HomeMy WebLinkAbout2003-12-6731M.
ORDINANCE 2003-12-6731
AN ORDINANCE AUTHORIZING THE MAYOR TO
EXECUTE A CONSENT AND MORTGAGE
AGREEMENT WITH U. S. BANK, N.A.
WHEREAS, the City has heretofore entered into a 99 year lease agreement
with Four Rivers Center, Inc., a Kentucky nonprofit corporation, with regard to certain
- tracts of real property upon which is located the building commonly known as the "Four
Rivers Center"; and
WHEREAS, Four Rivers Center Board has requested a loan from U.S.
Bank in the amount of Six Million Five Hundred Thousand Dollars ($6,500,000.00), the
proceeds of which will be used to fund the completion of the capital improvements at the
Four Rivers Center and the acquisition of equipment relating thereto; and
WHEREAS, the primary collateral for the loan will be a pledge by Four
Rivers Center of its existing and future multi-year campaign pledges; and
WHEREAS, as additional collateral, U.S. Bank has requested a mortgage
interest against the leasehold and the real property upon which the Four Rivers Center is
located; and
WHEREAS, the existence and continued operation of the Four Rivers
Canter is beneficial to the City, and its residents, by reason of the cultural events which
will be presented at Four Rivers Center, and additionally, by reason of the attraction of
new business and tourism to the City.
KENTUCKY:
NOW, BE IT ORDAINED, BY THE CITY OF PADUCAH,
SECTION 1. The City Commission does hereby approve a mortgage
against the leasehold with regard to the lease which was executed by and between the
City and the Four Rivers Center and a mortgage against the real property upon which the
Four Rivers Center is located, all of which shall serve as security for the loan extended by
i
U.S. Bank to the Four Rivers Center in the amount of Six Million Five Hundred
Thousand Dollars ($6,500,000.00). The Mayor of the City of Paducah, Kentucky, is
hereby authorized and directed to execute any loan document which is necessary to
effectuate same, including but not limited to the consent of any leasehold mortgage or
collateral assignment of lease and the execution of any mortgage agreement against the
619
real property upon which the Four Rivers Center is located. Any act so taken by the
mayor of the City of Paducah, Kentucky, in accordance with this resolution shall be
deemed for and in behalf of the City of Paducah.
SECTION 2. Pursuant to KRS 83A.060, the City Commission suspends
the requirement of a second reading of this Ordinance. As grounds therefor, the City
Commission does hereby declare an emergency to exist as to the execution of the
aforementioned agreements. Specifically, any delay in the execution of the
aforementioned agreements could adversely impact Four Rivers Center's procurement of
the loan from U.S. Bank, and its ability to pay the costs and expenses which have been
and will be incurred in the completion of the construction process.
SECTION 3. This ordinance shall become effective upon the first
Tammara S. Brock, City Clerk
Introduced and Adopted by the Board of Commissioners December 9, 2003
Recorded by Tammara S. Brock, City Clerk, December 9, 2003
Published by The Paducah Sun, December 16, 2003
\ord\mortgage-FOUR RIVERS AND CITY 00048670