Title
Consider Resolution approving issuance of a 2013-B Bond to Vulcan, Inc. for their expansion project
Summary
DESCRIPTION OF TOPIC: (who, what, when, where, why, and how much)
Vulcan, Inc. is in the process of expanding their business. They are constructing a new building for a new furnace and will be reconditioning the existing furnance. They are purchasing new equipment to upgrade their production capacity. The publicly remarketed bonds (Series 2006 and Series 2012) are being refinanced into a bank held bond issue.
Body
BE IT RESOLVED by the City Council (herein called “the Council”) of the CITY OF FOLEY, ALABAMA (herein called “the City”), as follows:
Section 1. The Council, upon evidence duly presented to and considered by it, has found and determined, and does hereby find, determine and declare, that The Industrial Development Board of the City of Foley, Alabama (herein called “the Industrial Board”), proposes
(a) to issue to Vulcan, Inc., an Alabama corporation (herein called “the Company”), an Industrial Revenue Bond (Vulcan Project), Series 2013-B, in the principal amount of $14,095,000 (said Bond being herein called “the Series 2013-B Bond”),
(b) to deliver the Series 2013-B Bond to the Company in exchange for the delivery to it by the Company of
(1) the Industrial Board’s Taxable Revenue Bond (Vulcan, Inc. 2006 Project) dated July 13, 2006 (herein called “the Series 2006 Bond”), which was initially issued in the principal amount of $9,000,000 and was subsequently effectively amended in certain respects by the Industrial Board, and which (as so amended) is now outstanding in the principal amount of $6,295,000.
(2) the Industrial Board’s Industrial Revenue Bond (Vulcan Project), Series 2012, dated April 24, 2012 (herein called “the Series 2012 Bond”), initially issued in the principal amount of $8,000,000 and now outstanding in the principal amount of $7,800,000,
both of which obligations were issued by the Industrial Board for the purpose of effectively paying costs of acquiring, constructing and equipping certain additions and improvements to the Company’s existing manufacturing plant and facilities located in the City of Foley, Alabama, and costs of acquiring and installing, in or about said existing plant and facilities or said additions and improvements (as the case may be), items of machinery and equipment (all such additions, improvements, machinery and equipment being herein together referred to as “the New Capital Improvements”), and
(c) to lease to the Company (1) the New Capital Improvements, and (2) certain other real and personal properties now owned by the Industrial Board and currently leased by it to the Company under certain outstanding lease agreements between them, all for use by the Company in manufacturing, processing, assembling, storing, warehousing, and distributing fabricated metal signs and related products.
Section 2. In accordance with applicable provisions of the Certificate of Incorporation of the Industrial Board, as heretofore amended, the Council hereby approves the issuance of the Series 2013-B Bond by the Industrial Board to the Company, and the Council further approves (a) the refunding, prepayment and retirement, prior to their respective maturities, of the Series 2006 Bond and the Series 2012 Bond, to be effectuated by the exchange of the Series 2013-B Bond for the Series 2006 Bond and the Series 2012 Bond, (b) the construction, acquisition and equipping of the New Capital Improvements by the Company and the Industrial Board, and (c) the location and nature of the New Capital Improvements as described hereinabove.
Section 3. The officers of the City are hereby authorized and directed to take all such actions, and to execute and deliver all such agreements, documents, instruments and notices, as may be necessary or desirable in order to carry out the purposes of this resolution. All prior actions of any officers of the City with respect thereto are hereby ratified and confirmed.
Section 4. All ordinances, resolutions, orders, and any other proceedings of the City in conflict or inconsistent with the provisions of this resolution are, to the extent of such conflict or inconsistency, hereby repealed.