HomeMy Public PortalAboutORD10509 BILL NO.
SPONSORED BY COUNCILMAN c� C _
ORDINANCE NO. /0✓'a
AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI, AUTHORIZING THE
MAYOR AND CITY CLERK TO ENTER INTO AN AGREEMENT WITH JEFFERSON
CITY MANUFACTURING COMPANY, INC. AND THE STATE OF MISSOURI FOR A
MISSOURI DEVELOPMENT ACTION GRANT.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF JEFFERSON,
MISSOURI, AS FOLLOWS:
Section 1. The Mayor and City Clerk of the City of
Jefferson, Missouri, are hereby authorized to enter into an
agreement with Jefferson City Manufacturing Company. , Inc.', and
the State of Missouri for a Missouri Development Action Grant
(MoDAG) for a sum of $195, 000.00.
Section 2. The Agreement shall be substantially the same in
form and content as that agreement attached hereto as Exhibit A.
Section 3. This Ordinance shall be in full force and effect
from and after its passage and approval.
Passed Approved /!r— r2-1— kS—
P esiding Of Lcer Mayor
ATTEST:
A
City Clerk
�7
AGREEMENT
THIS AGREEMENT, entered into this -9-L_-day of
1985, by and between the CITY OF JEFFERSON, MISSOURI, hereinafter
referred to as "CITY" and JEFFERSON CITY MANUFACTURING COMPANY,
INC. , a Missouri Corporation, hereinafter referred to as
"COMPANY" .
WITNESSETH:
WHEREAS, the CITY has agreed to loan to the COMPANY the sum
of ONE HUNDRED NINETY-FIVE THOUSAND and 00/100 DOLLARS
($195,000.00) , payable in five ( 5) years as evidenced by a
Promissory Note which is attached hereto as Exhibit "B" , through
a Missouri Development Action Grant, hereinafter referred to as
MoDAG, which it is receiving from the State of Missouri Division
of Community and Economic Development which is funded totally or
in part by the U. S. Government; and
WHEREAS, the parties are desirous to enter into an agreement
governing the use of these funds.
THEREFORE, in consideration of the above promises and for
other good and valuable consideration, it is hereby agreed as
follows:
1. The CITY will loan to the COMPANY, upon performance by
COMPANY of all conditions and receipt by the CITY of the funds
from MoDAG, the sum of ONE HUNDRED NINETY-FIVE THOUSAND and
00/100 DOLLARS ( $195,000. 00 ) , with interest due per the
Promissory Note which is attached hereto as Exhibit "B" .
-2-
2. In return for said loan, the COMPANY agrees to:
a) Provide the CITY with a first security interest for
all inventory and accounts receivable, and a third security
interest in equipment now owned or hereafter acquired, subject to
a first security interest in the amount of Two Hundred Twelve
Thousand Five Hundred and 00/100 Dollars ( $212, 500.00) shared by
Central Bank and Missouri Industrial Development Board and a
second in the amount of One Hundred Seventy-nine Thousand and
00/100 Dollars ( $179, 000 .00 ) held by Rural Missouri, Inc. , and
the U. S. Small Business Administration.
b) File Uniform Commercial Code with the Missouri
Secretary of State's office.
3. If the COMPANY ceases operations at the facility prior
to the expiration of the loan, sells or refinances the loan, then
the amount of ONE HUNDRED NINETY-FIVE THOUSAND and 00/100 DOLLARS
($195,000.00 ) loaned by the CITY to the COMPANY shall immediately
become due and payable together with annual accrued interest.
4 . This Agreement shall nog, be amended in any material
respect without the prior written approval of the parties and the
Division of Community and Economic Development. This Agreement
»3Y
shall be binding upon the parties, their heirs, successors and
assigns.
This Agreement entered into the day and year first above
written.
CITY OF JEFFERSON, MISSOURI
By: R
eo ge art-&-f ld
or
ATTEST:
(SEAL)
Cit . Clerk
AM
JEFFERSON CITY MANUFACTURING COMPANY, INC.
By:
President
ATTEST:
By: (SEAL)
ti .
PROMISSORY NOTE
Jefferson City, Missouri
,Ale Nalmrc,i� r 1985
$195, 000.00
FOR VALUE RECEIVED, the undersigned, jointly and severally
promise to pay in lawful money of the United State of America to
the order of THE CITY OF JEFFERSON, MISSOURI , at City Hall,
Jefferson City, Missouri, the sum of ONE HUNDRED NINETY-FIVE
THOUSAND and 00/100 DOLLARS ( $195,000.00) for money loaned at a
rate of five percent (5%) for the first year and at a rate of
seven and one-half percent ( 7.5% ) for years two ( 2) through five
( 5 ) . No payment of interest or principal shall be made in year
one ( 1 ) . The interest accrued from year one ( 1) shall be added
to and become a part of the principal, totaling Two Hundred Four
Thousand Seven Hundred Fifty and 00/100 ($204 , 750.00) to be
amortized over the remaining life of the note. Principal and
interest shall be paid at a rate of Four Thousand Nine Hundred
Fifty and 63/100 ( $4, 950.63 ) per month commencing_rd 0/ 1986, until the remaining balance of principal
and interest accrual shall be paid in full.
The terms of the loan agreement entered into between THE
CITY OF JEFFERSON and JEFFERSON CITY MANUFACTURING COMPANY, INC. ,
dated 0l.&.oa&eta .21 , 1985 , is attached hereto as Exhibit "A"
and incorporated by reference as if more fully set out herein. A
violation or breach of said agreement shall constitute a default
and the entire balance of this note shall be due and payable on
-2-
the occurence of said default in accordance with the loan
y agreement. Failure to declare a default for a breach or
violation of the loan agreement shall not constitute a waiver of
the right to exercise it at any other time.
Failure to make any interest or principal payment when due
shall, at the option of the owner of the note, render the entire
balance or principal and interest to date of payment due and
. payable. Failure to exercise this option shall not constitute a
:waiver of the right to exercise it at any other time.
The makers, sureties , guarantors and endorsers of this note,
jointly and severally, hereby waive notice of and consent to any
and all extensions of this note or any part thereof without
notice, and each hereby waives demand, presentment for payment,
notice of non-payment and protest, and any and all notice of
whatever kind or nature and the execution of legal remedies
hereon, and waive valuation, exemption and homestead rights, and
agree -to pay a reasonable attorney's fee, which may be incurred
in collecting or securing said note after its maturity.
JEFFERSON CITY MANUFACTURING COMPANY, INC.
By: ��'�-C,
President
ATTEST:
By: