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HomeMy WebLinkAboutMO # 513235 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 -�f 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 T, I, gIjg17Tjq1 rr���r, r .:,� I :_.i ,. I, ,]'Vjry .. �.�.;Rl pf rl �r np...a.� �-�-�,rf.bra.�.o—i,i�Tm'�"�'F�'�n-rn� lP,- i rl I, -r � pi i 1.[ 1-jtiI— r --III—l'- —:-I -1-1 -- 7T -.:-T -:-i1 7 ��,m Mro .� I � hu.,, h .�, M -. 4 J- �.�•I,,,.""" I F - - y L, adl• �-.I�h �hLmu�Nw41�W�:�» . I _u1h�r.LLu�.m I¢� d. ��I VI BLJw.h�unl�4�.e 1 �� ,� _�s�d��w�W IF7il.wdah.�d.�, 236 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. \mo/bond.ed