Loading...
90-9369 IRB Windsor Nursing1 1 1 HINKLE, EBERHART & ELKOURI ORDINANCE NO. 90-9369 OF THE CITY OF SALINA, KANSAS AUTHORIZING THE ISSUANCE OF CITY OF SALINA, KANSAS INDUSTRIAL REVENUE REFUNDING BONDS SERIES A, 1990 (WINDSOR NURSING HOME ASSOCIATES, INC.) CITY OF SALINA, KANSAS TAXABLE INDUSTRIAL REVENUE BONDS SERIES B, 1990 (WINDSOR NURSING HOME ASSOCIATES, INC.) (Published in The Salina Journal, January 127, 1990) ORDINANCE NO. 90-9369 AN ORDINANCE AUTHORIZING THE CITY OF SALINA, KANSAS TO ISSUE ITS,INDUSTRIAL REVENUE REFUNDING BONDS (WINDSOR NURSING HOME ASSOCIATES, INC.), SERIES A, 1990, IN THE AGGREGATE PRINCIPAL AMOUNT OF $1,265,000 FOR THE PURPOSE OF REFUNDING CERTAIN OUTSTANDING CITY OF SALINA, KANSAS NURSING HOME REVENUE BONDS AND ITS TAXABLE INDUSTRIAL REVENUE BONDS (WINDSOR NURSING HOME ASSOCIATES, INC.), SERIES B, 1990, IN THE AGGREGATE PRINCIPAL AMOUNT OF $175,000 FOR THE PURPOSES OF SOLELY TO PAY FOR THE FUNDING OF A COMMON BOND RESERVE ACCOUNT FOR THE SERIES A, 1990 BONDS AND THE SERIES B, 1990 BONDS, FOR THE PAYMENT OF ISSUANCE INCLUDING A PORTION OF THE EXPENSES OF ISSUANCE RELATING TO THE SERIES A, 1990 BONDS AND FOR PAYMENT OF THE REDEMPTION PREMIUM ON THE SERIES 1980 REFUNDED BONDS; AUTHORIZING EXECUTION OF A TRUST INDENTURE BY AND BETWEEN THE CITY AND THE FIRST NATIONAL BANK AND TRUST OF SALINA, IN THE CITY OF SALINA, KANSAS, AS TRUSTEE "WITH RESPECT TO THE SERIES A, 1990 BONDS; AUTHORIZING EXECUTION OF A FIRST SUPPLEMENTAL TRUST INDENTURE BY AND BETWEEN THE CITY AND THE FIRST NATIONAL BANK AND TRUST OF SALINA, IN THE CITY OF SALINA, KANSAS, AS TRUSTEE WITH RESPECT TO THE SERIES B, 1990 BONDS; AUTHORIZING THE CITY TO LEASE SAID PROJECT TO WINDSOR NURSING HOME ASSOCIATES, INC. AND AUTHORIZING EXECUTION OF A LEASE BETWEEN SAID CITY AND WINDSOR NURSING HOME ASSOCIATES, INC; AUTHORIZING THE EXECUTION OF A BOND PURCHASE AGREEMENT BY AND BETWEEN THE CITY, WINDSOR NURSING HOME ASSOCIATES, INC. AND COOPER MALONE MCCLAIN, INC., AS PURCHASER OF THE BONDS. WHEREAS, the City of Salina, Kansas (the "City" or "Issuer") is authorized by K.S.A. 12-1740 to 12-1749a, inclusive, as amended (the "Act"), to acquire, renovate and equip certain facilities (as defined in the Act) for commercial, industrial and manufacturing purposes, and to enter into leases and lease -purchase agreements with any persons, firm or corporation for said facilities, to issue revenue bonds for the purpose of paying the cost of any such facilities and to issue bonds for the purpose of refunding such bonds. WHEREAS, pursuant to Ordinance No. 80-8774 of the City (the "1980 Ordinance") the City previously issued its Nursing Home Revenue Bonds, Series 1980 dated February 1, 1980 (the 111980 Bonds"), in the original principal amount of $1,450,000 of which $1,265,000 remains outstanding, for the purpose of acquiring, purchasing, constructing and equipping certain facilities (the "1980 Facility,,) ; WHEREAS, the 1980 Facility was leased to Windsor Nursing Home Associates, Inc. pursuant to the provisions of a certain Lease, dated as of February 1, 1980 (the 111980 Lease") between the City and Windsor Nursing Home Associates, Inc.; and WHEREAS, the City has heretofore and does hereby find and determine that it is desirable in order to promote, stimulate and develop the general economic welfare and prosperity of the City and the State of Kansas that the City issue its Industrial Revenue Refunding Bonds (Windsor Nursing Home Associates, Inc.), Series A, 1990, dated January 1, 1990, in the aggregate principal amount of $1,265,000 (the "Series A, 1990 Bonds") for the purpose of refunding the outstanding 1980 Bonds (the "Facility") and to issue its Taxable Industrial Revenue Bonds (Windsor Nursing Home Associates, Inc.), Series B, 1990, dated January 1, 1990, in the aggregate principal amount of $175,000 (the "Series B, 1990 Bonds") for the purposes of solely paying for the funding of a common Bond Reserve Account for the Series A, 1990 Bonds and the Series B, 1990 Bonds, for the payment of issuance including a portion of the expenses of issuance relating to the Series A, 1990 Bonds and for payment of the redemption premium on the Series 1980 Refunded Bonds (the 111990 Improvements") (the Facility together with the 1990 Improvements hereinafter collectively referred to as the "Project"). The Series A, 1990 Bonds and Series B, 1990 Bonds are hereinafter sometimes referred to collectively as the 111990 Bonds", as more fully described in the Indenture with respect to the Series A, 1990 Bonds, the First Supplemental Trust Indenture with respect to the Series B, 1990 Bonds and the Lease hereinafter authorized. Said Project shall be leased by the City to the Tenant; and WHEREAS, the 1990 Bonds and the interest thereon shall not constitute an indebtedness of the City of Salina, Kansas, within the meaning of any constitutional provision or statutory limitation and shall not constitute nor give rise to a pecuniary liability by the City, nor shall the 1990 Bonds or the interest thereon be a charge against the general credit or taxing powers of the City, but shall be payable solely and only from certain fees, rentals, revenues and other amounts derived by the City under the Lease and as provided in the Indenture hereinafter authorized, and, under certain circumstances, from the proceeds of insurance and condemnation awards. WHEREAS, the City further finds and determines that it is necessary and desirable in connection with the issuance of the 1990 Bonds to (1) execute and deliver a Trust Indenture dated as of January 1, 1990 (the "Series A, 1990 Indenture"), with the First National Bank and Trust of Salina, Salina, Kansas (the "Trustee"), for the purpose of issuing and securing the Series A, 1990 Bonds as provided therein; (2) the First Supplemental Trust Indenture dated as of January 1, 1990 (the "Supplemental Indenture") for the purpose of issuing and securing the Series B, 1990 Bonds as provided therein (the Series A, 1990 Indenture and the Supplemental Indenture sometimes hereinafter referred to collectively as the "Indenture"); and (3) to enter into a Lease dated as of January 1, 1990 (the "Lease") with the Tenant pursuant to which the City shall cause the Project to be leased to the Tenant in consideration of payments of Basic Rent, Additional Rent and other charges provided for therein. NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF SALINA, KANSAS AS FOLLOWS: Section 1. Definition of Terms. All terms and phrases not otherwise defined herein shall have the respective meanings set forth in the Indenture and Lease herein authorized. Section 2. Authori tv to Refund the 1980 Bonds and to Construct Install and Equip the 1990 Improvements. Pursuant to the Act, the City is hereby authorized to provide for the refunding and redemption of the 1980 Bonds in accordance with the provisions of the 1980 Ordinance, all as provided herein and in the Indenture and Lease hereinafter authorized. The City is hereby further authorized to cause the 1990 Improvements to be constructed, installed and equipped all as provided herein and in the Supplemental Indenture. Section 3. Authorization of and Security for the 1990 Bonds. There is hereby authorized and directed to be issued two series of revenue bonds to be designated (a) "City of Salina, Kansas Industrial Revenue Refunding Bonds (Windsor Nursing Home Associates, Inc.), Series A, 1990, in the aggregate principal amount of $1,265,000" (the "Series A, 1990 Bonds") for the purpose of providing funds to pay the cost of refunding Issuer's outstanding 1980 Bonds; and (b) "City of Salina, Kansas Taxable Industrial Revenue Bonds (Windsor Nursing Home Associates, Inc.), Series B, 1990, in the aggregate principal amount of $175,000 (the "Series B, 1990 Bonds") for the purpose of paying certain costs of issuance associated with the 1990 Bonds, establishing the Bond Reserve Account as defined in the Series A, 1990 Indenture, paying the property taxes on the Facility and paying the redemption premium on the Series 1980 Bonds (the Series A, 1990 Bonds and Series B, 1990 Bonds hereinafter collectively referred to as the "1990 Bonds"). The 1990 Bonds shall be dated and bear interest, shall mature and be payable at such times, shall be in such forms, shall be subject to redemption and payment prior to the maturity thereof, and shall be issued in the manner prescribed and subject to the provisions, covenants and agreements set forth in the Indenture. The 1990 Bonds shall be special limited obligations of the City payable solely from the revenues derived by the City pursuant to the Lease, or otherwise in connection with the Project. The 1990 Bonds shall not be general obligations of or constitute a pledge of the faith and credit of the City within the meaning of a constitutional or statutory provision and shall not be payable in any manner from tax revenues. Said Series A, 1990 Bonds and Series B, 1990 Bonds shall be on a parity and equally and ratably secured under the provisions of the Series A, 1990 Indenture and Supplemental Indenture herein authorized. Section 4. Authorization of the Series A 1990 Indenture. The City is hereby authorized to enter into the Series A, 1990 Indenture dated as of January 1, 1990, by and between the City and The First National Bank and Trust of Salina, Salina, Kansas, as Trustee under which the City shall pledge and assign to the Trustee, for the benefit of the holders of the Series A, 1990 Bonds, the Trust Estate created thereby, all upon the terms and conditions set forth in said Indenture. Section 5. Authorization of Supplemental Indenture. The City is hereby authorized to enter into the First Supplemental Trust Indenture dated as of January 1, 1990, by and between the City and The First National Bank and Trust of Salina, Salina, Kansas, as Trustee under which the City shall pledge and assign to the Trustee, for the benefit of the holders of the Series B, 1990 Bonds, the Trust Estate created pursuant to the Series A, 1990 Indenture and thereby, all upon the terms and conditions set forth in said Supplemental Indenture. Section 6. Lease of the PKgiect. The City shall cause the Project to be leased by the City to the Tenant pursuant to and in accordance with the provisions of the Lease dated as of January 1, 1990, by and between the City and Tenant. Section 7. Approval of the Form Guaranty Aareement. The form of Guaranty Agreement dated as of January 1, 1990, pursuant to which the Tenant, as Guarantor, guarantees to the Trustee for the benefit of the owners of the 1990 Bonds, the full and prompt payment of the principal of, redemption premium, if any and interest on the 1990 Bonds, is hereby approved. Section 8. Approval of the Form of Individual Gua. -ant Agreement. The form of Individual Guaranty Agreement dated as of January 1, 1990, pursuant to which John R. Ferguson, an individual, guarantees to the Trustee for the benefit of the owners of the Series A, 1990 Bonds, the full and prompt payment of the principal of, redemption premium, if any and interest on the Series A, 1990 Bonds, is hereby approved. Section 9. Authorization of Bond Purchase Agreement. 1990 Bonds shall be sold and delivered to Cooper Malone McClain, Inc. The Wichita, Kansas, upon the terms and subject to the provisions of the Bond Purchase Agreement herein authorized as of January 1, 1990 by and between the City, Tenant and Cooper Malone McClain, Inc., as Purchaser. Section 10. Execution of Bonds and Agreements. The Mayor or Vice Mayor of the City of Salina, Kansas is hereby authorized and directed to execute the 1990 Bonds and deliver same to the Trustee for authentication for andon behalf of and as the act and deed of the City in the manner provided in the Indenture. The Mayor or Vice Mayor is hereby further authorized and directed to execute and deliver the Indenture, the Lease, and the Bond Purchase Agreement for and on behalf of and as the act and deed of the City in substantially the form approved by the CityyIs governing body with such minor corrections or amendments thereto as the Mayor or Vice Mayor shall approve, which approval shall be evidenced by his or her execution thereof, and such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the purposes and intent of this Ordinance. The City Clerk or the Deputy City Clerk of the City is hereby authorized and directed to attest the execution of the 1990 Bonds, the Indenture, Supplemental Indenture, the Lease, and the Bond Purchase Agreement and such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the intent of this Ordinance. Section 11. Pledae of the Project. The City hereby pledges the Project to the payment of the 1990 Bonds in accordance with K.S.A. 12-1744. The lien created by such pledge shall be discharged when all of the 1990 Bonds shall be deemed to have been paid within the meaning of the Indenture. Section 12. Further Authoritv. The City shall, and the officers, agents and employees of the City are hereby authorized and directed to, take such action, expend such funds and execute such other documents, certificates and instruments as may be necessary or desirable to carry out and comply with the provisions of this Ordinance and to carry out, comply with and perform the duties of the City with respect to the 1990 Bonds, the Indenture and the Lease all as necessary to carry out and give effect to the transaction contemplated hereby and thereby. Section 13. Effective Date. This Ordinance shall take effect and be in full force from and after its adoption by the City Commission and publication once in the official newspaper of the City. ADOPTED by the Governing Body of the City of Salina, Kansas this 22nd day of January, 1990. Attest: Jacqu line Shiever, City Clerk (Seal) 1 CITY O SALINA, KANSAS seph . Warner, Mayor