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HomeMy WebLinkAbout94-027 CC ResolutionRESOLUTION NO. 94-27 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EMECULA, ON BEHALF OF THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF TEMECULA, ACCEPTING THE APPLICATION OF TENSION ENVELOPE CORPORATION WHEREAS, the City of Temecula (the "City") is in the process of activating the Industrial Development Authority of the City of Temecula (the "Authority") and proposes to appoint the City Council of the City to act as the Board of Directors of the Authority; and WHEREAS, Tension Envelope Corporation, a Delaware corporation (hereinafter the "Company") has submitted its application (hereinafter the "Application") for the issuance of bonds to finance a proposed project (hereinafter the "Project") as described therein; and WHEREAS, said Project involves the acquisition of a parcel of land and the existing building thereon in Temecula, the renovation and rehabilitation thereof and the acquisition and installation therein of machinery and equipment; and WHEREAS, the City, on behaff of the Authority, wishes to secure for the people of the City the public benefits which will accrue as a result of financing the Project; and WHEREAS, the Staff of the City, on behalf of the Authority, has reviewed said Application and has prepared its report with regard thereto; NOW THEREFORE, THE CITY OF TEMECULA, ON BEHALF OF THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF TEMECULA, DOES HEREBY RESOLVE, FIND AND DETERMINE AS FOLLOWS: Section 1. The Application of the Company for financing pursuant to the California Industrial Development Financing Act, which commences at Section 91500 of the Government Code of the State of California (hereinafter the "Act"), is hereby accepted. Section 2. The City, on behalf of the Authority, hereby finds and determines with respect to said Application as follows: A. It is likely that the undertaking of the Project will be a substantial factor in the accrual of the employment benefits for the residents of the City which will result from the use of the facilities, all as proposed in the Application. These public benefits will substantially exceed Resos 94-27 I any public detriment from the issuance of bonds in the maximum principal amount proposed in the Application. B. The financing of the Project and the resultant operation of the Project will generate employment benefits for the community by increasing the number of persons employed within the City. The Company estimates initial employment of approximately 125 employees. Moreover, the Company estimates that its sales will increase over their current level upon completion of the Project. C. The use of the facilities to be financed pursuant to the Application qualifies under Government Code Section 915003 (a) (1) as an industrial use for the manufacture of envelopes. D. The Project, as proposed in the Application, is in accord with the purposes and requirements of the Act in that the Project will enhance and promote economic development and increase opportunities for useful employment, all as set forth in the Application. Section 3. The City, on behalf of the Authority, hereby declares its present intention to cause the Authority to issue tax-exempt bonds on behalf of the Company to finance the Project in a principal amount in no event to exceed $6,500,000 and for the purpose described in the Application. Section 4. The bonds shall be issued in accordance with the Act, and shall be secured by the Project, together with any additional security necessary to insure the marketability of the bonds issued. Section 5. In no event shall the bonds constitute a pledge of the faith and credit of the City, the State of California, or any political subdivision of the State, and the City shall not be liable to make any appropriations for repayment of the bonds. The bonds shall constitute a special obligation of the Authority payable solely from the revenues or other sources provided for in a loan agreement and proceedings to be provided for hereafter. Section 6. Acceptance of the Application in no way obligates the City or the Authority to undertake the financing of the Project. Section 7. It is the purpose and intent of the City, on behalf of the Authority, that this resolution constitute official action toward the issuance of obligations by the Authority for the Project in accordance with the regulations and rulings promulgated by the United States Department of the Treasury under Section 103 of the internal Revenue Code of 1986, as amended. Section 8. In accordance with Section 91530(0 of the Act, the officers of the Authority, when activated, are hereby authorized and directed to cause the Application to be submitted to the City Council of the City for approval of the Project. Resos 94-27 2 Section 9. A copy of the Application shall be filed with the City Clerk of the City. Concurrently, a notice of the acceptance of the application and the filing with the City shall be published in a newspaper of general circulation in the City pursuant to Section 91530 (e) of the Act. Such notice shall name the Company, state the estimated maximum bond issue, and briefly summarize the Project and refer to the Application for further particulars. Section 10. In accordance with Section 91531 (a) of the Act, the officers of the Authority, when activated, are hereby authorized and directed to request that the California Industrial Development Financing Advisory Commission (hereinafter the "Commission") make the determinations authorized by Section 91531 of the Act. In furtherance of the request, the officers of the Authority, when activated, are hereby authorized and directed to cause the Application, the fee of the Commission (but solely from funds supplied by the Company) and other information required by the Commission for its purposes to be forwarded to the Commission. Section 11. In accordance with Section 91533 (1) of the Act, the Company shall be required to pay all workers employed in the construction of the manufacturing facility a wage that is not less than the general prevailing rate of per diem wages for ward of a similar character in the locality in which the work is performed and not less than the general prevailing rate of per diem wages for holiday and overtime work. PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Temecula this 8th day of March, 1994. Ron Roberts, Mayor ATTEST: _. .~. Ju~. Greek, City Cler~ [SEAL] Rems 94-27 3 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE) SS CITY OF TEMECULA ) I, June Greek, City Clerk of the City of Temecula, California, do hereby certify that Resolution No. 94-27 was duly adopted by the City Council of the City of Temecula at a regular meeting of said Council on the 8th day of March, 1994, by the following roll call vote: AYES: 3 COUNCILMEMBERS: Mufioz, Park, Roberts NOES: 0 COUNCILMEMBERS: None ABSENT: 2 COUNCILMEMBERS: Birdsall, Stone 94-27 4