99-5459 IRB Advis JJParrCanw&M Salina
RESOLUTION NO. 99-5459
A RESOLUTION OF THE GOVERNING BODY OF THE CITY OF SALINA,
KANSAS DETERMINING THE ADVISABILITY OF ISSUING TAXABLE INDUSTRIAL REVENUE
BONDS OF SAID CITY FOR THE PURPOSE OF FINANCING THE ACQUISITION, CONSTRUC-
TION AND INSTALLATION OF A FAMILY ENTERTAINMENT CENTER FACILITY TO BE
LOCATED IN SAID CITY
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 the Kansas Economic Development Revenue Bond
Act, as amended and codified in K.S.A. 12-1740 et seq. (the "Act"), the City is authorized to issue revenue
bonds for such purposes, 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 taxable industrial revenue bonds of the City in the principal
amount of not to exceed $1,610,000 be authorized and issued to provide funds to pay the costs of acquiring,
constructing and installing a family entertainment center facility (the "Project") located in the City of Salina,
Kansas, and to be leased by the City to J.J. Par Enterprises, LLC, a Kansas limited liability company, or
assigns (the "Tenant").
NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BODY OF THE
CITY OF SALINA, KANSAS:
Section 1. Public Purpose. The governing body of the City hereby finds and determines
that acquiring, constructing and installing 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 2. Authorization to Acquire Project; Intent to Issue Bonds. The City is hereby
authorized to acquire, construct and install the Project and to issue its taxable industrial revenue bonds, in
one or more series, in an aggregate principal amount not to exceed $1,610,000 (the "Bonds") to pay the costs
thereof, subject to satisfaction of the conditions of issuance set forth herein.
Section 3. Conditions to Issuance of Bonds. The issuance of the Bonds is subject to: (i)
the passage, signature and publication of an ordinance authorizing the issuance of the Bonds; (ii) the
successful negotiation of a Trust Indenture, Guaranty Agreement, Lease, Bond Purchase Agreement or other
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 a purchaser or purchasers yet to be determined (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 and (vi) the commitment to and payment
of all expenses of the City, 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 by the Purchaser or the Tenant. The
Lease to be entered into with the Tenant will require the Tenant to pay all property taxes to be levied against
the Project, or to make a payment in lieu of taxes equal to 100 % of the property taxes which would otherwise
be levied against the Project.
Section 4. Notices. The City Clerk is hereby authorized and directed to publish an
appropriate notice of intent to issue the Bonds and to enter into a Lease with the Tenant pursuant to the
provisions of the Act.
Section 5. Reliance by Tenant; Limited Liability of City. It is contemplated that in order
to expedite acquisition of the Project and realization of the benefits to be derived thereby, the Tenant may
incur temporary indebtedness or expend its own funds to pay costs of the Project prior to the issuance of the
Bonds. The Bonds herein authorized 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 6. Further Action. The City Clerk is hereby authorized to deliver an executed copy
of this Resolution to the Tenant. The Mayor, City Clerk and other officials and employees of the City,
including the City Attorney and Bond Counsel, are hereby further authorized and directed to take such other
actions as may be appropriate or desirable to 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
Conmlidale0 Salina
the proposed issuance of the Bonds to be filed with the State Board of Tax Appeals pursuant to the Act.
ADOPTED by the governing body of the C' of Salina, Kansas this 26th day of April, 1999.
Monte Shadwick, Mayor
{SEAL}
ATTEST:
D. Lo , CMC,City �Jrk