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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 347 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 348 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.