HomeMy Public PortalAboutOrd 490 Lease with option to purchase PBC GILMORE BELL, P.C.
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(PUBLISHED IN THE ARK VALLEYNEWSON APRIL 22, 2010)
ORDINANCE NO. 490
AN ORDINANCE AUTHORIZING THE CITY OF BEL AIRE, KANSAS TO
ENTER INTO A LEASE WITH OPTION TO PURCHASE WITH THE CITY OF
BEL AIRE, KANSAS PUBLIC BUILDING COMMISSION, WHEREBY THE
CITY WILL LEASE FROM THE PUBLIC BUILDING COMMISSION
PROPERTY FOR USE AS A CITY COMMERCIAL AND INDUSTRIAL PARK;
APPROVING THE FORM OF SAID LEASE; AND AUTHORIZING THE
EXECUTION THEREOF AND CERTAIN RELATED DOCUMENTS.
WHEREAS, under the authority of K.S.A. 12 -1757 et seq. and Charter Ordinance No. 10 of the
City (jointly the "Act the Governing Body (the "Governing Body of the City of Bel Aire, Kansas (the
"City has heretofore created The City of Bel Aire, Kansas Public Building Commission, a municipal
corporation of the State of Kansas (the "PBC and
WHEREAS, the PBC is authorized under the Act to issue revenue bonds to provide funds for the
purpose of paying all or a portion of the costs of "acquiring a site or sites for and otherwise acquiring
facilities of a revenue producing character," including buildings or facilities maintained and operated for
"public, municipal, community or recreational purposes of the City;" and
WHEREAS, the Governing Body has, by Resolution duly adopted, requested that the PBC
acquire property and establish thereon a City commercial and industrial park (the "Project and issue PBC
revenue bonds (the "Bonds in an amount not exceed $19,355,000 to finance the costs of the Project,
including financing costs; and
WHEREAS, the PBC has found and determined, and the Governing Body hereby finds and
determines, that the Project will be a facility of "revenue producing character" under the Act, and that it is a
facility that "shall be maintained and operated for public, municipal, community or recreational
purposes" under the Act; and
WHEREAS, the PBC has found and determined, and the Governing Body hereby finds and
determines, that the acquisition cost of the Project is supported by an opinion letter from a "Certified
Commercial Investment Member" (CCIM) designee and that the $19,315,000 issue size of the PBC Bonds
is not in excess of the actual cost and expense of acquiring the Project, including financing costs; and
WHEREAS, for purposes of the PBC acquiring the Project, the Governing Body hereby
determines that it is in the best interest of the City that the City take necessary actions to facilitate
transfer of title to the Project to the PBC; and
WHEREAS, the Governing Body hereby determines that it is in the best interest of the City that
the City and PBC enter into a Lease with Option to Purchase (the "Lease with respect to the Project;
and
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WHEREAS, the Lease shall provide rentals sufficient at all times to pay the principal and
interest on the Bonds; and
WHEREAS, in connection with the sale of the Project to the PBC, the Governing Body finds it
necessary and advisable to provide for prepayment of a certain Lease Purchase Agreement of the City,
dated as of December 1, 2005, as amended and supplemented by a First Supplemental Lease Purchase
Agreement, dated as of March 1, 2006, and to execute and fund an Escrow Trust Agreement "Escrow
Trust Agreement to provide for the defeasance and eventual prepayment of a Lease Purchase
Agreement of the City, dated as of May 1, 2005.
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY
OF BEL AIRE, KANSAS:
SECTION 1. The City hereby finds and determines, pursuant to the Act, that (i) facilitating and
causing transfer of title to the Project to the PBC; (ii) leasing the Project from the PBC under the terms
and provisions set forth in the Lease; and (iii) the issuance of the Bonds by the PBC to finance the costs
of the Project, are necessary, convenient and in furtherance of the governmental purposes of the City, and
that the Project will be a facility of "revenue producing character" and a facility that "shall be maintained
and operated for public, municipal, community or recreational purposes" of the City.
SECTION 2. The Lease, in substantially the form presented to this meeting of the Governing
Body, is in all material respects approved, authorized and confirmed. The Mayor and the City Clerk are
hereby authorized and directed to affix their signatures and the seal of the City to the Lease, for and on
behalf of the City, with such changes therein as the City Attorney may deem necessary or appropriate.
SECTION 3. The sale of the Bonds by the PBC pursuant to a Bond Purchase Agreement with
Piper Jaffray Co. (the "Purchaser is hereby approved, and the Mayor and City Clerk are hereby
authorized and directed to affix their signatures and the seal of the City to the Bond Purchase Agreement,
for and on behalf of the City, with such changes therein as the City Attorney may deem necessary or
appropriate.
SECTION 4. The funding of the Escrow Trust Agreement, and the purchase of United States
government obligations as investments thereunder, to provide for the defeasance and eventual
prepayment of a Lease Purchase Agreement of the City, dated as of May 1, 2005, is hereby authorized
and approved. The Mayor and City Clerk are hereby authorized and directed to affix their signatures and
the seal of the City to the Escrow Trust Agreement, for and on behalf of the City, with such changes
therein as the City Attorney may deem necessary or appropriate.
SECTION 5. The Mayor and City Clerk are hereby authorized to execute any and all documents
and take such actions as they may deem necessary or advisable in order to carry out and perform the
intent of this Ordinance, including execution of any warranty deeds or other transfer instruments with
respect to the Project. The Preliminary Official Statement for the Bonds is hereby ratified and approved,
and the final Official Statement is adopted by supplementing, completing and amending the Preliminary
Official Statement. The Purchaser is hereby authorized to use the Official Statement in connection with
the sale of the Bonds.
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SECTION 6. All action heretofore taken (not inconsistent with the provisions of this Ordinance)
by the City or the officials of the City, directed toward the acquisition of the Project by the PBC and the
leasing of the Project from the PBC are hereby ratified, approved and confirmed.
SECTION 7. This Ordinance shall be effective from and its passage by the Governing Body and
publication once in the official City newspaper.
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GILMORE BELL, P.C.
4/12/2010
EXCERPT OF MINUTES OF A MEETING
OF THE GOVERNING BODY OF
CITY OF BEL AIRE, KANSAS
HELD ON APRIL 14, 2010
The Governing Body (the "Governing Body of City of Bel Aire, Kansas (the "City met in
special session at City Hall in the City at 6:00 p.m. The Mayor presided and the following members of
the Governing Body were present: David Austin, Gary Breault, Carolyn Marleir, Peggy O'Donnell,
Dave Sly and Mayor Haorld Smith.
The following members of the Governing Body were absent: None
The Mayor declared that a quorum was present and called the meeting to order.
(Other proceedings)
Thereupon, there was presented an Ordinance entitled:
AN ORDINANCE AUTHORIZING THE CITY OF BEL AIRE, KANSAS TO
ENTER INTO A LEASE WITH OPTION TO PURCHASE WITH THE CITY OF
BEL AIRE, KANSAS PUBLIC BUILDING COMMISSION, WHEREBY THE
CITY WILL LEASE FROM THE PUBLIC BUILDING COMMISSION
PROPERTY FOR USE AS A CITY COMMERCIAL AND INDUSTRIAL PARK;
APPROVING THE FORM OF SAID LEASE; AND AUTHORIZING THE
EXECUTION THEREOF AND CERTAIN RELATED DOCUMENTS.
The Ordinance was duly read, considered and discussed; and on motion of Councilmember
Peggy O'Donnlee, seconded by Councilmember Carolyn Marlier, the Ordinance as a whole was passed
by the following roll call vote:
Aye: David Aust, Gary Breult, Carolyn Marlier, Peggy O'Donnell Dave Sly..
Nay: None.
Thereupon, a majority of the members of the Governing Body having voted in favor of the
passage of the Ordinance, it was given No.490 and was approved and signed by the Mayor and attested
by the City Clerk.
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(Other Proceedings)
On motion duly made, seconded and carried, the meeting thereupon adjourned.
(Seal)
City Clerk/
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