HomeMy WebLinkAbout3724 . • , + ' . , '
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ORDINANCE N0. 3 7,2 4
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AN ORDINANCE,OF>-THE-GITY OF AUBURN; WASHINGTON, RELATING TO ECONOMIC
3 DEVECOPMENT;_:CREATING THE`CITY7.OF AUBURN ECONOMIC DEVECOPMENT CORPORATION;
AUTHORIZING A CHARTER THEREFOR; ESTABLISHING A BOARD Of DIRECTORS.TO
4 GOVERN THE AFFAIRS.OF THE CORPORATION; AND PROVIDING HOW THE PUBLIC
CORP.ORATION SHALL"CONDUCI' ITS'AFFAIRS. 5 , . .
WHEREAS, on,November 3, 1981,, the people of the State of Wasfiington
6 .
7 approved House Joint Resolution No. 7 amending the State Constitution by the
addition of Article XXXII, Section l, authorizing cities or public cor-
8
9 porations.created.thereby to issue nonrecourse revenue bonds or other non-
recourse revenue obligations to be used to finance industrial development
10
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11 projects; and
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12 WHEREAS, the Legislature of the State of Washington enacted Chapter 300,
13 Laws of 1981, authorizing cities to create public corporations for the purpose
14 of facilitating economic development and job intensive employment oppor-
15 tunities through the financing of industrial development facilities by nonre-
16 course revenue obligations; and,
17 WHEREAS, the City Council of the City of Auburn-deems it in the interest
18 of the.City and the residents thereof to create such public corporation for
19 the economic development.of the City;
20 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO
" 21 ORDAIN AS FOLLOWS: : -
22 Section 1. For the purpose of facilitating economic development and job
23 intensive employment opportunities within the City, there is created the City
~24 of Auburn Economic Development Corporation (the "Corporation",) to exist under
25 the authority of and for the purposes authorized by Chapter 300, Laws of 1981,
26 as the same may be amended from time to time ("Chapter 300"). Such corporation
27 shall operate under Chapter 300 and under the provisions of the charter, on file
28 in the Office of the City Clerk under.this Ordinance number and by this
29 reference is made a part hereof, which the City Council is authorized to and
30 does issue to the Corporation and by this Ordinance is approved. The City
31 Council reserves.the right in its discretion and at any time to alter or
32 `
Ordinance No. 3724 `
Page One of Three
1-6-82, 2-4-82
2-11-82, 3-1-82
3-26-82, 3-29-82 . '
4-1-82 page one only ' ,
change the..structure, organizational programs or activities of,the Corporation
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'including dissolving the Corporation if the contracts entered into by the
2 . 't . .
Corporation are not impaired. Any riet~earnings of the Corporation beyond
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those necessary for the retirement of,the 4ndebtedness incurred by it shall
4 t y •
not inure to the benefit of anyperson other than the City. Upon dissolution •
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of the Corporation, tit}e to°all pro
6 perty owned by the Corporation shall vest
7 in the City.
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Section 2. There is established a Board of Directors composed of six (6)
8
9 members to govern the affairs of the Corporation, five of whom shall be citi-
10 zen members who shall reside within the City and one of whbm shall be a mem-
11 ber of the City Council and be the.public official member of the Board. The
• 12 Board shall be subject to the Open Public Meetings Law of the State. Four
13 members of the Board shall constitute a quorum for the,purpose of conducting
14 meetings, and all actions taken by the Board other than adjourning a meeting
15 . for lack of a.quorum shall requi.re an affirmative vote of a majority of the
16 voting members of the Board. The Board shall conduct the affairs of the
17 Corporatiori but may delegate administrative and managerial duties. The Board
18 shall have author.ity to employ independent professional consultants to carry
19. out its duties, and provide for their compensation, designate one or more
20. depositories, provide for reimbursement for expenses, contract for services,
21 provide for Board meetings, the principal office of the Corporation, and pro-
22 vide other matters necessary for the operation of the Corporation. The powers
23 and limitations of the Corporation shall be as set forth in Chapter 300 and
24 other applicable law. '
25 Section 3. The.following persons are appointed as the original members of
26 the Board of Directors of the Corporation:
27 ' Name . Type of Appointment Term Expires
28 1. Dr. Gordon Thomas . Citizen December 31, 1982
2. Mr. Lee.Singer Citizen December 31, 1984
29 3. Mr. George Drane Citizen December 31, 1983
4•. Dr. Barbara 6ehret Citizen December 31, 1985
30 5. Mr. Johh Hilton Citizen December 31, 1983
6. Mr. Bud Larsorr Member of City Council December 31, 1983
31 (Public Officer)
32
Ordinance No. 3724
Page Two of, Three •
1-6-82, 2-4-82
2-11-82, 3,1-82
3-26-82, 3-29-82
4-7-82 Page Two Only
l The'five citizen members of ,the Board of Directors shall be the voting
2 members; the public official member shall not have a vote, but may participate
3 in all deliberations of the Board. Subject to the right of..the City Council
4 to remove any member of the Board of Directors of the Corporation by resolu-
" 5 tion or recommendation of the Mayor, the public official member of the Board
s shall serve as long es that person is Finance Committee Chairman. The other
7 appointees shall serVe from one to four years as determined by the Mayor in
8 such a manner as to provide that tfie fewest possible terms will expire in any
9 one year. The Mayor.shall recommend persons to fill vacancies in the Board of
10 Directors who then.shall be subject to confirmation and appointment by
11 resolution of the~ Ci•Gy Couricil,'
12 Section 4. It shall be illegal for a.director, officer, agent or employee
13 of the Corporation;to heye~di,rectly or, iridirectly any financial interest in
14 any property to.be.furnished or used,in4connection with any industrial faci-
15 lity financed througfi the Corporation. Violation of any provision of this
16 Section is a gross misdemeanor under State ]aw.
17 Section 5. The Mayor is.authorized to implement such administrative pro- 18 cedures as may be~necessary to carry out the directions of this legislation.
19 Section fi. "ThisOrdinance shall take effect and be in force five (5) days
20 , ; . from,and after its passage, approval and publication, as provided by law.
21
INTRODUCED: APRIL 5, 1982
22
PASSED: _'APRIL 5. 1982
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" APPROVED: L 5 1982
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25 .
, . M A Y O R
26 A111LIST:
27
City Cler
28 ,
AP~ROV S T FORM•
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29 i! ~ L1J~.~;,~--• ' '
30 City,Attorney
31 LISHED:Ap-;1 li 1982 32
Ordinance No. 3724
Page,Tfiree of.Three
1-6-82, 2-4-82
2-11-82,.3-1-82 - ' . .
3-26-82, 3-29-82
CHARTER
OF
CITY OF AUBURN ECONOMIC DEVELOPMENT CORPORATION
ARTICLE 1
Name
The name of this public corporation is City of Auburn Economic
Development Corporation.
ARTICLE 2
Duration
The period of duration of this public corporation is
perpetual.
ARTICLE 3
Purposes
The purposes of this public corporation are to facilitate
local economic development and employment opportunities in the City
of Auburn (the "City") to the full extent and by any means permit-
ted by Chapter 300, Laws of 1981 of the State of Washington, and
by Washington Constitution Article XXXII, Section 1, as now in
effect and hereafter amended, both collectively referred to in this
Charter as the "Local Economic Development Act of 1981," and to act
on behalf of the City as an authority and an instrumentality thereof
within the meaning of Section 103 of the United States Internal
Revenue Code of 1954, as amended, and the Treasury regulations and
Internal Revenue Service rulings issued pursuant thereto, for the
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specific public purposes authorized by the Local Economic Develop-
ment Act of 1981.
ARTICLE 4 Powers
The public corporation shall have all of the powers granted to
public corporations by the Local Economic Development Act of 1981,
as now in effect and hereafter amended, including all powers
necessary or incidental to specific powers granted thereby, and
subject to any limitations stated therein.
ARTICLE 5
Limitations on Authority
This public corporation shall be subject to all limitations
set forth in Section 6, Chapter 300, Laws of 1981 of the State of
Washington, including the following limitations on its authority:
5.1 General. It is not a municipal corporation or political
subdivision within the meaning of the Constitution and
laws of the State of Washington. It shall neither have
nor be delegated any attributes of sovereignty, including
but not limited to the power to tax, the power of eminent
domain and the police power. It shall not receive or
accept gifts or loans of any money or property from any
municipality.
5.2 Prerequisites to the Issuance of Revenue Bonds. It shall
not issue revenue bonds unless:
a. The issuance is approved by both the City and
the public entity having planning jurisdiction
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in the territory in which the proposed industrial
development facility lies; and
b. The board of directors has made a finding that in
its opinion the interest paid on the bonds will be
exempt from federal income taxation.
5.3 Nature and Payment of Revenue Bonds. All revenue bonds
issued by it:
a. Shall not be deemed (i) to constitute a debt of the
State of Washington, of the City or of any other
" municipal corporation, quasi-municipal corporation,
subdivision or agency of the State of Washington or
(ii) to pledge any or all of the faith and credit of
any of those entities;
b. Shall be payable solely from both revenues derived in
any manner as a result of the industrial development
facilities funded by the revenue bonds and money and
other property received from private sources; and
c. Shall contain on the face of each bond statements to
the effect that (i) neither the State of Washington,
the City nor any other municipal corporation, quasi-
municipal corporation, subdivision or agency of the
State of Washington is obligated to pay the principal
or interest thereon; (ii) no tax funds or governmental
revenue may be used to pay the principal or interest
thereon; and (iii) neither any or all of the faith
and credit nor the taxing power of the State of
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Washington, the City or any other municipal corpora-
tion, quasi-municipal corporation, subdivision or
agency thereof is pledged to the payment of the
principal of or the interest on the revenue bond.
5.4 Obligations Generally. It may incur only those financial
obligations which will be paid from revenues received
pursuant to financing documents providing funds to pay or
secure debt service on revenue bonds, from fees or
charges paid by users or prospective users of the indus-
trial development facilities funded by the revenue bonds,
or from the proceeds of revenue bonds.
ARTICLE 6
Board of Directors
6.1 Power. The affairs of the public corporation shall be
governed by a board of directors.
6.2. Number and Qualifications. The entire board of directors
shall consist of six persons designated by the City as
provided in section 6.3 of this article, five of whom
shall be citizens who reside in the City and one of whom
shall be a member of the City Council serving ex officio.
No person having any interest prohibited by Article 7
hereof shall serve or be eligible to serve on the board
of directors.
6.3. Designation and Term. The citizen members of the initial
board of directors shall be designated as provided in the
ordinance passed by the City to approve this Charter.
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Thereafter, the City shall designate persons to succeed
those directors whose terms of office are expiring as
provided by ordinance. Each director shall serve for the
term to which he/she is assigned and until his/her suc-
cessor is designated and qualified, except that no public
offical of the City serving ex officio shall serve for a
term longer than his or her term of office as a public
official. Any vacancy which occurs in the board of
directors as a result of the expiration of the term of
office of a public official serving ex officio shall be
filled as provided in section 6.5 of this article.
6.4 Removal. The City may remove from office any or all
members of the board of directors for any reason as
provided by ordinance.
6.5 Vacancies. Any vacancy occurring in the board of direc-
tors and any directorship to be filled by reason of an
increase in the number of directors of this public
corporation shall be filled by persons recommended by the
Mayor and confirmed and appointed by resolution of the
City Council. A person designated to fill a vacancy
shall serve for the unexpired term of his predecessor in
office. A person designated to fill a new directorship
shall serve for a term as provided in the resolution by
which he is designated.
6.6 Quorum and Voting. Four members of the board of directors
shall constitute a quorum for the transaction of business.
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The act of a majority of the voting directors shall be
the act of the board. The five citizen members shall be
voting members; the public official member shall be the
nonvoting member but may participate in all deliberations
of the Board.
ARTICLE 7
Prohibition of Interest
No director, officer, agent or employee of this public corpo-
ration shall have, directly or indirectly, any financial interest
in any property to be included in or any contract for property,
services, or materials to be furnished or used in connection with
any industrial development facility financed through this public
corporation, and no person having any such interest shall be
eligible to serve as a director, officer, agent or employee of
this public corporation.
ARTICLE 8
Financial Statements, Books and Records
The financial statements, books and records of this public
corporation shall be reviewed annually by the City, which shall
have access thereto at all times.
ARTICLE 9
Bylaws
The board of directors shall adopt bylaws to govern the
activities and internal affairs of this public corooration not
inconsistent with this Charter.
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ARTICLE 10
Amendments
The City in its discretion and at any time may by the passage
of an ordinance amend or repeal the Charter and bylaws and change
or terminate the programs and activities of the public corporation
if such action does not have the effect of impairing any contract
with this public corporation.
ARTICLE 11
Dissolution
The net earnings, if any, of this public corporation beyond
those necessary for retirement of indebtedness incurred by it shall
not inure to the benefit of any person other than the City. The
City may by the passage of an ordinance dissolve this public corpo-
ration if it has no funds or property to administer except those,
if any, that are to be paid or transferred to the City and all of
its outstanding obligations have been satisfied. Upon dissolution
of this public corporation, title to all property owned by it shall
vest in the City.
ARTICLE 12
Designation of Initial Office and Agent
The address of the initial office of this public corporation
is 25 West Main Street
Auburn, Washington 98002
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and the name of its initial agent at that address for the purpose
of receivinq process is Cjty of Auburn
APPROVED by Ordinance No. 3724 adopted by the City on
April 5 , 1982.
GMM1B/7 - 8 -
STATE OF WASHINGTON)
) ss.
COUNTY OF KZNG - ) - ~
I, Coralee A. McCOnnehey, the duly appointed, qualified City CZerk
of the City of Auburn, a Municipal Corporation and Code City, situate in ,
the County of King, State of Washington, do hereby certify that the fore-
g oing is a fu11, true and correct copy of Ordinance No. 3724 of the
ordinances of the City of Aubarn, entitled "AN ORDINANCE OF THE CITY OF
AUBURN, WASHINGi'ON, REIATING TO ECONOMIC DEVEIIJHMENr; GREATING TfE CITY' OF
AUBURN EOONOMIC DEVEI,OPMM OORPORATION; AUI1-IORIZING A GHARTER THEE2EFOR;
ESTABLISHING A BOARD OF DIRECi'ORS TO GOVERN THE AFFAIRS OF THE CORPORATION;
AND PROVIDING HOW THE PUBLIC CORPORATION SHAIL CONDUCr ITS AFFAIRS.
I certify that said Ordinance No. 3724 was duly passed by the Council
and approved by the Mayor of the said City of Ruburn, on the 5th day of '
. ApYll A.D., 1982 . _ ~
I further certify that said Ozdinance No. 3724 was pubZished as provided
by law in the Daily G1obe News, a daily newspaper published in the City of
Auburn, and of genera2 circulation therein, on the llth day of April
A.D., 19 82
WZTNESS my hand and the offica2 seal of the City of Auburn, this. 22nd
day of ril , A.D., 19 82 . ~
CZTY CLERK OF TXE CITY OF AUBURN