HomeMy Public PortalAboutOrd 557 Taxable IRB's Series 2014GILMORE & BELL, P.C.
December 10,2014
ORDINAI\ICE NO. 557
OF
CITY OF BEL , KAI\SAS
AUTHORIZING ISSUAI\TCE OF
$2,8OO,OOO TAXAB INDUSTRIAL REVEI{T,E BOI\DS
RIES 2014
(wrclrrrAHooPs, c)
KMC\601000.069\oRDIN
(Ordinance Summary Published inthe Ark Valley News, December 18,2014)
ORDINAI\CE NO.557
AN ORDINANCE AUTHORIZING THE CITY OF BEL AIRE, KANSAS TO ISSUE ITS
TAXABLE INDUSTRIAL REVENUE BONDS, SERIES 2014 (WICHITA HOOPS, LLC)
FOR THE PURPOSE OF THE ACQUISITION, CONSTRUCTION, FURNISHING AND
EQUIPPING OF A SPORTS FACILITY; AND AUTHORIZING CERTAIN OTHER
DOCUMENTS AND ACTIONS IN CONNECTION THEREWITH.
THE GOVERNING BODY OF THE CITY OF BEL AIRE. KANSAS HAS FOUND AND
DETERMINED:
A. The City of Bel Aire, Kansas (the "Issuer") is authorized by K.S.A. 12-1740 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 agreements with
any person, firm or corporation for such facilities, and to issue revenue bonds for the purpose ofpaying the
costs of such facilities.
B. The Issuer's governing body has determined that it is desirable in order to promote, stimulate
and develop the general economic welfare and prosperity of the Issuer and the State of Kansas that the Issuer
issue its Taxable Industrial Revenue Bonds, Series 2014 (Wichita Hoops, LLC) in the aggregate principal
amount of $2,800,000 (the "Series 2014 Bonds"), for the purpose of paying the costs of the acquisition,
construction, furnishing and equipping of a sports facility (the "Project") as more fully described in the Bond
Agreement and in the Lease authorized in this Ordinance, for lease to Wichita Hoops, LLC, a Kansas limited
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 201 4 Bonds to execute and deliver the following documents (collectively, the "Bond
Documents"):
(i) a Bond Agreement dated as of the Issue Date of the Bonds (the "Bond Agreement"), among the
Issuer, the Tenant and Legacy Bank, Wichita, Kansas (the "Bank") prescribing the terms and
conditions of issuing and securing the Series 2014 Bonds;
(ii) a Lease dated as of the Issue Date of the Bonds (the "Lease"), with the Tenant, under which the
Issuer will acquire, construct, furnish and equip the Project and lease it to the Tenant in consideration
of Basic Rent and other payments; and
(iii) an Agreement for Payment in Lieu of Taxes (the "Agreement for Payment in Lieu of Taxes")
with the Tenant, under which the Tenant will make certain payments in lieu of taxes for each year
after issuance of the Series 2014 Bonds that the Project is exempt from ad valorem taxation.
D. The Issuer's goveming body has found that under the provisions of K.S.A. 79-201a Twenty-
Fourth, the Project purchased or constructed with the proceeds of the Series 2014 Bonds is eligible for
exemption from ad valorem property taxes for up to 10 years, commencing in the calendar year following the
calendar year in which the Bonds are issued, if proper application is made. The Issuer's governing body has
further found that the Project should be exempt from ad valorem property taxes for a period of 10 years,
subject to a payment in lieu of taxes for each year of the exemption, as more particularly described in the
Agreement for Payment in Lieu of Taxes. Prior to making this determination, the governing body of the
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Issuer has conducted the public hearing and reviewed the analysis of costs and benefits of such exemption
required by K.S.A. 12-1749d.
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF
BEL AIRT. 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. Authority to Cause the Project to Be Purchased and Constructed. The Issuer is
authorized to cause the Project to be acquired, constructed, furnished and equipped in the manner described
in the Bond Agreement and the Lease.
Section 3. Authorization of and Security for the Bonds. The Issuer is authorized and directed to
issue the Series 2014 Bonds, to be desigrated "City of Bel Aire Kansas Taxable lndustrial Revenue Bonds,
Series 2014 (Wichita Hoops, LLC)" in the aggregate principal amount of $2,800,000, for the purpose of
providing funds to pay the costs of the acquisition, construction, furnishing and equipping of the Project. The
Series 2014 Bonds will be dated and bear interest, willmature and be payable at such times, will be in such
forms, will be subject to redemption and payment prior to maturity, and will be issued according to the
provisions, covenants and agreements in the Bond Agreement. The Series 2014 Bonds willbe special limited
obligations ofthe lssuer payable solely from the revenues derived from the Lease ofthe Project. The Series
2014 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 manner by taxation.
Section 4. Authorization of Bond Agreement. The Issuer is authorized to enter into the Bond
Agreement with the Bank and the Tenant in the form approved in this Ordinance. The Issuer will issue and
sellthe Bonds and provide for payment of the Bonds and interest thereon from the revenues derived by the
Issuer under the Lease and other moneys as described in the Bond Agreement, all on the terms and conditions
in the Bond Agreement.
Section 5. Lease of the Project. The Issuer will acquire, construct and equip the Project and lease
it to the Tenant according to the provisions of the Lease in the form approved in this Ordinance.
Section 6. Execution of Bonds and Bond Documents. The Mayor of the Issuer is authorized and
directed to execute the Series 2014 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 member of the Issuer's
governing body authorizedby 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 Bond Documents on behalf of the Issuer in
substantially the forms presented for review prior to passage of this Ordinance, with such corrections or
amendments as the Mayor or other person lawfully acting in the absence of the Mayor may approve, which
approval shall be evidenced by his or her signature. The authorized signatory may sign and deliver all other
documents, certificates or instruments as may be necessary or desirable to carry out the purposes and intent
of this Ordinance and the Bond Documents. The City Clerk or the Deputy City Clerk of the lssuer is hereby
authorized and directed to attest the execution of the Series 2014 Bonds, the Bond Documents and such other
documents, certificates and instruments as may be necessary or desirable to carry out the intent of this
Ordinance under the Issuer's corporate seal.
Section 7. Property Tax Exemption; Payment in Lieu of Taxes. The Project will be exempt from
ad valorem property taxes for 10 years, commencing in the calendar year after the calendar year in which the
Series 2014 Bonds are issued. The Tenant will prepare the application for exemption and submit it to the
Issuer for its review. After its review, the Issuer will submit the application for exemption to the State Board
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)
of Tax Appeals. The Issuer 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 Issuer hereby pledges the Project and
the net earnings generated under the Lease to the payment of the Series 2014 Bonds in accordance with K.S.A.
12-1744. The lien created by the pledge will be discharged when all of the Series2014 Bonds are paid or
deemed to have been paid in accordance with the terms of the Bond Agreement.
Section 9. Authorify To Correct Errors, Etc. The Mayor or member of the Issuer's
governing body authorized to exercise the powers and duties of the Mayor in the Mayor's absence, the City
Clerk and any Deputy City Clerk are hereby authorized and directed to make any alterations, changes or
additions in the instruments herein approved, authorized and confirmed which may be necessary to correct
errors or omissions therein or to conform the same to the other provisions of said instruments or to the
provisions of this Ordinance.
Section 10. Fur"ther Authority. The officials, officers, agents and employees of the lssuer 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 ofthis Ordinance and to carry out and perform the duties
of the Issuer with respect to the Series 2014 Bonds and the Bond Documents.
Section I L Effective Date. This Ordinance shall take effect after its passage by the governing body
of the Issuer, signature by the Mayor and either (a) publication once in the lssuer's official newspaper, or (b)
publication of a summary hereof certified as legally accurate and sufficient by the City Attorney.
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PASSED by the governing body of the Issuer on December 16, 2014 and APPROVED Al[D
SIGNED by the Mayor.
(sEAL)
ATTEST:
Mayor
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KMC\60r000.069\oRDrN
(Signature Page to Bond Ordinance)
CERTIFICATE
I hereby certifu that the attached copy is a true and correct copy of Ordinance No. 557 of the City of
Bel Aire, Kansas duly passed by the governing body, signed by the Mayor and published in the official City
newspaper on the respective dates stated in this ordinance, and that the signed original of such Ordinance is
on file in mv offrce.
lsEALI
KMC\601000.069\oRDrN
(Clerk's Certificate)