Resolution No. 6338
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RESOLUTION NO. 6338
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON INDUCING THE ACQUISITION AND
CONSTRUCTION OF MANUFACTURING FACILITIES IN THE
CITY BY CLOUGHERTY PACKING COMPANY, TO BE
FINANCED FROM THE PROCEEDS OF TAX-EXEMPT
REVENUE BONDS
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7 WHEREAS, the City of Vernon (the "City") is authorized by
8 the California Industrial Development Financing Act, being Chapter
9 1 of Title 10 (commencing with section 91500) of the California
10 Government Code (the "Act"), to cause to be established a local
11 industrial development authority within the City (the "Authority"),
12 which is authorized to facilitate the financing of certain capital
13 projects consisting of manufacturing facilities; and
14 WHEREAS, Clougherty Packing Company (the "Company") has
15 requested that the Authority issue and sell revenue bonds for the
16 purpose of financing the construction of a two-story building of
17 approximately 30,000 square feet to be used for a USDA-approved hog
18 procurement, conversion, preparation, evisceration, disassembly,
19 sortation, and final inspection facility, including all related
20 facilities and equipment, to be located at 3049 East Vernon Avenue
21 in the City (the "project"); and
22 WHEREAS, the City wishes to induce the Company to acquire
23 and construct the Project and, in particular, to do so at such
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location.
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
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CITY OF VERNON AS FOLLOWS:
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SECTION 1: The City Council of the city of Vernon hereby
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true and correct.
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SECTION 2: The City Council hereby declares its intention
to form the Authority and to cause the Authority to authorize the
issuance and sale of its revenue bonds (the "Bonds") pursuant to the
Act in a principal amount of not to exceed Ten Million Dollars
($10,OOO,OOO) for the purpose of providing financing to the Company
for the acquisition, construction and development of the Project.
SECTION 3: The issuance and sale of the Bonds shall be
upon such terms and conditions as may be mutually agreed upon by the
Authority, the Company and the purchaser of the Bonds and subject to
completion of proceedings for the issuance, sale and delivery of the
Bonds of the Authority.
SECTION 4: The proceeds of the Bonds shall include such
related and necessary issuance expenses, administrative costs, debt
service reserves and interest payments as may be required
successfully to accomplish the financing of the Project.
SECTION 5: The City Council hereby finds that the
issuance of the Bonds by the Authority is a substantial inducement
to the Company to acquire, construct and develop the Project.
SECTION 6: The Company shall be solely responsible for
the payment of all present and future costs in connection with the
issuance of the Bonds, including, but not limited to, any fees and
expenses incurred by the City and the Authority in anticipation of
the issuance of the Bonds, the cost of printing any official
statement, rating agency costs, bond counsel fees and expenses,
underwriting discount and costs, trustee fees and expenses, and the
cost of printing the Bonds. The payment of the principal,
redemption premium, if any, and purchase price of and interest on
the Bonds shall be solely the responsibility of the Company. The
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Bonds shall not constitute a debt or obligation of the city.
SECTION 7: The law firm of Jones Hall Hill & White, a
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Professional Law Corporation, is hereby named as bond counsel to the
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City in connection with the issuance of the Bonds.
The fees and
expenses of bond counsel and the financial advisor in connection
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wi th the issuance of the Bonds are to be paid solely from the
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proceeds of the Bonds or directly by the Company.
SECTION 8: The City Administrator and all other officers
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and representatives of the City are hereby authorized to make an
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application to the California Debt Limit Allocation Committee for an
allocation of Private Activity Bonds for the financing of the
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Project by the Authority.
SECTION 9: The City Clerk of the city of Vernon shall
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certify to the passage of this resolution,
and thereupon and
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thereafter the same shall be in full force and effect.
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21 BRUtE V.
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APPROVED AND ADOPTED this 20th day of October, 1993.
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~S A. YB , Mayor Pro Tem
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STATE OF CALIFORNIA )
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COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, ci ty Clerk of the ci ty of
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Vernon, do hereby certify that the foregoing Resolution, being
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Resolution No. 6338, was duly adopted by the City Council of the
City of Vernon at an adjourned regular meeting of the City Council
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duly held on Wednesday, October 20, 1993, and thereafter was duly
signed by the Mayor Pro Tem of the City of
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( SEAL)
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