97-5204 Advis IRB IssueRESOLUTION NUMBER 97-5204
A RESOLUTION OF THE CITY OF SALINA, KANSAS DETERMINING
THE ADVISABILITY OF ISSUING INDUSTRIAL REVENUE BONDS OF SAID
CITY FOR THE PURPOSE OF FINANCING THE ACQUISITION,
CONSTRUCTION, FURNISHING AND EQUIPPING OF A MANUFACTURING
FACILITY FOR CORONADO ENGINEERING, INC., TO BE LOCATED AT THE
SALINA AIRPORT INDUSTRIAL CENTER IN THE CITY OF SALINA, KANSAS.
WHEREAS, the City of Salina, Kansas (the "City"), desires to
promote, stimulate and develop the general economic welfare and prosperity of
the City 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 Kansas law, including
K. S. A. 12-1740 et seq., as amended (collectively, the "Act") , the Salina
Airport Authority (the "Authority") following a public hearing adopted a
resolution on December 18, 1996, stating the interest of the Authority to issue
industrial revenue bonds in the principle amount of not to exceed $1,300,000 to
provide funds to pay the costs of acquiring, constructing, furnishing and
equipping a manufacturing facility (the "Project") to be located at the Salina
Airport Industrial Center in the City, and to be leased by the Authority to
Coronado Engineering, Inc., a Kansas corporation, or assigns (the "Tenant") .
WHEREAS, it has subsequently been determined that it would be
better for the City to issue the industrial revenue bonds for the Project and
that the cost of the Project to be financed with the proceeds of the Bonds will
not exceed $980,000.
WHEREAS, pursuant to the Act, the City is authorized to issue
revenue bonds for the purposes aforesaid, and it is hereby found and
determined to be advisable and in the best 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 $980,000 be authorized and issued to provide
funds to pay the costs of the Project to be leased to the Tenant.
NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF
THE CITY OF SALINA, KANSAS AS FOLLOWS:
Section 1. Adoption of Authority's Action. The action taken by the
Authority with respect to the Project and the issuance of the industrial
revenue bonds, including without limitation the conducting of a public hearing
and the adoption of the resolution on December 18, 1996, is hereby ratified
and approved and adopted by the governing body of the City.
Section 2. Public Purpose. The governing body of the City hereby
finds and determines that the Project will promote, stimulate and develop the
general economic welfare and prosperity of the City and thereby further
promote, stimulate and develop the general economic welfare and prosperity of
the state of Kansas.
Section 3. Authorization to Acquire Project; Intent to Issue Bonds.
The City is hereby authorized to proceed with the Project and to issue its
industrial revenue bonds, in one or more series, in an aggregate principal
amount not to exceed $980,000 (the "Bonds") to pay the costs thereof, subject
to satisfaction of the conditions of issuance set forth herein.
Section 4. Conditions to Issuance of Bonds. The issuance of the
Bonds is subject to (i) the passage of an ordinance authorizing the issuance of
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the Bonds; (ii) the successful negotiation of legal documents necessary to
accomplish the issuance of the Bonds, the terms of which shall be in
compliance with the Act and mutually satisfactory to the City and the Tenant;
(iii) the successful negotiation and sale of the Bonds to Sunflower Bank,
N.A., Salina, Kansas (the "Purchaser") , which sale shall be the responsibility
of the Tenant and not the City; (iv) the receipt of the approving legal opinion
of Gilmore & Bell, P.C. ("Bond Counsel") in form acceptable to the City, the
Tenant and the Purchaser; (v) the obtaining of all necessary governmental
approvals to the issuance of the Bonds; (vi) the commitment to and payment of
all expenses of the Authority, any underwriting fees and expenses and all
legal fees and expenses of Bond Counsel and the City Attorney relating to the
issuance of the Bonds; and (vii) the satisfactory negotiation of an agreement
with the Tenant relating to the exemption of a portion of the property taxes
assessed against the Project after issuance of the Bonds.
Section 5. Property Tax Exemption. The City hereby determines
that pursuant to the provisions of K.A.S. 79-201a Second the Project, to the
extent purchased or constructed with the proceeds of the Bonds, should be
exempt from payment of a portion of the ad valorem property taxes for ten
years commencing with the year following the year in which the Bonds are
issued, all in accordance with Resolution Number 91-4265 adopted January 14,
1991, by the governing body of the City, provided proper application is made
therefore. In making such determination the board of directors of the City
has conducted the public hearing and reviewed the analysis of costs and
benefits of such exemption required by K.S.A. 1994 Supp. 12-1749d. The
Tenant is responsible for preparing such application and providing the same to
the City for its review and submission to the State Board of Tax Appeals.
Section 6. Limited Liability of City. The Bonds and all interest
thereon shall, in any event, be paid solely from the revenues to be received
by the City from the Project and not from any other fund or source. The
City shall not be obligated on such Bonds in any way, except as herein set
out. In the event that the Bonds are not issued, the City shall have no
liability to the Tenant.
Section 7. Further Action. The City Clerk is hereby authorized to
deliver an executed copy of this Resolution to the Tenant. The Mayor, City
Clerk, City Manager and other officials and employees of the City, including
the City's Attorney and Bond Counsel, are hereby further authorized and
directed to take such other actions as may be appropriate or desirable to
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accomplish the purposes of this Resolution, including providing all notices
required by the Act and the execution on behalf of the City of the information
statement regarding the proposed issuance of the Bonds to be filed with the
State Board of
Tax Appeals pursuant
to the Act. The execution
by the City
Clerk and the
filing of an application
to the Kansas Secretary of
Commerce &
Housing for a
private activity bond
allocation in accordance with
the Kansas
Private Activity Bond Allocation Act, K.S.A. 74-5058 et seq . is hereby ratified
and approved.
Section 8. That this resolution shall be in full force and effect
from and after its adoption.
Adopted by the Board of Commissioners and signed by the Mayor
this 20th day of October, 1997.
Iristin M. Seaton, Mayor
( SEAL)
ATTEST:
Ju D. g, CMC, CrVClerk