HomeMy WebLinkAboutIssuance of Airport Lease Obligations_ _.. -~.:_: -r r L ~ . ~ ~_~.a..y
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RESOLUTION NO. 587 1/2
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
)UCAH, KENTUCKY, AUTHORIZING THE ISSUANCE OF AIRPORT LEASE
~IGATIONS FOR THE BENEFIT OF THE PADUCAH AIRPORT
ZPORATION FOR THE PURPOSE OF FINANCING AN AIRPORT
r~aCILITIES PROJECT; UNDERTAKING THE ISSUANCE OF AIRPORT
LEASE REVENUE OBLIGATIONS TO FINANCE THE PROJECT;
AUTHORIZING THE EXECUTION OF A MEMORANDUM OF AGREEMENT
RELATING TO THE PROJECT AND THE OBLIGATIONS; AND TAKING
OTHER PRELIMINARY ACTION
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A. The City of Paducah
Kentucky
(the "City")
a
,
,
,
municipal corporation and political subdivision of the
Commonwealth of Kentucky (the "Commonwealth"), is authorized
by Kentucky Revised Statutes Chapters 58, 183 and 103 to
issue its revenue bonds for the purpose of defraying the
cost of acquiring, constructing, maintaining, expanding,
financing or improving airport facilities and air navigation
facilities.
B. The City has been asked to consider issuing
its airport lease revenue obligations in the form or one or
more notes or bonds (the "Bonds") for the benefit of the
Paducah Airport Corporation, a Kentucky nonprofit ~L~"
corporation, or its successor (the "Corporation"), in the
aggregate principal amount of not to exceed $500,000 to
finance the construction and equipping by the Corporation of
a building (the "Project"), to include space for a hangar
and office space directly related to the day-to-day
operations of the Project, at a site in the northern part of
the Barkley Regional Airport (the "Airport")
a public
,
airport facility administered by the Corporation. The
Project would be owned by the City and County of McCracken,
leased to the Corporation and offered for sublease to
private fixed base operators which provide services that are
directly related and essential to the servicing of aircraft,
enabling aircraft to take off and land or transferring
passengers or cargo to or from aircraft.
C. The City wishes to indicate its present
intention to issue the Bonds to finance all or a portion of !„~
the costs of the Project and desires to authorize the ~~
Corporation to proceed with the Project and be reimbursed
from the proceeds of the Bonds for any costs of the Project
incurred prior to the issuance of the Bonds.
D. As security and source of payment for the
Bonds, the City may enter into a lease agreement (the
419
"Lease") with the Corporation relating to the Project and
the Bonds, whereby the Corporation. will lease the Project
from the City and make payments to the City under the Lease
sufficient to provide for the payment of the principal of,
premium, if any, and interest on the Bonds and certain other
costs of the City incurred in connection with the Bonds and
the Project.
'~ E. It is deemed necessary and advisable that a
Memorandum of Agreement be executed setting forth the
preliminary agreements of the City and the Corporation
relating to the Bonds and the Project.
NOW, THEREFORE, BE IT RESOLVED by the City
Commission of the City of Paducah, Kentucky, as follows:
1.* The City hereby undertakes to issue its Bonds
in the aggregate principal amount of not to exceed $500,000,
to sell the Bonds upon a negotiated basis and to use the
proceeds of the Bonds to defray the costs of constructing
and equipping the Project.
2.* The Mayor of the City is hereby authorized and
directed to execute, and the City Clerk of the City is
hereby authorized and directed to attest under the seal of
the City, a Memorandum of Agreement between the City and
Corporation setting forth their preliminary agreements
respecting the Bonds and the Project, substantially in the
form attached hereto and submitted to this meeting of the
City Commission.
3.* The City assumes no responsibility for the
design, implementation or completion of the Project, all of
which shall be the responsibility of the Corporation.
4.* The Bonds shall not be a general obligation or
indebtedness of the City within the meaning of the
Constitution and laws of the Commonwealth, but shall be
payable solely from the payments to be made by the
Corporation to the City pursuant to the Lease and any
security pledged therefor, which collateral security may
include the Project.
5.* Bond Counsel designated in the Memorandum of
Agreement is authorized and directed on behalf of the City
to take any legal action necessary and appropriate in
connection with the authorization, issuance and sale of the
~ Bonds. The City Attorney is authorized and directed to
.~
assist Bond Counsel in this connection.
6.* This resolution shall be in full force and
effect from and after its adoption as provided by law.
~'
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420
INTRODUCED, READ AND ADOPTED at a duly convened
meeting of the City Commission held on April 9, 1991, signed
by the Mayor as evidence of her approval, attested under
seal by the City Clerk, ordered to be filed. and indexed and
declared to be in full force and effect. according to law.
GERRY B. MONTGOMERY
Mayor
~,
Adopted by the Board of Commissioners April 9, 1991
Recorded by Lenita Smith, City Clerk, April 9, 1991
mo/bond
ATTEST:
Lenita Smith
City Clerk
SEAL:
*With the understanding that this is not a firm commitment
on the part of the City of Paducah and is subject to review
and approval by the City of final documentation. ,