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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