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HomeMy WebLinkAbout79-12-1830457 ORDINANCE NO. 79-12-1830 AN. ORDINANCE OF THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, CONFIRMING AND APPROVING_ ACTIONS TAKEN BY OR TO_BE_ TAKEN BY CITY OF PADUCAH PUBLIC IMPROVEMENT CORPORATION AS THE AGENCY AND INSTRUMENTALITY OF THE CITY, AND AS DIRECTED BY THE MAYOR, IN CONNECTION WITH THE FINANCING OF THE FIRE STATION AND PUBLIC WORKS GARAGE PROJECTS; SPECIFICALLY AUTHORIZING AND APPROVING FIRST MORTGAGE REVENUE BONDS OF CITY OF PADUCAH PUBLIC IMPROVEMENT CORPORATION WHICH HAVE BEEN OR WILL BE AUTHORIZED AND ISSUED BY SAID CORPORATION; AND APPROVING A MORTGAGE DEED OF TRUST AND CONTRACT, LEASE AND OPTION IN, CONNECTION WITH THE AUTHORIZED FINANCING. WHEREAS, City of Paducah Public Improvement Corporation (the "Cor- poration") a non-profit, non -stock ..Corporation was duly organized and created pur- suant to the provisions of Kentucky law to act as an agency and instrumentality of the City of Paducah, Kentucky (the "City") , in the planning, development, construction, acquisition and financing of public municipal building facilities, and in that connection the City desires that the Corporation act on its behalf in _ connection with financing the construction of a Fire Station and Public Works Garage (the, "Projects") ; and WHEREAS, at the direction of the City said_ Corporation has or .is _about to duly authorize and issue its "First Mortgage Revenue Bonds, Series of 1979, Fire Station and Public Works Garage Projects" (the "Bonds") for the purpose of providing , , permanent financing for the Projects; and WHEREAS, the Bonds will be payable from rental .payments made by the City„ _ to the Corporation under a certain Contract, Lease and Option (the, "Lease") where - tinder the Projects are leased by the Corporation to the City for one year at a time, with the option in the City to renew said Lease ,for one year at a time thereafter so long as the Bonds remain outstanding and unpaid and the obligation of the City in each year that the Lease is renewed shall be equal to the principal. and_ interest requirements becoming due on the Bonds in that year, plus the cost of operation, maintenance and insurance of the Projects; and WHEREAS, the Bonds will _be , issued pursuant to the provisions of a „Mortgage Deed of Trust made by the Corporation in favor of a_trustee bank, acting.for the Bondholders, tinder which the Projects will_ be mortgaged to secure. said Bonds and. will be subject to first mortgage liens in favor of the trustee and . Bondhold.ers and a pledge of the rentals due tinder the Lease from the Corporation to the City; the right, being reserved in the trustee to foreclose the mortgage in the event of.. a. failure by the 458 City to renew the Lease or to make the required annual rental payments due there- under and the resulting default in the payment of the principal and interest on the Bonds; NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: SECTION 1. City of Paducah Public Improvement Corporation (the "Cor- poration"), Cor-poration"), the agency and instrumentality of the City of Paducah, Kentucky (the "City") . is hereby directed to forthwith sell and issue $825,000 principal amount of "City of Paducah Public Improvement Corporation First Mortgage Revenue Bonds, Series of 1980", to be dated January 1.' 1980 (the "Bonds") , in the form and in accordance with the documents referred to in the preamble hereto, all of which documents shall be subject to the approval of the Mayor and Corporate Counsel. The maturity schedule, security provisions, redemption provisions, designation of trustee, form of bonds, conditions of sale and all other terms and provisions incident to said Bonds shall be in accordance with the provisions set forth in said documents hereinbefore and hereinafter further referred to and described. SECTION 2. The City hereby specifically approves the issuance, sale and delivery by the Corporation of the Bonds, the application of the proceeds thereof to the construction of the Fire Station and Public Works Garage (the "Projects") and other expenses in connection with the financing of the Projects. SECTION 3. It is acknowledged that the Bonds are to be issued by the Corporation, acting as the agency and instrumentality of the City, for the purpose of providing for permanent financing for said Projects. SECTION 4. The City hereby expressly approves and directs the execution by the Corporation of a certain "Mortgage Deed of Trust" to a bank as trustee; pro- vided, however, that said approval is conditioned upon the review and approval of the definitive document constituting said Mortgage Deed of Trust by the Mayor and Corporate Counsel. The provisions of said Mortgage Deed of Trust shall convey in trust to `said trustee the site of the Projects, shall assign all income, revenues and rights of the Corporation arising under the Contract, Lease and Option; all the same to be done for the security of those who shall become the holders of the Bonds. The City hereby expressly approves and directs the execution by the Mayor and City Clerk of a certain "Contract, Lease and Option"; subject to the approval of the Mayor and Corporate Counsel. Said Contract, Lease and Option contemplates the lease by the City from the Corporation of the Projects for an initial period ending December 31, 1980, with exclusive options to the City to renew the Lease from year to year for one year at a time upon the terms and conditions therein expressed. SECTION 5. The .Corporation, its Board of Directors and Officers are hereby authorized and requested by the City to continue and carry out any and all necessary, desirable or appropriate actions to implement the financing of the Projects as evidenced by the financing plan permitting the issuance of the Bonds. SECTION 6. If any section, paragraph, clause or provision of this Ordi- nance shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the remaining provisions. SECTION 7. All ordinances, resolutions, orders or parts thereof in con- flict with the provisions of this Ordinance are, to the extent of such conflict, hereby repealed. This Ordinance shall become effective ten days following its passage and approval on its second reading; said Ordinance shall be published in full. Given first reading on December 10, 1979. Passed and adopted on December 26, 1979. Mayor` 459