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HomeMy WebLinkAboutOrdinances Book 16, Page 602, Ordinance Number 68-5-67ORDINANCE NO. 68-5-67 AMENDATORY BOND ORDINANCE AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, AMENDING AN ORDINANCE ADOPTED ON FEBRUARY 21, 1968, "AUTHORIZING THE ISSUANCE OF ONE MILLION TWO HUNDRED SEVENTY THOUSAND DOLLARS ($1,270,000.00) PRINCIPAL AMOUNT OF CITY OF PADUCAH VOTED PUBLIC FACILITIES BONDS FOR THE PURPOSE OF PROVIDING FUNDS TO ACQUIRE CERTAIN PROPERTY KNOWN ASFOREST HILLS," (1) SO AS TO PROVIDE THAT ALL DATES SPECIFIED THEREIN SHALL BE ADJUSTED CONSISTENT WITH THE DELAY ENCOUNTERED IN THE ISSUANCE OF SAID BONDS, (2) SO AS TO SPECIFY THAT SAID PROJECT WILL BE USED BY THE CITY AS A PUBLIC FACILITY FOR A PUBLIC PURPOSE AND AS A PUBLIC PROJECT, AND (3) SO AS TO PROVIDE THAT ANY LEASE INSTRUMENT IN WHICH THE CITY LEASES SAID PROJECT TO A NONPROFIT TAX-EXEMPT CORPORATION SHALL CONTAIN A PROVI THAT SAID CORPORATION SHALL HAVE FULL AND ABSOLUTE POWER AND DISCRETION TO MANA, SAID PROJECT AS A PUBLIC FACILITY FOR A PUBLIC PURPOSE AND AS A PUBLIC PROJECT AND SO AS TO PROVIDE THAT AFTER ALL PRINCIPAL AND INTEREST ON SAID ONE MILLION TWO HUNDRED SEVENTY THOUSAND -DOLLARS ($1,270,000.00) OF BONDS HAVE BEEN PAID IN FULL, TITLE TO SAID PROJECT MUST BE RECONVEYED FORTHWITH TO THE CIT Y AND THi ANY FUNDS THEN REMAINING FROM THE'PROCEEDS OF SAID BONDS, THE INCOME FROM SAID PROJECT OR THE INVESTMENT OF THE PROCEEDS OF EITHER, SHALL THEN BE REQUIRED TO BE RETURNED TO THE CITY, AFTER WHICH THE CITY SHALL DETERMINE AN APPROPRIATE PUBLIC PURPOSE TO WHICH SAID PROJECT SHALL BE DEVOTED. WHEREAS, the City of Paducah, Kentucky, by Ordinance introduced and given its first reading on February 13, 1968, and given its second reading and adoption on February 21, 1968, provided for the issuance of $1,270,000 principal amount of City of Paducah Voted Public Facilities Bonds for the purpose of acquiring certain property known as ForestHills, acid WHEREAS, said Ordinance provided that the proceeds of said Bonds would be applied toward the costs of acquiring the Forest Hills Project, financing improvements thereto (including the razing of any improvements thereon) and to provide for the initial operation thereof, and WHEREAS, said Ordinance provided that it is the intention of the City that said Project shall be leased by the City to a nonprofit tax-exempt corporation, organized or to be organized and known as "Forest Hills Public Project Corporation," which corporation shall have full and absolute power and discretion to manage the Project," and WHEREAS, said Ordinance provides for the sale of said Bonds after an approving judgment of the McCracken Circuit Court is obtained pursuant to KRS 66.210-220, and 603 WHEREAS, an appropriate suit seeking such judgment was filed by the City in the McCracken circuit Court and is noe pending under the styling of "City of Paducah, Kentucky, vs. Jerry L. Page, et al.," and WHEREAS, it is now deemed advisable that the City take certain action to provide for an adjustment in the date of said Bonds, the maturities thereo , the prior redemption provisions with reference thereto and other similar date and that the City clarify certain points set out therein, by amending said Ordinance as herein provided, NOW THEREFORE, THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, DOES ORDAIN AS FOLLOWS: SECTION 1. ALL DATES SET OUT IN THE PRIGINAL BOND ORDINANCE TO BE ADJUSTED CONSISTENT WITH THE DELAU. In view of the fact that the proceedings for the validating of the $1,270,000 of City of Paducah Voted Public Facilities Bonds authorized in the Ordinance referred to in the preamble hereto, and which Bonds were origin ally specified in said Ordinance to be dated April 1, 1968, have occasioned and will occasion considerable delay in the issuance of said Bonds by the Citi, it is hereby provided that whenever the appropriate validation of said Bonds has been obtained, all dates specified in said Ordinance shall be adjusted to current dates, including the date of the Bonds, the dates applicable to prior redemption, the maturity dates and all other dates specified or contemplated therein, and it is hereby certified that at or prior to the time of the adver- tisement of said Bonds for the receipt of public competitive bids for the purchase thereof, the precise dates with reference to the foregoing will be determined by the Board of Commissioners of the City in a further supplements and/or amended Ordinance. SECTION 2. AMENDMENT OF SECTION 9 OF SAID BOND ORDINANCE ENTITLED "DISPOSITION OF PROCEEDS OF BONDS." That Section 9 of said Bond Ordinance is hereby amended to read as follows (Note: words added or changed are italicized or underlined): SECTION 9. DISPOSITION OF PROCEEDS OF BONDS. That upon the sale, delivery of and payment for said $1,270,000 of Bonds by the successful purchaser, the proceeds of said Bonds shall forthwith and simultaneously be applied as follows: (a) There shall be taken out of the proceeds of said sale and deposited in the Sinking Fund hereinafter created, an amount equal to all accrued interest collected from the successful purchaser of said Bonds, representing accrued interest from the date of the Bonds to the date of delivery of the Bonds. 604 (b) There shall be paid out of such proceeds the fee to which Stein Bros. & Boyce, Inc., Starks Building, Louisville, Kentucky 40202, is entitled under its Fiscal Agency Agreement with the City, for its services as Fiscal Agent in connection with the issuance of said Bonds. (c) The entire remaining porceeds of the sale of said Bonds shall be devoted solely toward the costs of acquiring said Forest Hills Project, financing improvements thereto (including the razing of any improvements thereon) and to porvide for the initial operation thereof. Pending expenditure of such remaining proceeds, same shall be deposited and maintained by the City Treasurer as a sole and separate entity from all other public funds of the City of Paducah in an account which shall be designated as the "Forest Hills Acquisition, Improvement and Opera- tion Account," and all moneys in said fund are hereby set aside, earmarked and pledged exclusively for the purposes authorized by the voters of said City as hereinabove received. The sum of One Million Dollars ($1,000,000.00) shall be taken from the proceeds of the sale of said Bonds and applied immediately toward the purchase price of said Forest Hills Project, under such appropriate closing pro- cedure as shall be determined by the Mayor, with the advice and assistance of Corporation Counsel. (d) It is the intention of the City that said Forest Hills Project shall be leased by the City to a nonprofit tax- exempt corporation organized or to be organized and known as "Forest Hills Public Project Corporation" which corpor- ation shall have full and absolute power and discretion to manage said project, provided such instrument of lease shall contain the provision that at all times said Project must be held and used as a municipal project, as a public facility for a public purpose and as a public project; and said lease must further provide that immediately after all Principal and interest requirements on said $1,270,000 of Bonds shall have been paid in full and said Bonds and coupons shall have been retired, said lease shall terminate 605 and title to said Project shall be in the City free and clear of said lease for further public use, including such possible uses as a hospital, park, recreational area, school, or similar use, and an y funds then remaining from the pro- ceeds of said Bonds, the income from said Project or the in- vestment of the proceeds of either, shall then be required to be returned to the City. (e) Upon the execution of the contemplated lease the entire pro- ceeds of the sale of said Bonds remaining after the payment of the items referred to in subparagraphs (a), (b) and (c) above and the payment of incidental expenses incurred in connection with said purcjase, including expenses incurred in connection with organizing the aforementioned nonprofit tax-exempt corporation, the execution of the lease, etc., shall be paid over immediately to said corporation to be used solely, as required, by it for the cost of financing improvements thereto (including the razing of any improve- ments thereon), and for the maintenance, expense and opera- tion of said Project. So much of said amount as shall have been paid over to said corporation as, in the discretion of said corporation, constitutes surplus shall be secured and/or invested and reinvested in accordance with the provisions of KRS 66.4801 subject to further ordinances of the City. That the City hereby makes the legislative determination that the currently proposed use of said project in revitalizing the particular area in which it is located, in placing same in a rentable condition, in preventing further vandalism, and in razing certain improvements thereon, makes the use of said Forest Hills Project the use of same as a public facility for a public purpose and as aup blit project. SECTION 3. ALL OTHER PROVISIONS OF THE ORIGINAL BOND ORDINANCE READOPTED AND CONFIRMED. That all other provisions of said Bond Ordinance adopted on February 21, 1968, except as specifically amended and supplemented herein, be and the are readopted, ratified and confirmed. 606 SECTION 4. EFFECTIVENESS OF ORDINANCE. That this Ordinance shall be introduced at a meeting of the Board of Commissioners and remain on file for at least one week for public inspectionll in the completed form in which it shall be put at the time of passage and if adopted shall be in full force and effect ten days thereafter. Mayor Introduced by the Board of Commissioners May 15, 1968 Passed by the Board -of Commissioners May 22, 1968 Recorded by Sarah Thurman, City Clerk, May 22, 1968: CERTIFICATE OF CITY CLERK I, SARAH THURMAN, hereby certify that I am the duly qualified and acting City Clerk of the City of Paducah, Kentucky, that the foregoing ordina is a true copy of an Amendatory Ordinance, amending an Ordinance authorizing the issuance of $1,270,000 of City of Paducah Voted Public Facilities Bonds, dated April 1, 1968; that said Amendatory Ordinance was introduced and given its first reading by the Board of Commissioners of said City on May 15, 1968, that it was placed and remained on file in my office for public inspection in that identical completed form until lay 22, 1968, on which date it was given its second reading and final passage and adoption by said Board; that it was published in THE PADUCAH SUN DEMOCRAT on May 28, 1968; and that no petition protesting its passage in accordance with KRS 89.600 was filed with said Board or with me as of June 3, 1968; and that said Amendatory Ordinance has now been recorded and appears as a matter of public record in Ordinance Book 16, page 602, of said City. IN TESTIMONY WHEREOF, witness my signature as City Clerk and the official seal of said City this 3rd day of June, 1968. (Seal of City) Sarah Thurman, City Clerk