Loading...
HomeMy WebLinkAboutOrdinances Book 17, Page 707, No Resolution Number707 t" A RESOLUTION ACCEPTING THE PROPOSAL OF J. J. B. HILLIARD, W. L. LYONS & COMPANY TO ACP AS FISCAL AGENTS FOR THE CITY OF PADUCAH, KENTUCKY IN CONNECTION WITH THE ISSUANCE OF PARKING FACILITIES REVENUE BONDS BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION I. That the proposal of J. J. B. Hilliard, W. L. Lyons & Company to act as fiscal agents of the City of Paducah, Kentucky, in connection with the issuance of parking facilities revenue bonds be accepted, such proposal being in words and figures as follows: "July 23, 1971 "Honorable Mayor and Members of the City Commission Paducah, Kentucky Gentlemen: We understand that you are now giving consideration to providing additional muniicpal parking facilities, primarily for City Hall use-, and that you propose to set up a Public Corporation to finance the construction of such facilities as may be legally possible and practical through the issuance of Public Corporation First Mortgage Bonds. It is estimated that a program of approximately $200,000 of such financing would cover these new facilities. We extend to you our services as financial advisor to assist you in setting up the Corporation and in developing a financing plan for your project and submit herewith our proposal for your consideration. In our capacity as financial advisor we would do the following at our expense: (a) We would immediately make available to you the experience and facilities of our firm and the firm of Grafton, Ferguson, Fleischer & Harper, nationally known municipal bond attorneys experienced in Kentucky bonds, in cooperating with you in the development of a plan for the financing of your program, and the organization of the• Corporation which could be used as a vehicle for the issuance of future series of public improvement bonds. (b) We would have our attorneys prepare all minutes, resolutions, notices, leases, ordinances, and other necessary legal documents incident to the authorization, sale, issuance and delivery of the bonds. (c) We would assist, advise you and pay for the preparation and advertising of the Notice of Sale of Bonds in your local newspaper, the Louisville Courier -Journal and the New York Bond Buyer when you are ready to offer the bonds at public sale. (d) We would assist ,and advise you as to bond maturities, call prices, bidding terms, all other important bond features, and the timing of your sale. (e) We would prepare and distribute an official prospectus to interested bidders well in advance of the sale of your bonds in an effort to attract the widest interest possible when and as the bonds are put up for sale at public bidding. It is further agreed that you will furnish without expense to us upon our request or upon the request of our bond counsel all data and information, including description of the property and related title information, abstract to title, and los legally recorded mortgage instruments, required to properly and legally issue the bonds, and to cooperate with the financial advisors towards sale of the bonds. The final determination to issue the bonds will, of course, be your decision. (f) We would supply the legal opinion of the bond attorneys when and as issued by them, which opinion would accompany the bonds. (g) We would supply the printed and steel engraved bond forms. (h) We would arrange for the delivery of the bonds and pay the expenses of a City Official to sign the bonds when they are ready for delivery in a city so specified for delivery in the Official Notice of sale. (i) We and our attorneys would assist, advise and work with you for the purpose of developing the best plan possible for a sound and marketable issue of bonds. We shall use our best efforts to prepare the issue so as to obtain for you the lowest interest cost obtainable in the light of market conditions as they exist at the time the issue is offered for sale. In the meantime, services of our organization as well as those of our attorneys will be made available to you. It is understood that expenses other than those above specified, such as might be incurred in title examinations and making of deeds or any litigation proceedings that might arise, would be assumed by you. Our fee and any expenses incurred by you in connection with the bond issue will be paid from bond proceeds, unless you elect to pay same from other funds. We would reserve the right to bid or to form an account to bid for the bonds proposed herein when and if they are formally offered at public sale. In consideration of the services rendered and the risk of the expenses to be assumed by us, it is agreed that we shall be paid out of bond proceeds a fee equal to the following fee schedule; 3% of the first $100,000 par value of bonds sold; 2/ of the next $100,000 par value of bonds sold; 1 1/2/ for all over $200,000 par value of bonds sold. This fee schedule shall apply to each and every sale of bonds and the fee shall be paid to us upon the sale and delivery of the bonds as they may be sold from time to time. If the project should be abandoned and no bonds are issued, we agree to absorb all the expenses incurred by us to that time and you would owe us nothing. This agreement shall be in effect for two years from date of acceptance by the City unless sooner terminated by either party at any time for any reason upon 30 days written notice to the other party. If this proposal is acceptable to you, we will ask that you please adopt an appropriate resolution authorizing the Mayor, attested by the City Clerk, to accept same for and on your behalf. Respectfully submitted, J.J.B.Hilliard, W.L.Lyons & Co. By /S/ Harold L. Sullivan Harold L. Sullivan" SECTION 2. That the Mayor and Commissioners be, and they are hereby, authorized to establish a City of Paducah Public Improvement Corporation, to finance the acquisition and construction of public 709 parking facilities and city hall parking facilities, and that the incorporators be the Mayor and Commissioners; that the Chairman and Vice Chairman be the Mayor and Mayor Protem, respectively, by virtue of office, and that the officers be the Mayor, Mayor Protem and City Clerk as President, Vice President and Secretary -Treasurer, respectively. SECTION 3. That the Mayor and City Clerk as Mayor and City Clerk and as such Corporate Chairman and Secretary -Treasurer be, and they are hereby, authorized to accept the proposal set out in Section 1 above on behalf of the City of Paducah and the City of Paducah Public Improvement Corporation when incorporated. SECTION 4. This resolution shall be in full force and effect from and after its adoption. Mayor Passed by the Board of Commissioners July 27, 1971 Recorded by Sarah Thurman, City Clerk, July 27, 1971