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HomeMy WebLinkAboutCOUNCIL MINUTES 1967-05-13 SPECIAL 8711 MINUTES OF THE ONE HUNDRED ELEVENTH SPECIAL MEETING OF THE COUNCIL OF THE CITY OF LIVONIA Pursuant to the provisions of Section 8, Chapter IV of the City Charter, the above meeting was held on May 13, 1967, at the City Hall, 33001 Five Mile Road, Livonia, Michigan, and was called to order by the President of the Council at approximately 8:20 A. M.. Roll was called with the following result Present-- Peter A. Ventura, Rudolf R. Kleinert, Edward H. McNamara, Jerry Raymond, Robert F. Nash and Edward G. Milligan. Absent--Jack Salvadore. Elected and appointed officials present' Addison W. Bacon, City Clerk, Harvey W. Moelke, Mayor, Steve Polgar, City Attorney, Harry C. Tatigian, Chief Assist- and City Attorney, John T. Dufour, Superintendent of Parks and Recreation; Victor C. Phillips, Chief Accountant, and Dan Andrews, Industrial Coordinator. Also present were the Messrs. David Page, Stratton Brown, Julius Pochelon, John Gilder and Shelden Douglas. By Councilman Kleinert, seconded by Councilman McNamara, it was #491-67 WHEREAS, the City of Livonia is a municipal corporation organized and existing under and pursuant to the laws of the State of Michigan and is authorized by Act No. 62, Public Acts of Michigan, 1963, as amended (hereinafter sometimes referred to as "Act No. 62"), to acquire lands within or without its corporate limits and to acquire and construct build- ings end improvements thereon and to acquire and install machinery and equipment therein and to lease the same as a project for the purpose of securing and developing industry in or near the City in order to alleviate and prevent conditions or unemployment,to assist and retain local indus- tries, to meet ggowing competition for ncu industries and to sttengthen and revitalize the economy of the City in general; and WHEREAS, the City is authorized by Act No. 62 to issue Industrial Development Revenue Bonds secured by a mortgage on the Project and payable solely from the revenues derived from leasing the Project thus acquired or constructed through the issuance of such Bonds, and WHEREAS, the City has made necessary arrangements with Allied Supermarkets, Inc., (herein sometimes called "Company"), for the location of a Project (as defined in the Lease and Mortgage and Indenture of Trust approved by this resolution) in the City of Livonia, Michigan, from which 8712 Project the City will receive substantial municipal benefits, including, by way of illustration but not limitation, increased employment of its citizens resulting in the alleviation of unemployment within the City, the increased diversification of industry within the City, a material increase in the City's tax base which will provide a long term source of revenues to the City, and the stimulation of existing and new businesses within the City which may be called upon to assist in the construction of the Project and which, after completion of the Project, will provide numerous services to the Project and to the large number of employees working therein, and WHEREAS, the Company will construct and acquire the Project and convey the same to the City and the City will lease to the Company the Project, which will include, by way of illustration but not limitation, processing and warehousing facilities for such items as groceries, meats, produce, frozen foods and various non-food items, a bakery, a milk, ice cream and dairy plant, a potato chip processing plant, a salad preparation processing facility, a meat processing plant, attendant parking facilities and certain other related and supporting facilities, and WHEREAS, the acquisition and leasing of the Project and the issuance of the Bonds by the City, as herein recited and provided, will serve the intended accomplishments and in all respects conform to the provisions and requirements of Act No. 62; and WHEREAS, the bonds to be issued have been authorized by resolu- tion of the City Council adopted March 11, 1967, which bonds are not to be a general obligation of the City and will not be payable from taxes or any other funds or moneys of the City other than rentals to be paid by the Company and which bonds shall be additionally secured by a Mortgage on the Project, and WHEREAS, it is necessary under the Charter of the City and the laws of the State of Michigan that the City Council approve the proposed Lease and Mortgage and Indenture of Trust; and WHEREAS, a draft of said Lease and Mortgage and Indenture of Trust have been prepared and reviewed by the City Council, and WHEREAS, the proposed issue of bonds will be in the aggregate principal amount of $33,000,000.00 and will be designated LIVONIA, MICHIGAN INDUSTRIAL DEVELOPMENT REVENUE BONDS (ALLIED SUPERMARKETS, INC.) SERIES A (Herein sometimes called "bonds"); and WHEREAS, the City Council deems it advisable and necessary to sell said bonds at private sale to Eastman Dillon, Union Securities & Co. and Allen & Company, as representatives of the Several Underwriters; and WHEREAS, a draft of an underwriting agreement has been prepared and reviewed by the City Council; NOW, THEREFORE, BE IT RESOLVED THAT: 8713 1. The draft Lease of the Project on file with the City Clerk and on which has been endorsed by the City Clerk the date of adoption of this resolution is hereby approved and upon approval by the City Council of the form and substance of the information placed in the blanks contained in said draft Lease and together with such other changes as the City Council may agree to,the Mayor and City Clerk are hereby authorized and directed to execute said Lease for and on behalf of the City. 2. The draft Mortgage and Indenture of Trust for said Project on file with the City Clerk and on which has been endorsed by the City Clerk the date of adoption of this resolution is hereby approved and upon approval by the City Council of the information placed in the blanks contained in said Mortgage and Indenture of Trust and together with such other changes as the City Council may agree to,the Mayor and City Clerk are hereby authorized and directed to execute said Mortgage and Indenture of Trust for and on behalf of the City. 3. The draft of the Underwriting Agreement for the sale of said bonds, more particularly described in the preamble hereto and on which has been endorsed by the City Clerk the date of adop- tion of this resolution is hereby approved and upon approval by the City Council of the form and substance of the information placed in the blanks contained in said draft Underwriting Agreement together with such other changes as the City Council may agree to,the Mayor and City Clerk are hereby authorized and directed to execute said Underwriting Agreement for and on behalf of the City. 4. All resolutions and parts of resolutions in conflict with this resolution or with the draft Lease, draft Mortgage and Indenture of Trust or draft Underwriting Agreement approved hereby are hereby rescinded or amended to the extent of any such conflict. By Councilman Milligan, seconded by Councilman Raymond, it was RESOLVED, that this matter be tabled until such time as immediately after a meeting has been conducted with the Department of Law, and such others as the Department of Law may feel necessary, for the purpose of discussing the ramifications involved in the proposed Underwriting Agreement. A roll call vote was taken on the tabling resolution with the following result: AYES: Milligan and Raymond. NAYS: Nash, McNamara, Kleinert and Ventura. The PreeidAnt declared the tabling resolution denied. A roll call vote was taken on the original resolution with the following result AYES: Nash, McNamara, Kleinert, Milligan, Raymond and Ventura. NAYS: None. The President declared the resolution adopted. 871, *Councilman McNamara was excused at 11.40 A. M. By Councilman Nash, seconded by Councilman Kleinert, it was #492-67 WHEREAS, the City Council of the City of Livonia by resolution adopted March 11, 1967 did authorize CITY OF LIVONIA INDUSTRIAL DEVELOPMENT REVENUE BONDS, SERIES A (ALLIED SUPERMARKETS , INC. ) which resolution provided that call premiums of amounts specified therein would be paid and that the bonds would be paid serially each year, and that certain bonds must be called for redemption prior to maturity each year in amounts and at times specified therein, and WHEREAS, the call premiums to be paid were intended to be maximum call premiums and may be in amounts lesser than those specified in said resolution and the amount of bonds serially maturing each year may be increased or decreased and the bonds required to be called for redemption prior to maturity correspondingly decreased or increased, provided that the total principal amount of bonds to be retired or redeemed each year (through serial maturity and bonds required to be called for redemption) shall be the same as provided in said resolution; NOW, THEREFORE, BE IT RESOLVED THAT: 1. The call premiums specified in said resolution adopted March 11, 1967 shall be considered maximum call premiums and may be in amounts lesser than those shown in said resolution. 2. The bonds scheduled to mature serially as set forth in said resolution adopted March 11, 1967 may be increased or decreased and the bonds required to be called for redemption prior to maturity by said resolution correspondingly decreased or increased, provided that the total amount of bonds retired or redeemed each year shall be the same as are required to be retired or redeemed by said resolution adopted March 11, 1967. 3. All resolutions and parts of resolutions to the extent they conflict with this resolution are hereby rescinded or modified. A roll call vote was taken on the foregoing resolution with the following result: AYES : Nash, Kleinert, Milligan, Raymond and Ventura. NAYS : None. By Councilman Nash, seconded by Councilman Raymond, and unanimously adopt-c ed, this 111th Special Meeting of the Council of the City of Livonia, was duly adjourned at 11:45 A. M. , May 13, 1967. Z/L'; ADDISoN W. bilic041e4C1 rk.