HomeMy Public PortalAboutORD14960 SUBSTITUTE
BILL NO. 2012-5
SPONSORED BY COUNCILMAN Schulte
ORDINANCE NO. 14960
AN ORDINANCE AUTHORIZING THE CITY OF JEFFERSON, MISSOURI, TO ISSUE
TAXABLE INDUSTRIAL DEVELOPMENT REVENUE BONDS (MODERN LITHO-PRINT CO.
PROJECT), SERIES 2012, IN A PRINCIPAL AMOUNT NOT TO EXCEED $4,000,000 TO PAY
THE COSTS OF A PROJECT FOR MODERN LITHO-PRINT CO., A MISSOURI
CORPORATION, THAT WILL INCLUDE THE ACQUISITION AND INSTALLATION OF AN
OFFSET PRESS AT THE EXISTING FACILITY LOCATED IN THE CITY; AUTHORIZING AND
APPROVING CERTAIN DOCUMENTS; AND AUTHORIZING CERTAIN OTHER ACTIONS IN
CONNECTION WITH THE ISSUANCE OF THE BONDS.
WHEREAS, the City of Jefferson, Missouri (the "City"), is authorized under the provisions of
Article VI, Section 27 of the Missouri Constitution, as amended, and Sections
100.010 to 100.200, inclusive, of the Revised Statutes of Missouri, as amended
(collectively, the "Act"), to purchase, construct, extend and improve certain
projects (as defined in the Act) for the purposes set forth in the Act and to issue
industrial development revenue bonds for the purpose of providing funds to pay a
portion of the costs of such projects and to lease or otherwise dispose of such
projects to private persons or corporations for manufacturing, commercial,
warehousing and industrial development purposes upon such terms and
conditions as the City shall deem advisable; and
WHEREAS, Modern Litho-Print Co., a Missouri corporation (the "Company"), has requested
that the City (a) prepare and approve a plan for the acquisition and installation of
an offset press at the Company's existing facility located in the City (the
"Project"), (b) issue its taxable industrial development revenue bonds (the
"Bonds") to provide funds to pay the costs of the Project, and (c) lease the
Project to the Company, all in accordance with and pursuant to the Act; and
WHEREAS, following notice to affected taxing jurisdictions in accordance with Section
100.059.1 of the Act, the Council of the City passed Ordinance No. 14959 on May
21, 2012, approving a plan for industrial development for the Project; 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 proceed with the issuance of the Bonds for the purpose described
above; 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 FOLLOWS:
SUBSTITUTE
Section 1. Authorization and Sale of the Bonds. The City is hereby authorized to
issue and sell its Taxable Industrial Development Revenue Bonds (Modern Litho-Print Co.
Project), Series 2012, in an aggregate principal amount not to exceed $4,000,000, 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 Trust Indenture and shall bear such date, shall mature at such
time, shall be in such denominations, shall bear interest at such rate, shall be in such form, shall
be subject to redemption, shall have such other terms and provisions, shall be issued, executed
and delivered in such manner and shall be subject to such provisions, covenants and
agreements as are specified in the Trust Indenture upon the execution thereof, and the
signatures of the officers of the City executing the Trust Indenture shall constitute conclusive
evidence of their approval and the City's approval thereof.
Section 2. Limited Obligations. The Bonds and the interest thereon shall be limited
obligations of the City payable solely out of the payments, revenues and receipts derived by the
City from the herein authorized Lease Agreement, and such payments, revenues and receipts
shall be pledged and assigned to the Trustee as security for the payment of the Bonds as
provided in the Trust Indenture. The Bonds and interest thereon shall not be deemed to
constitute a debt or liability of the City within the meaning of any constitutional provision,
statutory limitation or City Charter provision and shall not constitute a pledge of the full faith and
credit of the City. The issuance of the Bonds shall not, directly, indirectly or contingently,
obligate the City to levy any form of taxation therefor or to make any appropriation for their
payment.
Section 3. Approval and Authorization of Documents. The following documents
(the "City Documents") are hereby approved in substantially the forms presented to the Council at
this meeting (copies of which documents shall be filed in the records of the City), and the City is
hereby authorized to execute and deliver the City Documents 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 between the City and LIMB Bank, N.A. (the "Trustee"), pursuant to
which the Bonds shall be issued and the City shall pledge and assign 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 the Trust Indenture.
(b) Lease Agreement between the City and the Company, under which the City will
provide funds for the purchase and installation of the Project and lease the Project
to the Company pursuant to the terms and conditions in the 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 the Company, pursuant to which
the Company agrees to purchase the Bonds.
(d) Performance Agreement between the City and the Company, pursuant to which
the City has granted the Company certain rights with respect to the abatement of
ad valorem personal property taxes on the Project in consideration for the
Company's expectation to maintain a certain level of employment at the Project
site.
2
SUBSTITUTE
Section 4. Execution of Documents. The Mayor 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 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 5. 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 6. 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: ,� '— ,/ �� Approved:
Presiding Officer Mayor
ATTEST: APPROVED AS TO FORM:
CityCity Cle, City Counselor
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EXHMIT 1
Modern Litho-Print Co.
COST BENEFIT ANALYSIS
PLAN FOR INDUSTRIAL DEVELOPMENT PROJECT
GILMOR,EBELL
EXHIBIT 1
Summary of Tax Impact Analysis
Revenue
Tax Revenue Generated
Without from Taxes Value of
Taxing Jurisdiction Abatement Years 6- 10 Abatement
Jefferson City School District $ 148,481 21 $ 25,018.99 $123,462.22
Jefferson City 22,455.90 3,783.79 18,672.11
State of Missouri Blind Pension Fund 1,211.45 204.15 1,007.30
Library District 7,983.33 1,345.19 6,638.14
Senate Bill 40 Developmental Disabilities Board 3,593.91 605.57 2,988.34
County General Revenue 4,647.87 783.17 3,864.70
County Road & Bridge 10,902.91 1,837.15 9,065.76
$ 199,276.58 $ 33,578.01 $165,698.57
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