98-5358 IRB IntentCansol.oale�-Salina
RESOLUTION NUMBER 98-5358
A RESOLUTION OF THE GOVERNING BODY OF THE CITY OF SALINA,
ANSAS DETERMINING THE ADVISABILITY OF ISSUING INDUSTRIAL REVENUE
ONDS OF SAID CITY FOR THE PURPOSE OF FINANCING THE ACQUISITION,
ONSTRUCTION AND EQUIPPING OF A MANUFACTURING FACILITY TO BE
OCATED IN SAID CITY.
WHEREAS, the City of Salina, Kansas (the "City") desires to promote, stimulate and
,Ivelop the general economic welfare and prosperity of the City, and thereby to further promote,
imulate and develop the general economic welfare and prosperity of the State of Kansas; and
WHEREAS, pursuant to the provisions of the Kansas Economic Development
tevenue 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
Ldvisable and in the interest and for the welfare of the City and its inhabitants that industrial
evenue bonds of the City in the principal amount of not to exceed $7,500,000 be authorized and
ssued to provide funds to pay the costs of acquiring, constructing and equipping a manufacturing
acility (the "Project") to be located in the City of Salina, Kansas, and to be leased by the City to
k -Plus Galvanizing Company, 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
letermines that acquiring, constructing and equipping the Project will promote, stimulate and
ievelop 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
iereby authorized to acquire, construct and equip the Project and to issue its industrial revenue
)onds, in one or more series, in an aggregate principal amount not to exceed $7,500,000 (the
`Bonds") to pay the costs thereof, subject to satisfaction of the conditions of issuance set forth
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 and 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; and (vii) the execution and delivery by the Tenant of an agreement for payment in lieu of
taxes in form acceptable to the Tenant and the City.
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
the provisions of the Act, to provide all notices as required by the Act, and to publish notice of
hearing with respect to the issuance of the Bonds as required by federal law and with respect
the granting of a complete or partial property tax exemption as required by Kansas law.
Section 5. Further Action. The City Clerk is hereby authorized to deliver an
copy of this resolution to the Tenant. The Mayor, City Clerk and other officials and
ployees of the City, including the City Attorney and Bond Counsel, are hereby further
and directed to take such other actions as may be appropriate or desirable to accomplish
purposes of this resolution, including providing all notices required by the Act, the execution on
of the City of the information statement regarding the proposed issuance of the Bonds to be
ed with the State Board of Tax Appeals pursuant to the Act and the execution of an application
the Kansas Secretary of Commerce & Housing for a private activity bond allocation in
with the Kansas Private Activity Bond Allocation Act, K. S.A. 74-5058 et seq.
Adopted by the governing body of the City of Salina, Kansas this 2nd day of
ovember, 1998.
Peter F. Brungardt, Mayor
TTEST:
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