89-4126 Economic Development Revenue Bond FinancingKuhn Lox Printing — Salina. Kansas
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RESOLUTION NUMBER 89-4126
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE CITY OF
SALINA, KANSAS APPROVING THE APPLICATION OF AHF/CENTRAL STATES,
INC. FOR ECONOMIC DEVELOPMENT REVENUE BOND FINANCING IN AN
AMOUNT NOT TO EXCEED $4,060,000.
WHEREAS, the Board of Commissioners of the City of Salina, Kansas
(the "City") pursuant to Kansas Statutes Annotated, as amended, Section
12-1740, et seq. (the "Act") is authorized to issue revenue bonds for the
purpose of paying all or part of the cost of purchasing, acquiring, constructing,
furnishing, repairing, enlarging or remodeling facilities for agricultural,
commercial, hospital, industrial, natural resources, recreational development and
manufacturing purposes, and
WHEREAS, the Act authorizes the City to enter into leases or
lease -purchase agreements with any person, firm or corporation for the facilities,
and
WHEREAS, AHF/Central States, Inc. (the "Company"), an Ohio
not-for-profit corporation, engaged in the business of acquiring and operating
nursing homes, hospitals and retirement centers, has applied to the City for
economic development revenue bond financing pursuant to the Act, composed of a
tax-exempt bond issue in the approximate principal amount of $4,060,000 to
finance the Company's acquisition and improvement of the Salina Nursing Center,
a 28 skilled care bed and 78 intermediate care bed nursing home in the City
(such facility, the site thereof, the equipment therefor, and the proposed
improvements thereto are hereinafter referred to as (the "Project"), and
WHEREAS, the City has found and determined that the Project will be
of benefit to the health and general welfare of the City, will create and preserve
opportunities for gainful employment and business opportunities and otherwise
promote the economic development of the City.
WHEREAS, the City now desires to approve the application of the
Company and approve economic development revenue bond financing for the
Project at the appropriate time pursuant to and subject to the provisions of the
Act, SO NOW, THEREFORE
BE IT RESOLVED by the Governing Body of the City of Salina,
Kansas:
Section 1. The City hereby approves the application of the Company
for the issuance pursuant to the Act of tax-exempt economic development
revenue bonds of the City in the approximate principal amount of $4,060,000 to
finance the Company's acquisition, construction and installation of the Project
within the City for use and occupancy by the Company in its business
operations, subject in all respects to negotiation of satisfactory lease
arrangements for the Project with the City.
Section 2. The economic development bonds for the Project shall be
issued in accordance with a bond ordinance, trust indenture and lease, the
terms of which shall be subject to the approval of the City's Attorney. The
liability and obligation of the City shall be limited solely to good faith efforts to
consummate such proceedings and issue such bonds, and neither the City, nor
any of its respective officers, employees, or agents shall incur any liability
whatsoever if for any reason ,the proposed issuance of such bonds is not
consummated.
Kuhn -Cox Printing — Salina, Kansas
Section 3. The economic development bonds for the Project shall be
issued with the express condition that, for the term of the bonds, the Company
will agree to a payment in lieu of taxes payable at the same time and in the
amount equal to all
property and
ad valorem taxes
to
which the
property would
be subject in any
given year,
notwithstanding
any
exemption
to which the
property might otherwise be entitled.
Section 4. This resolution is adopted on the express condition that
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
9th day of October, 1989.
seph Warner, Mayor
[SEAL]
ATTEST
Jacqueline Shiever, City Clerk
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