HomeMy WebLinkAbout2001-12-6464217
ORDINANCE NO. 2001-12- &V64-
AN
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AN ORDINANCE AUTHORIZING THE MAYOR TO
EXECUTE AN ESCROW AGREEMENT FOR THE BENEFIT OF THE
PADUCAH-MCCRACKEN COUNTY INDUSTRIAL AUTHORITY
WHEREAS, on October 30, 2001, the City Commission enacted an Ordinance
bearing number 01-10-6449 wherein the City Commission authorized the mayor to procure an
irrevocable stand by letter of credit for the benefit of the Paducah -McCracken County
Industrial Development Authority issued to the Kentucky Economic Development Finance
Authority to secure the promise of the Paducah -McCracken County Industrial Development
Authority to complete and sell a shell building in the Info Age Park by no later than
December 31, 2004; and
WHEREAS, to procure such letter of credit, the City will have to incur a charge
of between $9,000.00 and $18,000.00; and
WHEREAS, in lieu of a letter of credit, the Kentucky Economic Development
Finance Authority will accept a pledge of cash collateral pursuant to an escrow agreement;
and
WHEREAS, it is the consensus opinion of the City Commission that the
establishment of such an escrow agreement would save the City substantial costs otherwise
incurred for the procurement of a letter of credit.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF PADUCAH,
KENTUCKY, AS FOLLOWS:
Section 1. The City Commission hereby authorizes the establishment of an
escrow agreement with Kentucky Economic Development Finance Authority for the benefit
of the Paducah -McCracken County Industrial Development Authority wherein the City will
pledge, as collateral, the sum of $300,000.00. The purpose of the escrow agreement shall be
to secure the promise of the Paducah -McCracken County Industrial Development Authority to
complete and sell a shell building in the Info Age Park by no later than December 31, 2004.
In such regard, the mayor is hereby authorized to execute an escrow agreement which carries
out such stated purpose.
Section 2. This Ordinance shall be
effective upon summary publication
ATTEST:
Lenita Smith, City Clerk
on two separate days and will become
Mayor
Introduced by the Board of Commissioners, November 27, 2001
Adopted by the Board of Commissioners, December 11, 2001
Recorded by Lenita Smith, City Clerk, December 11, 2001
Published by The Paducah Sun, /a—/7-0/
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