded by t{alt ['4o rrovr, and carried by vote of the members the Board, the following resolution was unanimousl-y adopted it having been noted by the President of the Board, Josephthat the followj-ng Resolution must also be approved by the Council of the City of tleridian as well as by the Board ofof the Co rporation l and of.after Glaisyer, ci ty Di recto rs euenohe. FrrzcEBAt-o lcflooxslot{ I I I I I THE ECONOMIC DEVELOPMENT CORPORATION OE THE CITY OE MERIDIAN RESOLUTION NO. __t__ A RESOLUTION MAKING DETERMINATIONS WITH RESPECT TO THE FINANCING OF EACILITIES FOR ELIXIR INDUSTRIES AND AUTHORIZING EXECUTION OF A PRELIMINARY AGREEMENT. WHEREAS Elixir Industries (the rrAppLicantr'), a corporation organized and existing under the Iaws of the State of Calj.fornia and duly qualified to conduct business the State of Idaho. desires to expand and rehabilitate a facility for use as a metal fabrication facj,Iity and lrholesale distribution warehouse ( the "Faci),ityt'); and 1n WHEREAS the Eacility is located within thejurisdiction of The Economic Development Corporation of the City of Meridian ( the fiCorporationrr), and the ApPlicant is willing to expand and rehabilitate the Facility if the Corporation wiII issue its revenue bonds to finance such expansion and rehabilitation pursuant to Title 50, Chapter of the Idaho Code, as amended ( the rrActl); and 27 WHEREAS the Applicant has submitted, and this Boardof Directors has accepted, an application requesting financing for such expansion and rehabilitation of the Faci ). i ty; and WHEREAS this Board of Directors has carefulJ.y considered and discussed the information contained in suchapplicati.on and desires to induce the Applicant to commence expansion and rehabilitation of the Facility at the earliestpossible time; Economi c resolve NOW, THEREEORE, the Board Deve ).opment Corporation of as follows: of Directors of thethe City of Meridian does Section 1.This Board of Directors hereby fj.nds and determines that the Eacility is an rrindustrial development facili.ty,rr as defined in the Act, and that theexpansion and rehabilitation of the Eacility for use as ametal fabrication faciJ-ity and wholesale distribution warehouse qualifies for financing under the Act. Section 2. It the present intent of thetime or from time to time, bondsCorporation to i ssue, at 1S one in an amount sufficient to finance rrproject costs, rt as defined in the Act. related to the Facility, vrhich amount is now estimated to be approximatefy $850,O00, but not exceeding $1,OOO,OOO. Section 3. In order to set forth more fully the obligations of the Applicant and the Corporation in connection with the issuance of such bonds, the President is hereby authorj.zed to execute and deliver, in the name and on behalf of the Corporation, a Preliminary Agreement between the Corporation and the Applicant in substantially the form before this meeting, which is hereby approved in all respects and by this reference incorporated in this Resolution. Section 4.The Secretary or hereby authorized and directed as soon and file with the City Council of the of this resolution and the Preliminary in Section 3. Assistant Secretary is as possible to certi fyCity of Meridian a copy Agreement referred to Secti on 5. It is the purpose and intent of the Corporation that this resolution constitute official action toward the issuance of obllgations by the Corporation for theFacility j.n accordance with section 1 . 1O3 - 8 ( a ) ( 5 ) ( i i i ) of the Regulations promulgated by the United States Department ofthe Treasury under Section 1O3 of the Internal Revenue Codeof 1954, as amended. Section 6. This Resolution shaLl take effect immediateJ. y upon its passage. The on AYES: f NAYS: O ABSENT: O The Economi c 3 -t2 foregoing Resolution was passed and adopted bypevelopment Corporation of the City of Meridian , 1983, by the following vote: re s i dent ATTEST: Sec ta 2 PRELIMINARY AGREEMENT THIS PRELIMINARY AGREEMENT is between The Economic Development Corporation of the City of Meridian (the "CorporatioD" ), . public corporation organized and existing under the laws of the state of Idaho, and Elixir Industries, a corporation organized and existing under the laws of the State of California and duly qualified to conduct business in the State of ldaho ( the rrApplicantrr) . 1. Preliminary Statement. mutual inducement which have resulted the fol Iowing: (a) The Corporation i.s authorized pursuant to Title 5O. Chapter 27 of t}:e Idaho Code, aa amended (thettActtt;, to issue its revenue bonds to pay Itproject coetsrr of rr j,ndustrial development facilitj.es.rt as such terms are defined in the Act. (b) The Applicant'intends to expand and rehabilitate a facility for use as a metaL fabrication facility and wholesale distri.bution lrarehouse (therrFacilityrr). The Facility is located within the jurisdiction of the Corporation, at 535 North Eagle Road, Meridian, Idaho. The project costs reLated to the Facility, including financing and incidental costs ( the I'Project Costs'r), are expected to be approximately 9850,OOO. The Applicant has requested that the Corporation assist the Applicant in defraying all or a portion of the Project Costs by issuing its revenue bonds in an amount not to exceed $1,000,000. Among the matters in this Agreement of are p ropo sed Act. Corporation has determinedof the Project Costs is in (d) The revenue bonds of the Corporation shall bepayable solely out of the revenues and receipts derived with respect to the Facility; and the Project Costs shall be financed for the Applicant under an agreement pursuant to whrch the Applicant will pay an amount sufficient to pay theprincipal of, premium, if any, and interest on such revenuebonds. No holder of any such bonds shall have the right to compel any exercise of the taxing power of the State of Idaho or the City of Meridian to pay any amounts due on such bonds, and such bonds shall" not constitute a debt or Iiability of such State or such City. (e) Subject to duE compliance with all requirements of law, by virtue of such authority a6 may now (c) The fi nanc i ng that the accord lri th the or hereafter be conferred, and subject to receipt of adequate assurance from the Applicant that there are one or nore purchasers for the bonds, the Corporation will issue and sell its revenue bonds in an amount sufficient to pay the ProjectCosts, or such portion thereof as shalI be determined by the Applicant and the corporation, but not to exceed Sl,OOO,OOO. 2. Undertakings on the Part of the qqrporation. Subject to the conditions above stated, the Corporation agrees as fo I lows: (a) That it will authorize the issuance and saleof the bonds pursuant to its lavrful authority. (b) That it wj. II enter into a loan agreement, lease agreenent or installment sale agreenent with the Appllcant whereby the Applicant wiII pay to or on behalf of the Corporation such sums as shall be sufficient to pay theprincipal of and interest and redemption premium, if any, onthe bonds as and when the same shall become due and payable. 3. Undertakings on the Part of the Applicant.Subject to the conditions above stated, the Applicant agreesas fol lows: (a) That it will find one or more purchasers reasonabLe efforts to bonds. use for aII the (b) That contemporaneous I y lrith the delivery ofthe bonds it wi. lL enter into a loan agreement (as borrower),a Lease agreement (as Iessee) or an installment sale agreement (as purchaser) with the Corporation. under theterms of which the Applicant wiII obligate itself to pay toor on behalf of the Corporation sums sufficient in the aggregate to pay the principal of and interest and redernptionpremium, if any, on the bonds as and hrhen the same 6hall become due and payable and to pay aII expenses of theCorporation in connection with the financing, and whichagreement shall contain such other provisions as shall bemutually acceptable or as shalL be reguired by the Act. 4. ceneral Provi si ons. (a) AII commitments of the Corporation underparagraph 2 hereof and of the Applicant under paragraph 3hereof are subject to the condition that on or before oneyear from the date hereof (or such other date as shall bemutually satisfactory to the Corporation and the Applicant),the Corporation and the Applicant shalI have agreed tornutually acceptable terms and conditions of the financing 2 agreement and of the Proceedings relati ng bonds and other instruments or to the bonds. (b) If the events set forth in (a) of this paragraph do not take place within the time set forth or any extension thereof and the bonds in an amount of approximately the amount stated above are not sold within such tine, the Applicant agrees that it vilL reimburse the CorPoration for aIL reasonable and necessary expenses which the Corporation may have incurred at the reguest of the Applicant arising from the execution of this Agreement and the performance by the Corporation of its obligations hereunder, and will pay the fees and expenses of such counsel, including counsel for the Corporation and bond counsel, as rnay have been retained in connection with the proposed financing, and this Agreement shalI thereupon terminate. IN WITNESS WHEREOF, the Corporation and the Applicant have entered into thi.s Agreement by their duly authorized officers as of the lTti day o f t',tarch , 1983. THE ECONOMIC DEVELOPMENT CORPO MERID N OE THE CITY OF By ,?e ident ELIXIR INDUSTRIES./ By ,/ Executive Vice President 3 AISAOaE. nfTGEFAtO lcRoor(8ToN There being no further business to come before the meeting,the same upon nrction duly made by Board member l{ally Lovan and seconded by Board member Walt Plorrolr, and carried by vote of the members of the Board, adjourned. J SYER,ES ENT ECONOMIC DEVELOP NT CORPORATION OF THE CITY OF MERIDIAN ATTEST: GRANT KINGSr'ORD, Secretary,/ TTEASUTET THE ECONOI,'II C DEVELOPMENT CORPORATION OF TIIE CITY OF I\,IERI DIAN I H STATE OF I DAIIO , County of Ada, ss. I further certify that the above and foregoing constitutes a true and correct copy of the minutes of a special meetinq of The Econonic Development CorDorati.on of the City of l'eridian held on t.he 17th day of March, 1983, and said minutes are of r=icially ol- record and in my possession. IN WITNESS I,JIiEREOF, I have hereunto subscribed my officialsignature and impressecl hereon the scal of said City this 14-l_ dayof o\-.r ,19n3. Cran L I(i.nE sEda;tary-Treasurer TIIE t' C')NOI4I C DBVELOPI{ENT CORI'ORATION OF' THE CITY OE PIE RI DIA}I . ?.O. lor azt lla2 T.l.9t n. lal{.at I, GttANT I(INGSFORD, do hereblz certify that r an tlre duly qualified and acting Secretary-Treasurer of the Corporation. ) ) ) I i I ; I I i I I I i I i I i I I