Fort Walton Beach Resolution — 96-06-Inducement Agreement-Burton Golf — reading text

Q RESOLUTION NO. 96-6 A RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY BY TIlE CITY OF FORT WALTON BEACH, FLORIDA, OF A LETTER OF INTENT AND INDUCEMENT AGREEMENT WITH RESPECT TO THE CITY'S ISSUANCE OF REVENUE BONDS TO FINANCE COSTS OF A MANUFACTURING FACIUTY FOR BURTON GOLF, INC; APPROVING A PUBUC HEARING CONCERNING THE ISSUANCE OF SUCH BONDS; PROVIDING AN EFFECTIVE DATE. BE IT RESOLVED BY TIlE CITY COUNCn. OF TIlE CITY OF FORT WALTON BEACH, FLORIDA, AS FOLLOWS: SECTION 1. AUTHORITY FOR THE RESOLUTION. This Resolution is 159. Florida Statutes ( the adopted pursuant to the provisions of Part II. Chapter Florida Industrial Development Financing Act). and other applicable provisions of law the "Act"). SECTION 2. FINDINGS. It is hereby ascertained. determined and declared as follows: A The City of Fort Walton Beach. Florida (the " Issuer"). is authorized contracts. deeds and other by the Act to make and execute financing agreements. instruments necessary or convenient for the purpose of facilitating the financing of certain projects. including land. rights in land and other appurtenances and facilities related thereto. to the end that the Issuer may be able to promote the economic growth and of the State of Florida (the " State"). increase opportunities for gainful employment inhabitants. and to fInance otherwise contribute to the welfare of such State and its the cost of such projects. by the issuance of its revenue bonds. B. Burton Golf. Inc.. an Alabama corporation (the "Borrower"). wishes to acquire. construct and equip additions and expansions to its manufacturing facility at the industrial park at 654 Anchors St. NW. ( the " Project"). located within the its revenue bonds to territorial limits of the Issuer. and to have the Issuer issue to the fmance such Project: and the Borrower has requested that the Issuer indicate Borrower its intentions to proceed with the Project and incur expenses for its initiation action toward the and its financing. and by this Resolution. take affirmative official of the Internal Revenue issuance of such bonds within the meaning of Section 1.150 as amended. pertaining to Industrial Development Bonds. Service Regulations. C. The location of the Project in the Issuer's community shall make a signiflcant contribution to the economic growth of the Issuer. shall provide gainful employment and shall serve a public purpose by advancing the economic prosperity and the health. safety and welfare of the State and its people. current assets to Giving due regard to the ratio of the Borrower' s D. its current liabilities. net worth. earnings trends. coverage of all fixed charges. the which it is involved. its inherent stability. nature of its business and the industry in financial and and all other factors determinative of the Borrower's capabilities. with the of the Act. the otherwise. of fulfilling its obligations consistently purposes to fu1fill its obligations Borrower is fmancially responsible and fully capable and willing including the obligation to make payments under the proposed fm.a ncing agreement, to repair pursuant thereto in the amounts and at the times required and the obligation MCL- 05/ 02/ 96 Rev 05/ 07/ 96 Rev- 05/ 14/ 96- 6205- indu- res 1-  o o and maintain the Project at its own expense and the Borrower is desirous of seIVing the purposes of the Act and is willing and capable of fully perfonning all other obligations and responsibilities imposed upon it by the proposed financing agreement. E. The appropriate local agencies are able to cope satisfactorily with the impact of the Project, and all the necessary public facilities, utilities and services that will be necessary for the construction, operation, repair and maintenance of the Project and on account of any increase in population or other circumstances resulting by reason of the location of the Project within the territorial limits of the Issuer are available now or can be provided when needed. F. Adequate provision will be made under the tenns of the proposed fmancing agreement for the repair and maintenance of the Project at the expense of the Borrower, and for the payment of the principal of and premium, if any. and interest on the bonds. G. The principal of and premium, if any, and interest on the bonds and all payments required under the proposed financing agreement shall be payable solely from the proceeds derived by the Issuer under the proposed financing agreement, and neither the Issuer nor the State shall ever be required to ( levy ad i) valorem taxes on any property within its territorial limits to pay the principal of and premium, if any, and interest on the bonds or to make any other payments provided for under the proposed financing agreement or the trust indenture, or (11) pay the same from any funds of the Issuer other than those derived by the Issuer under the proposed fmancing agreement. and such bonds shall not constitute a lien upon any property owned by or situated within the territorial limits of the Issuer except the Project. H. The costs to be paid from the proceeds of the bonds will be costs of a project within the meaning of the Act. I. The interest on the bonds will be exempt from federal income taxation under existing laws of the United States. J. Pursuant to Section 103 of the Internal Revenue Code. a public hearing was scheduled for May 14, 1996 at 7: 00 p. m. and notice of such hearing was given in the form set forth on Exhibit " B" hereto. and in the manner required by the Code. K. The Issuer has conducted the public hearing and provided reasonable opportunity for all interested persons to express their views. both orally and in writing and diligently and conscientiously considered all comments and concerns expressed by such individuals, if any. SECTION 3. AUTHORIZATION OF EXECUTION AND DELIVERY OF INDUCEMENT LETTER. The Mayor of the Issuer is hereby authorized to execute. and the City Clerk is hereby authorized to attest and countersign. the Issuer's letter or letters addressed to the Borrower in substantially the form attached to this Resolution as Exhibit " A" and incorporated herein. with such changes therein. whether made to the execution thereof or thereafter. as shall be approved from time to time by prior such officers executing the same, such approval to be conclusiVely evidenced by their execution thereof. Such officers and all other officers and employees of the Issuer are hereby MCL- 05/ 02/ 96 Rev 05/ 07/ 96 Rev- 05/ 14/ 96- 6205- indu- res 2-  o o authorized to execute such further agreements and to take such further action as shall be necessary to cany out the intent and purposes expressed in such letter attached as Exhibit " A." upon its becoming an agreement on its execution by the as may be Borrower, and are further authorized to take such other steps and actions required and necessary in order to issue such bonds. MCL- 05/ 02/ 96 Rev 05/ 07/ 96 Rev- 05/ 14/ 96- 6205- indu- res 3-  o o SECTION 4. PUBLIC HEARING NOTICE APPROVED. The Issuer of the Notice of Public hereby approves the form of and the manner of publication News. of general circulation Hearing (the " Notice") published in the Daily a newspaper in the jurisdiction of the Issuer on May 7. 1996. SECTION 5. EFFECTIVE DATE. This Resolution shall take effect immediately upon its passage. M:iy 14 1996. Adopted: MCL- 05/ 02/ 96 Rev 05/ 07/ 96 Rev- 05/ 14/ 96- 6205- indu- res 4-  o o THE CITY OF FORT WALTON BEACH, FLORIDA SEAL) Attest: t:~/ Hele A. Spencer City Clerk MCL-05/ 02/ 96 Rev 05/ 07/ 96 Rev- 05/ 14/ 96- 6205-indu- res 5-  o o EXHmlT "A" Burton Golf. Inc Fort Walton Beach. Florida Dear Ladies and Gentlemen: Re: Proposed Financing by the City of Fort Walton Beach of the costs of certain facilities for manufacturing facilities for Burton Golf. Inc Borrower"). it is the Based upon recent discussions with you ( the " of The City of Fort Walton Beach. Florida. and its officials and understanding the " Issuer"). that the Borrower is currently considering the representatives ( for golf bags and acquisition. construction. and equipping of manufacturing facilities the " to be located at the Borrower' s plant at 654 Anchors St. accessories ( Project") N. W. located within the territorial limits of the Issuer: that the Project will cost 2. 000. 000: and that the willingness of the Issuer to issue and sell its approximately $ industrial development revenue bonds for the purpose of financing the Project is an important fact under consideration by the Borrower in determining the feasibility of the Project.