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HomeMy Public PortalAboutORD13763 BILL NO. 2004-54 SPONSORED BY COUNCILMEN HARVEY and Ferguson ORDINANCE NO. Z? I��' AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AUTHORIZING THE ISSUANCE OF TAXABLE INDUSTRIAL REVENUE BONDS (ALPLA, INC.) SERIES 2002, IN AN AMOUNT NOT TO EXCEED$19,000,000 WHEREAS, the City of Jefferson, Missouri (the "City"), is authorized pursuant to the provisions of Sections 100.010 to 100.200, inclusive, of the Revised Statutes of Missouri, as amended, and Article VI Section 27(b) of the Missouri Constitution (the "Act"), to issue its revenue bonds for the carrying out of a project under the Act, such revenue bonds to be paid solely from revenue received from such project, and to enter into a lease of the facilities financed with the proceeds of such revenue bonds with any person, firm or corporation; and WHEREAS, notice of the hereinafter defined Project, a copy of which is attached hereto, was given to Cole County and the Jefferson City School District in accordance with Section 100.059.1 of the Revised Statutes of Missouri; and WHEREAS, the City has heretofore and does hereby find and determine that it is desirable for the economic development of the City and within the public purposes of the Act that the City issue its Taxable Industrial Revenue Bonds (ALPLA, Inc.) Series 2004, in the aggregate principal amount not to exceed $19,000,000 (the "Bonds"), for the purpose of acquiring approximately 10 acres of real property located on Militia Drive within the City and constructing thereon an approximately 94,000 square foot facility to be used as a facility for the manufacture and production of plastic containers and related products (the "Project"), as more fully described in the Indenture and in the Lease Agreement hereinafter authorized, which Project shall be leased by the City to ALPLA, Inc. (the "Company") for a term of 5 years, with an option to purchase; and WHEREAS, the cost of the Project is estimated not to exceed $19,000,000 and will be paid for with the proceeds of the Bonds, which will be purchased by ALPLA, Inc.; and WHEREAS, the City further finds and determines that it is necessary and desirable in connection with the issuance of the Bonds that the City enter into certain documents, and that the City take certain other actions and approve the execution of certain other documents as herein provided; NOW, THEREFORE, BE IT ENACTED BY THE COUNCIL OF THE CITY OF JEFFERSON, MISSOURI, AS FOLLOW: Section 1. Approval of Plan for Project. The Council hereby approves the plan for the Project pursuant to the Act, including the description of the Project, the estimate of the cost of the Project, the sources of funds to be expended for the Project and the terms of the Lease, all as described in the recitals of this Ordinance and the cost benefit analysis attached hereto. Section 2. Authorization far the Project. The City is hereby authorized to provide for the purchase, construction, extension and improvement of the Project, all in the manner and as rnore particularly described in the Indenture and the Lease Agreement hereinafter authorized. Section Authorization of the Bonds. The City is hereby authorized to issue and sell its Taxable Industrial Revenue Bonds (ALPLA, Inc.) Series 2004, in an aggregate principal amount not to exceed $19,000,000, for the purpose of providing funds to pay the costs of the Project. The Bonds shall be issued and secured pursuant to the herein authorized Indenture and shall bear such date, shall mature at such time, shall be in such denominations, shall bear interest at such rates not to exceed 5.00%, shall be in such form, shall be subject to redemption and other terms and conditions, and shall be issued in such manner, subject to such provisions, covenants and agreements, as are set forth in the Indenture. Section 4. Limitation on Liability. The Bonds and the interest thereon shall be limited obligations of the City payable solely out of certain payments, revenues and receipts derived by the City from the Lease Agreement described below, and such payments, revenues and receipts shall be pledged and assigned to the Trustee named below as security for the payment of the Bonds as provided in the Indenture. The Bonds and the interest thereon shall not constitute general obligations of the City or the State of Missouri, and neither the City nor said State shall be liable thereon. The Bonds shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction, and are not payable in any manner by taxation. Section 4. Authorization of Documents. The City is hereby authorized to enter into the following documents (the "City Documents"), in substantially the forms presented to and reviewed by the City at this meeting (copies of which documents shall be filed in the official records of the City), with such changes therein as shall be approved by the officials of the City executing such documents, such officials' signatures thereon being conclusive evidence of their approval thereof: (a) Trust Indenture (the "Indenture"), between the City and the trustee named therein (the "Trustee"), pursuant to which the Bonds shall be issued and the City shall pledge the Project and assign certain of the payments, revenues and receipts received pursuant to the Lease Agreement to the Trustee for the benefit and security of the owners of the Bonds upon the terms and conditions as set forth in said form of Indenture. (b) Lease Agreement (the "Lease Agreement"), between the City and the Company, under which the City will acquire the Project and lease the Project to the Company pursuant to the terms and conditions in said Lease Agreement, in consideration of rental payments by the Company which will be sufficient to pay the principal of, premium, if any, and interest on the Bonds. (c) Bond Purchase Agreement, between the City and ALPLA, Inc., as Purchaser. (d) Payment in Lieu of Taxes Agreement between the City and the Company. Section 5. Execution of Documents. The Mayor of the City is hereby authorized and directed to execute the Bonds and to deliver the Bonds to the Trustee for authentication for and on behalf of and as the act and deed of the City in the manner provided in the Indenture. The Mayor is hereby authorized and directed to execute the City Documents and such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance, for and on behalf of and as the act and deed of the City. The City Clerk of the City is hereby authorized and directed to attest to and affix the seal of the City to the Bonds and the City Documents and such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance. Section 6. Further Authority. The City shall, and the officials, agents and employees of the City are hereby authorized and directed to, take such further action, and execute such other documents, certificates and Instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance and to carry out, comply with and perform the duties of the City with respect to the Bonds and the City Documents. Section 7. Effective Date, This Ordinance shall take effect and be in full force and effect from and after its passage by the City Council and approval by the Mayor. PASSED, qy the City Council and APPROVED by the Mayor of the City of Jefferson, Missouri, this -..,f day of August, 2004. Passed: Approved: %Presiding Officer Mayor All`TEST: APPR D AS l" OR ® rye. �'rr1.! t� "•' � City Clerk" Counselor 3 Notice to: The County of Cole, State of Missouri is Attention: Cole County Commission Jefferson City, MO 65101 Notice to: The Board of Education Jefferson City Board of Education Jefferson City, MO 65101 The undersigned on behalf of the City of Jefferson, Missouri, hereby notifies and informs you that the City of Jefferson is proposing to issue its revenue bonds pursuant to Chapter 100, Revised Statutes in order to provide limited tax relief to facilitate the acquisition and construction of a manufacturing facility in Jefferson City, Cole County Missouri. The proposal will be introduced at the Meeting of the City Council on August 2, 2004 and may be finally approved at its meeting on August 16, 2004 unless a special meeting is scheduled. The project is being proposed by ALPLA, Inc. a Georgia Corporation which manufactures plastic bottles for use by companies to package their products. Customers of ALPLA, Inc. include Unilever and Coca Cola. It is one of the largest privately owned companies in the world. The company proposes to construct a manufacturing facility at Militia Drive and Algoa Road provided rail access and some favorable treatment for tax purposes are provided it to assist with some of its start up costs. An affiliate of the Jefferson City Area Chamber of Commerce, Partnerships 2020, Inc,., has contracted with ALPLA to provide the land. ALPLA has represented that it will Invest at least $16,000,000 in the project. A cost benefit analysis has been obtained. ALPLA v,ill finance the project itself by purchasing revenue bonds. The City of Jefferson proposes to issue revenue bonds to finance the project and the bonds will be purchased by ALPLA. The project will be owned by the City and leased to ALPLA. 'The project will be deeded to ALPLA upon retirement of the Bonds. The Jefferson City Public Schools, the County of Cole, and the City of Jefferson are the taxing entities which are affected by the Project. The current assessed valuation for the property is: $2,140.00 for 40 acres. The valuation estimated after the project is complete is $8,000,000.00 for the real estate and $8,000,000.00 for personal property consisting of machinery and equipment. ALPLA has proposed to make payment in lieu of taxes based upon the improved assessed value of the project as follows: Year 1 20% representing a 80% abatement Year 2 25% representing a 75% abatement Year 3 40% representing a 60% abatement Year 4 60% representing a 40% abatement Year 5 80% representing a 20% abatement Year 6 100% representing no abatement Payments in lieu of taxes will be paid pro rata to the taxable entities which would have received taxes if taxes were collected on the Project. [attach cast benefit analysis] P 2 i