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HomeMy WebLinkAboutResolution 2501 Intent to issue IDR bonds - Friska-Solvie AMENDED BY 2546 ~~~_. ~ . COMMISSION RESOLUTION NO. 2501 RESOLUTION PROVIDING FOR THE GIVING OF NOTICE OF A PUBLIC HEARING ON THE PRO- POSED ISSUANCE BY THE CITY OF BOZEMAN, MONTANA, OF INDUSTRIAL DEVELOPMENT REVENUE BONDS IN THE MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF $8,000,000 FOR FELSKA-SOLVIE, A MONTANA CORPORATION, FOR THE PURPOSE OF ACQUIRING LAND FOR, DEVELOPING, CONSTRUCTING, IMPROVING, EQUIPPING AND FURNISHING A HOTEL AND CONVENTION CENTER FACILITY. BE IT RESOLVED by the City Commission of the City of Bozeman, Montana (the City), as follows: Section 1 Recitals 1.01. The City is authorized by Title 90, Chapter 5, Part 1, Montana Code Annotated (the Act), to acquire, whether by construction, purchase, devise, gift or lease, or anyone or more of such methods, projects consisting of any building or other improvements, and all real and personal properties deemed necessary in connection therewith, whether or not now in existence, or to loan funds for the purpose of such projects, which projects shall be suitable for commercial facilities. To provide funds for such projects and loans, the City, acting pursuant to the Act, may issue and sell its revenue bonds or notes (hereinafter bonds) at public or private sale in such manner and at such times as may be determined by this Council to be most advantageous. Such bonds are to be payable solely from the revenues derived by the City from the project and may be secured by such security devices as may be deemed advantageous by the City and as are permitted by the Act. 1.02. A proposal has been presented to the City by Felska-Solvie, a Montana corporation (the Borrower), that the City, acting pursuant to and in accordance with the Act, authorize the issuance of the bonds (the Bonds) of the City in the maximum aggregate face amount of $8,000,000, the proceeds of which will be used to acquire land for, develop, construct, equip and furnish a 128,000 square foot hotel and k". ..._ .-..._._~~---- ._""_.~--~-'_.,--_.,----_._,._-'-'--_. ,- ;t.1!'..' ~-,.- . convention center with related improvements (the Project), and to pay for the costs and expenses incident to the issuance, sale and security of the Bonds. The Project is to be located within the City near the intersection of and on the easterly side of North 7th Avenue and on the southerly side of the Interstate 90 Highway, the Project site consists of approximately eleven (11) acres. 1.03. Under the provision of the Act, any Bonds so issued by the City shall be special, limited obligations of the City and the Bonds and interest thereon shall not constitute nor give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers. Section 2 Public Hearing. Section 90-5-104 of the Act and Section 103(k) of the Internal Revenue Code of 1954, as amended (the Code) require that, prior to the issuance of any Bonds under the authority of the Act and the Code, the City shall give notice and hold a public hearing on the proposed project. Pursuant to such authority, a public hearing on the proposed Project is called and shall be held on June 18 , 1984, at 7:00 o'clock p.m., Mountain Daylight Time, at the City Commission Chambers, City Hall, at 411 East Main Street, Bozeman, Montana. Section 3 Form of Notice. The notice of the public hearing shall be in substantially the form as set forth in Exhibit A hereto. Section 4 Publication of Notice. The City shall cause the notice to be published in a newspaper of general circulation in the City at least once a -2- . ~., ~ ."T..,~. ~~- '. . week for three consecutive weeks prior to the date set for the hearing, the last such publication date being at least seven days before the date of the hearing, excluding the day of publication. Section 5 Costs and Commitment. The Borrower will make payment either directly or through the City of any and all costs incurred by the City in connection with the Project whether or not the Project is finally approved, whether or not the Project is carried to completion and whether or not the Bonds are issued. The adoption of this resolution does not constitute a guarantee or a firm commitment that the City will issue the Bonds as requested by the Borrower. The City retains the right, in its discretion, to withdraw from participation and accordingly not issue the Bonds should the City, at any time prior to the issuance thereof, determine that it is in the best interests of the City to not issue the Bonds or should . the parties to the transaction be unable to reach agreement \ as to the terms and conditions of any of the documents required for the transaction. PASSED AND APPROVED by the Bozeman City Commission this 21st day of May , 1984. Attest: ~~~~'k~"~ (2j~d ~~ Clerk of the City Commission A~J>>\s} 1$ 1ll1l f;' Iftr-~ (' 'DI ~cj ___ _____..m__..,...- ~ Citv i~ttornev -3- ,."",."-.-. ~"_._..~ EXHIBIT A NOTICE OF A PUBLIC HEARING ON THE PRO- POSED ISSUANCE BY THE CITY OF BOZEMAN, MONTANA, OF INDUSTRIAL DEVELOPMENT REVENUE BONDS IN THE MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF $8,000,000 FOR FELSKA-SOLVIE, A MONTANA CORPORATION, FOR THE PURPOSE OF ACQUIRING LAND FOR, DEVELOPING, CONSTRUCTING, IMPROVING, EQUIPPING AND FURNISHING A HOTEL AND CONVENTION CENTER FACILITY. NOTICE IS HEREBY GIVEN that the Bozeman City Commis- sion, Bozeman, Montana (the City), will meet on June 18 19 8 4, at 7 : 00 o'clock p.m., Mountain Daylight Time, at the Commission Chambers, City Hall, Bozeman, Montana, for the purpose of holding a public hearing on a proposed project and the issuance of industrial development revenue bonds or notes therefor (hereinafter bonds) under Title 90, Chapter 5, Part 1, Montana Code Annotated. The proposed project (the Project) will be the acquisition of land for, the development, construction, equipping and furnishing of a 128,000 square foot hotel and convention center with related improvements and to pay the costs and expenses incident to the issuance, sale and security of the bonds. The Project will be located in Bozeman, Montana, near the intersection of and on the easterly side of North 7th Avenue and on the southerly side of the Interstate 90 Highway, Project site consists of approximately eleven (11) acres. Felska-So1vie, a Montana corporation (the Borrower), will be the owner of the Project. It is proposed that the City issue and sell industrial development bonds in the maximum aggregate principal amount of $8,000,000 (the Bonds) to finance the costs of acquiring land for developing, constructing, improving, equipping and furnishing the Project, and to pay costs and expenses incident to the issuance, sale and security of the Bonds. The proceeds of the Bonds will be loaned to the Borrower which will be obligated to acquire land for, develop, construct, improve, equip and furnish the Project, to repay the loan at the times and in the amounts sufficient to pay the principal of , ~ ,_. ~ -. , . and interest on the Bonds when due and to pay all costs and expenses incident to ownership of the Project. The Bonds, if issued, would be special, limited obligations of the City, payable solely from the loan repayments to be made by the Borrower and proceeds realized from other security, if any, granted therefor. The Bonds will not constitute nor give rise to a pecuniary liability of the City or charge against its general credit or taxing powers. All persons interested in addressing the City Commission on the Project or the Bonds may appear to be heard at the time and place above written or may file written comments with the City Clerk prior to the date of hearing set forth hereinabove. DATED: May 21 , 1984. BY ORDER OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA &J~ci lJ~ Clerk of the City Commission r t Publication Dates: First Publication: Second Publication: Third Publication: May 27, 1984 June 3, 1984 June 10, 1984 , Ii. ~ -2-