OCR Text |
Show Grant Industrial Bonds By MARK D. MICKELSEN NORTH SALT LAKE Acting on a recommendation from the city attorney, North Salt Lake officials Tuesday signed a resolution granting industrial in-dustrial revenue bonds to the American Pad and Paper Co. for development of a new during the construction of their facilities. THE CITY'S name is used as an endorsement of the bonds while company officials secure what is called a "bond purchase agreement." The bond purchase agreement says a certain bank has agreed to buy the bonds, according to Mr. Moore. MAYOR ROBERT Palm-quist Palm-quist said "this is the first time" the city has received a final resolution on an industrial revenue bond. City attorney Mike McCoy, who said he reviewed the resolution, re-solution, told council members mem-bers the bonds are a limited obligation to the city and are payable on one occasion only. HE SAID the resolution is in "proper form," and recommended recom-mended approval. LARRY MOORE, a representative repre-sentative of American Pad and Paper, met with city council members to finalize plans for the resolution. The council in May passed an inducement resolution guaranteeing bonding support for AP and P's new paper manufacturing plant-currently under construction west of the city. MR. MOORE told council members Tuesday night the building "is up" and said paper pap-er company officials feel it is time to close on the bonds in, order to complete the facility.' He said there is legislation pending in Congress which may do away with industrial revenue bonds because of past misuse by government and industrial in-dustrial representatives. HE SAID AP and P's bond purchaser and company trustees trus-tees are "very anxious" to close out on the bonds within the next couple of weeks. Industrial revenue bonds are traditionally approved by the city to encourage industrial growth, but also allow companies com-panies to secure lower interest rates on financial transactions |