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MUNICIPAL ORDER NO. 513
AN ORDER OF THE CITY COMMISSION OF THE CITY OF
PADUCAH, KENTUCKY, AUTHORIZING THE EXECUTION OF A CONTRACT,
LEASE AND OPTION BY THE MAYOR AND CITY CLERK LEASING CERTAIN
C, SCHOOL PROPERTIES FROM THE CITY TO THE BOARD OF EDUCATION OF
THE PADUCAH INDEPENDENT SCHOOL DISTRICT IN ORDER TO SECURE
AND RETIRE SCHOOL BUILDING REVENUE BONDS ISSUED BY THE
PADUCAH INDEPENDENT SCHOOL DISTRICT FINANCE CORPORATION ON
BEHALF OF SAID BOARD
WHEREAS, the City of Paducah, Kentucky, acting by
and through its City Commission (the "City") acted as the
issuing agency for the Board of Education of the Paducah
Independent School District (the "Board") pursuant to the
provisions of Sections 162.120 through 162.290 of the
Kentucky Revised Statutes in connection with the
authorization, sale, and issuance of City of Paducah School
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Building Revenue Bonds, dated February 1, 1979, and City of
i Paducah School Building Revenue Bonds, dated June 1, 1979,
(collectively, the "Prior Bonds"); and
WHEREAS, in accordance with the statutes under
which the Prior Bonds were issued the Board conveyed the
sites of the school building improvements financed from the
Prior Bonds to the City and leased said sites back from the
City pursuant to the provisions of two Contracts of Lease
and Rent (the "Prior Leases") and now applies the rental
revenues received under said Prior Leases to the retirement
of the Prior Bonds as the same become due; and
WHEREAS, the Board has determined that it is.
necessary and desirable to construct additional new school
facilities at the sites conveyed to the City in connection
with the Prior Bonds and to renovate the existing school
building improvements originally financed from the proceeds
of said Prior Bonds; and
WHEREAS, the Board and the City have determined
that it is in their mutual best interests that the Board
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utilize the Paducah Independent School District Finance
Corporation (the "Corporation") in lieu of the City as
issuing agency, pursuant to the provisions of Section
162.385 of the Kentucky Revised Statutes; and
WHEREAS, in order to secure and provide for the
payment of the Corporation's School Building Revenue Bonds,
Series of 1989 dated March 1 1989 the "New Bonds" it is
necessary that the Board and the City enter into a Contract,
Lease and Option dated as of March 1, 1989, (the "New
Lease") whereunder title to the sites of the school
improvements financed from the Prior Bonds will remain in
the City but the school improvements financed from the New
Bonds will be leased to the Board by the City and the
rentals pledged to the payment of the New Bonds; all subject
to the rights of the owners of the outstanding Prior Bonds.
BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY:
SECTION 1. That subject to the vested rights and
priorities of the owners of the City's outstanding Prior
Bonds, the Mayor and City Clerk are hereby authorized to
execute the Contract, Lease and Option dated as of March 1,
1989, (in substantially the same form as that submitted to
the City Attorney for review) providing for the lease of the
school building improvements therein identified from the
City to the Board on a year to year basis, with the option
in the Board to renew the New Lease each year at such
rentals as are sufficient to pay and retire as they become
due the New Bonds and that the rentals due to the City shall
be assigned and pledged to the Corporation in order to
secure and retire said New Bonds.
SECTION 2. That all orders, resolutions or
previous actions of the City.Commission in conflict with the 1�
provisions of this Order are hereby repealed to the extent
of such conflict and this Order shall become effective upon
its adoption.
GERRY B. MONTGOMERY
Mayor
Adopted by the Board of Commissioners April 25, 1989
Recorded by Lenita Smith, City Clerk, April 25, 1989.
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