HomeMy WebLinkAbout2001-10-6449IV1.1
ORDINANCE NO. 2001-L-�LY117
AN ORDINANCE AUTHORIZING CITY OF PADUCAH
TO EXECUTE AN IRREVOCABLE STAND-BY LETTER
OF CREDIT IN AN AMOUNT NOT TO EXCEED $600,000
AND DECLARING AN EMERGENCY TO EXIST
WHEREAS, the Kentucky Economic Development Finance Authority
("Authority") has agreed to transfer to the Paducah -McCracken County Industrial
Development Authority ("IDA") $600,000 of Authority controlled funds for purposes of
erecting and selling a shell building in the Information Age Park; and
WHEREAS, as a condition of transfer, the Authority requires that the shell
building must be completed and sold, and the Authority satisfied, by no later than December
31, 2004; and
WHEREAS, should the Authority not be satisfied by December 31, 2004, it
may demand of IDA immediate repayment of the aforesaid $600,000; and
WHEREAS, as an additional condition of transfer, and in order to secure
the promise of IDA to repay the Authority, the Authority demands that the City of Paducah
and the County of McCracken secure an irrevocable stand-by letter of credit naming the
Authority as beneficiary; and
WHEREAS, IDA is a public agency established by the City of Paducah and
County of McCracken pursuant to KRS 154.50-310, et seq.
NOW, BE IT ORDAINED, by the City of Paducah, Kentucky:
SECTION 1. The Mayor of the City of Paducah, Kentucky is hereby
authorized and directed to procure a $600,000 irrevocable stand-by letter of credit
designating the Kentucky Economic Development Finance Authority as beneficiary so as to
secure the promise of the Paducah -McCracken County Industrial Development Authority to
complete and sell a shell building in the Information Age Park and satisfy the Authority by
no later than December 31, 2004.
SECTION 2. The terms of the irrevocable stand-by letter of credit
instrument shall be specific in nature and must set forth the mutual understanding between
the City of Paducah Kentucky, McCracken County, IDA, and Authority, which shall
constitute conditions precedent to payment of the Authority as beneficiary.
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SECTION 3. The ' expiration date for the aforesaid irrevocable stand-by
letter of credit shall be no later than March 1, 2005.
SECTION 4. The County of McCracken must agree to be equally obligated
with the City of Paducah.
SECTION 5. The Authority requires that the irrevocable letter of credit
must be in place prior to the signing of a construction contract. Further delay in
commencing construction will increase the risk of inclement weather and jeopardize the
project. Therefore, an emergency is hereby declared to exist and this ordinance shall
become effective immediately upon one reading and publication.
ATT T:
ity Cl6rK
Introduced and Adopted by the Board of Commissioners October 30, 2001
Recorded by Lenita Smith, City Clerk, October 30, 2001
Published by The Paducah Sun 1V �6, ;�p o/
ord/IDA Ltr of Credit 10-01
ORD\25529
D&K
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