Loading...
HomeMy WebLinkAboutResolution 2514 Approving Felska-Solvie project and issuing bonds AMENDED BY 2546 463 COMMISSION RESOLUTION NO. 2514 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 DEVELOPMENT REVENUE BONDS THEREFOR. I WHEREAS, at a regular meeting of the City Commission held on the 25th day of June 1984, the Commission adopted Commission Resolution No. 2508, pertaining to the Issuance of I ndustrial Development Revenue Bonds for the Felska-Solvie Project; and WHEREAS, the Commission desires to revise some conditions adopted in said Resolution; NOW, THEREFORE, BE I T RESOLVED by the City Commission of the City of Bozeman, Montana, as follows: Section 1 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, con- structing, improving, equipping and furnishing 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 banquet facility capable ot seating 500, with certain related and incidental im- provements, fixtures and personal properties. The Project will be located within the City I 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. The Project will be owned by Felska-Solvie, a partnership (the Borrower) whose mai ling 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 a combination of cash or Letters of Credit or Federal Urban Development Action Grant (UDAG) Monies, 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 tollows: (a) the Project, as proposed, will be suitable for use for a I 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 thereat 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 COMMISSION RESOLUTION NO. 2514 h." .. requiring the Borrower to pay all costs of maintaining and insuring the Pro- ject, including taxes thereon; (b) in authorizing the acquisition, construction and improvement of the Project, the issuance of revenue bonds and the execution of a loan agree- ment with the Borrower, this Commission's purpose is and the effect thereof will be to promote the public welfare of the City and its residents by en- couraging the location of a commercial hotel and convention center facility within the City, thereby improving employment opportunities for present and future residents, promoting and stimulating economic activity within the City and increasing and providing a better balance for the tax base of the City and overlapping taxing jurisaictions; 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 Industrial 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, pur- suant 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, premium, 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 City's interests in the Loan Agreement under an Indenture of Trust (the Indenture) or an Assignment of Loan Agreement (the Assignment) and the Borrower shall secure its obligations under the loan Agreement by the grant of a mortgage on and security interest in the Project under either a I rust Indenture and Security Agreement (the Trust Indenture) or a Mortgage and Security Agreement l the Mortgage). 4. Bond counsel shall be acceptable to the City and is authorized in cooperation 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. I n addition, the City may require that the project proceedings and documents be reviewed COMMISSION RESOLUTION NO. 2514 I I I 485 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 commit- ment 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 I 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 obi igation 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. Sect ion 2 That this Resolution shall supersede Commission Resolution No. 2508, adopted June 25, 1984. PASSED AND ADOP I ED by the City Commission of Bozeman, Montana, this 2nd day of I July 1984. KENNETH L. WEAVER, Mayor AITEST: Clerk of the City Commission State of Montana ) County ot Gallatin ) City of Bozeman ) I, Robin L. Sullivan, Clerk of the Commission of the City of Bozeman, do hereby certIfy that the foregoing Resolution No. 2514 was published at length in the Bozeman Daily Chronicle, a newspaper of general circulation printed and published in said City, in the issue dated the day of 1984, and due proof of such publication is on file in my office. I I N WITNESS WHEREOF I hereunto set my hand and affix the corporate seal of my office this day of 1984. Clerk of the City Commission COMMISSIUN RESOLUTION NO. 2514