HomeMy WebLinkAbout*Other - BOCC (003)WASHINGTON STATE
COMMUNITY ECONOMIC REVITALIZATION BOARD (CERB)
APPLICATION FOR UMBRELLA BOND PROGRAM
Application fi# �% 5 g -01:z
(to be completed by CERB)
Section "A" Company Information
1. Legal Name and Address of Applicant (this address wid be used in the program documents for the purpose of giving
notice to the borrower):
2. Type of Business: Metal Fabrication
3. SIC Code:._? 3y4f(if known)
4. Form of Organization of Borrower(s):
a. , individual proprietorship
b. , partnership: general limited
c....X corporation: ,�_ private public
State of incorporation: Washinaton Date: Anr11 1983
d. — Other.
5. Is the company wholly or partly owned by any other business'?
X No Yes (explain)
6. Name of primary commercial bank: U. S. Bank of Washington, N.A.
P.O. Box 1145
Renton, Washington 98057-1145
APPLICAIR CERB UMBRELLA BOND PROGRAM
PAGE 2
**000*6F!l0000'************Section"B" Project Information **********0******0*0000•
7. Projection:
Briefly dem iraUxlements of the proposed project, including land acquisition, building construction, etc. If the appli-
cant will o=apyA s than 100% of the building, provide. information regarding the tenant(s). Include tenant name, type
and amouraafzre to be leased. Describe what the facility is to be used for and by whom.
10 Acres of leased land from the Port of Moses make
30,000 square foot building
8. Projects:
Briefly inctmo=x.proposed schedule for the project. Include your best estimate of when loan proceeds would be required
and estimaimt*q*ct time dame (project commencement and compietion dates). Indicate also the latest and earliest dates,
if any, loathcls would be needed.
Contingent of loan funds available, construction can start in September 198n
with a completion date in December of the same vear depending uoon weather
conditions within the area.
The completion date may be accelerated if the loam was made available in
August.
9. EmploMmML3formation:
Approximate Timing of Jobs:
(Please inciis■o+1te number of jobs created or impacted by this project and the estimated start date of the bulk of the jobs
in each catzVoM Plumber Start
Description
Wage
Benefit
Total
1989
Laborer
5.50
2.76
8.26
1989
Appren:ceship Welder
8.00
3.04
11.04
4 1989
Journeyman Welder
10.00
3.27
13.27
New He�n[ Jabs
RetainaLUs 1989
Transfwld s - 0 -
Cons,—zW elated Jobs 18 - 20 1989
Secondorifpin-off Jobs* 12 1989
"Pleaseexpitin secondary jobs S anoh l a st i ng,('P.a i nT i no - (3 )
Machinino - (2). Truckino - (2), Miscellaneous - (5)
8.75 - 17.31
APPLICATION FOR CERB UMBRELLA BOND PROGRAM
PAGE 3
**'•**************** Section "B" Project information (continued)********************
10. Street Address or legal description of project location (please be precise):
22nd Avenue
Grant County Airport
Moses Lake, Washington 98837
11. Describe the product(s) to be produced, manufactured or processed at the proposed facility (include any printed
materiai of the activity).
Marine Containers
Marine Container Trailers
Custom Stainless Steel and Aluminum Fabrication
Power Transmission Hardware for Public Utility Dis
Material Handling Eauipment Str,!ctural and Miscellaneous Steel Fabrication
Barge Ramps
Mini Storages
12. Amount of proposed loan: S 650,000.00
13. Anticipated Project Costs:
Purchase of land
Purchase of existing facility
Rehabilitation
New construction
New machinery & equipment
Bond issuance cost (Approx. 37o of total)
Other (explain)
Internally financed costs
TOTAL PROJECT COSTS
$. Long term lease.
$ N/A
$ N/A
S 650,000.00
S
5 19,500.00
S N/A
$ -0-
$ 669.500.00
CAUTION: Funds spent prior to approval of application by CERB may not qualify for tax-exempt financing.
No construction work or other activity on the proposed umbrella bond project (including the signing of purchase
agreements or other contracts) should be undertaken without consultation with CERB bond counsel (Lindsay,'
Han, Neil & Weigler; phone (503) 226.1191).
ANII3CzFION FOR C ERB UMBRELLA BOND PROGRAM PAGE 4
*mwwwwwmd*** *** ** ** *** **** *Section "C" Certification by Applicant********* **"«*'*i**'
reby certifies that all information contained above is true to his/her best knowledge and belief and is submitted
%moose of accessing tax-exempt financing through the Washington State Community Economic Revitalization
HmmokAitebrelia Bond Program.
form to: Program Administrator
c/o Dept. of Trade & Econ. Dev.
101 General Administration
Bldg.
Olympia, WA 98504 (AX -13)
3 (206)586.1667
COMMUNITY ECONOMIC REVITALIZATION BOARD
Request for an Inducement Resolution
Staff Evaluation and Recommendation
General Project Information:
Applicant............ Busby International, Inc.
Line of Business..... Metal Fabrication
Type of Project...... Construction of a metal fabrication
facility
Total Project Cost... $659,500
IRB Request.......... $650,000
Project Location..... Port of Moses Lake, Grant County
Job Impact........... Retention: 8
Creation: 10
Dollar/Job Ratio.... $65,000
OVERVIEW:
Busby International is a well-known company whose current
structure was established in 1983. It is a private corporation
with six equal stockholders (5 of which reside in Moses Lake).
These stockholders are: Michael Mansfield, Daniel Mansfield,
James Jacobs, Don Deil, Vern McKinsey and Gene Busby. The
company produces specialized truck trailers, mini -storage
buildings and marine industry containers. Its main customers
include Boeing and Union Carbide. Busby has been profitable over
the last 5 years.
The company currently leases a facility but would like to build a
30,000 square foot manufacturing facility in the Port of Moses
Lake. Land will be leased from the port through a 50 -year
contract with a guaranteed renewal for 25 years.
Busby purchases most of its raw materials and sells half of its
products in Washington State. The company operates year round
and will bring existing machinery to the new location.
Busby will hire three new laborers to operate fabricating
machines and seven welders to assemble steel parts. The company
is working with Employment Security to train local welders for
its specialized welding needs. The company will transfer all
existing staff and hire new staff in order to support increased
product demand.
The complete application is attached.
PROJECT ANALYSIS:
CRITERION #1 Project Location
The proposed project is located at the Port of Moses Lake (Grant
County Airport), which is in Grant County. Grant county has been
designated an East/Distressed county..
CRITERION #2 Job Creation/Retention
The proposed project would generate 10 new, direct, unskilled,
semi -skilled and skilled jobs beginning in 1989. The dollar/job
ratio of $65,000 is will within the guideline of $292,200 per
new, direct job for projects located in East/Distressed counties.
STAFF RECOMMENDATION:
CERB staff recommends that the Board adopt inducement resolution
number U-89-017, substantially in the form attached, in support
of the Busby International project to be located in the Port of
Moses Lake, Washington.
Staff further recommends that the Board require Busby
International to sign an agreement to comply with all relevant
state, local and federal regulations.
RESOLUTION NO. U-89-017
A RESOLUTION OF THE COMMUNITY ECONOMIC REVITALIZATION BOARD
TAKING OFFICIAL ACTION TO THE ISSUANCE OF INDUSTRIAL DEVELOPMENT
NONRECOURSE REVENUE BONDS IN ONE OR MORE SERIES IN A MAXIMUM
AMOUNT NOT TO EXCEED $650,000 AND AUTHORIZING THE EXECUTION OF AN
INDEMNIFICATION AND COMPENSATION AGREEMENT BY AND BETWEEN THE
COMMUNITY ECONOMIC REVITALIZATION BOARD AND BUSBY INTERNATIONAL,
INC.(the "Company).
WHEREAS, the Community Economic Revitalization Board
(the "Issuer") is a duly organized and existing instrumentality
of the State of Washington authorized and empowered by the
provisions of RCW Chapter 39.84 and RCW Chapter 43.160
(collectively, the "Act") to issue nonrecourse revenue bonds for
the purpose of carrying into effect the construction of
improvements and the acquisition of personal properties suitable
for use by any industry, and to loan its moneys when necessary or
convenient to carry out its powers under the Act; and
WHEREAS, to induce the acquisition, construction,
equipping and improving of the manufacturing and processing
facilities to be located in the Port of Moses Lake, Washington,
as more fully described in Exhibit A attached hereto and
incorporated herein (the "Site"), all of which is located within
the territorial limits of the State of Washington, the Issuer
proposes to issue nonrecourse revenue bonds (the "Bonds") in a
maximum amount not to exceed Six Hundred Fifty Thousand Dollars
($650,000) pursuant to the Act to carry into effect the
acquisition, construction, equipping and improving of real and
personal property at the Site to be used in the manufacturing and
processing facilities of the Company, as more fully described in
Exhibit A hereto (the "Project"), to loan the proceeds of the
Bonds to finance the acquisition, construction, improvement,
equipping and installation of the Project; and
WHEREAS, the loan of the proceeds of the sale of the
industrial development bonds of the Issuer to the Company will
permit the Company to acquire and install the Project and other
related and subordinate facilities, thereby promoting the general
health and welfare of the inhabitants within the territorial
limits of the State of Washington, and the Company has requested
satisfactory assurances from the Issuer that the proceeds of the
sale of the industrial development bonds of the Issuer will
remain available to finance the Project; and
WHEREAS, the Issuer deems it necessary and advisable
that it take such action as may be required under the Act to
authorize and issue one or more series of the Bonds to finance
the cost of the Project in a maximum amount not to exceed Six
Hundred Fifty Thousand Dollars ($650,000); and
Resolution No. U-89-017 Page 1
WHEREAS, a form of agreement designated as an
"Indemnification and Compensation Agreement" has been prepared
setting forth the respective agreements and undertaking of the
Issuer and the Company with respect to the Bonds and the Project;
and
WHEREAS, it is considered necessary and desirable for
the best interest of the Issuer that the Indemnification and
Compensation Agreement be executed for and on behalf of the
Issuer; and
WHEREAS, the Indemnification and Compensation Agreement
requires the Company to pay all reasonable and necessary costs
incurred by the Issuer in connection with the Bonds or in
connection with the Project; and
WHEREAS, the Issuer finds that the Project constitutes
the development and improvement of industrial development
facilities under the Act; and
WHEREAS, it is intended that this resolution shall
constitute "some other similar official action" for the issuance
of said industrial development bonds within the meaning of
Section 1.103-(8) (a) (5) of the federal Income Tax Regulations.
NOW THEREFORE, be it resolved by the Community Economic
Revitalization Board as follows:
Section 1. It is hereby determined that (a) the
acquisition, construction and installation of the Project and its
operation as an industrial development facility; (b) the issuance
of the bonds of the Issuer in one or more series and in a maximum
principal amount of not to exceed $650,000, to finance costs of
the Project, such total costs to be financed by the Bonds
presently estimated to be approximately $650,000; and (c) the
execution and delivery of such contracts and agreements with the
Issuer as are necessary to provide for the payment by the Issuer
of amounts sufficient to pay the principal of, premium, if any,
and interest on the Bonds, together with certain costs of the
Issuer, will all be in furtherance of the Act.
Section 2. The Issuer presently intends to authorize
the issuance and sale of the Bonds pursuant to the provisions of
the Act when and if requested to do so by the Company and hereby
expresses its approval of such issuance and sale. This
resolution is not intended to legally bind the Issuer to
authorize, issue or sell the Bonds.
Section 3. The authorization, issuance and sale of the
Bonds by the Issuer are subject to the following conditions:
(a) the Company shall have caused to be issued an
irrevocable letter of credit (the "Master Letter of Credit") by
National Australia Bank Limited (the "Master Letter of Credit
Resolution No. U-89-017 Page 2
Bank"), which shall be used to pay and secure the Bonds;
(b) the Company shall enter into such contracts and
loan agreements with the Issuer as shall be necessary to secure
payment of the principal of, premium, if any, and interest on the
Bonds as when the same shall become due and payable, and shall
cause a Participating Bank Letter of Credit to be issued in favor
of the Master Letter of Credit Bank in an amount at least equal
to the portion of the Master Letter of Credit securing the Bonds;
(c) on or before two (2) years from the date hereof
(or such later date as shall be mutually satisfactory to the
Issuer and the Company) the Issuer and the Company shall have
agreed to mutually acceptable terms and conditions of the
contracts and agreements referred to in paragraph (b) of this
Section 3;
(d) the Issuer shall have received a preliminary
opinion of bond counsel that, with certain customary exceptions,
the Bonds may be issued as tax-exempt obligations pursuant to the
provisions of the Internal Revenue Code of 1986;
(e) the Issuer shall have received an allocation of
the State ceiling on private activity bonds imposed by Section
146 of the Internal Revenue Code of 1986 in an amount equal to
the aggregate face amount of the Bonds, and shall have allocated
such amount to the Bonds;
(f) the Issuer shall have received evidence that the
county, city or town within whose planning jurisdiction the
Project lies has approved the Project and the Bonds; and
(g) such other conditions as in the judgment of the
Issuer and bond counsel are necessary to insure the validity of
the Bonds and the tax-exempt status of the Bonds.
Section 4. The proper officials of the Issuer are
hereby authorized to take such further action as is necessary to
carry out the intent and purposes hereof and to issue the Bonds
under the terms and conditions and for the purposes stated herein
and in compliance with applicable provisions of law.
Section 5. That in order to carry into effect the
acquisition and installation of the Project within the
territorial limits of the State of Washington, with the resulting
public benefits that will flow therefrom, it is deemed necessary
and advisable that the Indemnification and Compensation Agreement
be approved and executed for and on behalf of the Issuer.
Section 6. That an Indemnification and Compensation
Agreement by and between the Issuer and the Company be and the
same is hereby approved and authorized and the Chairman of the
Issuer is hereby authorized to execute the Indemnification and
Compensation Agreement on behalf of the Issuer.
Resolution No. U-89-017 Page 3
Section 7. Each Bond shall substantially state the
following language on the face thereof:
THE OBLIGATIONS OF THE ISSUER HEREUNDER SHALL NOT BE
DEEMED TO BE A DEBT, LIABILITY, OBLIGATION OR PLEDGE OF THE FAITH
AND CREDIT OF THE STATE OF WASHINGTON, OF ANY MUNICIPALITY, OR OF
ANY MUNICIPAL CORPORATION, QUASI MUNICIPAL CORPORATION,
SUBDIVISION, OR AGENCY OF THE STATE OF WASHINGTON, OR TO PLEDGE
ANY OR ALL OF THE FAITH AND CREDIT OF ANY OF THESE ENTITIES.
NEITHER THE STATE OF WASHINGTON, THE ISSUER, ANY MUNICIPALITY, OR
ANY OTHER MUNICIPAL CORPORATION, QUASI MUNICIPAL CORPORATION,
SUBDIVISION, OR AGENCY OF THE STATE OF WASHINGTON IS OBLIGATED TO
PAY THE PRINCIPAL OR THE INTEREST THEREON. NO TAX FUNDS OR
GOVERNMENTAL REVENUE MAY BE USED TO PAY THE PRINCIPAL OR INTEREST
THEREON. NEITHER ANY OR ALL OF THE FAITH AND CREDIT NOR THE
TAXING POWER OF THE STATE OF WASHINGTON, THE ISSUER, IF ANY, OR
ANY MUNICIPAL CORPORATION, QUASI MUNICIPAL CORPORATION,
SUBDIVISION, OR AGENCY THEREOF IS PLEDGED TO THE PAYMENT OF THE
PRINCIPAL OF OR THE INTEREST ON THE BONDS.
Section 8. This Resolution shall be effective after
its adoption.
ADOPTED by the Community Economic Revitalization Board
this 20th day of July, 1989.
CO ITY ECO O I A ZATION BOARD
By:
Chairman
Resolution No. U-89-017
Page 4
EXHIBIT A
DESCRIPTION OF PROJECT AND SITE
The 30,000 square foot metal fabrication facility will be located
at 22nd Avenue, Grant County Airport, Moses Lake, Washington
98837
Resolution No. U-89-017
Page 5
CERTIFICATE
I, the undersigned, Secretary of the Community Economic
Revitalization Board (herein called the "Issuer"), DO HEREBY
CERTIFY:
1. That the attached Resolution No.0-89-017 (herein
called the "Resolution") is a true and correct copy of a
resolution of the Issuer as finally adopted at a regular meeting
of the Board of Directors of the Issuer held on the 20th day of
July, 1989, and duly recorded in my office.
2. That said meeting was duly convened and held in all
respects in accordance with law, and, to the extent required by
law and the by-laws of the Issuer, due and proper notice of such
meeting was given; that a legal quorum was present throughout the
meeting and a legally sufficient number of members of the
Community Economic Revitalization Board voted in the proper
manner for the adoption of the Resolution; that all other
requirements and proceedings incident to the proper adoption of
the Resolution have been duly fulfilled, carried out and
otherwise observed; and that I am authorized to execute this
certificate.
IN WITNESS WHEREOF, I have hereunto set my hand and
affixed the official seal of the Community o omic
Revitalization Board this day of , 1989.
(ISSUER SEAL]
Resolution No. U-89-017
Page 6