HomeMy WebLinkAbout2011-7-7828ORDINANCE NO. 2011-7-7828
AN ORDINANCE APPROVING A REVOLVING LINE OF CREDIT
FROM FNB BANK, INC. IN THE PRINCIPAL AMOUNT NOT TO EXCEED
$300,000; 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 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 to the
construction of two (2) new structures within the Fountain Avenue Neighborhood; and
WHEREAS, the City desires to finance a portion of its construction costs through
draws on the Revolving Line of Credit from FNB Bank, Inc.
BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY:
SECTION 1. Recitals and Authorization. The City hereby approves a Revolving
Line of Credit from FNB Bank, Inc. in the principal amount not to exceed $300,000 for a term of
one (1) year, with interest thereon at the fixed rate of 3.35% per annum, 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 to construct two (2) new structures within the Fountain Avenue 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 FNB Bank, Inc., and to do any other act which is necessary to
consummate the line of credit from FNB Bank, Inc.
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 construct
two (2) new structures within the Fountain Avenue 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: QQ
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Tammara S. Brock, City Clerk
Introduced by the Board of Commissioners, June 28, 2011
Adopted by the Board of Commissioners, July 12, 2011
Recorded by Tammara S. Brock, City Clerk, July 12, 2011
Published by the Paducah Sun, July 18, 2011
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