015-06 - Resolution - Tax-Exempt Bonds for the Benefit of Cara Land Co.RESOLUTION NO. 015-06
A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON,
APPROVING THE ISSUANCE OF TAX-EXEMPT INDUSTRIAL
REVENUE BONDS FOR THE INDUSTRIAL DEVELOPMENT
CORPORATION OF KITSAP COUNTY FOR THE BENEFIT OF CARA
LAND CO., LLC PURSUANT TO RCW 39.84.060
WHEREAS, the Legislature of the State of Washington has provided for the
creation of public corporations by municipalities pursuant to Chapter 300, Laws of Washington,
1981 (Regular Session) codified as Chapter 39.84 RCW, as amended (the "Act"), for the
purpose of facilitating economic development and employment opportunities in the State of
Washington; and
WHEREAS, pursuant to the Act, the Industrial Development Corporation of
Kitsap County (the "Development Corporation") was formed in order to carry out the purposes
of the Act; and
WHEREAS, the Development Corporation has received an application from
CARA Land Co., L.L.C. (the "Borrower") for the purpose of providing financing for the
construction of a manufacturing facility at 1454 SW Cook Road, Port Orchard, Washington (the
"Project''), which is within the boundaries of the City of Port Orchard, Washington (the "City'');
and
WHEREAS, the Development Corporation and its bond counsel have reviewed
the application of the Borrower and have determined that the Project qualifies as an "industrial
development facility" within the meaning of the Act; and
WHEREAS, the Development Corporation has taken official action with respect
to the issuance of industrial revenue bonds in an amount not to exceed $5,000,000 (the
"Bonds'') on December 15, 2003; and
WHEREAS, the Act provides that each county, city or town within whose
planning jurisdiction the Project is to be located must approve the issuance of revenu~ bonds by
the Development Corporation for such Project; and
WHEREAS, the Development Corporation, as the issuer of the Bonds for the
Project, has requested the approval of the City pursuant to the Act; and
WHEREAS, the City has been assured that there will be no financial liability
accruing to the City as a result of such approval and that this approval shall constitute approval
solely for the purpose of permitting the Development Corporation to proceed with the issuance
of the Bonds; now, therefore;
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON,
HEREBY RESOLVES AS FOLLOWS:
Resolution No. 015-06
Page 2 of 2
Section 1. The City, pursuant to Chapter 39.84 RCW, does hereby approve the
issuance of the Bonds by the Development Corporation for the purposes of financing the Project
under the Act. The Bonds are anticipated to be issued by the Development Corporation in a
principal amount not to exceed $5,000,000 pursuant to a resolution of the Board of Directors of
the Development Corporation for the purposes of financing the Project under the Act. The
proceeds of the Bonds will be loaned to the Borrower, pursuant to a loan agreement with the
Development Corporation (the "Loan Agreement''), and used for the purposes of paying all or a
part of the costs of the Project within the boundaries of the City.
Section 2. The Bonds shall be payable solely from the Borrower's repayments of the
loan under the Loan Agreement. The Bonds shall not constitute an obligation of the City, and
no tax funds or other revenues of the City shall be used to pay the principal of, premium, if any,
or interest on the Bonds. Neither the faith and credit nor any taxing power or revenues of the
City shall ever be pledged to pay the principal of, premium, if any, or interest on the Bonds.
Section 3. This resolution is intended solely to constitute approval of the issuance of
the Bonds within the meaning of RCW 39.84.060. This approval shall not in any way be deemed
to be a review or final approval of any development permit for the Project which may be in
process, or may be submitted at a future date.
PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested
by the Clerk in authentication of such passage this 2ih day of March 2006.
KIM E. ABEL, MAYOR
ATTEST: