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85-3814 Intent Issue ElDorado National IRB1 7i LJ L' RESOLUTION NUMBER 85-3814 A RESOLUTION EXPRESSING THE INTENTION OF THE CITY OF SALINA, KANSAS, TO ISSUE REVENUE BONDS IN THE AMOUNT OF NOT TO EXCEED $900,000 FOR THE PURPOSE OF FINANCING THE COST OF PURCHASING, CONSTRUCTING, FURNISHING AND EQUIPPING A MANUFACTURING FACILITY. WHEREAS, ElDorado Motor Corporation, a Kansas corporation (the "Applicant"), has requested the City to issue its revenue bonds pursuant to provisions of the Act for the purpose of financing the cost of purchasing, constructing, furnishing and equipping a manufacturing facility, including real estate, buildings and improvements (the "Project") , in an aggregate amount not to exceed $900,000; and, WHEREAS, it is intended that the Project will be leased to and operated by Applicant; and, WHEREAS, the Bonds, if issued by the City, would be payable solely out of rents, revenues and receipts derived from the leasing of the Project from the City to the Applicant; and, WHEREAS, the City on October 7, 1985, generally approved the Applicant's request for the issuance of industrial revenue bonds of the City subject to hearing on October 28, 1985; and, WHEREAS, the City has, in accordance with the requirements of Section 103(k) of the Internal Revenue Code of 1954, as amended, published notice in the official newspaper of the City on October 11, 1985, that it would hold a public hearing on October 28, 1985, at 4:00 p.m. in the City Commission Chambers to consider the issuance of the bonds; and, WHEREAS, the City did hold such public hearing hereinbefore referred on October 28, 1985, to consider the issuance of the bonds; SO NOW, THEREFORE, BE IT RESOLVED by the Governing Body of the City of Salina, Kansas: Section 1. That the Governing Body of the City hereby finds and determines that the issuance of its revenue bonds to finance the costs of the Project will "be in furtherance of the public purposes set forth in the Act, and that the Project will promote the welfare of the City. Section 2. That the Governing Body of the City hereby approves the Project forr tinT-p-plicant to be financed out of the proceeds of approximately $900,000 principal amount of Revenue Bonds of the City to be issued pursuant to the Act. Section 3. That the City officials are hereby authorized and directed to procee w-itnthe necessary negotiations relating to said Project and the preparation of the legal documents relating thereto for final action by the Governing Body of the City. Section 4. That the Bonds will be issued with the express condition that the AppTiant will waive any ad valorem property tax exemption which would otherwise be available to the Project under the provisions of K.S.A. 79-201(a) Second, as amended, or will agree to a satisfactory payment in lieu of taxes. Section 5. In the event the Bonds are not ultimately issued for any reason, the shall not be obligated to have assumed or incurred any liability or obligation to the Applicant or any other party by virtue of this resolution or by virtue of any proceedings or action taken in connection therewith, or in reliance thereon. WHEREAS, the City of Salina, Kansas, (the "City") , a body politic and corporate. and a political subdivision of the State of Kansas, is authorized and empowered by the provisions of the Kansas Statutes Annotated, Sections 12-1740 et seq. , as amended (the "Act") , to finance a project, as that term is defined in the Act, and to issue its revenue bonds for the purpose of paying the cost of financing a project; and, WHEREAS, ElDorado Motor Corporation, a Kansas corporation (the "Applicant"), has requested the City to issue its revenue bonds pursuant to provisions of the Act for the purpose of financing the cost of purchasing, constructing, furnishing and equipping a manufacturing facility, including real estate, buildings and improvements (the "Project") , in an aggregate amount not to exceed $900,000; and, WHEREAS, it is intended that the Project will be leased to and operated by Applicant; and, WHEREAS, the Bonds, if issued by the City, would be payable solely out of rents, revenues and receipts derived from the leasing of the Project from the City to the Applicant; and, WHEREAS, the City on October 7, 1985, generally approved the Applicant's request for the issuance of industrial revenue bonds of the City subject to hearing on October 28, 1985; and, WHEREAS, the City has, in accordance with the requirements of Section 103(k) of the Internal Revenue Code of 1954, as amended, published notice in the official newspaper of the City on October 11, 1985, that it would hold a public hearing on October 28, 1985, at 4:00 p.m. in the City Commission Chambers to consider the issuance of the bonds; and, WHEREAS, the City did hold such public hearing hereinbefore referred on October 28, 1985, to consider the issuance of the bonds; SO NOW, THEREFORE, BE IT RESOLVED by the Governing Body of the City of Salina, Kansas: Section 1. That the Governing Body of the City hereby finds and determines that the issuance of its revenue bonds to finance the costs of the Project will "be in furtherance of the public purposes set forth in the Act, and that the Project will promote the welfare of the City. Section 2. That the Governing Body of the City hereby approves the Project forr tinT-p-plicant to be financed out of the proceeds of approximately $900,000 principal amount of Revenue Bonds of the City to be issued pursuant to the Act. Section 3. That the City officials are hereby authorized and directed to procee w-itnthe necessary negotiations relating to said Project and the preparation of the legal documents relating thereto for final action by the Governing Body of the City. Section 4. That the Bonds will be issued with the express condition that the AppTiant will waive any ad valorem property tax exemption which would otherwise be available to the Project under the provisions of K.S.A. 79-201(a) Second, as amended, or will agree to a satisfactory payment in lieu of taxes. Section 5. In the event the Bonds are not ultimately issued for any reason, the shall not be obligated to have assumed or incurred any liability or obligation to the Applicant or any other party by virtue of this resolution or by virtue of any proceedings or action taken in connection therewith, or in reliance thereon. j 1 L Section 6. This Resolution shall confirm the intent of the City to issue the industrial revenue bonds as described above as such intent was expressed in the motion adopted by the City on October 7, 1985. Adopted by the Board of Commissioners and signed by the Mayor this 28th day of October, 1985. Merle A. Hodges, M.D., Mayor [SEAL] ATTEST: D. L. Harrison, City Clerk 0