02/26/2008 Resolutions 2008-78RESOLUTION 2008-78
WHEREAS, the City of Grand Island, Nebraska, (the "City"),apolitical subdivision
of the State of Nebraska, is authorized and empowered by the provisions of Sections 13-1101 to 13-
1110, Reissue Revised Statutes of Nebraska, 1997, as amended (the "Act"), to finance a project, as
that term is defined in the Act, and to issue its industrial development revenue bonds (the "Bonds")
for the purpose of defraying the cost of acquisition, construction and equipping of a project; and
WHEREAS, Microgy, Inc., a Colorado corporation (the "Company"),has requested
the City to issue and sell one or more series of its tax-exempt Bonds pursuant to provisions of the
Act for purpose of defraying all or a portion of the cost of acquisition, construction and equipping of
certain industrial solid waste disposal and biogas manufacturing facilities at the Swift & Company
beef processing facility located at 555 South Stuhr Road, Grand Island, Nebraska, 68801-8533,
which facilities are industrial and manufacturing facilities constituting a "project" as that term is
defined in the Act (the "Project"); and
WHEREAS, the Bonds, if and when issued, will be limited obligations of the City
payable solely from payments to be made by the Company under a lease agreement with the City
and the Bonds and the interest thereon will not constitute or give rise to a pecuniary liability of or a
charge against the general credit or taxing powers of the City and will not be payable from any tax
sources; and
WHEREAS, the City wishes to declare its intention to authorize the issuance in one
or more series pursuant to a plan of financing of its tax-exempt Bonds for the purpose of defraying
all or a portion of the cost of acquisition, construction and equipping of the Project, when so
requested by the Company, upon such terms and conditions as may then be agreed upon by the City,
the Company and the underwriter or placement agent of the Bonds.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF
THE CITY OF GRAND ISLAND, NEBRASKA, that the City does hereby declare its intention to
authorize the issuance and sale of the Bonds in one or more series, the interest on which Bonds will
be excluded from gross income for federal income tax purposes pursuant to Section 142(a)(6) of the
Internal Revenue Code of 1986, as amended, under and in accordance with the Act, in such an
amount necessary to defray all or a portion of the cost (including the reimbursement of Project costs
previously incurred by the Company) of acquisition, construction and equipping of the Project,
presently estimated not to exceed $7,000,000.00, and upon such terms and conditions as may be
mutually agreed upon by the City, the Company and the underwriter or placement agent, the
issuance and sale of each series of such tax-exempt Bonds to be authorized by a subsequent
ordinance or resolution of the City Council of the City at a meeting to be held for such purpose.
BE IT FURTHER RESOLVED that the City shall cooperate with and assist the
Approved as to Form o,~_
February 25, 2008 d City Attorney
Company, its representatives and bond counsel in obtaining an allocation of private activity bond
issuing authority for the proposed Bonds from the State of Nebraska.
Adopted by the City Council of the City of Grand Island, Nebraska, February 26, 2008.
Margar Hornady, Mayor
Attest:
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RaNae Edwards, City Clerk
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