HomeMy WebLinkAbout The Ritz Hotel Acquisition and Rehab214
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH,
KENTUCKY, AUTHORIZING THE EXECUTION OF A MEMORANDUM OF AGREEMENT BY AND
BETWEEN THE CITY AND LYNN THOMPSON AND L. WAYNE HILL, RELATING TO .THE ACQUL-
SITION AND REHABILITATION OF THE_.RITZ HOTEL. IN THE CITY FOR USE AS HOUSING
FOR THE AGED;_UNDERTAKING THE ISSUANCE OF INDUSTRIAL BUILDING REVENUE BONDS
AT THE APPROPRIATE TIME TO PAY A PORTION. OF THE .COSTS OF ACQUIRING AND
REHABILITATING SAID FACILITY; AND TAKING OTHER PRELIMINARX ACTION.
WHEREAS, .Lynn Thompson and L. Wayne Hill (the "Developers!!),pres-
ently propose to acquire and rehabilitate a_facility consisting of the Ritz
Hotel and all appurtenances necessary therefor to be located ,therein, all_on
a site in the City of Paducah (the "City") to be used as housing for the aged
(the Project") and in this connection it has been determined that the City
may assist the Developers by causing the acquisition and rehabilitation of
the Project, which constitutes an "industrial building" within the meaning of
Section 103.200 of the Act hereinafter defined, and by entering into at the
appropriate time a loan, sale or lease agreement. with reference thereto
pursuant to authority of Sections 103.20.0 to 103.285, inclusive, of the
Kentucky Revised Statutes, as amended (the "Act"), all in furtherance of the
purposes of the Act and the public benefit to the residents and inhabitants
of the City, such loan, sale or lease agreement to be upon such terms and
conditions as the Act may require and the City may deem advisable; and
WHEREAS, the City is further authorized by the Act to issue its
Industrial Building Revenue Bonds for the purpose of defraying a portion of
the cost of acquiring and rehabilitating the Project; discussions have
occurred between the Developers and the City incident to the issuance of
Industrial Building Revenue Bonds by the City; the City has agreed with the
Developers to issue such Bonds based upon. compliance by the Developers with
certain conditions, requirements and obligations, and subject to the approval
by the City of the terms of all agreements, ordinances and other documents
required incident to said Bond issue; and the City has authorized the Devel-
opers to proceed with initiation of the Project, subject to reimbursement of
the initial costs of the Project from the proceeds of such Bonds,. as, if and
when issued; and
WHEREAS, based upon an estimate of the costs of the Project, the
City proposes to issue its Industrial Building Revenue Bonds (the "Bonds") in
an amount approximating $1,750,000, such Bonds to be sold and delivexed by
the City to Pay a portion of the costs of the Project, together with costs
incident to the authorization, sale and issuance of the Bonds, but with such
contributions from the Developers as may be necessary; and
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WHEREAS, the City proposes to enter into at the appropriate time a
loan, sale or lease agreement with the Developers with respect to the Pro-
ject, whereby the Developers will covenant and agree to pay amounts suf-
ficient to provide for the payment of principal of, premium, if any, and
interest on the Bonds, together with alI trustee's and paying agent's fees in
connection with such Bonds as the same come due and payable; and
WHEREAS, it is deemed necessary and advisable that a Memorandum of
Agreement between the City and the Developers be executed setting forth the
agreements of the parties with respect to the acquisition and rehabilitation
of the Project, the issuance of the Bonds to defray a portion of the costs
thereof and the payments to be made by the Developers with respect to the
Project;
NOW, THEREFORE, IT IS HEREBY RESOLVED AND ORDERED BY THE BOARD OF
COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS:
SECTION 1. It is hereby found, determined and declared that (i)
the recitals set forth in the preamble to this Resolution, which are incor-
porated in this Section by reference, are true and correct; (ii) the total
amount of money necessary to be provided by the City for the acquisition and
rehabilitation of the Project to be Financed by the Bonds will approximate
$1,750,000; (iii) the Developers have represented that they have sufficient
financial resources to acquire and construct the Project and to place it in
operation and to continue to operate, maintain and insure the Project through-
out the term of the Bond issue, meeting when due the obligations of the
proposed loan, sale or lease agreement; and (iv) sufficient safeguards will
be provided by the loan, sale or lease agreement to insure that all money
provided by the City from the proceeds of the sale of the Bonds will be
expended by way of direct expenditure or reimbursement, solely and only for
the purposes of the Project.
SECTION 2. It is hereby found, determined and declared that a
portion of the cost o£ acquiring and rehabilitating the Project will be paid
out of the proceeds of the Bonds and such contributions of the Developers as
may be necessary to complete the Project as the Project is defined in the
loan, sale or lease agreement to be executed by and between the City and the
Developers at the appropriate time pursuant to the Act; that none of the
Bonds will be general obligations of the City; that neither the Bonds nor the
interest thereon shall constitute or give rise to any pecuniary liability 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 a pledge of amounts to be paid by the Developers under
such loan, sale or lease agreement; and that no part of said costs will be
payable out of any general funds, assets, properties or other contributions
of the City.
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SECTION 3. In order to insure the acquisition and rehabilitation
of the Project in the City with the resultant public benefits which will flow
s
therefrom it is deemed necessary and advisable that the Memorandum of Agree-
ment hereinafter referred to be approved and executed for and on behalf of
the City. Accordingly, the Memorandum of Agreement by and between the
Developers and the City substantially in the form and with the contents set
forth in Exhibit A attached hereto and incorporated herein by reference is
hereby approved and the Mayor is hereby authorized and directed to execute
and deliver said Memorandum of Agreement, and the City Clerk to attest same.
SECTION 4. Inasmuch as the Project will be undertaken, and the
facility will be acquired and rehabilitated, for the purpose of conforming to
the requirements of the Developers, in order that the Developers may give
employment to citizens and residents of the community, and inasmuch as the
Developers are better able to judge their requirements as the work progresses
than the City can reasonably be expected to do and the Developers possess
more expertise in such matters, it is hereby found, determined and declared
that acquisition and rehabilitation of the Project should be undertaken or
caused to. be undertaken by the Developers. Accordingly, the Developers are
hereby authorized to formulate and develop plans, specifications and designs
for the Project and to enter into such contracts and undertakings as may be
required for the acquisition and rehabilitation of the Project. Reimburse-
ments made to the Developers after the receipt of the proceeds of the sale of
the proposed Bond issue by the City shall be subject to. approval or certifi-
cation by a qualified person to be designated by the City upon the recom-
mendation of the Developers as specified in the loan, sale or lease agreement
to be entered into by the City and the Developers at the appropriate time
pursuant to the Act.
SECTION S. Bond Counsel is authorized and directed to take any
other legal action necessary and customary in the establishment of any
prerequisites to the issuance of the Bonds. Counsel for the City is author-
ized and directed to assist Bond Counsel in any appropriate manner.
SECTION 6. No Gity funds shall be expended on the Project, except
such as are derived from Bond Proceeds.
SECTION 7. The Developers are hereby authorized to transfer their
agreement with the City to a partnership of which one or both are general
partners at such later date as they may deem necessary for the benefit of the
Project.
SECTION 8. All resolutions or parts thereof in conflict herewith
to the extend of such conflict are hereby repealed.
SECTION 9. This Resolution and Municipal Order shall be in full
force and effect from and after its adoption, approval and attestation, as
provided by law.
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INTRODUCED at a meeting of the Board of Commissioners held on March
8, 1983, read in full and ordered held over for public inspection, pending
second reading and final approval.
GIVEN SECOND READING AND ADOPTED AND PASSED BY THE BOARD OF COM-
MISSIONERS at a meeting held on March 22, 1983, on the same occasion signed
by the Mayor as evidence of his approval, attested under seal by the City
Clerk, ordered published according to KRS Chapters 107 and 424, and declared
to be in full force and effect from and after publication.
APPROVED:
JOHN K. PENROD
Mayor
(SEAL)
ATTEST:
Louise McKinney
City Clerk
SPONSORED BY:
Carl Holder, Jr.
City Manager
This 22nd day of March, 1983, at 8:15 P.M.