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HomeMy Public PortalAboutOrd 587 Issue Taxable IRBs Series 2015(Ordinance Summary Published inthe Ark Valley News, December 24,2015) ORDINAI\CE NO.587 AN ORDINANCE AUTHOzuZING TFM CITY OF BEL AIRE, KANSAS TO ISSTIE ITSTAXABLE INDUSTzuAL REVENUE BONDS, SERIES 2OI5 (WICHITA HOOPS PROJECT) FOR THE PURPOSE OF THE ACQUISITION, CONSTRUCTION ANDEQUIPPING OF ADDITIONS TO AN EXISTING SPORTS FACILITY: ANDAUTHORIZTNG CERTAIN OTHER DOCUMENTS AND ACTIONS INCONNECTION THEREWITH. THE GOVERNING BODY OF THE CITY OF BEL AIRE, KANSAS IIAS FOI]ND ANDDETERMINED: A. The City of Bel Aire, Kansas (the "Issuer") is authorized by K.S.A. 12-1140 et seq., as amended (the "Act"), to acquire, construct, improve and equip certain facilities (as defined in the Aci) 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 forihe purpor" ofpaying thecosts of such facilities. B. The lssuer's goveming 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 2015 (Wichita Hoops Project) in the aggregate principal amount of not to exceed $5,500,000 (the "Series 2015 Bonds"), fo. the purpose of paying the costs of iheacquisition, construction and equipping of additions to an existing sports facility lttre ;fioject") 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 goveming body finds that it is necessary and desirable in connection with theissuance of the Series 2015 Bonds to execute and deliver the following documents (collectively, the "BondDocuments"): (i) a Bond Agreement dated as of the Issue Date of the Bonds (the "Bond Agreement"), among theIssuer, the Tenant and Legacy Bank, Wichita, Kansas (the "Bank"; prescribing the terms-and conditions of issuing and securing the Series 20 l5 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 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 20 I 5 Bonds that the Project is exempt from ad valorem taxation. D' The Issuer's governing body has found that under the provisions of K.S.A. 79-201a Twenty-Fourth, the Project purchased or constructed with the proceeds of t-he Series 2015 Bonds is eligible f:orexemption from ad valorem properly taxes for up to l0 years, commencing in the calend ar year following thecalendar year in which the Bonds are issued, if proper application is made. The Issuer,s governing bodli hasfurther found that the Project should be exempt from aA valorem property taxes for a period of l0 years,subject to a payment in lieu of taxes for each year of the exemption, u. more particularly described in theAgreement for Payment in Lieu of Taxes. Prior to making thii determination, the governing body of the KMC\60 I 000 70137\ORDIN 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 OFBEL AIRE, 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 isauthorized to cause the Project to be acquired, constructed and equipped in the manner described in the BondAgreement and the Lease. Section 3. Authorization of and Security for the Bonds. The Issuer is authorized and directed to issue the Series 2015 Bonds, to be designated "City of Bel Aire, Kansas, Taxable Industrial Revenue Bonds,Series 2015 (Wichita Hoops Project)" in the aggregate principal amount of not to exceed $5,500,000, for the purpose of providing funds to pay the costs of the acquisition, construction and equipping of additions to anexisting sports facility (the "Project"). The Series 2015 Bonds will be in such aggr:egate principal amount,will be dated and bear interest, will mature and be payable at such times, will be iniuctr forms, wiil be subjeci to redemption and payment prior to maturity, and will be issued according to the provisions, covenants and agreements in the Bond Agreement. The Series 2015 Bonds will be special limited obligations of the Issuerpayable solely from the revenues derived from the Lease of the Project. The Series 2015 Bonds will not be general obligations of the Issuer, nor constitute a pledge of the faith and credit of the Issuer, and will not bepayable 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 sell the 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 thii Ordinance. Section 6. Execution of Bonds and Bond Documents. The Mayor of the Issuer is authorized and directed to execute the Series 2015 Bonds and deliver them to the Bank for authentication on behalf of thelssuer 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 isfuIther authorized and directed to execute and deliver the Bond Documenti 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 *uy iign and deliver all otherdocuments, ceftificates or instruments as may be necessary or desirabL to carry out the purposes and intent of this Ordinance and the Bond Documents. The City Clerk or the Deputy City Clerk ofihe Issuer is herebyauthorized and directed to attest the execution of the Series 2015 Bonds, the Bond Documents and such otherdocuments, 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 properly taxes for l0 years, commencing in the calendar year after the cilendar year in *hi"h th"Series 2015 Bonds are issued. The Tenant will prepare the applica-tion for exemption and submit it to the KMC\601 000 70137\oRDrN ) Issuer for its review. After its review, the Issuer will submit the application for exemption to the State Board 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 2015 Bonds in accordance with K.S.A. 12-1744. The lien created by the pledge will be discharged when all of the Series 2015 Bonds are paid or deemed to have been paid in accordance with the terms of the Bond Agreement. Section 9. Authority 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 ro correct elrors or omissions therein or to conform the same to the other provisions of said instruments or to the provisions of this Ordinance. Section 10. tr'urther Authority. The officials, offrcers, agents and employees of the Issuer 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 2015 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 Issuer's official newspaper, or (b) publication of a summary hereof certified as legally accurate and suffrcient by the City Attorney. IBALANCE OF THIS PAGE LEFT BLANK INTENTIONALLY] KMC\601000.70137\oRDrN PASSED by the governing body of the Issuer on December 17, Z0l5 and AppROVED ANDSIGI{ED by the Mayor. (sEAL) Mayor [BALANCE OF THIS PAGE INTENTIONALLY LEFI BLANKI KMC\60 I 000.70 I 37\ORDIN (Signature Page to Bond Ordinance) entitled: (Published in the Ark Valley Neps on December 24, 201 5) SUMMARY OF ORDINANCE NO. 587 On December 17,2015, the governing body of the City of Bel Aire, Kansas passed an ordinance AN ORDINANCE AUTHOzuZING TFIE CITY OF BEL AIRE, KANSAS TO ISSUE ITSTAXABLE INDUSTRIAL REVENUE BONDS, SERIES 2015 (WICHITA HOOPS PROJECT) FOR TI{E PURPOSE OF TFIE ACQUISITION, CONSTRUCTION AND EQUIPPING OF ADDITIONS TO AN EXISTING SPORTS FACILITY; ANDAUTHORIZING CERTAIN OTHER DOCUMENTS AND ACTIONS IN CONNECTION THEREWITH. The Ordinance authorizes the Issuer to issue its Taxable Industrial Revenue Bonds, Series 2015(Wichita Hoops Project) in the aggregate principal amount not exceeding $5,500,000 (the "Series 2015 Bonds"), for the purpose of paying the costs of the acquisition, construction and equipping of additions to anexisting sports facility (the "Project"), as more fully described in the Bond Agieement and in the Lease authorized by the Ordinance. The Project will be leased by the Issuer to Wichita Hoops, LLC, a Kansas limited liability company. In connection with the issuance of the Series 2015 Bonds, the Iisuer approves a l0 year exemption from ad valorem property taxes for the Project, subject to ceftain payments in lieu of taxes. A complete text of the Ordinance may be obtained or viewed free of charge at the offrce of the CityClerk, City Hall, 7651 E. Central Park Avenue, Bel Aire, Kansas. A reproduction of the Ordinance is available for not less than 7 days following the publication date of this Summary at www.belaireks.gov. This Summary is hereby certified to be legally accurate and sufficient pursuant to the laws of the State of Kansas. DATED: December 17,2015. KMC\60 I 000 701 37\ORDIN