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RESOLUTION NO. '
<br /> AN INDUCEMENT RESOLUTION OF THE CITY OF DECATUR, I
<br /> ILLINOIS IN CONNECTION WITH INDUSTRIAL DEVELOPMENT
<br /> BONDS FOR DECATUR FOUNDRY,INC.
<br /> WHEREAS, the City of Decatur, Illinois (the "Municipality"), anticipates issuing up to
<br /> $3,000,000 aggregate principal amount of industrial development revenue bonds (howsoever actually styled, the
<br /> `Bonds") under The Indush-ial Project Revenue Bond Act (65 ILCS 11-74-1 et seq.), as supplemented and
<br /> amended, including by the Municipality's home rule power and authority (collectively, the "Act"), to finance the
<br /> acquisition, construcrion and installation of manufacturing facilities to be owned and operated by Decatur Foundry,
<br /> Inc. (including other related parties or any entity formed by it, the prospective "Borrower"), to be located at 900
<br /> East Division Street,in Decatur,Illinois(the"Project").
<br /> NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
<br /> DECATUR,MACON COUNTY,ILLINOIS,as follows:
<br /> 1. As an inducement to the Borrower to undertake the Project, the Municipality hereby declares its intent to
<br /> issue the Bonds to finance the Project, all at the Borrower's cost and expense and pursuant to
<br /> documentation acceptable to the Municipality in its sole discretion.
<br /> 2. In the event the Borrower should advance its own funds for qualifying Project costs the Municipality
<br /> hereby declares its intent to reimburse such qualifying costs out of Bond proceeds, if, as and when
<br /> received, and not otherwise. This declaration of intent to reimburse is made in connection with Section
<br /> 1.150-2 of the Income Tax Regulations.
<br /> 3. The Municipality will cooperate with the Borrower related to issuance of the Bonds,but only on terms and
<br /> conditions acceptable to the Municipality, as determined in its sole discretion, and at the Borrower's
<br /> expense. The Municipality makes no representation as to whether Bonds can be or will in fact be issued or
<br /> qualify as tax-exempt bonds under Sections 103 and 141,et seq.,of the Internal Revenue Code of 1986,as
<br /> amended (the "Code"), risks of which the Borrower by the Municipality's adoption of this resolution
<br /> assents. The Bonds may be initially issued in"taxabie"form,convertible to"tax-exempt"form.
<br /> 4. The Municipality represents that it presently has no cap allocation in 2001 available under Section 146 of
<br /> the Code. The Municipality will cooperate with the Borrower in obtaining a cap allocation under Section
<br /> 146 of the Code, including through the Municipality, home rule units or the State of Illinois, as the case
<br /> may be. The Municipality makes no representation that a sufficient cap allocation is or will be available,a
<br /> risk of which the Borrower by the Municipality's adoption of this resolution assents.
<br /> 5. This resolution is made on the condition that the Bonds shall be issued, if at all, and all costs related to the
<br /> Bonds, whether or not actually issued, if at all, shall be paid by the Borrower, on or before December 31,
<br /> 2002 (unless extended). The Bonds under the Act shall be payable solely and only by or on behalf of the
<br /> Borrower, and as provided in the Act, and shall never constitute a debt or obligation of any kind of the
<br /> Municipality,the State of Illinois or any other political subdivision of the State of Illinois.
<br /> Upon motion by , seconded by , adopted and
<br /> recorded in the Municipality's records this day of ,2001,as foliows:
<br /> Voting"yes"(names):
<br /> Voting"no" (names):
<br /> Absent(names):
<br /> Attest: Approved:
<br /> Mayor
<br /> City Clerk
<br />
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