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HomeMy WebLinkAboutResolution 2508 Approving Felska/Solvie projects and issuing IDR bonds AMENDED BY 2514 . .. - - --._~~-- "~,," .. ! COMMISSION RESOLUTION NO. 2508 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, RELATING TO A PROJECT AND REVENUE BONDS UNDER TITLE 90, CHAPTER 5, PART 1, MONTANA CODE ANNOTATED; APPROVING AND AUTHORIZING THE FELSKA- SOLVIE PROJECT, AND THE ISSUANCE OF INDUSTRIAL DEVEL- OPMENT REVENUE BONDS THEREFOR. NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Bozeman, Montana, as follows: 1. This Commission, by Resolution No. 2501 duly adopted on May 21, 1984, called a public hearing on a proposed project (the Project) under Title 90, Chapter 5, Part 1, Montana Code Annotated (the Act), consisting of the acquiring land for, developing, constructing, improving, equipping and fur- nishing a 128,000 square foot hotel and convention center facility (the Project), including 120 guest rooms, 7,500 square feet of meeting room space and a ban- quet facility capable of seating 500, with certain related and incidental im- provements, fixtures and personal properties. The Project will be located with- in the City near the intersection of and on the easterly side of North 7th Ave- nue and on the southerly side of the Interstate 90 Highway. The Project site consists of approximately eleven (11) acres. The Project will be owned by Felska-Solvie, a partnership (the Bor- rower) whose mailing address is Pondera Village Shopping Center, Conrad, Montana 59425. The revenue bonds shall be issued in the maximum aggregate face amount of $6,750,000 as authorized by the Act, to defray the costs of the Project. Borrower equity must include a minimum of $1 million in cash or Let- ters of Credit, committed before the issuance of the bonds. 2. At the public hearing duly called, noticed and held as required by the Act all persons who appeared were afforded an opportunity to express their views with respect to the proposal to undertake and finance the Project. Based on the public hearing, any written comments filed with the City Clerk and such other facts and circumstances as this Commission deems relevant, this Commission hereby finds, determines and declares, as follows: (a) the Project, as proposed, will be suitable for use for a commercial enterprise within the meaning of the Act and the City is authorized thereby to acquire, construct and improve the Project, issue revenue bonds to defray all or a portion of the costs thereof and enter into a loan agreement with the Borrower providing for loan payments from the Borrower to the City in ..,~~~- .. ... amounts at least sufficient to provide for the full and prompt payment of principal of and interest on the bonds as due and requiring the Borrower to pay all costs of maintaining and insur- ing the Project, including taxes thereon; (b) in authorizing the acquisition, construction and im- provement of the Project, the issuance of revenue bonds and the execution of a loan agreement with the Borrower, this Commis- sion's purpose is and the effect thereof will be to promote the public welfare of the City and its residents by encouraging the location of a commercial hotel and convention center facility with- in the City, thereby improving employment opportunities for pres- ent and future residents, promoting and stimulating economic ac- tivity within the City and increasing and providing a better bal- ance for the tax base of the City and overlapping taxing juris- dictions; and (c) the undertaking and approval of the Project and the issuance of the bonds is in the best interest of the City and its residents. 3. This Commission hereby approves the Project and the issuance of the City's I ndustrial Development Revenue Bond/ Bonds or Note/ Notes (The Felska/Solvie Project) (the Bonds) in the maximum aggregate face amount of $6,750,000 for the purpose of defraying all or a portion of the cost of acquiring, constructing, improving and equipping the Project, including all costs authorized by Section 90-5-109 of the Act. The Bonds shall mature over a term not to exceed 30 years and shall bear interest at a rate or rates allowable by law and contain such other terms and provisions as shall be agreed upon by this Commission, the Borrower and the lender or the underwriter as the case may be. The Borrower shall, pursuant to a loan agreement (the Loan Agreement), agree to acquire, construct, improve and equip the Project; to operate and maintain the Project and keep it properly insured; to pay all taxes and assessments on or against the Project; and to make loan payments sufficient to pay the principal of, pre- mium, if any, and interest on the Bonds, all costs and expenses of the City and any trustee in connection with the Project and to establish and maintain all necessary reserves therefor. There shall be a pledge and assignment of certain of the City1s interests in the Loan Agreement under an Indenture of Trust (the Indenture) or an Assignment of Loan Agreement (the Assignment) and the Borrower -2- "'..~." .... .. shall secure its obligations under the Loan Agreement by the grant of a mort- gage on and security interest in the Project under either a Trust Indenture and Security Agreement (the Trust I ndenture) or a Mortgage and Security Agreement (the Mortgage). 4. Bond counsel shall be acceptable to the City and is authorized in co- operation with the City Attorney and the Borrower to prepare forms of the Loan Agreement, Indenture or Assignment, Mortgage or Trust Indenture, Bonds and any other documents, including without limitation, any guaranty (the Guaranty) from the Borrower or the principals thereof, which documents are necessary to provide for financing of the Project for review and approval of the final terms and conditions thereof by this Commission. The Mayor, Clerk of Commission and other City officials are authorized and directed to do any and all things deemed necessary in order to effect the accomplishment of the Project and the issuance and sale of the Bonds. In addition, the City may require that the project proceedings and documents be reviewed by independent counsel chosen by the City. Such independent counsel shall be paid for by the Borrower. 5. 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 sole 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 not to issue the Bonds or should the parties to the transaction be unable to reach agreement as the terms and conditions of any of the documents required for the transaction. The bonds must be issued within one year of the date of this Resolution. 6. The City shall have no liability or obligation with respect to or as a result of the commencement of acquisition or construction of the Project, or the failure or refusal of the City to issue the Bonds and the Borrower or its designee shall save and hold the City harmless with respect to any and all liabilities and expense incurred by the City with respect to the Project and the Bonds. PASSED AND APPROVED by the City Commission of Bozeman, Montana, this 25th day of June 1984. ATTEST: ~ i-J~r Clerk of t e lty ommlssion '"-....,.. ., -3-