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HomeMy Public PortalAboutOrd 424 Lease Purchase Real Estate (Published in the The Ark Valley News, April 21, 2005.) ORDINANCE NO. if;l 'I AN ORDINANCE AUTHORIZING THE CITY OF BEL AIRE, TO ENTER INTO A LEASE PURCHASE TRANSACTION, THE PROCEEDS OF WHICH WILL BE USED TO PAY THE COSTS OF ACQUIRING CERTAIN REAL ESTATE IN AND FOR THE CITY; AND TO APPROVE THE EXECUTION OF CERTAIN DOCUMENTS IN CONNECTION THEREWITH. WHEREAS, under the constitution and statutes of the State of Kansas, particularly Article 12, 95 of the Kansas Constitution and K.S.A. 12-101 et seq., the City of Bel Aire (the "City") is empowered to enter into certain leases, lease purchase agreements and installment purchase agreements for the lease and/or acquisition of property; and WHEREAS, K.S.A. 1O-1116b provides in pertinent part that nothing in the provisions of K.S.A. 10-1101 et seq. (Kansas Cash Basis Law) shall prohibit a municipality from entering into a lease agreement, with or without an option to buy, or an installment-purchase agreement, if any of such agreements specifically state that the municipality is obligated only to pay periodic payments or monthly installments under the agreement as may lawfully be made from (a) funds budgeted and appropriated for that purpose during such municipality's current budget year or (b) funds made available from any lawfully operated revenue producing source; and WHEREAS, the City has immediate need for acquisition of property (the "Project") located in the City to further its governmental and public purposes as contemplated by law, but does not have sufficient moneys on hand legally available to purchase the Project (as defined herein) for its use; and WHEREAS, the Lease (as herein defined) does not provide for payments in any year in excess of 3% ofthe total amount budgeted by the City for expenditure during the current year ($171,453); and WHEREAS, in order to facilitate the foregoing and to pay the cost thereof, it is necessary and desirable for the City to take the following actions: 1. Enter into an annually renewable Lease Purchase Agreement (the "Lease") with the Trustee, pursuant to which the City will lease the Project on a year-to- year basis from the Trustee with an option to purchase the Trustee's interest in the Project, a form of which has been submitted to the governing body for review; 2. Approve a Declaration of Trust (the "Declaration of Trust"), by the Trustee, pursuant to which Certificates of Participation (as defmed below) will be executed and delivered, a form of which has been submitted to the governing body for reVIew; 3. Approve a Preliminary Official Statement and approve an Official Statement respecting Taxable Certificates of Participation, Series 2005 (the "Certificates of Participation"), evidencing proportionate interests of the owners thereof in basic rent payments to be made by the City under the Lease, to be in substantially the same form as KMC\403766\ORD the Preliminary Official Statement submitted to the governing body (the "Preliminary Official Statement," and together, the "Official Statement"); 4. Approve a Certificate Purchase Agreement (the "Certificate Purchase Agreement") providing for the sale of the Certificates to the underwriter (the "Underwriter") named therein upon the terms set forth therein, a form of which as been submitted to the governing body. The Lease and the Certificate Purchase Agreement are referred to herein as the "City Documents." THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF BEL AIRE, AS FOLLOWS: Section 1. Authorization and Approval of City Documents and Declaration of Trust. (a) The City Documents and the Declaration of Trust are hereby approved in substantially the forms submitted to and reviewed by the governing body on the date hereof, with such changes therein as shall be approved by the Mayor, the Mayor's execution of the City Documents to be conclusive evidence of such approval. (b) The obligation of the City to pay Basic Rent Payments (as defined in the Lease) under the Lease is subject to annual appropriation and shall constitute a current expense of the City and shall not in any way be construed to be an indebtedness or liability of the City in contravention of any applicable constitutional or statutory limitation or requirement concerning the creation of indebtedness or liability by the City, nor shall anything contained in the Lease constitute a pledge of the general tax revenues, funds or moneys of the City, and all provisions of the Lease shall be construed so as to give effect to such intent. (c) The Mayor is hereby authorized and directed to execute and deliver the City Documents and to approve changes to the Declaration of Trust on behalf of and as the act and deed of the City. The City Clerk is hereby authorized to affix the City's seal to the City Documents and attest said seal. Section 2. Approval of Official Statement. The Preliminary Official Statement dated April 14, 2005, is hereby approved. The final Official Statement is hereby authorized and approved, supplementing, amending and completing the Preliminary Official Statement, with such changes therein and additions thereto as shall be approved by the officer of the City executing the final Official Statement, said officer's execution thereof to be conclusive evidence of said officer's approval thereof, and the public distribution of the final Official Statement by the Underwriter are in all respects hereby authorized and approved. The Mayor of the City is hereby authorized to execute and deliver the final Official Statement on behalf of and as the act and deed of the City. Section 3. Further Authority. The City shall, and the officials and agents of the City are hereby authorized and directed to, take such actions, expend such funds and execute such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance and to carry out, comply with and perform the duties of the City with respect to the City Documents, the other documents authorized or approved hereby and the Project. KMC\403766\ORD 2 Section 4. Effective Date. This Ordinance shall take effect and be in full force from and after its passage by the governing body. PASSED by the governing body and APPROVED and SIGNED by the Mayor of the City of Bel Aire, Kansas this 19th day of April, 2005. (SEAL) 11p;a~ May ATTEST: ~~/'~ Ci Clerk KMC\403766\ORD 3 (Other Proceedings) There being no further business to come before the meeting, on motion duly made, seconded and carried by unanimous vote, the meeting was adjourned. 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