GIDA Resolution 83-5INDUSTRIAL DEVELOPMENT AUTHORITY
OF THE CITY OF GILROY
RESOLUTION NO. 83 - 5
A RESOLUTION MAKING DETERMINATIONS WITH RESPECT TO THE
FINANCING OF FACILITIES FOR GILROY CANNING COMPANY, INC.
AND EXPRESSING INTENTION TO UNDERTAKE SUCH
FINANCING PROJECT
WHEREAS Gilroy Canning Company, Inc. (the
"Applicant"), a California corporation, desires to acquire an
existing plant facility and equipment and acquire additional
equipment all of which will be located at One Lewis Street,
Gilroy, California, which will consist of land, improvements
and equipment for use as a tomato canning plant (the
"Facility"); and
WHEREAS the Applicant is willing to locate such
Facility within the jurisdiction of the Industrial
Development Authority of the City of Gilroy (the "Authority")
if the Authority will issue its revenue bonds to finance such
Facility pursuant to the California Industrial Development
Financing Act, being Title 10 of the California Government
Code, as supplemented and amended (the "Act"); and
WHEREAS the Applicant has submitted, and this Board
of Directors has accepted, an application requesting
financing for such Facility; and
WHEREAS the Authority may not issue bonds to
finance such Facility until this Board of Directors makes
certain determinations with respect to public benefits and
qualification of the Facility as required by the Act; and
WHEREAS this Board of Directors has carefully
considered and discussed the information contained in such
application and other information necessary to make such
determinations; and
WHEREAS this Board of Directors desires to induce
the Applicant to commence acquisition and equipping of the
Facility at the earliest possible time so as to produce the
public benefits set forth herein;
NOW, THEREFORE, the Board of Directors of the
Industrial Development Authority of the City of Gilroy does
resolve as follows:
RESOLUTION NO. 83 - 5 -1-
Section 1.
and determines:
This Board of Directors hereby finds
(a) That the activities and uses of the
Facility as a tomato canning plant are in accord
with Section 91503 of the Act;
(b) That the use of the Facility is likely to
produce employment benefits by securing or
increasing the number of employees of the Applicant
and any other direct users of the Facility or the
compensation for such employment and consumer
benefits by improving the quantity or quality or
reducing the price of products, energy or related
services or facilities, and by producing new or
improved products or related services or facilities;
(c) That the issuance of revenue bonds by the
Authority in an amount sufficient to finance the
Facility, which is now estimated to be
approximately $6,000,000, is likely to be a
substantial factor in the accrual of one or more of
the public benefits from the use of the Facility as
proposed in the Applicant's application;
(d) That the proposed financing is otherwise
in accord with the purposes and requirements of the
Act.
Section 2. It is the present intent of the
Authority to issue, at one time or from time to time, bonds
in the amount described in Section 1.
Section 3. The Secretary or Assistant Secretary is
hereby authorized and directed as soon as possible to file
with the City Council of the City of Gilroy a copy of the
application from the Applicant accepted by this Board of
Directors, as such application is amended or supplemented to
the date of such certification and filing.
Section 4. Publication in a newspaper of general
circulation in the City of Gilroy of a notice of filing of
the application, in substantially the form before this
meeting, naming the Applicant, stating the estimated
principal amount of the bond issue, briefly describing the
Facility, and referring to the application for further
particulars, for one time, is hereby ratified and approved.
Section 5. It is the purpose and intent of the
Authority that this resolution constitute official action
toward the issuance of obligations by the Authority for the
RESOLUTION NO. 83 - 5
2
Facility in accordance with Section 1.103-8(a)(5)(iii) of the
Regulations promulgated by the United States Department of
the Treasury under Section 103 of the Internal Revenue Code
of 1954, as amended.
Section 6. Issuance of any bonds pursuant to this
resolution is also subject to (a) satisfactory evidence to
the Authority of the financial feasibility of the project,
and (b) the agreement of the Applicant to sign a letter
agreement with the Authority in substantially the form of
Exhibit A.
Section 7. The Authority hereby designates Orrick,
Herrington & Sutcliffe, A Professional Corporation, as bond
counsel for this financing and authorizes the staff of the
Authority to enter into agreements with such firm for legal
services.
Section 8. This Resolution shall take effect
immediately upon its passage.
The foregoing Resolution was passed and adopted by
the Industrial Development Authority of the City of Gilroy on
November 7, 1983, by the following vote:
AYES: Directors: ALBERT, GAGE, HUGHAN, LINK, TAYLOR, VALDEZ
and GOODRICH.
NAYS: Directors: None ~
ABSENT:
Directors: None
Chairperson
ATTE/S~:
/ Secretary ~--
RESOLUTION NO. 83 - 5 3