Loading...
HomeMy WebLinkAboutMO # 162 ( and Resolution)284 MUNICIPAL ORDER NO. 162, SERIES 1983 A RESOLUTION AND MUNICIPAL ORDER OF THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, APPROVING REVENUE BOND FINANCING ON BEHALF OF GENEX CORPORATION FOR THE ACQUISITION, RECONSTRUCTION, -RENOVATION AND EQUIPPING OF MANUFACTURING FACILITIES IN PADUCAH: UNDERTAKING THE ISSUANCE OF INDUSTRIAL BUILDING REVENUE BONDS TO FINANCE THE PROJECT; UNDERTAKING TO APPLY FOR A UDAG GRANT IN CONNECTION -WITH THE PROJECT; AUTHORIZING THE EXECUTION OF AN AGREEMENT BETWEEN THE CITY AND GENEX CORPORATION RELATING TO THE PROJECT, THE BONDS AND THE UDAG-GRANT; AND TAKING OTHER PRELIMINARY ACTION A. The City of Paducah, Kentucky .(the "City"), is authorized by the Industrial Buildings for Cities and Counties Act (the "Act"), KRS 102.200 et seq., to issue In- dustrial Building Revenue Bonds and lend the -proceeds thereof to private persons and enterprises to finance the acquisition, reconstruction, renovation and equipping by such persons and enterprises of manufacturing and related facilities located in or near the City in order to accomplish the public purposes of promoting the economic development of the Commonwealth of Kentucky (the "Commonwealth"), relieving condition of unemployment, and encouraging the increase of industry. B. Genex Corporation, a Maryland corporation ("Genex"), has applied to the City for the issuance, pursuant to the Act, of Industrial Building Revenue Bonds (the ''Bonds") of the City to finance a project consisting of the acquisition, reconstruction, renovation and equipping by Genex of existing land and buildings for use as manufacturing and related facilities (the "Project"). C. The City and Genex have entered into various understandings with one another with respect to the Project, and it is appropriate at this time that the City set out its agreement to promptly apply to the United States Department of Housing and Urban Develop- ment and any other appropriate federal agency for an Urban Development Action Grant ("UDAG Grant"), the proceeds of which will be used in conjunction with the Project for fixtures, equipment and infrastructure. D. The City has found and determined that the Project will tend to accomplish the public purposes of the Act by promoting the economic development of the Commonwealth, relieving conditions of unemployment and encouraging the increase of industry therein. E. The City proposes to issue the Bonds to finance the costs of the Project and desires to authorize Genex to proceed with the Project, its costs in connection therewith incurred prior to the issuance of the Bonds to be reimbursed out of the proceeds of the Bonds. F. The City proposes to enter into an agreement with Genex relating to the Project and the Bonds, whereby Genex will agree to make repayments to the City in amounts sufficient to provide for the payment of the principal of, premium, if any, and interest on the Bonds and all other costs of the City incurred in connection with the Bonds and the Project. G. It is deemed necessary and advisable that the Agreement relating to the issuance of Industrial Building Revenue Bonds and the UDAG Grant, which is attached hereto, be executed setting forth the preliminary agreements of the City and Genex relat- ing to the Bonds, the Project and the UDAG Grant. NOW, THEREFORE,, BE IT RESOLVED BY THE CITY OF PADUCAH, KENTUCKY, as follows: 1. The City hereby undertakes to issue, pursuant to the Act, its Industrial Building Revenue Bonds in the approximate aggregate principal amount of $7,500,000, for the purpose of financing the costs of the Project, and to sell such Bonds on a negotiated basis to an institutional investor or investors or to underwriters to be designated by Genex. The issuance of the Bonds shall be conditioned, however, upon (i) the negotiation by Genex of acceptable terms with the purchasers of the Bonds, (ii) the obtaining of a UDAG Grant under Section 119 of the Housing and Community Development Act of 1974 for fixtures, equipment and infrastructure to be used in conjunction with the Project, and (iii) the execution of an acceptable agreement between the City and Genex. The Bonds shall be special and limited obligations of the City payable solely and only from the proceeds to be derived from the agreement hereinafter described, and from any other security provided for in such Agreement and shall never become the legal or moral obliga- tion of the City nor a charge upon the income, revenues or property of any type whatso- ever of the City. 2. The Mayor of the City is hereby authorized and directed to execute, and the City Clerk is hereby authorized and directed to attest under the seal of the City, an Agreement regarding UDAG Grant and Issuance of Industrial Building Revenue Bonds between the City and Genex setting forth their preliminary agreements respecting the Bonds and the Project, substantially in the form attached hereto and submitted to this meeting of the Board of Commissioners. 3. The City's participation in the Project shall be limited to the obtaining of the UDAG Grant and issuance of the Bonds and the lending the proceeds thereof to Genex to finance the costs of acquiring, reconstructing, renovating and equipping the Project in accordance with the terms of the agreement to be entered into between the City and Genex. 4. The Bonds shall not be general obligations of the City, a charge against its general credit or taxing power, nor an indebtedness of the City within the meaning of the constitution and statutes of the Commonwealth, but shall be payable solely and only from the repayments to be made by Genex to the City pursuant to an agreement and any security mortgaged and pledged therefor, which may include the Project. 5. No revenues or assets of the City shall be applied toward the costs of the Project, except such as are derived from the proceeds of the Bonds. 6. The Bond Counsel, Messrs. Harper, Ferguson & Davis, Louisville, Kentucky, are authorized and directed on behalf of the City to take any legal action necessary and appropriate in connection with the authorization, issuance and sale of the Bonds. The Corporation Counsel is authorized and directed to assist Bond Cou4sel in this connection. 7. All resolutions, ordinances and parts thereof in conflict herewith to the extent of such conflict are hereby repealed. 8. This resolution shall take effect upon its adoption. 285 1P I INTRODUCED, SECONDED AND ADOPTED AT A MEETING OF THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, held on the 13th day of September, 1983, on the same 8 occasion signed in open session by the Mayor as evidence of his approval, attested by the City Clerk and declared to be in full force and effect. (SEAL) ATTEST: 4 City Clerk CERTIFICATION JOHN K. PENROD Mayor I, the undersigned, do hereby certify that I am the duly qualified and acting City Clerk of the City of Paducah, Kentucky, and as such City Clerk I further certify that the foregoing is a true, correct and complete copy of a Resolution duly adopted by the Board of Commissioners of,the City at a meeting held on September 13, 1983, on the same occasion signed by the Mayor, and now in full force and effect, all as appears from the official records of said City in my possession and under my control. 1983. IN WITNESS WHEREOF, I have hereunto set my hand this 13th day of September, City Clerk