SECOND AMENDMENT TO INTERLOCAL AGREEMENT

AND GUARANTEE AND REIMBURSEMENT AGREEMENT AT

EAST HILLS BUSINESS PARK

 

            This Second Amendment to Interlocal Agreement and Guarantee and Reimbursement Agreement (hereinafter this “Second Amendment”), is made and entered into this _______ day of __________________, 2008, among the BOARD OF COUNTY COMMISSIONERS OF DOUGLAS COUNTY, KANSAS (hereinafter “County”), DOUGLAS COUNTY DEVELOPMENT, INC., a Kansas not-for-profit corporation (hereinafter “DCDI”), and the CITY OF LAWRENCE, a municipal corporation (hereinafter “City”).

 

RECITALS

 

            WHEREAS, on June 16, 1989, the parties entered into an agreement titled “Interlocal Agreement and Guarantee and Reimbursement Agreement” concerning the financing and improvement of the property comprising East Hills Business Park in Douglas County, Kansas, which agreement was amended for the first time on November 5, 1991 (the agreement as amended is hereinafter the “Interlocal Agreement”); and

 

            WHEREAS, pursuant to City Resolution No. 5328, as further provided in Article III, Paragraph A.3 of the Interlocal Agreement, the City has formed the East Hills Business Park Improvement District, has made infrastructure improvements to the land within said District, and has levied Assessments against all lots and pieces of land within said District to recoup the cost of the City’s expenditures; and

 

            WHEREAS, pursuant to City Ordinance No. 6009 and City Ordinance No. 6010 (the “Ordinances”), as further provided in Article III, Paragraph A.4 of the Interlocal Agreement, the City has deferred collection of Assessments levied against lots and pieces of land within the East Hills Business Park Improvement District until the earlier of (i) 20 years, or (ii) until such time as any property liable for the Assessments is transferred in the manner described in Article III, Paragraph A.5 or in the manner described in Article IV, Paragraph C.1 (as amended by the First Amendment) of the Interlocal Agreement; and

 

WHEREAS, the 20 year deferral period will expire in May 2009, and the parties understand that it is unlikely that all of the land within the East Hills Business Park Improvement District will be transferred to third parties before such date; and

 

WHEREAS, the City has paid all debt incurred on the infrastructure improvements made to the East Hills Business Park and the parties agree it to be in the best interests of the public, and the best interests of East Hills Business Park, for the City to defer collection of the Assessments for an additional 5 years beyond the maximum 20 year term provided for in the Interlocal Agreement and the Ordinances.

 

            TERMS OF AMENDMENT

 

            NOW, THEREFORE, in mutual consideration of the terms and conditions hereinafter set forth and those contained in the Interlocal Agreement, it is hereby agreed as follows:

 

1.                  The Recitals set forth above are a part of this Second Amendment.

 

2.                  Capitalized terms not otherwise defined in this Second Amendment shall have the same meaning as set forth in the Interlocal Agreement.

 

3.                  Provisions contained in the Interlocal Agreement and the Ordinances setting 20 years as the maximum term for deferral of the collection of Assessments are hereby amended to extend the maximum term for deferral an additional 5 years, to May, 2014; provided, however, that the delayed portion of the Assessments shall remain due and payable upon the earlier sale or transfer of any particular parcel, lot, or piece of property to a third party, as provided in the Interlocal Agreement.

 

4.                  Article III, Paragraph A.11 is amended to reflect the 5 year extension of the maximum term for deferral, as set forth in Section 3 of this Second Amendment, such that the delayed portion of the Assessments shall become due and owing in May, 2014.

 

5.                  The last sentence of Article IV, Paragraph C.1 (as amended by the First Amendment), is amended to reflect the 5 year extension of the maximum term for deferral, as set forth in Section 3 of this Second Amendment, such that the delayed portion of the Assessments shall become due and owing in May, 2014.

 

6.                  Nothing in this Second Amendment shall prevent the parties from further amending the Interlocal Agreement with mutually acceptable terms and conditions.

 

7.                  The City agrees to adopt an ordinance amending the Ordinances to extend the maximum term for deferral of the Assessments, consistent with this Second Amendment.

 

8.                  The parties shall execute this Second Amendment and submit it to the Attorney General of the State of Kansas for his approval.  Thereafter, the parties shall file one duplicate original of this Second Amendment with the Register of Deeds of Douglas County, Kansas, and thereafter, with the Secretary of State, all in accordance with K.S.A. 12-2904 and 12-2905, and amendments thereto.

 

            IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment effective as of the Effective Date.

 

                                                                        DOUGLAS COUNTY DEVELOPMENT, INC.

 

 

                                                                        By:                                                                              

                                                                                    Robert Stephens, President

 

 

                                                                        BOARD OF COUNTY COMMISSIONERS OF

                                                                        DOUGLAS COUNTY, KANSAS

 

 

                                                                        By:                                                                              

                                                                                    Bob Johnson, Chair

ATTEST:

 

                                                           

Jameson D. Shew, County Clerk

                                                           

CITY OF LAWRENCE, KANSAS

 

 

                                                                        By:                                                                              

                                                                                    Mike Dever, Mayor

 

ATTEST:

 

 

                                                           

Frank S. Reeb, City Clerk


ATTORNEY GENERAL’S APPROVAL

 

            The foregoing Second Amendment approved this _____ day of _______________, 2008, by the Attorney General for the State of Kansas.

 

 

                                                                                                                                               

                                                                        Steven N. Six, Attorney General