86-9160 IRB Series 1986/leJQ!/i✓Q Jou/NR
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WHEREAS, the governing body of the Issuer has heretofore and
does now find and determine that it is desirable, in order to
promote, stimulate and develop the general economic welfare and
prosperity of the Issuer and the State of Kansas, that the Issuer
issue its Industrial Revenue Bonds (Salina Motel Limited Partner-
ship Project), Series 1986, in the principal amount of $1,650,000
(the "Bonds"), for the purpose of financing the acquisition,
construction, renovation, rehabilitation, improvement and equip-
ping of a project in Salina, Kansas, consisting of a commercial
hotel/motel facility, including real estate, buildings, struc-
tures, improvements and fixtures which Project, when completed,
will promote the general welfare of the City of Salina, Kansas;
and
WHEREAS, the governing body of the Issuer further finds and
determines that it is necessary and desirable that the Issuer
enter into an Indenture of Trust, dated as of September 1, 1986
(the "Indenture"), with Security Bank of Kansas City, a Kansas
banking corporation, Kansas City, Kansas (the "Trustee"), for
ORDINANCE NO. 86-9160
AN ORDINANCE AUTHORIZING THE CITY OF SALINA, KANSAS, TO
ACQUIRE CERTAIN REAL PROPERTY AND TO ACQUIRE, RENOVATE,
REHABILITATE, CONSTRUCT, IMPROVE AND EQUIP CERTAIN
BUILDINGS, IMPROVEMENTS, MACHINERY AND EQUIPMENT
LOCATED OR TO BE LOCATED THEREON TO BE LEASED TO SALINA
MOTEL LIMITED PARTNERSHIP, A KANSAS LIMITED PARTNERSHIP
(THE "PARTNERSHIP"), FOR DEVELOPMENT OF A HOTEL/MOTEL
FACILITY (THE "DEVELOPMENT"); AUTHORIZING THE CITY TO
ISSUE $1,650,000 PRINCIPAL AMOUNT OF INDUSTRIAL REVENUE
BONDS (SALINA MOTEL LIMITED PARTNERSHIP PROJECT), FOR
THE PURPOSE OF PROVIDING FUNDS TO PAY THE COST OF
ACQUIRING, RENOVATING, REHABILITATING, CONSTRUCTING,
IMPROVING AND EQUIPPING THE DEVELOPMENT FOR THE PART-
NERSHIP; AUTHORIZING THE CITY TO ENTER INTO A TRUST
INDENTURE WITH SECURITY BANK OF KANSAS CITY; AUTHOR-
IZING THE CITY TO ENTER INTO A LEASE OF THE DEVELOPMENT
WITH SALINA MOTEL LIMITED PARTNERSHIP; APPROVING THE
FORMS OF GUARANTY AGREEMENTS, A FIRST LEASEHOLD
MORTGAGE AND SECURITY AGREEMENT, A FIRST ASSIGNMENT OF
RENTS AND LEASES, A LETTER OF CREDIT AND COLLATERAL
PLEDGE AGREEMENT; AND AUTHORIZING AND APPROVING THE
EXECUTION OF CERTAIN DOCUMENTS AND THE TAKING OF OTHER
ACTIONS IN CONNECTION WITH THE ISSUANCE OF SAID BONDS.
WHEREAS, the City of Salina, Kansas (the "Issuer") is
authorized pursuant to the provisions of K.S.A. §§12-1740 to
12-1749a, inclusive, as amended (the "Act"), to acquire, purchase
and construct certain facilities (as defined in the Act), and to
issue industrial revenue bonds for the purpose of paying the cost
of such facilities, and to lease such facilities to private
persons, firms or corporation; and
WHEREAS, the governing body of the Issuer has heretofore and
does now find and determine that it is desirable, in order to
promote, stimulate and develop the general economic welfare and
prosperity of the Issuer and the State of Kansas, that the Issuer
issue its Industrial Revenue Bonds (Salina Motel Limited Partner-
ship Project), Series 1986, in the principal amount of $1,650,000
(the "Bonds"), for the purpose of financing the acquisition,
construction, renovation, rehabilitation, improvement and equip-
ping of a project in Salina, Kansas, consisting of a commercial
hotel/motel facility, including real estate, buildings, struc-
tures, improvements and fixtures which Project, when completed,
will promote the general welfare of the City of Salina, Kansas;
and
WHEREAS, the governing body of the Issuer further finds and
determines that it is necessary and desirable that the Issuer
enter into an Indenture of Trust, dated as of September 1, 1986
(the "Indenture"), with Security Bank of Kansas City, a Kansas
banking corporation, Kansas City, Kansas (the "Trustee"), for
the purpose of issuing and securing the Bonds as hereinafter pro-
vided, and enter into a Lease Agreement, dated as of September 1,
1986 (the "Lease"), with the Partnership under which the Issuer
will acquire, construct, improve and equip the Development and
will lease the Development to the Partnership in consideration of
rentals which will be sufficient to pay the principal of, premi-
um, if any, and interest on the Bonds; and
WHEREAS, the governing body of the Issuer further finds and
determines that it is necessary and desirable in connection with
the issuance of the Bonds that the Issuer enter into certain
documents, copies of which documents have been presented to this
meeting and shall be filed with the records of the Issuer, and
that the Issuer take certain other actions and approve the
execution of certain other documents as herein provided; and
WHEREAS, a public hearing was held by the Issuer on
July 14, 1986, prior to consideration and adoption of this
Ordinance, following reasonable notice published in The
Journal on June 27, 1986, as required by Section 103(k)
Internal Revenue Code of 1954, as amended ( the "Code") ;
Salina
of the
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF THE
Section 2. Authorization of and Security for the Bonds.
The Issuer is hereby authorized to issue and sell its Industrial
Revenue Bonds (Salina Motel Limited Partnership Project), in the
principal amount of $1,650,000, for the purpose of providing
funds to pay the cost of acquiring, constructing, improving and
equipping the Development. The Bonds shall be issued and secured
pursuant to the herein authorized Indenture. The Bonds shall be
dated, shall mature, shall bear interest, shall be in such
denominations, shall be in such forms, shall be subject to
redemption and other terms and conditions, and shall be issued in
such manner, subject to such provisions, covenants and agreements
as are set forth in the Indenture. The Bonds shall be payable
solely out of the rents, revenues and receipts derived by the
Issuer from the Development, draws on a Letter of Credit issued
by Anchor Savings Association (the "Pledgor") or other financial
institutions acceptable to the Issuer, George K. Baum & Company,
the underwriters of the Bonds and the Partnership (the "Letter of
Credit") and amounts realized from the pledged collateral herein-
CITY OF SALINA,
KANSAS, AS FOLLOWS:
and
the
Section 1.
Authorization for
the Acquisition,
Construction,
Improvement and Equipping of the
Development. The Issuer is
from
hereby authorized to provide for
the purchase,
construction,
rehabilitation
and equipping of
the Development,
all in the
manner and as
more particularly described
in the
Indenture and
the Lease.
Section 2. Authorization of and Security for the Bonds.
The Issuer is hereby authorized to issue and sell its Industrial
Revenue Bonds (Salina Motel Limited Partnership Project), in the
principal amount of $1,650,000, for the purpose of providing
funds to pay the cost of acquiring, constructing, improving and
equipping the Development. The Bonds shall be issued and secured
pursuant to the herein authorized Indenture. The Bonds shall be
dated, shall mature, shall bear interest, shall be in such
denominations, shall be in such forms, shall be subject to
redemption and other terms and conditions, and shall be issued in
such manner, subject to such provisions, covenants and agreements
as are set forth in the Indenture. The Bonds shall be payable
solely out of the rents, revenues and receipts derived by the
Issuer from the Development, draws on a Letter of Credit issued
by Anchor Savings Association (the "Pledgor") or other financial
institutions acceptable to the Issuer, George K. Baum & Company,
the underwriters of the Bonds and the Partnership (the "Letter of
Credit") and amounts realized from the pledged collateral herein-
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after referred to (the
"Collateral"). The Development
and
the
net earnings derived by
the Issuer from the Development
and
all
amounts drawn under the
Letter of Credit or realized
from
the
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Collateral shall be pledged
security for payment of the
principal of, interest on, an
provided in the Indenture.
and assigned to the Trustee as
rentals under the Lease and the
d purchase price of, the Bonds as
Section 3. Authorization of Documents. The Issuer hereby
approves and is authorized to enter into the following documents,
in substantially the forms presented to and reviewed by the
governing body of the Issuer at this meeting and incorporated
into this Ordinance by reference thereto (copies of which docu-
ments shall be filed in the records of the Issuer), with such
changes therein as shall be approved by the officers of the
Issuer executing such documents, such officers' signatures
thereon being conclusive evidence of their approval thereof:
(a) Indenture of Trust, to be dated as of September 1,
1986 (the "Indenture"), between the Issuer and the Trustee,
pursuant to which the Bonds shall be issued and the Issuer
shall pledge the Development and assign the rents, revenues
and receipts received pursuant to the Lease and the amounts
drawn under the Letter of Credit and realized from the
Collateral to the Trustee for the benefit of and security of
the holders of the Bonds upon the terms and conditions as
set forth therein;
(b) Lease, to be dated as of September 1, 1986 (the
"Lease"), between the Issuer and the Partnership under which
the Issuer will acquire, construct, improve and equip the
Development and will lease the Development to the Partner-
ship and the Partnership will agree to make rental payments
in amounts sufficient to provide for the payment of the
principal of, premium, if any, and interest on the Bonds as
the same become due;
(c) Bond Purchase Agreement (the "Bond Purchase
Agreement"), by and among the Issuer, George K. Baum &
Company, the Pledgor and the Partnership; and
(d) Leasehold Mortgage and Security Agreement, to be
dated as of September 1, 1986, from the Partnership to the
Trustee, granting a first lien mortgage on, and security
interest in, the Partnership's leasehold interest in the
land, buildings and equipment comprising the Development,
securing the payment of the amounts due under the Lease. .
(e) Collateral Pledge Agreement, to be dated as of
September 1, 1986 (the "Collateral Agreement") between the
Pledgor and the Trustee, under which the Pledgor pledges the
Collateral to secure payment under the Letter of Credit.
(f) Assignment of Rents and Leases, to be dated as of
September 1, 1986, from the Partnership to the Issuer,
granting a security interest in the rents and leases of the
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Development, securing the payment of the amounts due under
the Lease.
(g) Guaranty Agreements, each to be dated as of
September 1, 1986, from the Partnership and its partners and
their respective spouses, to secure the payment amounts due
on the Bonds and under the Lease.
Section 4. Approval of Other Documents. The Issuer hereby
approves the form and execution of such other documents as may be
necessary to accomplish the purposes of this Ordinance and to
comply with and perform the obligations of the Issuer under the
documents authorized above in substantially the forms submitted
to the governing body of the Issuer as of this date or later
approved by any officer of the Issuer and the counsel to the
Issuer, such officer's signature thereon being conclusive evi-
dence of such approval, which documents are incorporated herein
by reference.
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Section 5. Designation of Trustee, Paying Agent and Bond
Registrar. Security Bank of Kansas City, Kansas City, Kansas,
or such other financial institutions with trust powers as is
approved by an officer of Issuer, is hereby designated Trustee,
Paying Agent and Bond Registrar for the Bonds under the
Indenture.
Section 6. Execution of Bonds and Documents. The Mayor is
hereby authorized and directed to execute the Bonds by manual or
facsimile signature and to deliver the Bonds to the Trustee for
authentication for and on behalf of and as the act and deed of
the Issuer in the manner provided in the Indenture. The Mayor is
hereby authorized and directed to execute and deliver the Inden-
ture, the Lease, 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 Ordin-
ance, for and on behalf of and as the act and deed of the Issuer.
The City Clerk is hereby authorized and directed to attest to the
Bonds by manual or facsimile signature and to attest to and affix
the seal of the Issuer to the Indenture, the Lease, and such
other documents, certificates and instruments.
Section 7. Further Authority. The Issuer shall, and the
officers and agents of the Issuer are hereby authorized and
directed to, take such action and execute such other documents,
certificates and instruments as in the opinion of any such
officer or agent may be necessary or desirable to carry out and
comply with the intent of this Ordinance and to carry out, comply
with and perform the duties of the Issuer with respect to the
Bonds, the Indenture and the Lease.
Section 8. Public Approval. This Ordinance is intended to
constitute public approval of the issuance of the Bonds to
finance the costs of the Development within the meaning of
Section 103(k) of the Code. Whereas a public hearing following
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reasonable public notice has been held, the Issuer hereby approves
the issuance of $1,650,000 of its industrial revenue bonds, the
proceeds of which will be used to finance the acquisition,
construction, improvement and equipping of the Development which
will be leased to the Partnership.
Section 9. Ratification and Confirmation of Informational
Statement Pursuant to K.S.A. 12-1744a; Filings with Internal
Revenue Service. The Informational Statement filed with the
Board of Tax Appeals of the State of Kansas relating to the
proposed issuance of the Bonds, in the form and content attached
hereto, is hereby, in all respects, ratified and confirmed and
approved as the official act of the City. The Mayor and City
Clerk are further authorized to execute documents or make any
required filings with the Internal Revenue Service, the Kansas
Department of Economic Development and the Board of Tax Appeals
of the State of Kansas to obtain or maintain the tax-exempt
status of the interest on the Bonds, including, but not limited
to, arbitrage certificate, an election to the effect the
$10,000,000 limitation for the Bonds, IRS Form 8038 and a
Verification of issuance of the Bonds.
Section 10. Effective Date. This Ordinance shall take
effect and be in full force from and after its adoption by the
governing body of the Issuer and publication in the official
newspaper of the Issuer.
PASSED by the governing body of the City of Salina, Kansas,
this 22nd day of September, 1986.
f
ayar
[SEAL] /
ATTEST:
City Clerk
City Attorney
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