Council approves industrial development revenue bonds for Bee Gee Holding Co.y Janeen Sims
The main item of business conducted during Monday night's Mexico City Council regular session was passage of a resolution toward the issuance of taxable industrial development revenue bonds to finance a project for Bee Gee Holding Company, LLC and authorizing certain actions relating thereto.
City Manager Bruce Slagle explained, "As Council is aware, the City of Mexico, Missouri is authorized to purchase, construct, extend and improve certain projects to issue industrial development revenue bonds for the purpose of providing funds to pay the costs of projects and to lease or otherwise dispose of such projects to corporations for manufacturing, commercial, warehousing and industrial development purposes upon such terms and conditions as the City shall deem advisable."
He added, "In 2002, Council approved the issuance of industrial development revenue bonds, Chapter 100 financing, to finance the acquisition of the property that Bee Gee Holding, LLC is currently located (1600 Bassford Drive). The bond issuance was for the amount of $700,000 and was for a term of 15 years."
Officials of Bee Gee Holding Company, LLC, who leases to Gold Crest Distributing, recently contacted city staff and asked that the city again issue industrial development revenue bonds in a principal amount not to exceed $1,500,000 to provide funds for the costs of constructing an addition to the company's existing facility. The bonds will be payable solely out of payments, revenues and receipts derived from the lease of the project by the city to the company, therefore these bonds will be solely payable by the company.
Asstistant City Manager/ Economic Development Director Russell Runge said the city has used Chapter 100 financing numerous times, including Graf's, Brookstone, Home Decorators.
Mel Toellner, president, owner, CEO of Bee Gee Holding Company, LLC addressed council members. He noted that when the city council approved the initial $700,000 agreement, the business was "in my garage" and "this is a local, family business."
Toellner said funding from the bonds will allow the company to grow and to hire 20 new employees. He further stated, funding from the previous bonds allowed the company to hire 66 new employees, which is more than the 50 promised when asking for the original $700,000 industrial development revenue bonds of which approximately $44,000 balance remains. He asserted his purpose and an added advantage of the project is that by providing quality jobs, attractive wages, and health care coverage benefits, Mexico youth are lured to return following college graduation. He pointed out they are the future leaders and they will add to the city's tax base, including building new homes.
Slagle stated that staff has determined it is necessary and desirable to declare the official intent of the city to finance the costs of the project from the proceeds of the bonds, subject to certain terms and conditions set forth in the resolution. Staff recommended council proceed with reading and passage of the resolution.
Page 2 of 2 - The city council determined the project will promote the economic well-being and industrial development of the city and the taxing districts within the area of the project. Council voted unanimously to pass the resolution.
The bonds will be payable solely out of payments, revenues and receipts derived from the lease of the project by the city to the company. The bonds and the interest thereon shall not be a debt of the city or the state, and neither the city nor the state shall be liable thereon, and the bonds shall not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction.
Council members also made appointments to various boards and concurred with Mayor Ron Loesch's appointment to the Mexico Housing Authority Board and City Manager Slagle's appointments to the Mexico Park Board, including:
Land Clearance Redevelopment Authority (appointed by city council) Roger D. Haynes and Dave Wilburn; Twenty-First Century Fund, Inc. (appointed by city council) Barbara Wilson; Mexico-Audrain Library Board (appointed by city council) Laura Pitts and Jan Heaton; Mexico Housing Authority Board (appointed by mayor) Robert Marty; Mexico Park Board (appointed by city manager) Mel Muskopf, Jim Kropf and Terry Henage; Mexico Airport Advisory Board (appointed by city council) C.W. Caldwell and David Taylor; and the Planning and Zoning Commission (appointed by city council) Helen Fenlon and Bryan Gruber.
All city council members were in attendance – Mayor Loesch, Mayor Pro-Tem Steve Nichols, Councilmen Dan Botts, Greg Miller and Chris Williams.
All votes were unanimous with the exception of approval of the June work session and June regular session minutes to which Botts abstained due to being absent from those meetings.