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HomeMy WebLinkAboutOrdinances Book 15, Page 760, No Ordinance Number760 ORDINANCE AMENDING AN ORDINANCE PROVIDING FOR THE ACQUISITION BY THE CITY OF PADUCAH, KENTUCKY, OF A BUILDING SUITABLE FOR USE AND OCCUPANCY FOR INDUSTRIAL PURPOSES, INCLUDING APPURTENANCES THERETO AND OF THE SITE UPON WHICH SUCH BUILDING IS LOCATED, IN ORDER THAT SAID CITY MAY BE PROVIDED WITH FACILITIES FOR INDUCING INCREASED PRIVATE INDUSTRY IN THE COMMUNITY AS A MEANS OF AVOIDING AND CONSEQUENCES OF UNEMPLOYMENT AND TO PROMOTE THE GENERAL WELFARE OF SAID CITY, AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF INDUSTRIAL BUILDING REVENUE BONDS IN CONNECTION THEREWITH WHICH WILL BE PAYABLE SOLELY AND ONLY FROM REVENUES AND RENTAL INCOME FROM SAID INDUSTRIAL BUILDING AND AUTHORIZING THE EXECUTION OF A CONTRACT OF LEASE AND RENT WHEREBY SAID BUILDING WILL PRODUCE REVEN AND RENTAL INCOME SUFFICIENT TO PAY THE INTEREST ON AND PRINCIPAL OF SAID REVENUE BONDS AS THE SAME BECOME DUE WHEREAS, the City of Paducah in order to avoid the consequences of unemployment and to encourage the increase of industry and maintain a sound balance between agriculture, commerce and industry by its Board of Commissioners passed and adopted an ordinance on August 3, 1965 and, WHEREAS, in order to clarify the terms of such ordinance passed and adopted on August 3, 1965 it is necessary to amend such ordinance. NOW THEREFORE,' be it ordained by the Board of Commissioners of the City of Paducah, Kentucky as follows: SECTION 1. That for the purposes of clarification the title of the ordinance passed and adopted by the Board of Commissioners of the City of Paducah on August 3, 1965, is hereby amended to read as follows: AN ORDINANCE PROVIDING FOR THE ACQUISITION BY THE .CITY OF PADUCAH, KENTUCKY, OF A BUILDING SUITABLE FOR USE AND OCCUPANCY FOR INDUSTRIAL PURPOSES, IN- CLUDING APPURTENANCES THERETO AND OF THE SITE UPON WHICH SUCH BUILDING IS LOCATED, IN ORDER THAT SAID CITY MAY BE PROVIDED WITH FACILITIES FOR IN- DUCING INCREASED PRIVATE INDUSTRY IN THE COMMUNITY AS A MEANS OF AVOIDING THE CONSEQUENCES OF UNEMPLOY- MENT AND TO PROMITE THE GENERAL WELFARE OF SAID CITY, AUTHORIZING AND PROVIDING FOR THE ISSUANCE OF INDUS- TRIAL BUILDING REVENUE BONDS IN CONNECTION THEREWITH WHICH WILL BE PAYABLE SOLELY AND ONLY FROM REVENUES AND RENTAL INCOME FROM SAID INDUSTRIAL BUILDING AND AUTHORIZING THE EXECUTION OF A CONTRACT OF LEASE AND RENT WHEREBY SAID BUILDING WILL PRODUCE REVENUES AND RENTAL INCOME SUFFICIENT TO PAY THE INTEREST ON AND PRINCIPAL OF SAID REVENUE BONDS AS THE SAME BECOME DUE, ALL IN ACCORDANCE WITH THE PROVISIONS OF SECTIONS 103.200 THROUGH 103.285 OF KENTUCKY REVISED STATUTES. SECTION 2. That Section 1 of such ordinance is hereby amended to read as follows: Section 1. That in order to promote the general welfare of the City of Paducah, Kentucky, and its inhabitants by providi opportunities for permanent employment there shall be and there is hereby authorized to be acquired an existing buildine suitable for use and occupancy for industrial purposes and the appurtenances thereto and the site upon which such building and appurtenances are located, here- inafter described. It is hereby found and declared that the acquisition of said site and building pursuant to the 761 provisions of Sections 103.200 through 103.285 of Kentucky Revised Statutes, is for a public corporate purpose and that the leasing thereof to Reliance Diecasting Company, as hereinafter provided, is necessary for a solution of public problems as described in the preamble hereto. Said building and site, as hereinafter more particularly described, together with all improvements thereto and extensions thereof, are hereinafter sometimes referred to as the "Project," Section 3. That Section 8 of such ordinance. is hereby amended to read as follows: Section 8. That said Project shall be acquired and opened for use and occupancy by Reliance Diecasting Corporation as expeditiously as may be and shall., so long as any of the revenue bonds hereby authorized are outstanding, be operated and maintained as a revenue-producing undertaking. It is hereby represented that said Project will be acquired and opened,for use on or before August 1, 1965, or as soon thereafter as possible and is located upon a tract of land situated in McCracken County, Kentucky, described as follows: Beginning at a stake on the South side of the Paducah- Hinkleville Gravel Road where a line known as Allen Lane intersects said road, said beginning point.being the northwest corner of the 50 acre tract of land out of which this tract is carved runs thence with the East line of said line south 3 degrees east 633 feet to a post in the north line of the Paducah -Illinois Railroad Company's right-of-way; runs thence with the north line of said railroad.right-of-wav south 70 degrees east to a stake in the west line of Warren Avenue where said point intersects the north.line of said right-of-way as shown by plat of same dated September 21, 1950, as made by H. F. Henson, Surveyor; thence north 3 degrees west a distance of approximately 71L feet to a stake in the south line of the Paducah-Hinkleville Gravel Road; thence south $L• degrees west and with the south line of said Paducah-Hinkleville Gravel Road a distance of 375 feet to the point of beginning. Being the same land conveyed to Big Burley Realty, In- corporated, by James E. King and others, by deed dated July 9, 1958, and of record in Deed Book 397, page 190, in the McCracken County Court Clerk's office. It is the declared intention of the City to lease such Project to Reliance Diecasting Company for an extended period of years and a Contract of Lease and Rent hereinbefore referred to the form of which shall provide substantially as is provided in Exhibit A filed in the office of the City Clerk of the City prior to the time of the presentation of this ordinance to the Board of Commissioners; provided, however, that the Conditional Sale Contract dated May 1, 1965, between Rupert Diecasting Company (the Guarantor under such Contract of Lease and Rent) and Reliance Diecasting Company (the Lessee under such Contract of Lease and Rent) filed in the office of the City Clerk and marked as Exhibit B, shall be considered as having its terms incorporated into such Contract of Lease and Rent, and it is the declared intention of the City to treat such Conditional Sales Contract as being incorporated into such Contract of Lease and Rent as fully as if copied therein. The Mayor is hereby authorized to execute and acknowledge said Contract of Lease and Rent for and on behalf of said City, and the City Clerk is hereby authorized to attest same and affix thereto the corporate seal of said City. Said Contract of Lease and Rent and the proceeds thereof, including all monies received under its terms and conditions,.are hereby declared to constitute revenues and rental income from said Project and are hereby ordered paid into the "Industrial Building Revenue Bonds Sinking Fund," as hereinafter created and provided. In said Contract of Lease and Rent the City has agreed that Reliance Diecasting Company, may at its option remit the required rental payments thereunder direct to the Trustee herein by check -or checks payable to the order of said Trustee for deposit in said Sinking Fund, with advice to the City of such remittance, and such pro- vision is hereby expressly approved. Said City of Paducah hereby covenants and agrees that so long as any of the revenue 762 bonds hereby authorized are outstanding it will preserve and enforce said Contract of Lease and Rent and such Conditional Sale Contract incorporated by reference therein in substantially the form as hereinbefore identified and will not permit any change or variation in the terms of either of such instruments detrimental to the security and cource of.payment therefrom of the revenue bonds hereby authorized. Without limiting the generality,of the foregoing, the City covenants and agrees that it will not permit any change or variation in the terms of the guaranty of Rupert Diecasting Company, a Missouri corporation, as set forth in such Contract of Lease and Rent. If for any reason Reliance Diecasting Company causes to use and occupy said Project in accordance with the terms of said; Contract of Lease and Rent, then the City covenants and agrees to cause said Project to be used and occupied by any other tenant or tenants that may be determined to serve the general welfare of said City and that will agree to pa}r at least like rentals and otherwise carry out the obligations of said corporation as expressed therein. All revenues and rental income from said Project, together with any future extensions'and improvements thereto, shall be kept separate and apart from all other funds of the City and shall be paid directly to such Trustee for the account of the City. There shall be and there is hereby created a•special fund to be known as the "Industrial Building Revenue Bonds Sinking Fund" (hereinafter sometimes called the "Sinking Fund"), into which there shall be set apart and paid each month from the revenues and rental income from the Project sufficient amounts to pay the interest on the revenue bonds as the same becomes due and to create a sinking fund to retire the bonds at or prior to maturity. All sums received -as accrued interest shall be paid into the sinking Fund, and in addition it is hereby determined and agreed thar commencing August 1, 1965, there shall be set apart and paid into the Sinking Fund from the revenues and rental income from the ,Project or -from the excess bond proceeds remaininrT after acquisition of the Project, in equal monthly installments, the following minimum annual amounts: During the Rental, During the Rental Total Year Ending Total Annual Year Ending Annual July 31 Rental July 31 Rental 1966 $43,676.67 1975 $3$,2$0.00 1967 45,956.67. 1976 38:840.00 1968 46,056.67 1977 3$,2$0.00 1969 46,096.67 1978 3$,660.00 •1970 46,076.67 1979 37,920.00 1971 38,320.00 1980 38,120.00 1972 38,180.00 1981- 37,976.65 1973 3$,.980.00 1982 -0- 1974 38,660.00 The foregoing schedule of minimum annual amounts to be paid into the Sinking Fund are stated on the assumed basis that the revenue bonds hereby authorized are sold to bear an interest rate of 6% per annum and -in order to build up within five years from August 1, 1965, a reserve equal to.the average annual principal and interest requirements on such bonds, based upon such assumed interest rate. Each annual minimum payment shall be automatically increased or decreased by the difference between (1) the actual interest and principal requirements on such bonds from time to time outstanding and in order to maintain such reserve, in event less than $400,000 of bonds of this issue are offered for sale and sold, if in order to accomplish the purposes set out herein it is not necessary to issue the full $400,000 of bonds, and/or such bonds are sold to bear interest at a rate or rates other than such assumed rate, and (2) the interest and principal requirements computed on the basis of the sale of $400,000 of bonds at 6% per annum plus such debt service reserve each year during the first five years as aforesaid,.computed on the basis of such 6% per annum interest rate. Such reserve equal to the average annual principal and interest requirements on such bonds shall be established and maintained at all times after August•1, 1970., and shall be used only to pay the interest and principal on such bonds if for any reason there should be no other funds available for such purpose. If for any reason the amount of such reserve should have to be used to pay such interest on and principal of such bonds, such reserve shall be re-established from the first revenues of such project after the payment of the other amounts which are required to be paid into the Sinking Fund. 763 Notwithstanding any of the .other provisions herein contained, any and all.amounts which may be paid into 'said Sinking Fund from any surplus left.in.the acquisition fund after the completion of the -acquisition of such project shall be credited to the amounts which.would otherwise be d'ue from the .Company, the initial lessee, and shall reduce the -amounts of such rental payments to the extent of such "surplus in such Sinking Fund. Notwithstanding any of the other provisions herein contained, no further payments -need be made into said Sinking Fund when and so long as the amount therein is sufficient to retire all of,the revenue bonds then outstanding payable therefrom,'plus the amount of interest due and thereafter- to become' due on said revenue bonds on and prior.to such retirement. All of the funds provided to be paid into the Industrial Building Revenue Bonds Sinking Fund to meet the minimum payments into said Sinking -Fund, as hereinbefore provided, are hereby pledged and ordered used for that purpose, and all monies transferred and paid into said Sinking Fund or provided -to be paid into said Sinking Fund shall be used solely and only, and are hereby pledged for the purposes of paying the'principal of and interest on bonds hereby authorized. The amounts deposited in said Sinking Fund from revenues and rental'income during any year immediately prior to August 1 may to the extent required for interest and principal payments due on or before the following August 1, be invested in direct obligations of the United States of America having a maturity date. -or being subject to redemption at the option of the holder not more than one year from the date of investment therein, or August 1, 1982, whichever is earlier.. Any funds in said Sinking Fund in excess of the above provisions shall be invested in direct obligations of the United States of America having a maturity date or being subject to redemption at the option of the holder not more than five years from the date of the investment herein, or August 1, 1982, whichever is earlier, the particular issue, interest rates and maturities of such obligations referred to only in this sentence to be first approved by Reliance Diecasting Company, unless and until a court of competent ,jurisdiction shall rule that the requirement of such approval is unauthorized and invalid. Fluctuation thereafter in the value of any obligations of the United States of America purchased shall not affect the amounts which would otherwise be required to be paid into such Sinking Fund if all of such Sinking Fund has been retained in cash. All such investments, as well as income therefrom, shall be carried to the credit of said Sinking Fund. As and when such funds thus invested maybe needed for the purposes of such Sinking Fund, the Trustee shall cause a sufficient amount of such investments to be sold and converted into cash to the credit of said Sinking Fund. Such Sinking Fund shall be established and kept at all times with such Trustee, to be used exclusively by the Trustee for the payment of the principal of and interest on such bonds. Not less than ten days prior to each interest payment date there shall be withdrawn by the Trustee from the Sinking Fund and made available at the place of payment a sufficient amount to pay the interest and principal, becoming due on such bonds on such succeeding interest payment date. If and when the amount in the Sinking Fund is sufficient to retire all of the revenue bonds then outstanding payable therefrom, plus the amount of interest due and thereafter to become due on and prior to the retirement of such bonds, then such bonds may be called for redemption on the next succeeding redemption date, and funds sufficient to accomplish such redemption shall be withdrawn from the Sinking Fund and made available at the place of payment. There shall also be established and maintained pursuant to the provisions of KRS 103 260(l), a special fund to be known as the Industrial Building Revenue Bonds Depreciation Fund" (hereinafter sometimes called the "Depreciation Fund"). There shall be transferred into such Depreciation Fund from the income of the project remaining after the transfers to the Sinking Fund, as enumerated above, each month, a sum equal to 10% of such balance of income of the Project remaining after such transfers to the Sinking Fund. ?6t: There shall also be established and maintained pursuant to the provisions of KRS 103.260 (1), a special fund to be known as the "Industrial Building Revenue Bonds Operation and Main- tenance Fund" (hereinafter sometime called the "Operation and Maintenance Fund"). There shall be transferred into such Opera- tion and Maintenance Fund from the income of the project re- maining after the transfers to the Sinkinp Fund, as enumerated above, each month a sum equal to 90% of such balance of income of the Project remaining after such transfers to the Sinking Fund. The City covenants and agrees that so lone as any of the revenue bonds hereby authorized are outstanding it will cause said Project to be maintained, operated and insured, and to fix, charge and collect sufficient rentals for that purpose. The City further agrees to establish all funds and to take all action which may be required by KRS 103.200 throuph KRS 103.2$5. Section 4. If any section, paragraph, clause or provision of this ordinance shall be rules by any court of competent .jurisdiction to be invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the remaining provisions. Section 5. All ordinances, resolutions and orders, or parts thereof, in conflict with the provisions of this ordinance are, to the extent of such conflict, hereby repealed. Adopted and approved October 20 1965 (Seal of City) Attest: City lerk CITY OF PADUCAH, KENTUCKY Mayor