86-9129 IRB El DoradoFj
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ORDINANCE NUMBER 86-9129
OF THE
CITY OF SALINA, KANSAS
AUTHORIZING THE ISSUANCE OF
$900,000 INDUSTRIAL REVENUE BONDS
SERIES A, 1986
(ELDORADO MOTOR CORPORATION PROJECT)
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(Published in The Salina Journal , 1986)
ORDINANCE NUMBER 86-9129
AN ORDINANCE AUTHORIZING THE CITY OF SALINA, KANSAS TO
ISSUE ITS INDUSTRIAL REVENUE BONDS, SERIES A, 1986 (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 DCR.ADO 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
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 FIRST SECURITIES
COMPANY OF KANSAS, INC., AS PURCHASER OF THE BONDS, AND
REPEALING ORDINANCE NUMBER 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, 1986 (EI Dorado
Motor Corporation Project) dated April 1, 1986 in the aggregate principal amount
of $900,000 (the "Series A, 1986 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 EI 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 Series A, 1986 Bonds to
execute and deliver a Trust Indenture dated as of April 1, 1986, (the
"Indenture"), with The Southwest National Bank of Wichita, as Trustee (the
"Trustee") , for the purpose of issuing and securing the Series A, 1986 Bonds as
provided therein and to enter into a Lease dated as of April 1, 198G (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 herei—n7 afl have t e respective meanings set forth in the Indenture and
Lease herein authorized.
Section 2. Authority to Cause the Project to be Purchased and
Con structecfT —Tre City isepi rebyyauthorized to cause the Project to be
purc ase , 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 aut or�ized'and directed to be issue a series of industrial- revenue bonds
to be designated "City of Salina, Kansas Industrial Revenue Bonds, Series A,
1986 (EI Dorado Motor Corporation Project)" in the aggregate principal amount of
$900,000 (the "Series A, 1986 Bonds") for the purpose of providing funds to pay
the cost of acquiring, purchasing, constructing and installing the Project. The
Series A, 1986 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, 1986 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, 1986 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 t�i-e'7ndenture dates as o pri 1 , 1986, 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.
Section 5. Lease of the Project. The City shall cause the Project to
be purchase—cam, acquire , 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 April 1, 1986, by and between the City and the Tenant.
Section 6. Approval of the Guaranty Agreement. The form Guaranty
Agreement — atecl—as of April1, 1986, pursuant to which the Tenant guarantees
to the Trustee, for the benefit of the owners of the Series A, 1986 Bonds, the
full and prompt payment of the principal amount, redemption premium, if any,
and interest on the Series A, 1986 Bonds, is hereby approved.
Section 7. Authorization of Bond Purchase Agreement. The Series A,
1986 Bonds shall be sold and delivered to First Securities pany of Kansas,
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 First Securities Company of Kansas, Inc., as Purchaser.
Section 8. Execution of Bonds and Agreements. The Mayor or Vice
Mayor oftTie-- y of Salina, Kansas are hereby aut orized and directed to
execute the Series A, 1986 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 interest 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, 1986 Bonds, the Indenture and the Lease, and the
Bond Purchase Agrement 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. Plebe of the Project. The City hereby pledges the
Project tot-F—epaymentot the Series A, 186 Bonds in accordance with K.S.A.
12-1744. The lien created by such pledge shall be discharged when all of the
Series A, 1986 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 Me City are lereby 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
the provisions of this Ordinance and to carry out, comply with and perform the
duties of the City with respect to the Series A, 1986 Bonds, the Indenture and
the Lease all as necessary to carry out and give effect to the transaction
contemplated hereby and thereby.
Section 11. Repeal of Ordinance. Ordinance Number 85-9113, adopted
on December 2, 1985, is hereby repea e .
Section 12. Effective Date. This ordinance shall take effect and be in
full force rom an after its a op it on by the City Commission and publication
once in the official newspaper of the City.
ATTEST:
D. L. Harrison, City Clerk
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Introduced: March 17, 1986
Passed: March 24, 1986
Merle A. Hodges, . D. ,Zyor
[SEAL]
ATTEST:
D. L. Harrison, City Clerk
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