88-3970 Intent Beech Aircraft IRB1
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RESOLUTION NUMBER 88-3970
A RESOLUTION EXPRESSING THE INTENTION OF THE CITY OF
SALINA,, KANSAS, TO ISSUE INDUSTRIAL REVENUE BONDS IN AN AMOUNT
NOT TO EXCEED $20,000,000 FOR THE PURPOSE OF PROVIDING FUNDS FOR
THE CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF ADDITIONS TO AN
EXISTING FACILITY AND FOR THE PURCHASE OF MACHINERY AND EQUIPMENT
TO BE LOCATED THEREON FOR BEECH AIRCRAFT CORPORATION.
WHEREAS, the City of Salina, Kansas, hereinafter sometimes referred
to as (the "City"), desires to promote, stimulate and develop the general
economic welfare and prosperity of the City and its environs, and thereby to
further promote, stimulate and develop the general economic welfare and
prosperity of the State of Kansas; and
WHEREAS, pursuant to the provisions of K.S.A. 12-1740 to 12-1749a,
inclusive, and all acts amendatory thereof or supplemental thereto, said City is
authorized to issue industrial revenue bonds of the City, and it is hereby found
and determined to be advisable and in the interest and for the welfare of the
City and its inhabitants that industrial revenue bonds of the City in the
principal amount of not to exceed Twenty Million Dollars ($20,000,000) be
authorized and issued for the purpose of providing funds to pay the cost of the
construction, improvement and equipping of additions to an existing facility and
purchase. machinery and equipment to be located thereon (the "Project") located
in the environs of the ,City of Salina, Kansas, to be leased to Beech Aircraft
Corporation,
. WHEREAS, the City has, in accordance with the requirements of of the
Industrial Revenue Code of 1986, as amended, published notice in the official
newspaper of the City on April 1, 1988, that it would hold a public hearing on
April 11, 1988, at 4:00 p.m, in the City Commission Chambers, 300 West Ash,
Salina, Kansas, to consider the issuance of the bonds; and,
WHEREAS, the City did hold such public hearing hereinbefore referred
to on April 11 , 1988, to consider the issuance of the bonds, SO NOW,
THEREFORE
Kansas:
BE IT RESOLVED by the Governing Body of the. City of Salina,
Section 1. That the City of Salina, Kansas, is hereby authorized to
construct, improve and equip the Project located within the environs of Salina,
Kansas, in an amount which will not exceed the cost of $20,000,000 to said City
subject in all -respects to negotiations of satisfactory lease arrangements for said
facility with Beech Aircraft Corporation.
Section 2. That for the purpose of providing funds to pay the cost of
such Project, there shall be issued industrial revenue bonds of said City in an
aggregate -principal amount not to exceed $20,000,000 in accordance with a Bond
Ordinance, Trust. Indenture and Lease Agreement,, the terms of which shall be
mutually satisfactory to the Board of City Commissioners and to Beech Aircraft
Corporation and also subject to compliance with the provisions of K.S.A.
12-1744a, :as amended, or evidence of exception therefrom. It is contemplated
that in order to expedite the Project and to permit realization of the benefits to
be derived thereby, Beech Aircraft Corporation in reliance upon this Resolution,
incur temporary indebtedness and expend its own funds in connection with the
Project prior to the ultimate issuance of said industrial revenue bonds. Said
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fJ
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bonds
herein authorized and all interest thereon
shall, in any event,
be
paid
solely
from the money and revenue received from
said facility and not
from
any
fund or source, and nothing contained herein shall obligate the City in any way
except as herein set forth.
Section 3. The facilities purchased and constructed with the proceeds
I of the bonds authorized herein shall be exempt from ad valorem taxation for a
period of ten (10) calendar years in accordance with the laws of the State of
I Kansas.
Section 4. This Resolution shall be valid for a period of ten (10)
years.
Section 5. The Mayor and City Clerk are hereby authorized and
directed to take all such other actions not inconsistent herewith as may be
appropriateor or desirable to accomplish the purpose of this Resolution, including
the execution on behalf of the City of an appropriate notice of the Kansas State
Board of Tax Appeals pursuant to K.S.A. 12-1744a.
Section 6. This resolution is adopted on the. express condition that
I Applicant agrees to reimburse the City for all expenses incurred by it in
connection with the Bonds even if the Bonds are not issued for any reason.
Adopted by the Board of Commissioners and signed by the Mayor this
11th day of April, 1988.
[SEAL]
ATTEST:
r
Wii-e-s�, i .y C erk
Stephen C. Rya / or
P Mayor