Loading...
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 KMC\60t000.069\oRDtN 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 KMC\60r000.069\oRDrN ) 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. IBALANCE OF THIS PAGE LEFT BLANK INTENTIONALLY] KMC\601000.069\oRDIN PASSED by the governing body of the Issuer on December 16, 2014 and APPROVED Al[D SIGNED by the Mayor. (sEAL) ATTEST: Mayor IBALANCE OF THIS GE INTENTIONALLY LEFT BLANK] 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)