85-9113 IRB El DoradoORDINANCE NO. 85-9113
OF THE
CITY OF SALINA, KANSAS
AUTHORIZING THE ISSUANCE OF
$900,000 INDUSTRIAL REVENUE BONDS
SERIES A, 1985
(EL DORADO MOTOR CORPORATION PROJECT)
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( Published in THE SAL I NA JOURNAL , i _D, �f85
ORDINANCE NO. 85-9113
WHEREAS, the City of Salina, Kansas is authorized by K.S.A.
12-1740 to 12-1749a, inclusive, as amended (the "Act"), to
acquire, construct and improve 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 agreements with any person, firm or corporation for
said facilities, and to issue revenue bonds for the purpose of
paying the cost of any such facilities; and
WHEREAS, the City of Salina, Kansas 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 Bonds, Series A, 1985 (El Dorado
Motor Corporation Project) dated December 1, 1985 in the
aggregate principal amount of $900,000 (the "Series A, 1985
Bonds"), for the purpose of paying the costs of purchasing,
.acquiring, constructing and installing a certain industrial
facility (the "Project"), as more fully described in the
Indenture and in the Lease hereinafter authorized and which
Project shall be leased by the City to E1 Dorado Motor
Corporation (the "Tenant"); and
WHEREAS, the City further finds and determines that it is
necessary and desirable in connection with the issuance of said
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AN ORDINANCE AUTHORIZING THE CITY OF SALINA,
KANSAS TO ISSUE ITS INDUSTRIAL REVENUE BONDS,
SERIES A, 1985 (EL DORADO MOTOR CORPORATION
PROJECT) IN THE AGGREGATE PRINCIPAL AMOUNT OF
$900,000 FOR THE PURPOSES OF CONSTRUCTING,
EQUIPPING AND REMODELING AN EXISTING FACILITY;
AUTHORIZING EXECUTION OF A TRUST INDENTURE BY AND
BETWEEN THE CITY AND THE SOUTHWEST NATIONAL BANK
OF WICHITA, IN THE CITY OF WICHITA, KANSAS, AS
TRUSTEE; AUTHORIZING THE CITY TO LEASE SAID
PROJECT TO EL DORADO MOTOR CORPORATION AND
AUTHORIZING EXECUTION OF A LEASE BETWEEN SAID
CITY AND EL DORADO MOTOR CORPORATION; APPROVING
THE FORM OF A GUARANTY AGREEMENT BY AND BETWEEN
EL DORADO MOTOR CORPORATION AND THE THE SOUTHWEST
NATIONAL BANK OF WICHITA; AND AUTHORIZING THE
EXECUTION OF THE BOND PURCHASE AGREEMENT FOR THE
BONDS BY AND AMONG THE CITY, EL DORADO MOTOR
CORPORATION AND LOWELL H. LISTROM & CO., INC., AS
PURCHASER OF THE BONDS.
WHEREAS, the City of Salina, Kansas is authorized by K.S.A.
12-1740 to 12-1749a, inclusive, as amended (the "Act"), to
acquire, construct and improve 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 agreements with any person, firm or corporation for
said facilities, and to issue revenue bonds for the purpose of
paying the cost of any such facilities; and
WHEREAS, the City of Salina, Kansas 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 Bonds, Series A, 1985 (El Dorado
Motor Corporation Project) dated December 1, 1985 in the
aggregate principal amount of $900,000 (the "Series A, 1985
Bonds"), for the purpose of paying the costs of purchasing,
.acquiring, constructing and installing a certain industrial
facility (the "Project"), as more fully described in the
Indenture and in the Lease hereinafter authorized and which
Project shall be leased by the City to E1 Dorado Motor
Corporation (the "Tenant"); and
WHEREAS, the City further finds and determines that it is
necessary and desirable in connection with the issuance of said
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Series A, 1985 Bonds to execute and deliver a Trust Indenture
dated as of December 1, 1985, (the "Indenture"), with The
Southwest National Bank of Wichita, as Trustee (the "Trustee"),
for the purpose of issuing and securing the Series A, 1985
Bonds as provided therein and to enter into a Lease dated as of
December 1, 1985 (the "Lease"), with the Tenant pursuant to
which the City shall cause the Project to be purchased and
constructed and 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. Authority to Cause the Project to be Purchased
and Constructed. The City is hereby authorized to cause the
Project to be purchased, acquired, constructed and installed
all in the manner and as more particularly described in the
Indenture and the Lease hereinafter authorized.
Section 3. Authorization of and Security for the Bonds.
There is hereby authorized and directed to be issued a series
of industrial revenue bonds to be designated "City of Salina,
Kansas Industrial Revenue Bonds, Series A, 1985 (E1 Dorado
Motor Corporation Project)" in the aggregate principal amount
of $900,000 (the "Series A, 1985 Bonds") for the purpose of
providing funds to pay the cost of acquiring', purchasing,
constructing and installing the Project. The Series A, 1985
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 Series A, 1985 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 Series A, 1985 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.
Section 4. Authorization of Indenture. The City is hereby
authorized to enter into the Indenture dated as of December 1,
1985, by and between the City and The Southwest National Bank
of Wichita,Wichita, Kansas, as Trustee, under which the City
shall pledge and assign to the Trustee, for the benefit of the
holders of the Bonds, the Trust Estate created thereby, all
upon the terms and conditions set forth in said Indenture.
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Section 5. Lease of the Project. The City shall cause the
Project to be purchased, acquired, constructed and installed
and 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 December 1, 1985, by and between the City and the Tenant.
Section 6. Approval of the Guaranty Agreement. The form
Guaranty Agreement, dated as of December 1, 1985, pursuant to
which the Tenant guarantees to the Trustee, for the benefit of
the owners of the Series A, 1985 Bonds, the full and prompt
payment of the principal of, redemption premium, if any, and
interest on the Series A, 1985 Bonds, is hereby approved.
Section 7. Authorization of Bond Purchase Agreement. The
Series A, 1985 Bonds shall be sold and delivered to Lowell H.
Listrom & Co., Inc., upon the terms and subject to the
provisions of the Bond Purchase Agreement herein authorized
dated as of December 2, 1985 by and among the City, Tenant and
Lowell H. Listrom & Co., Inc., as Purchaser.
Section 8. Execution of Bonds and Agreements. The Mayor
or Vice Mayor of the City of Salina, Kansas are hereby
authorized and directed to execute the Series A, 1985 Bonds and
deliver same to the Trustee for authentication for and on
behalf of and as the act and deed of the City in the manner
provided in the Indenture. The Mayor or Vice Mayor are 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 presented today with such minor
corrections or amendments thereto as the Mayor or Acting 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 are hereby
authorized and directed to attest the execution of the Series
A, 1985 Bonds, the Indenture and 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 9. Pledge of the Project. The City hereby pledges
the Project to the payment of the Series A, 1985 Bonds in
accordance with K.S.A. 12-1744. The lien created by such
pledge shall be discharged when all of the Series A, 1985 Bonds
shall be deemed to have been paid within the meaning of the
Indenture.
Section 10. Further Authority. 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
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the provisions of this Ordinance and to carry out, comply with
and perform the duties of the City with respect to the Series
A, 1985 Bonds, the Indenture and the Lease all as necessary to
carry out and give effect to the transaction contemplated
hereby and thereby.
Section 11. 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 2nd day of December, 1985.
Attest:
D. L. Harrison, City Clerk
(Seal)
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Merle A. Hodges,` M.Dc. ,—Mayor