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MUNICIPAL ORDER NO. 501
A RESOLUTION OF INDUCEMENT INDICATING INTENT TO ISSUE REVE-
NUE BONDS FOR THE PURPOSE OF FINANCING COSTS OF THE ACQUISI-
TION, CONSTRUCTION AND EQUIPPING OF AN INDUSTRIAL BUILDING
FOR USE IN THE MANUFACTURING, PROCESSING OR ASSEMBLING OF A
V COMMERCIAL PRODUCT IN THE CITY OF PADUCAH
WHEREAS, Gilliam Candy Co., Inc., a Kentucky
corporation (the "Borrower"), its successors and assigns,
intends to acquire, construct and equip an "industrial
building" project located 2400 South Beltline Highway,
within the City of Paducah, Kentucky (the "City"), which
facilities will constitute an industrial building or use in
the manufacturing, processing or assembling of a commercial
product (the "Project").
WHEREAS, the Project will promote the economic
development of the Commonwealth of Kentucky and the City,
relieve conditions of unemployment and encourage the
increase of industry in the Commonwealth and will otherwise
improve the economic welfare of the people of the City.
WHEREAS, the Borrower has evidenced a desire to
have such acquisition and construction of the Project
financed from the proceeds of the issuance and sale by the
City of approximately $6,000,000.00 in aggregate principal
amount of its industrial Building Revenue Bonds (Gilliam
Candy Co. Inc. Project) (the "Bonds") for the Project; and
WHEREAS, -the City intends to take all appropriate
and necessary action or the Bonds to be a Qualified Small
Issue Bond pursuant to Internal Revenue Code Section
144(a)(4); and
WHEREAS, this City Commission has recommended
approval of the Project and enactment of this Resolution.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY
COMMISSION OF THE CITY OF PADUCAH, COMMONWEALTH OF KENTUCKY:
SECTION 1. That the Agreement attached hereto as
Exhibit A be approved and that the Mayor be and is hereby
authorized to execute the Agreement on behalf of the City,
and this City Commission hereby finds and determines the
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recitals and facts set forth in the preambles to the
Agreement.
SECTION 2. That this Resolution is an affirmative
official action of this City Commission toward the issuance
of the Bonds as contemplated herein in accordance with the
i
purposes of the laws of the Commonwealth of Kentucky and
United States Treasury Regulation Section 1.103-8(a)(5).
SECTION 3. That the City, in order for the
issuance of the Bonds to be a "qualified small issue bond"
pursuant to Section 144(a) of the Internal Revenue Code of
1986, hereby affirmatively elects that the provisions of
Internal Revenue Code Section 144(a)(4) apply so that the
issuance of the Bonds may qualify as a "qualified small
issue bond."
SECTION 4. That the City Commission hereby finds
and determines that all formal actions relative to the
adoption of this Resolution were taken in open meetings of
this City Commission, and that all deliberation of this City
Commission and of its committees, if any, which resulted in
formal action, were taken in meetings open to the public, in
full compliance with all applicable legal requirements.
SECTION 5. That this Resolution shall be
effective immediately upon adoption, as provided by law.
PASSED AND APPROVED THIS 7th DAY OF MARCH, 1989.
APPROVED:
GERRY B. MONTGOMERY
Mayor
ATTEST:
LENITA SMITH
City Clerk
I, the undersigned City Clerk of the City of
Paducah, Kentucky, do hereby certify that the above is a
true copy of a Resolution, as first adopted by the City
Commission at a regular meeting held on March 7, 1989, where
at a quorum was present and voting, all as shown by the
records of the City in my office.
SIGNED: Lenita Smith
City Clerk
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