Loading...
20-7865 Issuance of Industrial Revenue Bonds for Project Rise RESOLUTION NO.20-7865 RESOLUTION DETERMINING THE ADVISABILITY OF THE CITY OF SALINA, KANSAS, TO ISSUE ITS INDUSTRIAL REVENUE BONDS IN ONE OR MORE SERIES IN THE APPROXIMATE PRINCIPAL AMOUNT OF $600,000,000 TO FINANCE THE COSTS OF ACQUIRING, CONSTRUCTING AND EQUIPPING W MULTIPLE FACILITIES FOR THE BENEFIT OF A COMPANY CURRENTLY REFERENCED AS PROJECT RISE LOCATED WITHIN THE ENVIRONS OF THE CITY,AND ITS SUCCESSORS AND ASSIGNS WHEREAS, the City of Salina, Kansas (the "City"), desires to promote, stimulate and develop the general welfare and economic prosperity of the City and its inhabitants and thereby to further promote, stimulate and develop the general welfare and economic prosperity of the State of Kansas; and WHEREAS, the City is authorized and empowered under the provisions of K.S.A. 12-1740 to 12-1749d,inclusive(the"Act"),to issue industrial revenue bonds to pay the cost of certain facilities(as defined in the Act) for the purposes set forth in the Act, and to lease such facilities to private persons, firms or corporations; and WHEREAS,a company located within the environs of the City(the"Company")currently referenced as Project Rise has requested that the City finance the cost of acquiring, constructing and equipping one or more commercial facilities (individually a"Project" and collectively, the "Projects") through the issuance of its industrial revenue bonds in one or more series in the approximate principal amount of $600,000,000 (collectively, the "Bonds"), and to lease the Projects to the Company, or its successors and assigns in accordance with the Act; and WHEREAS, it is hereby found and determined to be advisable and in the interest and for the welfare of the City and its inhabitants that the City finance the costs of each of the Projects by the issuance of the Bonds in one or more series under the Act in the approximate principal amount of$600,000,000, each series of Bonds to be payable solely out of rentals, revenues and receipts derived from the lease of the applicable Project by the City to the Company, or its successors and assigns. NOW, THEREFORE,BE IT RESOLVED BY THE GOVERNING BODY OF THE CITY OF SALINA,KANSAS,AS FOLLOWS: Section 1. Approval of Projects. The Governing Body of the City hereby finds and determines that the acquiring, constructing and equipping of the Projects will promote the general welfare and economic prosperity of the City, and thereby further promote, stimulate and develop the general economic welfare and prosperity of the State of Kansas, and the issuance of the Bonds in one or more series to pay the costs of the Projects will be in furtherance of the public purposes set forth in the Act. The Projects shall be located within the City or its environs. Section 2. Intent to Issue Bonds. The Governing Body of the City hereby determines and declares the intent of the City to acquire, construct and equip the Projects out of the proceeds of the Bonds of the City in the approximate principal amount of$600,000,000 to be issued pursuant to the Act. Section 3. Provision for the Bonds. Subject to the conditions of this Resolution,the City expresses its intent to (i) issue its Bonds in one or more series to pay the costs of acquiring, constructing and equipping the Projects, with such maturities, interest rates, redemption terms and other provisions as may be determined by ordinance of the City;(ii)provide for the lease(with an option to purchase)of each Project to the Company; and (iii) to effect the foregoing, publish notice of public hearing, adopt such resolutions and ordinances and authorize the execution and delivery of such instruments and the taking of such action as may be necessary or advisable for the authorization and issuance of each series of Bonds by the City and take or cause to be taken such other action as may be required to implement the aforesaid. Section 4. Conditions to Issuance. The issuance of each series of Bonds and the execution and delivery of any documents related to each series of Bonds are subject to: (i) the receipt and approval by the. City of appropriate applications for the issuance of each series of Bonds (ii) passage and publication of an W ordinance authorizing each series of Bonds and obtaining any other necessary governmental approvals; (iii) agreement by the City, the Company and the purchaser of each series of Bonds upon (a) mutually acceptable terms for each series of Bonds and for the sale and delivery thereof, and (b) mutually acceptable terms and conditions of any documents related to the issuance of each series of Bonds and the Projects; and (iv)the Company's compliance with the City's requirements relating to the issuance of industrial revenue bonds and ad valorem tax abatement. Section 5. Sale of the Bonds. The sale of each series of Bonds shall be the responsibility of the Company;provided,however, arrangements for the sale of each series of Bonds shall be acceptable to the City. Section 6. Ad Valorem Tax Abatement. Subject to the conditions in Section 4 and compliance with K.S.A. 12-1749c and 12-1749d and in consideration of the Company's decision to acquire, construct and equip the Projects,the City hereby expresses its intent to take all appropriate action to request the Kansas Board of Tax Appeals to approve a 100%ad valorem property tax abatement(not including special assessments and provided no exemption may be granted from the ad valorem property tax levied by a school district pursuant to the provisions of K.S.A. 72-53,113, and amendments thereto, typically referred to as the"capital outlay levy"of the school district)for all property(including real property and building improvements) financed with the proceeds of each series of Bonds. Each Project financed with the Bonds shall be entitled to a 10-year tax abatement,with the first year of the abatement commencing on January 1 of the year following the year in which the series of Bonds associated with such Project are issued. In consideration of the City's agreement to request an ad valorem tax abatement, the Company will agree to enter into a performance agreement containing mutually acceptable terms and executed by the City and the Company. No payments in lieu of taxes will be required so long as the Company meets the performance standards set forth in the agreement. Section 7. Notices. The 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 and to publish a notice of public hearing with respect to the granting of a complete or partial property tax exemption as required by Kansas law. Section 8. Limited Obligations of the City. As provided in the Act,the Bonds and the interest thereon would be a special, limited obligation of the City payable solely out of the amounts derived by the City under a Lease Agreement with the Company, and the Bonds are not a general obligation of the City, the State or of any other political subdivision thereof within the meaning of any State constitutional provision or statutory limitation. Section 9. Further Action. Counsel to the City and Gilmore&Bell,P.C., Bond Counsel for the City, together with the officers and employees of the City, are hereby authorized to work with the Company and their counsel, to prepare for submission to the City all documents necessary to effect the actions contemplated hereunder. Section 10. Federal Economic Development Administration Grant Application. The Salina Community Economic Development Organization Board of Directors has recommended and the Governing Body of the City hereby determines and declares the intent of the City to approve the Salina Economic Development Incentive Program (SEDIP) application for Project Rise of$650,000 which will be used as a local match for a federal Economic Development Administration grant application in the amount of$9,900,000 (inclusive of the City's contribution). -2- Section 11. Kansas Department of Transportation Economic Development Grant Application. The Salina Community Economic Development Organization Board of Directors has recommended and the Governing Body of the City hereby determines and declares the intent of the City to provide up to $900,000 as a local match for a Kansas Department of Transportation Economic Development Grant for street related Z improvements in the amount of$3,000,000(inclusive of the City's contribution). Section 12. Effective Date. This Resolution shall take effect and be in full force immediately after its adoption by the Governing Body of the City and shall remain in effect until December 31,2025. ADOPTED on August 6, 2020. U CITY OF SALINA,KANSAS By: •� Trent W. Davis, .D. , Temporary Chair [SEAL] ATTEST: • Shandi Wicks, CMC, City Clerk -3-