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HomeMy WebLinkAboutMO # 747-204 MUNICIPAL ORDER NO. 747 A MUNICIPAL ORDER OF THE CITY OF PADUCAH, KENTUCKY, RELATING TO AND APPROVING AN INDUCEMENT CONTRACT BETWEEN THE CITY, OR ITS ASSIGNEES OR DESIGNEES, IN WHICH THE CITY AGREES TO ASSIST SEAMEN'S CHURCH INSTITUTE OF NEW YORK AND NEW JERSEY IN FINANCING AN EDUCATIONAL DEVELOPMENT OF THE COMPANY THROUGH THE ISSUANCE BY THE CITY OF APPROXIMATELY $5,000,000 OF CITY OF PADUCAH, KENTUCKY, EDUCATIONAL DEVELOPMENT REVENUE BONDS (SEAMAN INSTITUTE PROJECT) - WHEREAS, it is necessary and desirable for the general welfare and economy of the City and its surrounding area that the City provide additional permanent opportunities for employment in the City and in such area; and WHEREAS, Seamen's Church Institute of New York and New Jersey, or its assignees or designees (the "Company"), a non-profit corporation, has submitted to the City a proposed Inducement Contract in which the Company proposes to construct, equip and develop an educational development project to be located in the City (the "Project"), and WHEREAS, the Company has proposed in said Inducement Contract that if the City will agree to authorize, issue and sell its City of Paducah, Kentucky, Educational Development Revenue Bonds (Seaman Institute Project), Series 1997, in the amount of approximately $5,000,000 (the "Bonds"), pursuant to Sections 103.200 through 103.287 of the Kentucky Revised Statutes, as amended (the "Act"), for the purpose of financing the Project, and would lend the proceeds of the Bonds to the Company, the Company would agree to make loan payments to the City sufficient to pay all principal and interest requirements of the Bonds as same become due; and WHEREAS, said plan of financing and the aforesaid Act contemplate that said Bonds would not be a general obligation debt of the City, but would be secured only by a foreclosable mortgage lien against and a first pledge of the revenues of the Company, which revenues would be derived by the City from loan payments from the Company sufficient to pay all principal and interest requirements of the Bonds, and WHEREAS, it is deemed advisable and in the best interests of the City that said Inducement Contract be approved and executed. BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That the Inducement Contract referred to in the preamble hereto is hereby accepted and approved, said Contract contemplating that the City shall assist in financing the Project, which Project is to be financed by the issuance of approximately $5,000,000 of City of Paducah, Kentucky, Educational Development Revenue Bonds (Seaman Institute Project), Series 1997. SECTION 2. That the City shall cooperate fully with the Company and with Bond Counsel designated in said Inducement Contract (viz., Rubin & Hays, First Trust Centre, 200 South Fifth Street, Louisville, Kentucky 40202), in the issuance of the proposed Bonds in order to induce said Company to undertake the Project. SECTION 3. That the City agrees to enter into the appropriate Loan Agreement between the City and the Company and agrees that this Municipal Order commits the City insofar as the laws of the Commonwealth of Kentucky allow, (a) to issue said Bonds and to land the proceeds thereof to the Company, (b) to adopt the appropriate Resolution authorizing said Bonds and (c) to approve the appropriate Trust Indenture to secure the Bonds, provided all of the proceedings for the issuance of said Bonds must be approved by said Bond Counsel and the governing body of the City. Since Kentucky law (KRS 103.230) permits the sale of such Bonds to be made at a negotiated interest rate and price without public advertising, if such rate and price are agreeable to the Company, and since the Company desires that such Bonds be sold in that manner by negotiation, the City agrees to cooperate fully with the Company in effecting such negotiated sale. SECTION 4. That the Mayor is hereby authorized and directed to execute said Inducement Contract on behalf of the City and to execute all necessary documents, instruments and obligations of the City, in order effectively to carry out the intent and purpose of this Municipal Order and of said Contract, all without expense to the City. A copy of said Contract is hereby ordered to be made a part of this Municipal Order the same as if copied in full herein, and such copy shall be filed in the records of the City with this Municipal Order. SECTION 5. That the City hereby authorizes and designates the Bonds as qualified tax exempt obligations as defined in the Internal Revenue Code of 1986. SECTION 6. That this approval is made subject to the condition that such Bonds shall not constitute a general obligation of the City and that the City shall have no expense in connection with the refunding or in connection with the issuance of the Bonds, all as provided in said Inducement Contract. SECTION 7. That the approval of the aforesaid Inducement Contract by the City shall be evidenced by the adoption of this Municipal Order by the governing body of the j City and by the furnishing of a certified copy of same to the Company and to Bond Counsel. SECTION 8. This Municipal Order shall be in full force and effect immediately upon its adoption. M -ay o r P �rfrt e m ATTEST: Cit Clerk Adopted by the Board of Commissioners February 11, 1997 Recorded by Lenita Smith, City Clerk, February 11, 1997 CERTIFICATE OF CITY CLERK I, Lenita Smith, hereby certify that I am the duly qualified and acting City Clerk of the City of Paducah, Kentucky, that the foregoing Municipal Order is a true copy of the Municipal Order duly introduced, read and adopted by the Board of Commissioners of the City of Paducah, Kentucky, on February 11, 1997, and that said Municipal Order (together with the Inducement Contract approved herein) appears as a matter of public record in the official records of said City. 205 to adopt the appropriate Resolution authorizing said Bonds and (c) to approve the appropriate Trust Indenture to secure the Bonds, provided all of the proceedings for the issuance of said Bonds must be approved by said Bond Counsel and the governing body of the City. Since Kentucky law (KRS 103.230) permits the sale of such Bonds to be made at a negotiated interest rate and price without public advertising, if such rate and price are agreeable to the Company, and since the Company desires that such Bonds be sold in that manner by negotiation, the City agrees to cooperate fully with the Company in effecting such negotiated sale. SECTION 4. That the Mayor is hereby authorized and directed to execute said Inducement Contract on behalf of the City and to execute all necessary documents, instruments and obligations of the City, in order effectively to carry out the intent and purpose of this Municipal Order and of said Contract, all without expense to the City. A copy of said Contract is hereby ordered to be made a part of this Municipal Order the same as if copied in full herein, and such copy shall be filed in the records of the City with this Municipal Order. SECTION 5. That the City hereby authorizes and designates the Bonds as qualified tax exempt obligations as defined in the Internal Revenue Code of 1986. SECTION 6. That this approval is made subject to the condition that such Bonds shall not constitute a general obligation of the City and that the City shall have no expense in connection with the refunding or in connection with the issuance of the Bonds, all as provided in said Inducement Contract. SECTION 7. That the approval of the aforesaid Inducement Contract by the City shall be evidenced by the adoption of this Municipal Order by the governing body of the j City and by the furnishing of a certified copy of same to the Company and to Bond Counsel. SECTION 8. This Municipal Order shall be in full force and effect immediately upon its adoption. M -ay o r P �rfrt e m ATTEST: Cit Clerk Adopted by the Board of Commissioners February 11, 1997 Recorded by Lenita Smith, City Clerk, February 11, 1997 CERTIFICATE OF CITY CLERK I, Lenita Smith, hereby certify that I am the duly qualified and acting City Clerk of the City of Paducah, Kentucky, that the foregoing Municipal Order is a true copy of the Municipal Order duly introduced, read and adopted by the Board of Commissioners of the City of Paducah, Kentucky, on February 11, 1997, and that said Municipal Order (together with the Inducement Contract approved herein) appears as a matter of public record in the official records of said City. I further certify that said meeting was duly held in accordance with all applicable requirements of Kentucky law, including KRS 61.810, 61.815, 61.820 and 61.825, 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 as City Clerk and the official Seal of the City this 11th day of February, 1997. City Clerk (Seal of City) Mo / bond 7 206