Gilmore & Bell, P

RESOLUTION NO. 7186

A RESOLUTION OF THE CITY OF LAWRENCE, KANSAS, DECLARING THE CITY’S INTENT TO ISSUE ONE OR MORE SERIES OF ITS GENERAL OBLIGATION OR SPECIAL OBLIGATION BONDS IN AN AGGREGATE AMOUNT OF NOT TO EXCEED $5,000,000 TO FINANCE A PORTION OF THE COSTS OF ACQUIRING, CONSTRUCTING AND EQUIPPING A FACILITY TO BE LOCATED IN THE CITY AND OCCUPIED BY THE LAWRENCE HUMANE SOCIETY, INC., AND AUTHORIZING OTHER ACTIONS RELATED THERETO.

WHEREAS, the governing body of the City of Lawrence, Kansas (the “City”) has considered the needs of the City for an orderly plan of animal control in order to provide for the public safety and welfare of its citizens; and

WHEREAS, the City has entered into discussions with the Lawrence Humane Society, Inc., a 501(c)(3) nonprofit organization (the “Humane Society”), regarding financing a portion of the acquisition, construction and equipping of a facility to be located in the City and owned and occupied by the Humane Society (the “Project”) in order to better provide the City with animal control and services related thereto; and

WHEREAS, the Humane Society has undertaken fundraising efforts to finance the Project; and

WHEREAS, the governing body of the City hereby finds and determines that it is advisable and in the interest of the public health, safety and welfare of the City to encourage and support animal control activities in the City; and

WHEREAS, provided certain conditions stated herein are satisfied, the City intends to partner with the Humane Society in financing the Project by (a) making a grant to the Humane Society in the approximate amount of $2,500,000 (the “Grant”), and (b) making a loan to be repaid by the Humane Society in the approximate amount of $2,500,000 (the “Loan”), both for use in connection with the Project; and

WHEREAS, Article 12, § 5 of the Constitution of the State of Kansas empowers cities to determine their local affairs and government and provides that such power and authority granted thereby to cities shall be liberally construed for the purpose of giving to cities the largest measure of self-government; and

WHEREAS, there is no enactment of the Kansas legislature which prohibits a city from issuing bonds to provide funds for the Grant and the Loan; and

WHEREAS, the governing body of the City desires to issue the Bonds (as defined herein) to provide funds for the Grant and the Loan to be used in connection with the Project.

NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF LAWRENCE, KANSAS:

Section 1. Public Safety. The governing body of the City hereby finds and determines that the Project will promote the general welfare and safety of citizens in the City and its environs.

Section 2. Intent to Issue Bonds. Subject to the conditions stated in Section 3 hereof, the governing body of the City hereby declares the City’s intent to finance a portion of the Project by means of the Grant and the Loan out of proceeds of one or more series of general obligation or special obligation bonds to be issued by the City in the aggregate principal amount of not to exceed $5,000,000 (collectively, the “Bonds”).

The City intends to finance the Grant by the issuance of the City’s general obligation bonds, which, if issued, shall be payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City.

The City intends to finance the Loan by the issuance of the City’s special obligation bonds, which, if issued, shall be payable solely from amounts derived by the City under a separate lease agreement relating to the Project by and between the City and the Humane Society. If issued, such special obligation bonds shall not constitute a general obligation of the City, the State or of any other political subdivision thereof within the meaning of any State constitutional provision or statutory limitation and shall not constitute a pledge of the full faith and credit of the City, the State or of any other political subdivision thereof and shall not be payable in any manner by taxation. If issued, such special obligation bonds shall not, directly, indirectly or contingently, obligate the City, the State or any other political subdivision thereof to levy any form of taxation therefor or to make any appropriation for their payment.

Section 3. Conditions Precedent to Issuance of Bonds. Provided nothing herein shall obligate the City to issue the Bonds, the City will consider issuing the Bonds only upon the Humane Society depositing an amount of $2,500,000 into an account dedicated to funding the Project held with a bank to be agreed upon by the City and the Humane Society.

Section 4. No Reliance on Resolution. Kansas law provides that the City may only issue the Bonds by the governing body passing an ordinance and compliance with other state law requirements. The City has not yet adopted an ordinance for the Bonds. This Resolution only evidences the intent of the current governing body to issue the Bonds for the Project. The Humane Society should not construe the adoption of this Resolution as a promise or guarantee that the Bonds will be issued.

Section 5. Termination of Resolution. This Resolution shall terminate three years from the date of the adoption of this Resolution unless the Bonds have been issued for the Project. The City, upon the request of the Humane Society, may extend this time period.

Section 6. Further Authority. The officials of the City, the City’s attorney and other consultants are authorized to proceed with such planning and document preparation as necessary in order to comply with the intent of this Resolution, subject to final approval of such documents by the governing body.

Section 7. Effective Date. This Resolution shall be effective from and after adoption by the governing body.

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