HomeMy Public PortalAboutOrd 657 IRB series 2014 and 2015(Published in the Ark Valley News, July 23,2020)
ORDINANCE NO. 657
AN ORDINANCE AUTHORIZING AN AMENDMENT TO AGREEMENTS
FOR PAYMENT IN LIEU OF TAXES FOR A PROPERTY TAX ABATEMENT
RELATING TO THE CITY OF BEL AIRE, KANSAS TAXABLE INDUSTRIAL
REVENUE BONDS, SEzuES 2014 AND SERIES 2015 (WICHITA HOOPS, LLC)
ISSUED FOR THE PURPOSES OF ACQUIRING, CONSTRUCTING,
FI'RNISHING AND EQUIPPING A SPORTS FACILITY; AND AUTHORIZING
TTIE EXECUTION OF DOCUMENTS NECESSARY OR DESIRABLE TO
EFFECT THE TRANSACTION CONTEMPLATED F{EREBY.
THE GOVERNING BODY OF TIIE CITY OF BEL AIRE, KANSAS HAS FOTJND
AND DETERMINED:
A. The City of Bel Aire, Kansas (the "Issuer") is authorized by the Kansas Economic
Development Revenue Bond Act, as amended, as codified in K.S.A. 12-1740 et seq. (the "Act"), to
acquire, construct, improve and equip certain facilities (as defined in the Act) for commercial,
industrial and manufacturing purposes, to enter into leases and lease-purchase agreements with any
person, firm or corporation for such facilities, and to issue revenue bonds for the purpose of paying
the costs of such facilities.
B. The Issuer issued its Taxable Industrial Revenue Bonds, Series 2014 (Wichita Hoops,
LLC) dated as of their issue date in an aggregate principal amount not exceeding $2,800,000 and its
Taxable Industrial Revenue Bonds, Series 201 5 (Wichita Hoops , LLC) dated as of their issue date
in an aggregate principal amount not exceeding $5,500,000 (collectively, the "Bonds"), for the
purpose ofpaying the costs of acquiring, constructing, furnishing and equipping a sports facility (the
"Project") for lease to Wichita Hoops, LLC (the "Tenant").
C. The Issuer granted an abatement from property taxation of ten (10) years on all
property purchased with proceeds of the Bonds, subject to Agreements for Payment in Lieu of Taxes
for each series of Bonds. The Tenant has petitioned the Issuer to modifi the percentages of payments
to be made in lieu of taxes for the calendar years commencing in 2018 and continuing for each year
that the Project is exempt from ad valorem taxation. The Bonds remain outstanding as of the date
of this Ordinance and are owned by the Tenant.
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE
CITY OF BEL AIRE. KANSAS:
Section 1. Definition of Terms. All terms and phrases not otherwise defined in this
ordinance will have the meanings set forth in the Bond Agreement and the Lease.
Section 2. Amended Payment in Lieu of Taxes. The Project will continue to be exempt
from ad valorem property taxes, subject to the conditions set forth in the Amended Agreements for
Payment in Lieu of Taxes in the following percentages of ad valorem taxes other payable in respect
ofthe Project:
Year Series 2014 Bonds Series 2015 Bond
Period I
Series 2015 Bonds
Period 2
2018 0%0%0%
2019 0%0%0%
2020 0%0%0%
2021 0%0%0%
2022 0%0%0%
2023 0%0%0%
2024 0%0%0%
2025 N/A 0%0%
2026 N/A N/A 0%
The Issuer is authorized to enter into the Agreements for Payment in Lieu of Taxes (Amended as of
November 21, 2017) in substantially the forms presented for review prior to passage of this
ordinance.
Section 3. Further Authority. The officials, offrcers, agents and employees of the Issuer
are authorized and directed to take whatever action and execute whatever other documents or
certificates as may be necessary or desirable to carry out the provisions of this ordinance and to carry
out and perform the Issuer's duties with respect to the Bonds.
Section 4. Effective Date. This ordinance shall take effect after its passage by the governing
body of the Issuer, signature by the Mayor and publication once in the Issuer's official newspaper.
PASSED by the governing body and APPROVED AND SIGNED by the Mayor of the City
of Bel Aire, Kansas this 2l't day of July, 2020.
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THE FUTUBEwrru atsptcl
City Clerk