Memorandum

City of Lawrence

Department of Administrative Services

TO:	David Corliss, City Manager
FROM:	Frank S. Reeb, Administrative Services Director/City Clerk
CC:	Jonathan Douglass, City Manager’s Office Ed Mullins, Finance Director Toni Wheeler, Director of Legal Services
Date:	March 8, 2007
RE:	RAM Company Series 1995A and Series B Industrial Revenue Bonds

On January 18, 1995, the City of Lawrence issued its Tax Exempt Adjustable Mode Industrial Development Revenue Refunding Bonds, Series 1995A, in the aggregate original principal amount of $2,125,000, and its Taxable Adjustable Mode Industrial Development Revenue Bonds, Series 1995B, in the aggregate original principal amount of $4,500,000, to finance facilities for the benefit of the RAM Company including the real property described in Exhibit A of Resolution 6709 (and collectively referred to as the Project) and commonly known as being in the East Hills Business Park. 

In connection with the issuance of the Bonds, the real property was deeded to the City of Lawrence.  The City and the RAM Company then entered into a Lease Agreement by which the City would lease the project to the RAM Company.  The term of the lease is through January 19, 2015.  Pursuant to the Lease Agreement, the RAM Company has the option to purchase the Project upon full payment of all amounts due under the Lease Agreement including the Bonds.  The RAM Company has notified the City that it intends to exercise this option to purchase and has requested the City to convey title to the Project. 

Gilmore & Bell, Bond Counsel in connection with the issuance of the bonds, has prepared Resolution 6709 for adoption by the City Commission authorizing the sale and conveyance of the Project to the RAM Company, together with the execution and delivery of the necessary conveyance documents.  Bond Counsel requests and recommends that the City Commission adopt Resolution 6709 and that the documents be executed by the Mayor and the City Clerk.