ORDINANCE NO. 9431
AN ORDINANCE OF THE CITY OF LAWRENCE, KANSAS, AUTHORIZING THE ISSUANCE OF TAXABLE INDUSTRIAL REVENUE BONDS, SERIES 2018, IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $5,000,000.00, TO PROVIDE FUNDS TO ACQUIRE, CONSTRUCT, AND EQUIP A PROJECT FOR THE BOYS’ AND GIRLS’ CLUB OF LAWRENCE, AND AUTHORIZING AND APPROVING CERTAIN DOCUMENTS AND ACTIONS IN CONNECTION WITH THE ISSUANCE OF SAID BONDS (SALES TAX EXEMPTION ONLY).
WHEREAS, the City of Lawrence, Kansas (the “Issuer”), is a municipal corporation and political subdivision duly organized and existing under the laws of the State of Kansas as a city of the first class;
WHEREAS, the Issuer is authorized by the Kansas Economic Development Revenue Bonds Act of 1961, codified as amended at K.S.A. 12-1740 to 12-1749d, inclusive (collectively, the “Act”), to issue revenue bonds, the proceeds of which shall be used for the purpose of paying all or part of the cost of purchasing, acquiring, constructing, reconstructing, improving, equipping, furnishing, repairing, enlarging, or remodeling facilities for agricultural, commercial, hospital, industrial, natural resources, recreational development, and manufacturing purposes;
WHEREAS, pursuant to the Act, the Issuer proposes to issue its Taxable Industrial Revenue Bonds, Series 2018 (the “Bonds”), in an aggregate principal amount not to exceed $5,000,000.00, for the purpose of (a) acquiring, constructing, and equipping, for the Boys’ and Girls’ Club of Lawrence (the “Company”), an approximately 17,500 square-foot facility, located at 2910 Haskell Avenue (the “Project”), and (b) paying certain costs of issuance, all as further described in the hereinafter referred to Bond Indenture and Lease Agreement;
WHEREAS, the Bonds will be issued under a Bond Trust Indenture dated as of the date set forth therein (the “Bond Indenture”), by and between the Issuer and Security Bank of Kansas City, as Bond Trustee (the “Bond Trustee”);
WHEREAS, the Company will lease the Project to the Issuer pursuant to the Base Lease Agreement, dated as of the date set forth therein (the “Base Lease”), between the Company and the Issuer;
WHEREAS, simultaneous with the execution and delivery of the Bond Indenture, the Issuer will enter into a Lease Agreement, dated as of the date set forth therein (the “Lease Agreement”), by and between the Issuer, as lessor, and the Company, as lessee, pursuant to which the Project (as defined in the Bond Indenture) will be acquired, constructed, and equipped and pursuant to which the Issuer will lease the Project to the Company, and the Company will agree to pay Lease Payments (as defined in the Bond Indenture) sufficient to pay the principal and premium, if any, and interest on the Bonds; and
WHEREAS, the Issuer further finds and determines that it is necessary and desirable, in connection with the issuance of the Bonds, that the Issuer execute and deliver certain documents and that the Issuer take certain other actions as herein provided.
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF LAWRENCE, KANSAS:
SECTION 1. Findings and Determinations. The Issuer hereby makes the following findings and determinations with respect to the Company and the Bonds to be issued by the Issuer, based upon representations made to the Issuer:
(a) The Company has properly requested the Issuer’s assistance in financing the costs of the Project;
(b) The issuance of the Bonds for the purpose of providing funds to finance the costs of the Project is in furtherance of the public purposes set forth in the Act; and
(c) The Bonds are being issued for a valid purpose under and in accordance with the provisions of the Act.
SECTION 2. Authorization of the Bonds. The Issuer is hereby authorized to issue the Bonds in an aggregate principal amount not to exceed $5,000,000.00, which shall be issued under and secured by and shall have the terms and provisions set forth in the Bond Indenture. The Bonds shall bear interest at an interest rate not to exceed 2.00% per annum, and shall mature not later than the year 2020, and shall have such redemption provisions, including premiums, and other terms as set forth in the Bond Indenture. The final terms of the Bonds shall be specified in the Bond Indenture, and the signatures of the officers of the Issuer executing such Bond Indenture shall constitute conclusive evidence of their approval and the Issuer’s approval thereof.
SECTION 3. Limited Obligations. The Bonds shall be limited obligations of the Issuer, payable solely from the sources and in the manner as provided in the Bond Indenture, and shall be secured by a transfer, pledge, and assignment of and a grant of a security interest in the Trust Estate (as defined in the Bond Indenture) to the Bond Trustee and in favor of the owners of the Bonds, as provided in the Bond Indenture. The Bonds and interest thereon shall not be deemed to constitute a debt or liability of the Issuer or of the State of Kansas (the “State”), or any 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 Issuer or of the State, or any political subdivision thereof, but shall be payable solely from the funds provided for in the Lease Agreement and the Bond Indenture. The issuance of the Bonds shall not, directly, indirectly or contingently, obligate the Issuer or the State, or any political subdivision thereof, to levy any form of taxation therefor or to make any appropriation for their payment. No breach by the Issuer of any such pledge, mortgage, obligation, or agreement may impose any liability, pecuniary or otherwise, upon the Issuer or any charge upon its general credit or against its taxing power.
SECTION 4. Authorization and Approval of Documents. The following documents are hereby approved in substantially the forms presented to and reviewed by the Issuer (copies of which documents, upon execution thereof, shall be filed in the office of the City Clerk), and the Issuer is hereby authorized to execute and deliver each of such documents (the “Issuer Documents”) with such changes therein (including the date thereof) as shall be approved by the officials of the Issuer executing such documents, such officials’ signatures thereon being conclusive evidence of their approval and the Issuer’s approval thereof:
(a) Bond Indenture;
(b) Base Lease Agreement;
(c) Lease Agreement; and
(d) Bond Purchase Agreement.
SECTION 5. Execution of Bonds and Documents. The Mayor is hereby authorized and directed to execute the Bonds by manual or facsimile signature and to deliver the Bonds to the Bond Trustee for authentication for and in behalf of and as the act and deed of the Issuer in the manner provided in the Bond Indenture. The Mayor is hereby authorized and directed to execute and deliver the Issuer Documents for and in behalf of and as the act and deed of the Issuer. The City Clerk is hereby authorized and directed to attest, by manual or facsimile signature, to the Bonds, the Issuer Documents, and such other documents, certificates, and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance.
SECTION 6. Further Authority. The Issuer, officials, agents, and employees of the Issuer are hereby authorized and directed to take such further action and to execute such other documents, certificates, and instruments, including, without limitation, any credit enhancement and security documents, arbitrage certificates, redemption notices, closing certificates, and tax forms, as may be necessary or desirable to carry out and to comply with the intent of this Ordinance, and to carry out, to comply with, and to perform the duties of the Issuer with respect to the Bonds and the Issuer Documents.
SECTION 7. Effective Date. This ordinance shall be in full force and effect from and after its passage and publication as provided by law.
PASSED by the Governing Body of the City of Lawrence, Kansas, this 27th day of December, 2017.
APPROVED:
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Leslie Soden
Mayor
ATTEST:
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Sherri Riedemann
City Clerk
APPROVED AS TO FORM:
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Toni R. Wheeler
City Attorney