HomeMy WebLinkAboutRes. # 196 McCracken Co. Retirement Center, Inc.346
RESOLUTION N0. 196
A RESOLUTION `OF,_THE.,CITY OF PADUCAH IN THE COMMONWEALTH OF KENTUCKY, AUTHORIZING
EXECUTION OF MEMORANDUM.OF. AGREEMENT PURSUANT TO PROVISIONS OF KENTUCKY REVISED STATUTES
103.200 THRU 103.285, BY AND BETWEEN CITY OF PADUCAH AND McCRACKEN COUNTY RETIREMENT CENTER,
INC., RELATING TO THE CONSTRUCTION AND EQUIPPING OF FACILITIES TO PROVIDE APARTMENT HOUSING FOR
AGED AND ELDERLY CITIZENS OF PADUCAH, KENTUCKY, AND THE ISSUANCE OF INDUSTRIAL BUILDING REVENUE
BONDS OR MULTI-FAMILY HOUSING REVENUE BONDS FOR THE- AGED AND ELDERLY TO FINANCE THE CON-
STRUCTION, ACQUISITION AND EQUIPPING OF SAID FACILITIES.
WHEREAS, McCracken County Retirement Center, Inc., (hereinafter "Center"), has a
mailing address, c/o Connor, Neal & Richmond, 613 Frederica Street, Owensboro, Kentucky, 42301;
and
WHEREAS, Center proposes to undertake a project for the benefit of the aged and
elderly citizens of Paducah, Kentucky, which will consist of the construction and operation,
upon a suitable site to be acquired within Paducah, Kentucky, of an apartment complex con-
taining approximately 100 units which, in addition to the aforesaid residential units, shall
provide meals, medical care as needed, recreational and social facilities and programs,
adequate for residents, .and otherwise be designed to. provide a high quality residential
went for it,s aged and elderly residents in exchange for an adequate rental sum to be paid by
those residents; and
WHEREAS, it has been determined that the construction of the aforedescribed project
under a Loan Agreement pursuant to KRS 103.200 thru 103.285 will provide high quality
residential accommodations and will therefore both directly and indirectly benefit all of the
citizens of Paducah, Kentucky, and will therefore tend to accomplish the purposes of the
above-mentioned statutes and will be in the public interest and welfare and will in addition to
the foregoing benefits, provide additional permanent employment opportunities for the residents
and inhabitants of Paducah, Kentucky; and
WHEREAS, the City is authorized under and by virtue of the provisions of the con-
stitution and laws of the Commonwealth of Kentucky, including particularly, KRS 103.200 thru
103.285, to cause to be acquired by purchase, construction or otherwise, to make available to
the corporation unde,r..a Loan Agreement, the proposed facilities, to be constructed upon the
Corporations' property and in consideration for such payments and upon such terms and con-
ditions as the City may deem desirable; and
WHEREAS, the City is authorized by KRS 103.200 thru KRS 103.285 to issue Industrial
Building Revenue Bonds or Multi-Family Housing Revenue Bonds for the aged and elderly for the
purpose of defraying the cost of the construction and equipping of the project; and
WHEREAS, the Center has proposed that if the City will agree to authorize the
issuance of Industrial Building Revenue Bonds or Multi-Family Housing Revenue Bonds for the
aged and elderly in an amount not less than $6,000,000.00 nor more than $7,500,000.00 pursuant
to the aforecited statutes, the Corporation will construct the project and enter into a Loan
Agreement pursuant to the pertinent sections of said Kentucky Revised Statutes under which
Agreement the Center would make payments sufficient to pay all principal of premiums, if any,
and interest upon the bonds, together with all trustee's and/or paying agent's fees in con-
nection with such bonds as same shall become due and payable; and
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WHEREAS, Center. has agreed to pay unto City any and all ad valorem property taxes
which might be assessed by reason of its ownership or construction of improvements upon
Center's property; and
WHEREAS, it is deemed necessary and advisable that a Memorandum of Agreement
between the City and the Center be executed setting forth the agreements of the parties with
respect. to the project, the issuance of the bonds to defray the cost thereof, and the terms
and conditions of such loan.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY OF PADUCAH, KENTUCKY:
SECTION 1. It is hereby found, determined and declared that: (i) the recitals
hereinabove set forth, which are incorporated herein by reference, are true and correct; (ii)
the total amount of money necessary to be provided for the project is not less than
$6,000,000 nor more than $7,500,000, the exact amount to be determined by a feasibility study
to be conducted by a firm qualified to conduct same, which firm will be selected by the
Corporation; (iii) the maximum rate of interest on said bonds shall be 15%; (iv) the
inclusion of sufficient safeguards in the Loan Agreement and related documents will insure
that all money provided by the City from the proceeds of the sale of the bonds will be
expended by way of direct outlay or reimbursement solely and only for the purposes of the
project; (v) the Center will pay any and all ad valorem property taxes which might be
assessed by reason of its ownership or construction of improvements upon Center's property.
SECTION 2, It is hereby further found, determined and declared that the cost of
the construction of the project will be paid out of the proceeds of the sale of the bonds;
that none of the bonds will be general obligations of the City and that neither the bonds nor
the interest thereon shall in any way or form constitute or give rise to any, pecuniary
liability on the part of the City or any charge against its general credit or~taxing power,
but that the bonds and the payment of interest thereon shall be secured and payable solely
and only by pledged payments to be paid by the Center under the Loan Agreement; and that no
part of said cost shall be payable out of any general funds, assets, properties or other
contributions of the City, either now or in the future.
SECTION 3. The selection of firms, entities or persons to provide various services
with regard to the issuance of the bonds, including, but not limited to, acting as Bond
Counsel, providing general legal services, performing the feasibility study, and serving as
Trustee Bank, shall be made by the Center as shall the selection of firms, corporations,
entities and persons for the actual design, construction, equipping and operating of the
project.
SECTION 4, It is understood and agreed that this Resolution shall be effective and
have full force of law from the time of its adoption and publication. It is further agreed
that the Center may, in reliance upon said Resolution, take such steps as it deems necessary
and proper to begin the project but that the City shall not be liable for any expenses
incurred by the Center prior to the issuance of the bonds shall not be obligations of the
City and the City shall bear no expense nor suffer any liability in connection with the
project or the issuance of the bonds.
SECTION 5. The Mayor of the City of Paducah, Kentucky, is hereby authorized and
directed to enter into a Memorandum of Agreement on behalf of the City with the Center
wherein the particular provisions, items and safeguards shall be specifically set forth as
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deemed advisable by the parties. In entering into such agreement or agreements, as the case
may be, the Mayor of the City of Paducah, Kentucky, shall rely upon the advice of the City
Attorney and shall consult with him from time to time prior to entering into such agreement or
agreements. The-Center shall be responsible for reimbursing the City, from loan proceeds, for
the reasonable amount of legal frees so incurred.
SECTION-6: All resolutions, ordinances or parts thereof in conflict herewith are, to
the extent of such conflict, hereby repealed.
SECTION 7. This Resolution shall be in full force and effect from and after its
adoption and approval as provided by law.
- -- - JOE VITERISI
Mayor
ATTEST:
Louise McKinney
City Clerk
Passed by the Board of Commissioners May 8, 1984
Recorded by Louise McKinney., City Clerk, May 8, 1984.