HomeMy WebLinkAbout2004-10-6880251
ORDINANCE NO. 2004-10-6880
AN ORDINANCE AUTHORIZING CITY OF PADUCAH TO
EXECUTE A LOAN GUARANTY AGREEMENT WITH PADUCAH AREA
COMMUNITY REUSE ORGANIZATION ("PACRO") AND PURCHASE AREA
DEVELOPMENT DISTRICT ("PADD") FOR THE BENEFIT OF THE
PADUCAH-MCCRACKEN COUNTY INDUSTRIAL DEVELOPMENT
AUTHORITY ("IDA") FOR THE CONSTRUCTION OF A INDUSTRIAL
SPECULATIVE BUILDING IN INDUSTRIAL PARK WEST
"City")
WHEREAS, the City of Paducah, Kentucky (the and the County
of McCracken (the "County") have determined that it is a public purpose to reduce
unemployment in the City and the County, to increase the City and County's tax base, to
foster economic development within the City and County and to promote the
development of a skilled workforce, all to the benefit of the citizens and residents of the
City and the County; and
WHEREAS, the City has further determined that it is necessary and
desirable in order to accomplish such public purposes that the IDA proceed at this time
with the construction and installation of an approximately 60,000 square foot industrial
speculative building on approximately 10 acres in Industrial Park West (the "Project");
and
WHEREAS, PACRO has approved a low interest loan to IDA in the
principal amount of $500,000.00 (the "PACRO Loan"), to finance the Project; and
WHEREAS, PADD has approved a low interest loan to IDA in the
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principal amount of $200,000.00 (the "PARD Loan"), to finance the Project; and
WHEREAS, $300,000.00 will be contributed to the Project from proceeds
available through the issuance in May of 2004 of the County's General Obligation Public
Project Notes, Series 2004-B ("Series 2004B County Notes") authorized pursuant to the
provisions of KRS 66.011 through 66.171, with respect to the Series 2004B County
Notes the City has previously committed to contributing 50% of the annual principal and
interest requirements on the Series 2004B County Notes as evidenced by the Interlocal
Cooperation Agreement made and entered into between the City and County on the 1"
day of June, 2004; and
WHEREAS, as a condition of the PACRO Loan and the PADD Loan and
as inducement to PACRO and PADD to consummate these loans with IDA, the loans
must be secured by a guaranty from the City and County; and
NOW, THEREFORE, BE IT ORDAINED, by the City of Paducah,
Kentucky as follows:
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SECTION 1. The Mayor of the City of Paducah, Kentucky is hereby
authorized and directed to execute a Loan Guaranty Agreement with PACRO in the
maximum amount of $500,000.00, upon such terms as may be approved by the Mayor
which are not inconsistent with this Ordinance and not substantially adverse to the City,
together with such other agreements, instruments or certifications which may be
necessary to accomplish the City's guarantee of the PACRO Loan.
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252
SECTION 2. The Mayor of the City of Paducah, Kentucky is hereby
authorized and directed to execute a Loan Guaranty Agreement with PADD in the
maximum amount of $200,000.00, upon such terms as may be approved by the Mayor
which are not inconsistent with this Ordinance and not substantially adverse to the City,
together with such other agreements, instruments or certifications which may be
necessary to accomplish the City's guarantee of the PADD Loan.
SECTION 3. The County must agree to be equally obligated with the City
of Paducah.
SECTION 4. IDA must agree that any proceeds received by IDA from the
sale of the Project shall be applied first to the outstanding balance of the PACRO Loan
and the PADD Loan.
SECTION 5. If any one or more of the provisions of this Ordinance
should be determined by a court of competent jurisdiction to be contrary to law, then such
provisions shall be deemed to be severable from all remaining provisions and shall not
affect the validity of such other provisions.
SECTION 6. All prior ordinances, resolutions, orders or parts thereof
inconsistent herewith are hereby repealed.
SECTION 7. This Ordinance shall be read on two separate days and will
become effective upon summary publication pursuant to KRS.. Chaler 424.
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MAYOR
ATTEST:
JWMMtA0Z15L"-
Tammara S. Brock, City Clerk
Introduced by the Board of Commissioners October 19, 2004
Adopted by the Board of Commissioners, October 26, 2004
Recorded by Tammara S. Brock, City Clerk, October 26, 2004
Published by The Paducah Sun, November 3, 2004
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