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HomeMy WebLinkAbout2014-05-8143ORDINANCE NO. 2014-5-8143 AN ORDINANCE APPROVING A REVOLVING LINE OF CREDIT FROM BANTERRA BANK. IN THE PRINCIPAL AMOUNT NOT TO EXCEED $350,000; AUTHORIZING THE MAYOR TO EXECUTE THE REVOLVING LINE OF CREDIT AGREEMENT AND OTHER LOAN DOCUMENTS RELATING THERETO, AND AUTHORIZING A DESIGNATED AGENT TO DRAW FUNDS FROM THE REVOLVING LINE OF CREDIT, ALL OF WHICH IS NECESSARY TO FINANCE A PORTION OF THE CITY'S PROPOSED CONSTRUCTION COST IN THE "FOUNTAIN AVENUE AND LOWER TOWN NEIGHBORHOOD REVITALIZATION PROJECT" WHEREAS, the City of Paducah, Kentucky (the "City") has determined that it is a public purpose to foster and promote the proper and orderly development or redevelopment of vacant, orphaned, or underutilized residential properties located within its corporate boundaries and of insuring the integrity and quality of its existing residential neighborhoods, all to the benefit of the citizens and residents of the City; and WHEREAS, in order to fulfill the aforesaid public purpose, the City of Paducah is presently engaged in a neighborhood redevelopment program known as the "Fountain Avenue Neighborhood Revitalization Project" (the "Project") whose primary purpose is to revitalize the Fountain Avenue Neighborhood through the renovation of existing homes and the construction of new homes which will maintain the residential appearance of such area; and WHEREAS, in the furtherance of the Project the City has commitment for the completion of construction of two (2) new structures within the Fountain Avenue and Lower Town Neighborhood; and WHEREAS, the City desires to finance a portion of its construction costs through draws on the Revolving Line of Credit from Banterra Bank. BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY: SECTION 1. Recitals and Authorization. The City hereby approves a Revolving Line of Credit from Banterra Bank in the principal amount not to exceed $350,000 for a term of six (6) months, with interest thereon at the fixed rate of 2.95% per annum, with interest and the borrowed money due upon closing of the house and subject to commercially reasonable terms and conditions. The funds drawn from the Revolving Line of Credit shall be utilized to finance a portion of the City's construction costs incurred in the furtherance of its commitments for completion of construction of two (2) new structures within the Fountain Avenue and Lower Town Neighborhood. SECTION 2. Execution and Delivery. The City hereby authorizes and directs the Mayor to execute the Revolving Line of Credit Agreement and any other loan documents related thereto which are requested by Banterra Bank and to do any other act which is necessary to consummate the line of credit from Banterra Bank. ._.,'.::1u.,:Jil---Lu,.L;_w.._a. . _:. —A- --- _ , _ I .- ::_I i _._ Ii c:_ s_. d l _ -..1 e i � [._._ �,:. �;i. r., .V SECTION 3. Authorization of Designated Agents. The City authorizes and directs the Finance Director of the City of Paducah, Kentucky to request and effectuate draws upon the Revolving Line of Credit as deemed necessary by the City Planning Department to satisfy construction costs incurred by the City in the furtherance of its commitments to complete construction of two (2) new structures located at 1403 Monroe Street and 717 Harrison Street within the Fountain Avenue and Lower Town Neighborhood. SECTION 4. Severability. If any section, paragraph or provision of this Ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this Ordinance. SECTION 5. Compliance With Open Meetings Laws. The City hereby finds and determines that all formal actions relative to the adoption of this Ordinance were taken in an open meeting of this City Commission, and that all deliberations of this City Commission and of its committees, if any, which resulted in formal action, were in meetings open to the public, in full compliance with applicable legal requirements. SECTION 6. Conflicts. All ordinances, resolutions, orders or parts thereof in conflict with the provisions of this Ordinance are, to the extent of such conflict, hereby repealed and the provisions of this Ordinance shall prevail and be given effect. SECTION 7. Effective Date. This Ordinance shall be read on two separate days and will become effective upon summary publication pursuant to KRS Chapter 424. ATTEST: Tammara S. Sanderson, City Clerk Mayor Introduced by the Board of Commissioners, May 6, 2014 Adopted by the Board of Commissioners, May 13, 2014 Recorded by Tammara S. Sanderson, City Clerk, May 13, 2014 Published by the Paducah Sun, May 22, 2014 \ord\plan\8n ave line of credit 2014 2