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HomeMy WebLinkAboutOrdinances Book 9, Page 816, No Ordinance NumberPage 816 AN ORDINANCE REAUTHORIZING AND MAKING REVISED PROVISIONS FOR THE ISSUANCE OF $ 50,000.00 OF REVENUE. NOTES OF THE CITY OF PADUCAH, KENTUCKY, AS EVIDENCE OF A LOAN OF FUNDS FOR THE IMPROVEMENT OF CERTAIN PROPEPTIES OF SAID CITY, PRESCRIBING THE FOMA OF SAID NOTES, AND PROVIDING FOR TNF. SECUF11TG OF THE PAYMENT OF SAID NOTES BY MORTGAGE OF THF. PROPFFTY AND IMPROVEMENTS, AND THL PLEDGING OF THF INCOI.iT. THFFFFROM. WHEREAS, the City of Paducah is the owner in fee of real estate in said City, located on both sides of Burnett Street at the intersection of Eighth Street, which property, in the condition as acquired was non -revenue producing, but has been found suitable for improvement by the erection thereon of buildings; and 'IIIHEFEAS, it has been deemed to the advantage of said City and its inhabitants that suitable buildings be constructed on the property aforesaid, thereby promoting the general welfare the City and relieving unemployment to a large extent, and resulting in a revenue producing enterprise to said City; and WHEREAS, under the provisions of an Act of Congress of the United States the Reconstruction Finance Corporation is authorized and permitted to loan funds to defray cost of self- liquidating construction projects of.the character contemplated, and pursuant to the application by said City a loan, meeting the requirements of Reconstruction Finance Corporation, has been authorized by the Board of Directors thereof to finance the cost of constructing said improvements; and WHEREAS, proceedings have heretofore been taken by this Board of Commissioners of said City providing for the issuance of Revenue Notes, which proceedings must be revised in order to conform to the requirements and conditions imposed by counsel for Reconstruction Finance Corporation; Now, therefore, BE IT ORDAINED by the Board of Commissioners of the City of Paducah as follows: SECTION 1 That for the purpose of defraying the cost of constructing improvements to the oronerty of said City of Paducah, referred to in the preamble Thereof: There shall be, and there is hereby authorized to be issued fifty revenue notes of said. City in the aggregate principal amount of $ 50,000, dated August, 1, 1933, numbered consecutively from 1 to 50 inclusive, each of which notes shall Page 817 be in the princiapl amount of $ 1,000 and shall bear interest at the rate of six per cent (6%) per annum, payable semi-annually on February 1, and August 1, of each year. Said notes shall mature in their numerical order, '0' 17,000 on August lst of each of the years 1934: and 1935, and t;! 16,000 on August 1st, 1936, provided each of said notes shall be subject to retirement prior to their resnective maturity dates, on any interest payment date, upon written notice given by registered mail to the last known holder thereof not less than thirty days preceding such redemption -date. I Each of said notes shall be signed by the Mayor, sealed with the corporate seal of said City and attested by the City Clerk. Interest shall be evidenced by interest coupons accompanying each respective note, which coupons shall be executed in like manner as the principal notes. All of said notes, together with interest thereon, shall be secured as hereinafter provided, and shall be a valid claim of the holder thereof only against said funds. SFCTION 2. That each of said notes and the interest coupons accompanying same shall be in substantially the following form: CITY OF PADUCAH, KENTUCKY. REVENUE NOTE August 1, 1933 The City of Paducah, Kentucky, for value received, hereby promises to pay to bearer, as hereinafter provided, the sum of One Thousand Dollars (,$ 1,000 ) on the first day of August, 19_, and interest on said sum from the date hereof until paid at the rate of Six Per Cent6 (%) per annum, payable semi- annually on the first days of February and August in erch year, upon presentation and surrender of the accompanying interest i coupons as they severaily mature, both principal and interest being payable at the .Citizens Savings Bank; in the City of Paducah, Kentucky in such medium of funds as is at the time of the respective payments legal tender for the satisfaction of debts due the United States of America. Said City hereby reserves the right and privilege of calling and retiring this note prior to maturity at par and accrued interest on any interest paying date, by first giving notice of its intention so to do, in writing by registered mail, to the last known holder thereof, at least thirty days preceiding Such redemotion date. Page 818 This note is issued by said City in evidence of a loan to said City of funds to defray the cost of constructing improvements on city -owned real estate, which improvements and real estate are to be operated as a revenue producing enterprise by said City, and this note, together with interest thereon, is payable only from the gross revenues of said enterprise, all Of which have been pledged for that purpose, or from the proceeds of foreclosure, in the event of foreclosure of the mortgage hereinafter referred to. This note does not constitute an indebtedness of the City within the meaning of any constitutional provisions or limitations. This note is one of a series of fifty (50) notes aggregating Fifty Thousand Dollars (""150,000) described in and secured by mortgage of even date herewith to Citizens Saving Bank in Paducah, Kentucky, as Trustee, on real estate and improvements in McCracken County, Kentucky, and it is agreed that in case of default as defined and provided in said mortgage the principal sum hereof, together with accrued interest thereon, may at any time, without notice, become at once due and payable at the place of payment aforesaid. CITY OF PADUCA H, KPNTUCKY. fia yor Attest; City ler This is to certify that this is one of the Principal Notes described in the above mentioned mortgage to Citizens Saving Bank in Paducah, Kentucky, Trustee. Citizens Saving Bank in Paducah, Kentucky, Trustee By Vice res en , (Form of interest coupon) PADUCAI-I, KENTUCKY REVENUE NOTE INTFRRST COUPON Upon the presentation and surrender of this coupon on the day of 19_, at Citizens Saving Bank, in the City of Paducah, Kentucky, the City of Paducah, Kentucky, will pay to the bearer hereof ( __) in such medium of funds as is then legal tender for settlement of debts due the United States of America, as interest then due on its principal revenue note, dated August 1, 1933, No. , all as provided in said principal Page 819 note shall have been called for redemoticn prior thereto. CITY OF 1APTTC'+N, .17VTTTCKY Attest; City lerk --- LTay or SECTION 3. Said notes and interest coupons hereinbefore provided shall be executed as soon as may be and thereupon be delivered to the Reconstruction Finance Corporation in evidence of a loan to said City in a like principal amount, and such delivery shall be made upon payment to the City of the sum equal to the principal amount of said notes plus accrued interest. The proceeds � I derived from the issuance of said notes shall be applied solely i and only to the defraying of tte cost of constructing improvements to the property as hereinbefore described. SECTION 4. That, from and after the date of the completion of the contraction of said improvements, the entire properties shall, as long as said notes remain unpaid, be operated as a revenue producing enterprise, and the gross revenues derived from said enterprise shall be sufficient for, and all of said revenues are hereby pledged and dedicated to, the payment of interest on said notes, and the retirement at or before maturity of the principal i of said notes. It is specifically agreed that all revenues I, derived from the lease dated March 1933, by and between I the City of Paducah and the Paducah Industries Committee, shall be and are hereby assigned and pledged to the payment of the interest on and principal of said notes. SFCTIOV 5. That for the further security of said notes and interest thereon, the Mlayor and the City Clerk are hereby with orized to II execute and cause to be recorded in records of the Recorder of Deeds and Mortgages of McCracken County a mortgage upon said property in substantially the following form; I; TTTIS MORTGAGE made and entered into on this the first Iday of August, 1933, by and between the City of Paducah, McCracken County, Kentucky, party of the first part, and Citizens Saving Bank in Paducah, Kentucky, Trustee, party of the second part, WITNESSETH VMEREAS, the City of Paducah, Party of the first part, Page 820 has this day executed and delivered unto the party of the second party; its fifty (50) notes bearing even date berewith, made payable to bearer, for the aggregate principal sum of Fifty Thousand Dollars ($50,000), numbered consecutively from 1 to 50 inclusive, of the denomination of $ 1,000 each, and maturing in numerical order N 17,000 on August 1, of each of the year 1934 and 1935, and a 16,000 on August 1, 1936, with interest thereon until paid at the rate of six per cent (6%) per annum, payable semi-annually on the first days of February and August in each year, which said several installments of interest until maturity of said several principal notes are further evidenced by interest coupons attached to the respective principal notes, also payable to bearer. NOi1, TMPFFORF, in order to secure the payment of the principal and interest of said notes as aforesaid,.the said party of the first part does hereby alien, mortgage and convey unto the party of the second part, its successors and assigns, in trust, subject to all the terms and conditions of this mortgage, the following described lots and parcels of real estate, in the City of Paducah, McCracken County, Kentucky, with the appurtenances and improvements thereunto belonging, together with all improvements, structures, buildings and rights that may accrue to or be placed upon said land at any time before the payment of the notes and interest herein -described, and all of the rents, issues and profits to accrue at any time during the term of this mortgage from all buildings, improvements and structures now or at any time hereafter locatedon the premises described as follows, to -wit: First Tract: "Being part of Lot 86 and all of Lots 87 and 88 in Block 30, Harris, Flournoy, Trimble and Norton Addition; beginning at a point at the Northeast corner of the intersection of 8th & Burnett Streets; thence Southwardly with the east line of Burnett Street 2122 feet to the center line of a former alley, closed by judgment of the McCracken Circuit Court; thence at right angles Eastwardly and with the center line of said former alley 124 feet; thence at right angles Northwardly 2122 feet to the South line of 8th Street; thence Viestwardly with the South line of 8th Street 124 feet to the point of beginning. Subject, however to an easement in favor of James P. Smith, Executor for a passway over a strip 14 feet in width along the South line of said tract, opening on 8th Street and extending back 110 feet to the back property line of the property alined by James P. Smith, Fxecutor. Page 821 Second Tract: "Beginning at a point in the center line of the former alley which extended from Burnett Street to Finley Street, and in the Fast line of Burnett Street; thence SouthwardlT with the Fast line of Burnett Street 2122 feet to the corner of 9th and Burnett Street; thence eastwardly with the North line of 9th Street 150 feet; thence at right angles Northwardly 2121 feet to the center line of formsr alley in said block; thence with the center line of said former alley Westwardly 150 feet to the point of beginning; and being part of lot 93 and all of lots 94, 95, 96, Block 30, in Harris, Flournoy, Trimble and Norton Addition to the City of Paducah. Third Tract: "Beginning at a point between 8th and 9th Streets, in the ';lest line of Burnett Street, 9 feet Northwardly from the intersection of Burnett Street and an alley; thence at right angles to Burnett Street Westwardly 40 feet; thence at right angles towards 8th Street 38 feet; thence at right angles Eastwardly 40 feet to the line of Burnett Street; thence at right angles with the line of Burnett Street 38 feet to the point of beginning. Being that part excepted from a conveyance by Smith & Scott Tobacco Company to Axton Fisher Tobacco Company by deed recorded in Deed Book 163, page 163. The above three tracts being part of the same property conveyed to Smith & Scott Tobacco Company be deed dated October 2nd, 1900 recorded in Deed Book 61 page 268; and by deed dated July 7th, 1923, recorded in Deed Book 137, page 180, both of which deeds are of record in the office of the County Court Clerk of McCracken County, Kentucky. TO HAVE AND TO HOLD, in trust, unto the party of the second part, its successors and assigns forever, the above described real properties, together with all improvements, structures, buildings and rights that may accrue to or be placed upon said land at any time before the payment of the notes and interest herein described, arra for the equal security of the said principal notes hereinbefore described and the interest coupons thereto attached, without preference or priority of of any one of said principal notes over any of the others by reason of the priority of time of maturity, or of the negotiations thereof or otherwise, subject, however, and purusant to the provisions and conditions of an ordi:� nce of the City of Paducah, duly adopted by its Board of Commissimers and signed by its Mayor and published as required by law, authorizing the execution of this mortgage and said notes aforesaid. The party of the first part warrants the title to said property generally. Page 822 Said principal notes and the appurtenant interest coupons secrued by this mortgage shall be payable out of the rents, issues and profits of the premises hereinabove described in the manner and as provided in said ordinance aforesaid, which rents, issues and profits, both before or after decree and during the full period of redemption, are hereby assigned to the party of the second part hereunder, provided, however, that the principal notes hereinabove described and the appurtenant interest coupons shall not constitute an indebtedness of the City of Paducah, Kentucky, within the meaning of any constitution- al provisions or limitations, but said notes and the appurtenant interest coupons shall be payable (except in the event of foreclosure of this mortgage as herein provided) solely from the rents, issues and profits derived from any building or buildings now or hereafter during the lien of this mortgage located on the premises above described. Interest and principal as aforesaid shall be due on the respective maturity dates of the interest coupons and of the notes and failure .to pay the same for any cause whatsoever (whether or not the rents, issues and profits above mentioned are sufficient to permit such payments) on such respective maturity dates shall constitute a default hereunder. It is further agreed that if there be any default for a period of so much as twenty days, or if the party of the first part shall at any time for any cause be in default under any other covenant contained in this mortgage which shall continue for a period of twenty days after the receipt of written notice thereof from the party of the second part or from the holder of any of the notes issued hereunder, or if any claims be at any time made or threatened against said premises or any part or parts thereof during the entire term of this mortgage which have or tend to have the effect of dislodging the priority or security of this mortgage, then said party of the second part, or the legal owners or holders of the notes described in and secured by this mortgage, or any of them, may, withoutnotice, at its or their option treat the whole amount secured by this mortfage as due and payable, snd proceed to enforce the lien of this mortgage by suit. In the event that the lien of this mortgage is enforced by suit, as above provided, the proceeds of the sale of the Page 823 mortgaged premises upon f orecl�sure shall be applied as i required and provided by the laws of,hentucky pertinent thereto, and otherwise, to the extent permitted by law such proceeds shall; be applied as f ollcnva : First: To the payment of the costs and expenses of such suit and of suchsale, including reasonable compensation to the party of the second cart and its counsel and to the payment of all liabilities and advances made or incurred. by the pa rty of the second part hereunder, Second: To the payment of the ,.bole amount theretofore unpaid upon the notes, both principal and interest, and in case such proceeds shall be insufficient to pay such amount in full, then ratably according to the aggregate of such principal and interest without priority of principal over interest or interest over principal or of any installment of either thereof over any other installment of either thereof. Third: To the payment of the surplus, if any, to the party of the first part, or to whomsoever may be lawfully entitled to receive the same, or as the court may direct. The said City hereby reserves the right and privilege of calling and retiring all or any of said notes at par and accrued interest on any interest paying date, by first giving notice in writing by registered mail, to the last known holder hereof, of its intention so to do, and agrees not to sell, convey or permit itself to be divested of its ownership of said property so long as any of said notes remain outstanding and unpaid. The party of the first part covenants and agrees that it will cause all buildings and improvements upon said premises to be maintained in good condition and repair and will cause the same to be adequately insured against loss by fire and tornado, with the loss clause in such policies payable to the party of the second part for the benefit of the holders of said notes aforesaid, as their interest may appear, provided said City shall not be required or obligated to expend corporate funds for the purpose of complying with the covenants and undertakings of this paragraph, it being contemplated that the lessee or occupant of said improved property.will make all i necessary expenditures in this regard. Whenever the terms of this mortgage have been fully complied with and the notes secured hereby have been fully paid and, retired, the party of the second Dart, upon presentation to it by the party of the first part of the notes and coupons herein described, shall execute and deliver a good and sufficient deed of release,releasing and discharging the mortgage lien created iereby. Page 824 IN TESTIMONY VITiEREOF, the said City of Paducah has caused its name to be affixed hereto by its Mayor, together with the sale of said City, and attested by its City Clerk, on this the day and year first above written. CITY OF PADUCAH, KFITUCKY (SEAL) Mayor ATTEST: City Clerk. STATE OF KENTUCKY ) ) SS COUNTY OF MCCRACKEN ) I, , a Notary Public within and for the State and County aforesaid, do certify that the foregoing mortgage from the City of Paducah, McCracken County, Kentucky, to was on ibis day produced to me by the said City of Paducah by E. G. Scott, its Yayor, and , City Clerk, and to which is affixed the seal of said city: and thereupon the said E. G. Scott as Mayor of and for the City of Paducah did duly acknowledge said mortgage in due form of law, and the said , as� City Clerk duly acknowledged his attestation thereof as City Clerk, in due form of law. i My commission as Notary Public expires on the day of , 19_ Given under my hand and official seal, this the day of 1933. Notary Public, McCracken County Kentucky, SECTION 6. That the provisions of this ordinance shall constitute a contract between the City of Paducah and the holders of said notes and interest coupons, provided it is j specifically conditions that payment of said notes and interest thereon shall not be enforced, nor at any time be considered as a general obligation of said City, and said City shall at no time be held responsible for the payment of said notes or the performance of the covenants herein set out beyond the limitations or provisions of this ordinance. Page 825 SECTION 7. If any section, paragraph, caluse or provision of this ordinance shall be held to be invalid, the invalidity of such section, paragraph, caluse or provisions shall not affect any of the remaining provisions of this ordinance. SECTION B. All ordinance, resolutions and orders or parts thereof i in conflict with the provisions of this ordinance are to the extent of such conflict hereby repealed, and it is specifically ordered that this ordinance shall be in lieu of and shall supersede a similar ordinance heretofore adopted and approved May 29th, 1933, and as subseauently amended. SETCI014 9. This ordinance shall be in full force and effect ten days after its passage. Introduced�y 7.A-_ 1933 Passed and approved �,�q ,,,� , n� 1933. Mayor Attest: 0. ;rp, CI ty er c `,lit