HomeMy WebLinkAbout1559 Industrial Revenue Bonds NECCO Coffee $5,000,000 BILL NO. 2017-056 ORDINANCE NO.J=Sg9
AN ORDINANCE APPROVING A PLAN FOR AN INDUSTRIAL DEVELOPMENT PROJECT
FOR THE BENEFIT OF NECCO COFFEE CO.,A MISSOURI CORPORATION, CONSISTING
OF AN OFFICE AND WAREHOUSE BUILDING FOR COMMERCIAL PURPOSES;
AUTHORIZING THE CITY TO ISSUE ITS TAXABLE INDUSTRIAL REVENUE BONDS
(NECCO COFFEE CO., INC. PROJECT), SERIES 2017 IN THE MAXIMUM PRINCIPAL
AMOUNT OF $5,000,000, FOR THE PURPOSE OF PROVIDING FUNDS TO PAY THE
COSTS OF ACQUIRING, PURCHASING AND CONSTRUCTING A FACILITY FOR AN
INDUSTRIAL DEVELOPMENT PROJECT IN THE CITY; AND AUTHORIZING THE CITY TO
ENTER INTO CERTAIN AGREEMENTS AND TAKE CERTAIN OTHER ACTIONS IN
CONNECTION WITH THE ISSUANCE OF THE BONDS.
WHEREAS, the City of Riverside, Missouri, a fourth-class city and political subdivision of
the State of Missouri (the "City"), is authorized and empowered pursuant to the provisions of
Article VI, Section 27(b) of the Missouri Constitution, as amended, and Sections 100.010 through
100.200, inclusive, of the Revised Statutes of Missouri,as amended(RSMo)(collectively,the"Act'),
to purchase, construct, extend and improve certain projects (as defined in Section 100.010 RSMo)
and to issue industrial development revenue bonds for the purpose of providing funds to pay the
costs of such projects and to lease or otherwise dispose of such projects to private persons or
corporations for manufacturing, commercial, warehousing and industrial development purposes
upon such terms and conditions as the City shall deem advisable; and
WHEREAS, Section 100.050 RSMo requires the City to prepare a plan in connection with
any industrial development project undertaken pursuant to the Act; and
WHEREAS, the City, in accordance with Section 100.050 of the Act, has prepared a Plan
for an Industrial Development Project dated August 30, 2017 (the "Plan") for Necco Coffee Co.,
Inc., a Missouri corporation (the "Company"), with respect to a project consisting of the
purchasing, designing, constructing and installing of an approximately 100,000 square foot office
and warehouse building (the "Project"), notice of the Project was given to the taxing jurisdictions
in accordance with Section 100.059.1 of the Act and the City now desires to approve the Plan;
and
WHEREAS, the Board of Aldermen hereby finds and determines that it is desirable for the
improvement of the economic welfare and development of the City and within the public purposes
of the Act that the City issue its Taxable Industrial Revenue Bonds (Necco Coffee Co., Inc.
Project), Series 2017, in an aggregate principal amount not to exceed $5,000,000 (the "Bonds"),
for the purpose of(a) designing and constructing an office and warehouse building at 4380 NW
Belgium Boulevard in Riverside, Missouri (the "Project Site"), (b) leasing the Project Site and
Project Improvements (as hereinafter defined) to the Company for the construction of the Project
and installation fixtures relating thereto (collectively, the"Project Improvements"), and (c) paying a
portion of the costs of issuing the Bonds; and
WHEREAS, simultaneously with the issuance of the Bonds, the City will lease the Leased
Property(as defined in the hereinafter approved Lease)to the Tenant; and
WHEREAS, the Board of Aldermen further finds and determines that it is necessary and
desirable in connection with the issuance of the Bonds that the City enter into certain documents
and that the City take certain other actions and approve the execution of certain other documents
as herein provided;
NOW,THEREFORE, BE IT ORDAINED BY THE BOARD OF ALDERMEN OF THE CITY
OF RIVERSIDE, MISSOURI, AS FOLLOWS:
SECTION 1. PROMOTION OF ECONOMIC DEVELOPMENT. The Board of Aldermen
hereby find and determine that the Project will promote the economic welfare and the
development of the City, and the issuance of the bonds by the City to pay the costs of the Project
will be in furtherance of the public purposes set forth in the Act.
SECTION 2. APPROVAL OF PLAN. The Board of Aldermen hereby approve the Plan
for Industrial Development Project in accordance with Section 100.050 of the Act.
SECTION 3-AUTHORIZATION OF THE BONDS. The City is hereby authorized to issue
and sell the Bonds as described in the recitals hereto for the purpose of providing funds to pay
the costs of the Project and to pay a portion of the costs of issuing the Bonds. The Bonds shall
be issued and secured pursuant to the Indenture and shall have such terms, provisions,
covenants and agreements as are set forth therein.
SECTION 4 - LIMITATION ON LIABILITY. The Bonds and the interest thereon shall b
limited and special revenue obligations of the City payable solely out of the rents, revenues an
receipts derived by the City from the Leased Property and the Lease Agreement and not from an
other fund or source of the City. Such payments, revenues and receipts shall be pledged an
assigned to the bond trustee named therein (the "Trustee") as security for the payment of th
Bonds as provided in the Indenture. The Bonds and the interest thereon shall not constitute gener, I
obligations of the City or the State of Missouri (the "State"), and neither the City nor the State sha I
be liable thereon. The Bonds shall not constitute an indebtedness within the meaning of an
constitutional or statutory debt limitation or restriction, and are not payable in any manner b
taxation.
SECTION 5 - AUTHORIZATION OF DOCUMENTS. The City is hereby authorized t
enter into the following documents (the "City Documents"), in substantially the forms presented t
and approved by the Board of Aldermen and attached to this Ordinance, with such change
therein as are approved by the officials of the City executing the documents, such officials
signatures thereon being conclusive evidence of their approval thereof:
(a) Trust Indenture dated as of the date set forth therein (the "Indenture")
between the City and the Trustee, pursuant to which (1) the Bonds will be issued and (2
the City will pledge the Leased Property and assign certain of the payments, revenue
and receipts received pursuant to the Lease Agreement to the Trustee for the benefit an
security of the owners of the Bonds upon the terms and conditions as set forth in the
Indenture.
(b) Lease Agreement dated as of the date set forth therein (the "Leas
Agreement"), between the City and the Tenant, under which the City will lease the Lease
Property to the Tenant, pursuant to the terms and conditions in the Lease Agreement, i
consideration of rental payments by Tenant that will be sufficient to pay the principal of
premium, if any, and interest on the Bonds, including a Memorandum of Lease Agreement
providing notice of the Lease Agreement.
(c) Bond Purchase Agreement dated as of the date set forth therein, among
the City, the Tenant and the purchaser of the Bonds.
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SECTION 6. CREATION OF BOND FUND. The City is hereby authorized to establish
with the Trustee pursuant to the Indenture, a special trust fund in the name of the City to be
designated the"City of Riverside, Missouri, Bond Fund—Necco Coffee Co., Inc. Project" and the
City shall cause all sums required by the Indenture to be deposited therein and shall create all
accounts therein required by the Indenture.
SECTION 7 - EXECUTION OF DOCUMENTS. The Mayor is hereby authorized to
execute the Bonds and to deliver the Bonds to the Trustee for authentication for and on behalf of
and as the act and deed of the City in the manner provided in the Indenture. The Mayor is hereby
authorized to execute the City Documents and such other documents, certificates and instruments
as may be necessary or desirable to carry out and comply with the intent of this Ordinance, for
and on behalf of and as the act and deed of the City. The City Clerk is hereby authorized to attest
to and affix the seal of the City to the Bonds and the City Documents and such other documents,
certificates and instruments as may be necessary or desirable to carry out and comply with the
intent of this Ordinance.
SECTION 8 - FURTHER AUTHORITY. The City shall, and the officials, agents and
employees of the City are hereby authorized to, take such further action, and execute such other
documents, certificates and instruments as may be necessary or desirable to carry out and
comply with the intent of this Ordinance and to carry out, comply with and perform the duties of
the City with respect to the Bonds and the City Documents. The Mayor is hereby authorized,
throughout the term of the Lease Agreement, to execute all documents on behalf of the City
(including documents pertaining to the transfer of property) as may be required to carry out and
comply with the intent of this Ordinance, the Indenture and the Lease Agreement.
SECTION 9 -CONFLICTS. All ordinances or parts of ordinances in conflict herewith are
hereby repealed.
SECTION 10 - EFFECTIVE DATE. This Ordinance shall be in full force and effect from
and after its passage and approval.
BE IT REMEMBERED that the above was read two times by heading only, passed and
approved by a majority of the Board of Aldermen and APPROVED by the Mayor of the City of
Riverside, Missouri, this 19th day of September, 2017.
KAINeen L. Rose, Mayor
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