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HomeMy Public PortalAbout11666O R D I N A N C E NO. 11666 AN ORDINANCE, authorizing the execution and delivery of certain documents by and on behalf of The Metropolitan St. Louis Sewer District (the "District") in connection with financing of sewer improvements for Subdistrict No. 99048 (West Watson Road -- Nanell Lane) through a loan from the Missouri Department of Natural Resources (the “MDNR”), and authorizing certain other actions pursuant thereto. WHEREAS, the District was created pursuant to a Plan (the "Plan") adopted by the voters of the City of St. Louis, Missouri and of St. Louis County, Missouri, at a special election held on February 9, 1954, and the governing plan was amended on November 7, 2000, all as provided and authorized by Sections 30(a) and (b) of Article VI of the Constitution of the State of Missouri; and WHEREAS, pursuant to Article 9 of the Plan, the District is authorized to make sewer improvements in special benefit subdistricts, to be paid for by the levying of special benefit assessments against the real property benefited by the construction of such improvements; and WHEREAS, Subdistrict No. 99048 (West Watson Road -- Nanell Lane) (the "Subdistrict") was formed by Ordinance No. 10973, adopted on June 14, 2001, following submission of a petition from interested property owners in September 1998; and WHEREAS, the District has undertaken the planning, acquisition, construction, improvement, repair, rehabilitation and 2 extension of sewer improvements within Subdistrict No. 99048 (West Watson Road -- Nanell Lane) including related appurtenances and facilities and extensions, improvements, additions and enlargements made or acquired by the District (the "Project"), and has applied for a loan from MDNR in the principal amount not to exceed Five Hundred Thirty-five Thousand Six Hundred Dollars ($535,600.00) (the "Loan") to finance a portion of the costs of the Project; and WHEREAS, on March 8, 2001, the District adopted Ordinance No. 10928 providing procedures for the levying of special benefit assessments against real property benefited by the construction of sewer improvements to be paid by such special benefit assessments; and WHEREAS, on September 13, 2001, the District adopted Resolution No. 2422 declaring the necessity of an improvement consisting of the construction of lateral sanitary sewers in an area designated Subdistrict No. 99048 (West Watson Road -- Nanell Lane), and provided that the cost of such improvement shall be paid for by Special Tax Bills or other evidence of special benefit assessments levied on all land benefited by such construction, whether public or private, exclusive of streets, roads and alleys within said Subdistrict; and WHEREAS, on October 11, 2001, the District adopted Resolution No. 2423 declaring the Project to be in the public interest and 3 directed the Subdistrict to proceed to construction at the expense of the Subdistrict; and WHEREAS, it is the desire and intent of the District to authorize the execution and delivery of certain agreements and other documents necessary to evidence such loan from MDNR to provide for the financing for the Project; NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF THE METROPOLITAN ST. LOUIS SEWER DISTRICT: Section One. The District does hereby authorize and approve the execution and delivery of all documents necessary or desirable in connection with evidencing the Loan from MDNR in connection with the Project, including but not necessarily limited to, the following: a. Financing Agreement dated as of the first day of the month in which the Loan is closed (the "Dated Date"), between the District and MDNR in substantially the form attached hereto as Exhibit A with such changes therein not inconsistent with the provisions of this Ordinance and which are approved by the officers of the District executing the Financing Agreement, such officers' signatures thereon being conclusive evidence of their approval thereof. b. Escrow Trust Agreement dated as of the Dated Date, between the District and the Escrow Agent appointed in Section 5, in substantially the form attached hereto as Exhibit B with such changes therein not inconsistent with the provisions of this Ordinance and which are approved by the officers of the District executing the Escrow Trust Agreement, such officers' signatures thereon being conclusive evidence of their approval thereof. 4 Section Two. The Loan shall bear interest at an annual rate equal to 30% of the 25 Revenue Bond Index as published in the most recent edition of The Bond Buyer immediately prior to the closing of the Loan, rounded to the nearest 0.1% (computed on the basis of a 360-day year of twelve 30-day months) and shall be payable in installments as more fully described in the Financing Agreement. The Loan shall not constitute an indebtedness of the District, the City of St. Louis, Missouri, St. Louis County, Missouri or the State of Missouri within the meaning of any constitutional, statutory or charter debt limitation or restriction. The obligation of the District to make payments under the Financing Agreement is subject to annual appropriation as provided therein. Section Three. The Acting Executive Director of the District is hereby authorized to execute and deliver, for and on behalf of and as the act and deed of the District, the Financing Agreement and the Escrow Trust Agreement and to execute such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance. The Secretary-Treasurer of the District is hereby authorized to attest to the execution of, and to affix the District's official seal to, the Financing Agreement, the Escrow Trust Agreement and any other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance. 5 Section Four. The District shall, and the Acting Executive Director and the Secretary-Treasurer are hereby authorized to, take such further actions and execute such other documents 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 District with respect to the Financing Agreement, the Escrow Trust Agreement and all other documents, certificates and instruments in connection with the Loan. Section Five. The District hereby appoints the Hardwick Law Firm, L.L.C. and Gilmore & Bell, P.C. as special co-counsel in connection with this financing and appoints Commerce Bank, National Association, as the Escrow Agent to administer funds under the Escrow Trust Agreement. The foregoing Ordinance was adopted January 8, 2004.