The URL can be used to link to this page

Home My Public Portal AboutOrd 662 IRB Series 2020 WAM Investments(Published in The Ark Valley News. November 26.2020) ORDINANCB NO.662 AN ORDINANCE AUTHORIZING THE CITY OF BEL AIRE, KANSAS TO ISSUEITS TAXABLB INDUSTRIAL REVENUE BONDS, SERIES 2O2O (WAM IN\TESTMENTS #11, LLC) FOR THE PURPOSE OF THB ACQUISITION, OF LAND, CONSTRUCTION AND EQUIPPING OF MULTI-UNIT COMMBRCIAL BUILDINGS; AND AUTHORIZING CERTAIN OTHER DOCUMBNTS AND ACTIONS IN CONNECTION THEREWITH. THB GOVERNING BODY OF THE CITY OF BEL AIRE, KANSAS HAS FoUND AND DETBRMINED: A. The City of Bel Aire, Kansas (the "lssuer") is authorized by K.S,A. 12-1140 et seq., as amended (the "Act"), to acquire, construct, improve and equip ceftain facilities (as defined in the Act) for commercial, industrial and manufacturing purposes, to enter into leases and lease-purchase agreenrents with any person, firm or corporation for such facilities, and to issue revenue bonds for the purpose of paying tlre costs of such facilities. B. The Issuer's governing body has determined tlrat it is desirable in order to promote, stimulate and develop the general economic welfare and prosperity of the Issuer and tlre State of Kansas that the Issuer issue its Taxable lndustrial Revenue Bonds, Series 2020 (WAM Investments #ll, LLC) dated December 8, 2020 in the aggregate principal amount ofnot to exceed $3,000,000 (the "Series 2020 Bonds"), for rhe purpose of paying the costs of tlie acquisition, construction and equipping of a certain manufacturing and warehousing faciliq, (the "Project") as rnore fully described in the Bond Agreement and in the Lease authorized in this Ordinance, for lease to WAM lnvestments # I I, LLC, a Kansas Lirnited Liability Company (the "Tenant"). C. The Issuer's governing body finds that it is necessary and desirable in connection with the issuance of the Series 2020 Bonds to execute and deliverthe following documents (collectively, the "Bond Docutlents"): (i) a Bond Agreement dated as of December 1,2020 (the "Bond Agreement"), among the lssuer, the Tenant and Security Bank of Kansas City, Kansas City, Kansas (the "Bank") prescribing the tenns and conditions of issuing and securing the Series 2020 Bonds; (ii) a Site Lease dated as of Decernber 1,2020 (the "Lease") witlr tlre Tenant under which the Issuerwillacquire a leasehold interest in the real property on which the Project willbe located; (iii) a Lease dated as of December 1,2020 (the "Lease"), with the Tenant, under which the Issuer will acquire, construct and equip the Project and lease to the Tenant in consideration of Basic Rerrt and other payments; and (iv) an Agreemettt for Payrnent irr Lieu of Taxes (the "Agreentent for Payment in Lieu of Taxes") witlr the Tenatrt, under which the Tenant will make certain payments iu lieu of taxes for each year after issuance of the Series 2020 Bonds that the Proiect is exempt frorn ad valorem taxation. 60 l 000 20 I 60/0RDtNANCE NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF TI{E CITY OFBBL AIRE, KANSAS: Section l. Definition of Terms. Alltenns and phrases not otherwise defined irr thrs Ordinapce will have the meanings set forth in the Bond Agreement and the Lease. Section 2. Authorify to Cause the Project to Be Purchasetl and Constructed. The lssuer isauthorized to cause tlre Project to be acquired, constructed and equipped in the ntanner described in the BondAgreement and the Lease. Section3. AuthorizationofandSecurityfortheBonds. Thelssuerisautlrorizedanddirectedto issue the Series 2020 Bonds, to be designated "City of Bel Aire Kansas Taxable lndustrial Revenue Bonds,Series 2020 (WAM Investments # 1 | , LLC)" in the aggregate principal arrount of not to exceed $3,000,000,forthe purpose of providing funds to pay the costs of tlie acquisition, construction and eqLrippipg of the project. The Series 2020 Bonds will be dated and bear interest, will mature and be payable at such times, will be insuch forms, will be subject to redemption and payment prior to maturity, and will be issLred according to theprovisions, covenauts and agreements in the Bond Agreemeut. The Series 2020 Bonds will be speciallimited obligatiorrs of the Issuer payable solely frorn the revenues derived from tlre Lease of the project. The Series 2020 Bonds will not be general obligations of the Issuer, nor constitute a pledge of the faith and credit of the Issuer, and will not be payable in any maltner by taxatton. Section 4' Authorization of Bond Agreement. The Issuer is authorized to enter irrto the Bond Agreement with the Bank and the Tenant in the fonn approved in this Ordinance. Tlre lssuer will issue ardsell the Bonds and provide for payrnent of the Bonds and interest thereon fronr the revenues derived by the Issuer under the Lease and other moneys as described in the Bond Agreement, all on t1e terms and conditions in the Borrd Agreement. Section 5. Lease of the Project. The Issuerwill acquire, construct and equip the Project and lease it to the Tenant accordiug to the provisions of the Lease in the fonn approved in this Ordinance. Section 6. Execution of Bonds and Bond Documents. The Mayor of the Issuer is authorized arrd directed to execute the Series 2020 Bonds and deliver them to the Bank for authentication on behalf of the Issuer in the manner provided by the Act and in the Bond Agreement. The Mayor or mernber of the lssuer's governing body autliorizedby law to exercise the powers and duties of the Mayor in the Mayor's absence is further authorized and directed to execute and deliver the Borrd Docurnents on behalf of the Issuer in substantially the forrns presented for review prior to passage of this Ordinance, witS such corrections or arnendments as the Mayor or other person lawfully acting in tlre absence of the Mayor may approve, which approval shall be evidenced by his or her signature. The authorized signatory rnay sign and deliver all other documents, certificates or instruments as may be necessary or desirable to carry out the pLrrposes and intent of this Ordinance and the Bond Documents. The City Clerk or the Deputy Ciry Clerk of the lssLrer is hereby authorized and directed to attest the execution of the Series 2020 Bonds, the Bond Docurnents and such other doculnetrts, certificates and instruments as may be necessary or desirable to cany out tlre intent of this Ordinance urrder the Issuer's corporate seal. Section 7. Property Tax Exemption; Payment in Lieu of Taxes. The Issuer's governing bodv conditionally approves a95o/o ad valorem properlytax exemption on the Bond-financed pro[erry, fora nve- year tenn, with a 50Yo ad valoretn property tax exemption for an additional five year term to be considered tlrereafter, at the discretion of the Issuer's governing body, comrnencing in the calend ar year after the calendar year in which the Series 2020 Bonds are issued, provided no exenrption rnay be granted fror-n the ad valorem properly tax levied by a school district pursuant to the provisions of K.S.A. 12-53,113, and alnendments thereto. The Terrant will prepare the application for exemption and submit it to tlre Issuer for its review. After 60 r 000 20 | 60/oRDiNANCE ) its review, the Issuer will submit the application for exemption to the State Board of Tax Appeals. The lssuer is authorized to enter into the Agreement for Payment in Lieu of Taxes in substantially the form presented for review prior to passage of this Ordinance. Section 8. Pledge of the Project and Net Lease Rentals. The lssuer hereby pledges the Project the net rentals generated under the Lease to the payment of tlre Series 2020 Bonds in accordance witlr K.S.A. 12-1144. The lien created by the pledge will be discharged when all of tlre Series 2020 Bonds are paid or deerned to been paid in accordance with the tenns of the Bond Agreement. Section 9. Authority To Correct Errors, Etc. The Mayor or member of tlre Issuer's governing body autlrorizedto exercise the powers and duties of the Mayor in the Mayor's absence, the City Clerk and any DepLrty City Clerk are hereby authorized and directed to make any alterations, changes or additions in the instruments herein approved, authorized and corrfirrned which may be necessary ro correct errors or omissions therein or to conform the same to the other provisions of said instrurnents or to the provisions of this Ordinance. Section 10. Further Authority. The officials, officers, agents and employees of the Issuer are authorized arrd 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 duties of the Issuer with respect to the Series 2020 Bonds and tlre Bond Documents. Section I l. Effective Date. This Ordinance shalltake effect after its passage by the governing body of the Issuer, signature by the Mayor and publication once in tlre Issuer's official newspaper. IBALANCE OF THIS PAGE LEFT BLANK INTENTIONALLYI 60 | 000.20 I 60/oRDTNANCE Pd.SS by the governing body of the Issuer on November 17,2020 and SIGNED by the IBALA,NCE OF THIS PAGE INTENTIONALLY LEFT BLANK] City Clerk 60 I 000.201 6O/ORDINANCE (Signature Page to Bond Ordinance)