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HomeMy Public PortalAboutOrd 619 Supplemental Lease with Option to Purchase No. 1 PBCGILMORE & BELL. P.C. 06/20/2017 (PUBLISHED IN THE ARK VALLEY NEWS ON JUNE 22, 2017) ORDINANCE NO. 619 AN ORDINANCE AUTHORIZING THE CITY OF BEL AIRE, KANSAS TO ENTER INTO A SUPPLEMENTAL LEASE WITH OPTION TO PURCHASE NO. 1, DATED JULY 13, 2017, WHICH SUPPLEMENTS A LEASE WITH OPTION TO PURCHASE BETWEEN THE CITY AND THE CITY OF BEL AIRE, KANSAS PUBLIC BUILDING COMMISSION, DATED APRIL 15, 2010, WHEREBY THE CITY WILL CONTINUE TO LEASE FROM THE PUBLIC BUILDING COMMISSION CERTAIN PROPERTY; APPROVING THE FORM OF SAID SUPPLEMENTAL LEASE WITH OPTION TO PURCHASE NO. 1; AND AUTHORIZING THE EXECUTION THEREOF AND CERTAIN RELATED DOCUMENTS. WHEREAS, under the authority of K.S.A. 12-1757 el seq., as amended by Charter Ordinance No. 10 of the City (jointly the "Act"), and Ordinance No. 382, 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 has heretofore issued its Taxable Revenue Bonds, Series 2010, dated April 15, 2010 (the "Series 2010 Bonds"), in the original principal amount of $19,315.000 for the purpose of paying the costs to acquire certain real estate (the "Project Site") for use as a commercial and industrial park (the "Project"), and has leased the Project to the City pursuant to a Lease with Option to Purchase dated as of April 15, 2010 (the "Original Lease") with the City to provide a source of revenues for payment of principal and interest on those Series 2010 Bonds; and WHEREAS, the PBC has heretofore by resolution found, and the City hereby finds, it necessary and advisable to refinance a portion of the Series 2010 Bonds on behalf of the City refinance the cost of the Project and to refund a portion of the Series 2010 Bonds maturing in the years 2025. 2031 and 2035 in the aggregate principal amount of $15,025.000 (the "Refunded Bonds"). by the issuance of Taxable Refunding Revenue Bonds, Series 2017 (the "Series 2017 Bonds"): and WHEREAS, in connection with the issuance of such Series 2017 Bonds, the Governing Body finds it necessary and advisable to enter into a Supplemental Lease with Option to Purchase No. 1. which supplements the Original Lease, to ratify the Original Lease, and to authorize certain other actions and documents related thereto. 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 the issuance of the Series 2017 Bonds by the PBC to finance the costs of refunding the Refunded Bonds, under the terms KMC',6012G770007\C ITYOR D and provisions set forth in the Original Lease and Supplemental Lease No. 1 (jointly, the "Lease"), are necessary, convenient and in furtherance of the governmental purposes of the City. SECTION 2. The Bond Purchase Agreement for the Series 2017 Bonds among the PBC, the City and Piper Jaffray & Co., Leawood, Kansas (the "Purchaser"). whereby the Purchaser has agreed to purchase the Series 2017 Bonds from the PBC upon the terms and conditions set forth therein, is hereby approved and authorized. SECTION 3. The Supplemental Lease No. 1, in substantially the form presented to this meeting of the Governing Body, are 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 Bond Purchase Agreement and Supplemental Lease No. 1, for and on behalf of the City. with such changes therein as the City Manager may deem necessary or appropriate. The Original Lease is hereby ratified and confirmed, and, except as supplemented by Supplemental Lease No. 1, continues in full force and effect. SECTION 4. For the purpose of enabling the Purchaser to comply with the requirements of Section (b)(1) of Rule 15c2-12(b)(I) of the Securities and Exchange Commission (the "SEC Rule"). the City hereby deems the information regarding the City contained in the Preliminary Official Statement for the Series 2017 Bonds to be "final" as of its date, except for the omission of such information as is permitted by Section (b)(1) of the SEC Rule, and the appropriate officers of the City are hereby authorized, if requested, to provide the Purchaser a letter or certification to such effect and to take such other actions or execute such other documents as such officers in their reasonable judgment deem necessary to enable the Purchaser to comply with the requirement of the SEC Rule. The final Official Statement is hereby authorized to be prepared by supplementing. amending and completing the Preliminary Official Statement, with such changes and additions thereto as are necessary to conform to and describe the transaction. The use and public distribution of the final Official Statement by the Purchaser in connection with the reoffering of the Series 2017 Bonds is hereby authorized. The proper officials of the City are hereby authorized to execute and deliver a certificate pertaining to such Official Statement as prescribed therein, dated as of the date of payment for and delivery of the Series 2017 Bonds. 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. SECTION 6. All action heretofore taken (not inconsistent with the provisions of this Ordinance) by the City or the officials of the City, is hereby authorized and approved. SECTION 7. This Ordinance shall be effective from and its passage by the Governing Body. approval and execution by the Mayor and publication once in the official City newspaper. [BALANCE OF PAGE INTENTIONALLY LEFT BLANK] I(MC601267 70007\CrIY()RD 2 PASSED by the Governing Body of the City of Bel Aire, Kansas, on June 20, 2017 and APPROVED AND SIGNED by the Mayor. CITY OF BEL AIRE, KANSAS (Seal) ATTEST: Stacey Cook, Cit3c)C1erk KMC\601267.70007\CITYORD n if ' David Austin, Mayor (Signature Page to City Ordinance)