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Home My WebLink About2004-4-678852643/Ord IntenttoLease/52793 W ad ORDINANCE NO. 2004-4-6788 AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY APPROVING A LETTER OF INTENT TO LEASE AMONG THE CITY OF PADUCAH, KENTUCKY, THE COUNTY OF MCCRACKEN, KENTUCKY AND THE PADUCAH MCCRACKEN COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY WITH RESPECT TO A PUBLIC PROJECT, AND AUTHORIZING THE EXECUTION OF VARIOUS DOCUMENTS RELATED TO SUCH LETTER OF INTENT TO LEASE. WHEREAS, the City of Paducah, Kentucky (the "City") has previously determined, and hereby further determines, that is a public purpose to reduce unemployment in the City, to increase the City's tax base, to foster economic development within the City and to promote the development of a skilled workforce, all to the benefit of the citizens and residents of the City; and WHEREAS, the City has further determined that it is necessary and desirable to accomplish such public purposes that the City proceed at this time with the acquisition, construction and installation of an approximately 100,000 square foot facility (the "Project"), which Project is to be jointly owned by the City and the County of McCracken, Kentucky (the "County") and is to be financed in part on an interim basis through the issuance of the City's General Obligation Bond Anticipation Notes, Series 2004 (the "Notes"); and WHEREAS, the Notes are to be retired with the proceeds of the City's General Obligation Bonds, Series 2004 (the "Bonds") to be subsequently issued, which Bonds are to be secured in part through a general obligation note or other obligation of the County of McCracken, Kentucky (the "County") in a principal amount equal to fifty percent (50%) of the principal amount of Bonds to be issued by the City; and WHEREAS, the Notes and Bonds are to be further secured by all amounts received from leasing the Project to the Paducah McCracken County Industrial Development Authority (the "Authority") for a term equal to the term of the Bonds; and WHEREAS, in order to provide for the issuance of the Notes and Bonds and to secure same as aforesaid, it is necessary and desirable that the City now authorize a Letter of Intent to Lease among the City, the County and the Authority with respect to the Project. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: Section 1. Recitals and Authorization. The City hereby approves the Letter of Intent to Lease among the City, the County and the Authority (the "Letter of Intent to Lease") in substantially the form attached hereto as Exhibit A and made part hereof. It is hereby found and determined that the Project identified in the Letter of Intent to Lease is public property to be used for public purposes. It is further determined that it is necessary and desirable and in the best interests of the City to enter into the Letter of Intent to Lease for the purposes therein specified, and the execution of the Letter of Intent to Lease is hereby authorized and approved. The Mayor of the City is hereby authorized to execute the Letter of Intent to Lease, together with such other agreements, instruments or certifications which may be necessary to accomplish the transaction contemplated by the Letter of Intent to Lease with such changes in the Letter of Intent to Lease not inconsistent with this Ordinance and not substantially adverse to the City as may be approved by the official executing the same on behalf of the City. The approval of such changes by said official, and that such are not substantially adverse to the City, shall be conclusively evidenced by the execution of such Letter of Intent to Lease 1 by such official. Section 2. 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 3. Compliance With Open Meetings Laws. This City Commission 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. E-010, 0, �.�.....ni.,.�ww.�ma mmYllNmF�tlYYle�x.u�eW imw�tbf Ul Ie,ILL mh�lvez�+Jmalxiilil4�xrnmemlhuik,. .., •.. e m�n��itllkmYrnN ++.'..a. '.'- nn „-,.�-,. .. L...w.wmuyve tn�m.d_. illnl�mswJ�,. � ,.....� ,.0 52643/Ord.intenttoLease/52793 Ward Section 4. 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 5. Emergency. Pursuant to KRS 83A.060, the City Commission suspends the requirement of a second reading and publication of this Ordinance. As grounds therefor, the City Commission does hereby declare an emergency to exist as to the execution of the Letter of Intent to Lease. Specifically, any delay in the execution of the Letter of Intent to Lease could adversely impact the Project. Section 6. Effective Date. This Ordinance shall become effective upon the first reading of this Ordinance. ATTEST: ��IT I A" Tammara S. Brock, City Clerk Introduced and adopted by the Board of Commissioners, April 5, 2004 Recorded by Tammara S. Brock, City Clerk, April 5, 2004 Published by The Paducah Sun, April 12, 2004 \ord\Infiniti-Letter of Intent EN" AN 90 EXHIBIT A March 26, 2004 MAYOR BILL PAXTON CITY OF PADUCAH, KENTUCKY P O BOX 2267 PADUCAH KY 42002-2267 JUDGE DANNY ORAZINE 301 SOUTH SIXTH STREET PADUCAH KY 42003 Re: Capital Lease Agreement involving Tract D and Tract E in the Industrial Park West between the City of Paducah and County of McCracken ("Landlord") and Paducah McCracken County Industrial Development Authority ("Tenant" . Gentleman: This letter of intent ("Letter of Intent") shall serve as a statement of the intent of Paducah McCracken County Industrial Development Authority (hereinafter referred to as "Tenant") to lease Tract D, consisting of 12 acres and Tract E, consisting of 7.2207 acres in the Industrial Park West from the City of Paducah, Kentucky and the County of McCracken, Kentucky, upon the terms and conditions stated below: Premises: Tract D, consisting of 12 acres and Tract E, consisting of 7.2207 acres in the Industrial Park West Commencement Date: The effective date of the Capital Sublease Agreement by and between Tenant and Infiniti Plastic Technologies, Inc., Lease Term: Twenty (20) years Base Rent: $1.00 plus any rentals that Tenant shall receive from subleasing the Premises and improvements thereon to Infiniti Plastic Technologies, Inc., plus any rentals received from any other party to whom the Premises may be subleased. Triple Net Lease: All operating expenses incurred in the operation and occupancy of the Premises shall be the responsibility of Tenant. Permitted Use: Commercial and Industrial Development Option To Purchase: Tenant may purchase the Premises at the end of the term for $1.00 or during the term of the lease for the sum equal to the payoff of the unpaid balance of the indebtedness Landlord has incurred including penalties, fees and other costs. Sublease Agreement: Tenant shall be subject to such other terms and conditions as set forth in the proposed Capital Sublease Agreement to be entered into by and between Tenant and Infiniti Plastic Technologies, Inc. Should this Letter of Intent be acceptable, please sign where designated below and return it to me. Telecopy immediately followed by overnight delivery of the original signed acceptance will be acceptable. This Letter of Intent sets forth the intention and understanding of the parties with respect to the matters specified herein, and the parties agree to work in good faith to memorialize such intentions and understanding in a formal lease and other documents referenced herein. It is the .,:u�.,,�s :��musm «w.M w»»..,.. xiaau�.�...0 e.�+x: v,Wklm..uemt 4k 1... LLL n:V<••ei�u>,d�n4sfm. -., nrmmme.i.i�Aec� .. io�uvu:u�� mudmuim�ito�exem wn strr.an�d�, �uk ��,,. e u. o emmex�. �wel 91 Mayor Bill Paxton Page 4 March 26, 2004 intent of the parties that this Letter of Intent shall constitute a legal offer or acceptance. This Letter of Intent shall be binding on the parties hereto and their successors and assigns, and shall serve at the agreement between the parties until the execution of a formal lease agreement, and except by mutual consent, shall not be amended or changed. Sincerel. 0y, PADUCAH McCRACKEN COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY Title: AGREED TO AND ACCEPTED BY: CITY OF PADUCAH, KENTUCKY Signature Mayor Bill Paxton Date: COUNTY OF McCRACKEN, KENTUCKY Signature: Judge Executive Danny Orazine Date: 52296