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MUNICIPAL ORDER NO. 1787
MUNICIPAL ORDER APPROVING THE ADVERTISEMENT FOR BID AND
DISTRIBUTION OF A PRELIMINARY OFFICIAL STATEMENT FOR THE
PURCHASE OF CITY OF PADUCAH, KENTUCKY GENERAL OBLIGATION
BONDS, SERIES 2014C AND CITY OF PADUCAH, KENTUCKY TAXABLE
GENERAL OBLIGATION BONDS, SERIES 2014D IN AGGREGATE
PRINCIPAL AMOUNTS OF APPROXIMATELY $2,415,000 AND $4,325,000,
RESPECTIVELY.
WHEREAS, the City (the "City") has determined the necessity of financing a portion of
the costs of the construction of a showroom at the Julian Carroll Convention Center (the "2014C
Project"); and
WHEREAS, the City has further determined the necessity of financing a portion of the
costs of the acquisition, construction, installation and equipping of improvements at a hotel to be
located adjacent to the Julian Carroll Convention Center and to be leased to Paducah Convention
hotel, LLC, a Kentucky limited liability corporation, for use in furtherance of economic
development within the City (the "2014D Project," and together with the 2014C Project, the
"Projects"); and
WHEREAS, the City has further determined that it is in the best interests of the City that
the City proceed at this time with the financing of the Projects through the issuance of the City's
(i) General Obligation Bonds, Series 2014C in the aggregate principal amount of $2,415,000 (the
"Series 2014C Bonds"), subject to a permitted adjustment increasing or decreasing the principal
amount of Series 2014C Bonds by up to $240,000 (the "Series 2014C Permitted Adjustment")
and (ii) Taxable General Obligation Bonds, Series 2013B in the aggregate principal amount of
$4,325,000 (the "Series 2014D Bonds," and together with the Series 2014C Bonds, the 'Bonds"),
subject to a permitted adjustment increasing or decreasing the principal amount of Series 2013B
Bonds by up to $435,000 (the "Series 2014D Permitted Adjustment," and together with the
Series 2014C Permitted Adjustment, the "Permitted Adjustments"); and
WHEREAS, on the 26th day of August, 2014 the City gave first reading to, and on the
9th day of September, 2014 proposes to give second reading to and adopt, an ordinance
providing for the issuance of the Bonds in order to provide funds to pay the costs, not otherwise
provided for, of the financing of the Projects, which ordinance is titled as follows:
AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY
AUTHORIZING THE ISSUANCE OF (I) CITY OF PADUCAH, KENTUCKY
GENERAL OBLIGATION BONDS, SERIES 2014C IN THE APPROXIMATE
AGGREGATE PRINCIPAL AMOUNT OF $2,415,000 (SUBJECT TO A
PERMITTED ADJUSTMENT INCREASING OR DECREASING THE
PRINCIPAL AMOUNT OF SERIES 2014C BONDS BY UP TO $240,000) FOR
THE PURPOSE OF FINANCING A PORTION OF THE COSTS OF
CONSTRUCTION OF A SHOWROOM AT THE JULIAN CARROLL
CONVENTION CENTER, AND (II) CITY OF PADUCAH, KENTUCKY
TAXABLE GENERAL OBLIGATION BONDS, SERIES 2014D IN THE
APPROXIMATE AGGREGATE PRINCIPAL AMOUNT OF $4,325,000
(SUBJECT TO A PERMITTED ADJUSTMENT INCREASING OR
DECREASING THE PRINCIPAL AMOUNT OF SERIES 2014C BONDS BY
UP TO $435,000) FOR THE PURPOSE OF FINANCING A PORTION OF THE
COSTS OF THE ACQUISITION, CONSTRUCTION, INSTALLATION AND
EQUIPPING OF AN ECONOMIC DEVELOPMENT PROJECT IN THE CITY
OF PADUCAH, KENTUCKY; AUTHORIZING AND APPROVING A
CONTRACT, LEASE & OPTION, SUBORDINATED LEASEHOLD
MORTGAGE AND SALES TAX REFUND PLEDGE AND SECURITY
AGREEMENT BETWEEN THE CITY OF PADUCAH, KENTUCKY AND
THE PADUCAH CONVENTION HOTEL, LLC IN CONNECTION WITH THE
ISSUANCE OF THE SERIES 2014D BONDS; APPROVING THE FORMS OF
BONDS; AUTHORIZING DESIGNATED OFFICERS TO EXECUTE AND
DELIVER THE BONDS; AUTHORIZING AND DIRECTING THE FILING OF
NOTICE WITH THE STATE LOCAL DEBT OFFICER; PROVIDING FOR
THE PAYMENT AND SECURITY OF THE BONDS; CREATING BOND
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PAYMENT FUNDS; MAINTAINING THE HERETOFORE ESTABLISHED
SINKING FUND; AUTHORIZING ACCEPTANCE OF THE BIDS OF THE
BOND PURCHASERS FOR THE PURCHASE OF THE BONDS; AND
REPEALING INCONSISTENT ORDINANCES.
WHEREAS, it is appropriate at this time that the City authorize the advertisement for bid for
the purchase of the Bonds.
NOW, THEREFORE, BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY,
AS FOLLOWS:
SECTION 1. The City of Paducah, a municipal corporation and political subdivision of
the Commonwealth of Kentucky, shall issue its "General Obligation Bonds, Series 2014C (the
"Series 2014C Bonds") in the aggregate principal amount of approximately $2,415,000 and its
"Taxable General Obligation Bonds, Series 2014D (the "Series 2014D Bonds," and together with
the Series 2013A Bonds, the "Bonds") in the aggregate principal amount of approximately
$4,325,000.
SECTION 2. The City shall comply with the requirements of KRS Chapters 66 and 424
by advertising for bids for the purchase of the Bonds. Actions heretofore taken by the City in
connection with the preparation of such instruments and the distribution of such information by
the City as shall be necessary to accomplish the foregoing, including the preparation of a
Preliminary Official Statement (the "Preliminary Official Statement") which Preliminary Official
Statement shall be deemed final by the Mayor of the City in accordance with Rule 15c2-12 of the
Securities and Exchange Commission (the "Rule"), are hereby ratified and approved. In order to
enable prospective purchasers to submit a bid for the purchase of the Bonds, the City hereby
covenants and agrees that it will execute, comply with and carry out all of the provisions of a
continuing disclosure undertaking (the "Continuing Disclosure Undertaking") in connection with
the .issuance of the Bonds. Failure to comply with any such provisions of the Continuing
Disclosure Undertaking shall not constitute a default on the Bonds; however, any holder of the
Bonds, including the beneficial owners of the Bonds, may take such action as may be necessary
and appropriate, including seeking specific performance, to cause the City to comply with its
obligations under the Continuing Disclosure Undertaking.
SECTION 3. Proposals for the purchase of the Bonds shall be opened and reviewed by the
Finance Director of the City, and shall be acted upon by the City Manager or Finance Director on
that same day, based upon the advice of the City's financial advisor, J.J.B. Hilliard, W.L. Lyons,
LLC, without the need for further action by this City Commission. The City hereby ratifies and
approves the use of the "Notice of Bond Sale," substantially in the form attached hereto, which shall
be published as required by law.
SECTION 4. The City Manager or Finance Director of the City shall, in a certificate of
award accepting the successful bid or bids for the Bonds (the "Certificate of Award"), determine the
exact principal amount of Bonds to be awarded and the exact rate or rates of interest which said
Bonds shall bear, and the interest rate or rates on said Bonds shall be automatically fixed at the rate
or rates set out in the successful bid accepted by said Certificate of Award. The proceeds of the sale
of said Bonds shall be applied to the costs of the Projects and the costs of issuing the Bonds and
shall be expended as provided in the Ordinance authorizing the Bonds.
SECTION 5. In the event that no bid shall be accepted for the purchase of the Bonds, bids
may again be solicited for the purchase of the Bonds at a future date and hour at the discretion of the
Mayor, without the necessity of further authorization by the City.
SECTION 6. All motions, orders, resolutions and parts thereof in conflict herewith, are
hereby repealed to the extent of such conflict, and this Municipal Order shall be effective
immediately.
SECTION 7. This Municipal Order shall be in full force and effect immediately upon its
adoption.
INTRODUCED, PUBLICLY READ, AND
this 26t` day of August, 2014. ,
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Y APPROVED on one reading,
Gayle Kaler, Mayor
�est:�%Z-�i� �.
Tammara Sanderson, City Clerk
Adopted by the Board of Commissioners, September 2, 2014
Recorded by Tammara S. Brock, City Clerk, September 2, 2014
\mo\bond 2014C & 2014D
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CERTIFICATE
I, Tammy Sanderson, hereby certify that I am the duly qualified and acting City Clerk of the
City of Paducah, Kentucky, that the foregoing is a full, true, and correct copy of a Municipal Order
adopted by the City Commission of the City, at a meeting duly held on August 26, 2014, that said
Municipal Order (together with the Notice of Bond Sale approved therein) appears as a matter of
public record in the official records of the City, that said meeting was duly held in accordance with
all applicable requirements of Kentucky law, including KRS 61.810, 61.815, 61.820, and 61.823,
that a quorum was present at said meeting, that said Municipal Order has not been modified,
amended, revoked, or repealed; and that same is now in full force and effect.
IN TESTIMONY WHEREOF, witness my signature on this day of ,
2014.
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City Clerk
EXHIBIT A
NOTICE OF BOND SALE
Notice is hereby given that electronic bids will be received by the City of Paducah,
Kentucky (the "City"), until 10:00 a.m., C.T. and 10:30 a.m. C.T., respectively, on September
18, 2014 (or at such later time and date announced at least forty-eight hours in advance via the
BiDCOMPTM/PARITYTM system) for the purchase of approximately $2,415,000 of the City's
General Obligation Bonds, Series 2014C (the "Series C Bonds") and $4,325,000 of the City's
Taxable General Obligation Bonds, Series 2014D (the "Series D Bonds," and collectively with
the Series C, the "Bonds"). Alternatively, written sealed or facsimile bids for one or more series
of the Bonds by the designated time will be received by the Finance Director, 300 South Fifth
Street, Paducah, Kentucky 42002 (FAX: (270) 440-8589).
The Bonds will each be dated their date of initial delivery, will be issued as fully
registered bonds in denominations in multiples of $5,000 (within the same maturity), will mature
on November 1 of the years 2015 through 2025. Electronic bids may be submitted via
BiDCOMPTM/PARITYTM, in the manner described below.
Additional information, including the Preliminary Official Statement, the Official Terms
and Conditions of Bond Sale and the Official Bid Form, may be obtained from the City's
Financial Advisor, J.J.B. Hilliard, W.L. Lyons, LLC; 500 West Jefferson Street, Louisville,
Kentucky 40202; Telephone: (502) 588-8639 or at http://pos.hilliard.com. Further information
regarding BiDCOMPTM/PARITYTM may be obtained from BiDCOMPTM/PARITYTM, 1359
Broadway - 2nd Floor, New York, NY 10018, Telephone: (800) 850-7422.
Sale of Series C Bonds on tax-exempt basis. Issuance of Bonds subject to approving
legal opinion of Dinsmoe & Shohl LLP, Bond Counsel, Covington, Kentucky. The City has
designated the Series C Bonds as "qualified tax-exempt obligations" pursuant to Section 265 of the
Internal Revenue Code of 1986, as amended. Right to reject bids or waive informality reserved.
53032940
CITY OF PADUCAH, KENTUCKY
By /s/ Gayle Kaler
Mayor
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