6912 IRB Community Inn• �li sherd w -tic �rLa._�G�v�S�, �, C�-121.�._Q,1 lit lo(� .
ORDINANCE NO. 6912
AN ORDINANCE AUTHORIZING THE CITY OF SALINA, KANSAS, TO PAY THE
COST OF ACQUIRING A SITE FOR A BUILDING TO BE USED FOR COMMERCIAL
FACILITIES AND AUTHORIZING AdD DIRECTING THE ISSUANCE OF $600,000
PRINCIPAL AMOUNT OF SALINA, KANSAS, COMMUNITY INN AND CONVENTION
CENTER REVENUE BONDS, SERIES B, OF SAID CITY FOR THE PURPOSE OF
PAYING THE COST OF ACQUIRING A SITE FOR A BUILDING TO BE USED FOR
CCMMERCIAL FACILITIES.
WHEREAS, the City of Salina, Kansas, a city of the first
class, hereinafter sometimes referred to as the "City", desires to
promote, stimulate and develop the general economic welfare and
prosperity of the City of Salina, Kansas, and its environs and
thereby to further promote, stimulate and develop the general
economic welfare and prosperity of the State of Kansas, and
WHEREAS, pursuant to the provisions of K.S.A. 12-1740
to 12-1749, said City is authorized to issue industrial revenue
bonds of the City, and it is hereby found and determined to be ad-
visable and in the interest and for the welfare of the City and
its inhabitants that industrial revenue bonds of the City in the
principal amount of $600,000 be authorized and issued, for the
purpose of providing funds to pay the cost of acquiring a site for
a building to be used for commercial facilities to be leased to
Salina Community Inn of America, Inc., a Kansas corporation, here-
inafter sometimes referred to as the "Company", the proceeds of the
Bonds to be used in conjunction with an issue of $1,500,000 princi-
pal amount of Salina, Kansas, Community Inn and Convention Center
Revenue Bonds, Series A. dated April 1, 1966, and the sum of
$900,000 otherwise made available for said purpose, and
WHEREAS, the City will acquire prior to or concurrently
with the issuance of the bonds herein authorized the real property
hereinafter described;
NOW, THEREFORE, BE IT ORDAINED BY THE GOVERNING BODY OF
THE CITY OF SALINA, KANSAS:
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Section 1. That the City of Salina, Kansas, is hereby
authorized to acquire a site for a building to be used for com-
mercial facilities on the following described real property, to
wit:
A1.1 of Lots Eighty-four (8), Eighty-six (86),
Eighty-eight (88), Ninety (g0), Ninety-two (92),
Ninety-four (94), Ninety-six (96) and Ninety-eight
(98) on Fourth Street, in the Original Town (now
City) of Salina, Saline County, Kansas.
All of Lots One Hundred (100), One Hundred Two (102),
One Hundred -four (10 , One Hundred -six (106) and
One Hundred -eight (108), except that part taken
for Railroad Right -of -Way, all on Fourth Street, in
the Original Town (now City) of Salina, Saline County,
Kansas.
All of Lots Eighty-nine 89 , Ninety-one (91), Ninety-
three (93), Ninety-five 3 Ninety-seven (97),
Ninety-nine (99), One Hundred One (101), One Hundred
Three (103), One Hundred -five (105) and One Hundred
Seven (107), all on Fifth Street in the Original
Town (now City) of Salina, in Saline County, Kansas
Subject to: (i) easements, restrictions
and reservations of record, and (ii) the
rights of the public in that part of the
aforesaid premises, if any, now lying and
being in public roads and highways.
said real estate and any building thereon and any other improvements
relating thereto being sometimes hereinafter described as the
"Facility" in accordance with the provisions of the Lease dated
April 1, 1966, between said City and said Salina Community
Inn of America, Inc., hereinafter sometimes referred to as
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the "Lease", said Lease being authorized by the provisions of
Ordinance No. 6911 of said City (said Facility being referred to
in the Lease as the "Project"), the cost of said real property not
to exceed the cost of $600,000 to said City.
Section 2. That for the purpose of providing funds to
pay the cost of acquiring a site for a building to be used for
commercial facilities to be leased to Salina Community Inn of
America, Inc., a Kansas corporation, there shall be issued and
hereby are authorized and directed to be issued a series of Salina,
Kansas, Community Inn and Convention Center Revenue Bonds, Series B.
of the City of Salina, Kansas, in the principal amount of $600,000.
Said bonds herein authorized, hereinafter sometimes referred to as
the "bonds" or the "revenue bonds", and all interest thereon shall
be paid solely from the money and revenue received from the fees
charged and rental received for the use of the facility and not
from any other fund or source. The City hereby pledges the Facility
and said rentals, income and other moneys therefrom to the payment
of the bonds and the interest thereon.
The bonds herein authorized are junior and subordinate in
all respects, including the payment of interest and principal
either at maturity or on call for redemption and payment, to the
$135003000 principal amount of Salina, Kansas, Community Inn and
Convention Center Revenue Bonds, Series A. dated April 1, 1966,
authorized by Ordinance No. 6911 of said City, and if there shall
ever be a default in the payment of principal of or interest on
said Revenue Bonds, Series A. or if the City shall be in default
with respect to the payment of any reserves or other payments pro-
vided for by the ordinance authorizing said Series A Bonds, the
City shall make no payments on account of the principal of or
interest on the bonds herein authorized until all of said defaults
be cured.
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Section 3. Said Salina, Kansas,Community Inn and Conven-
tion Center Revenue Bonds, Series B, of the City of Salina, Kansas,
shall consist of 120 bonds, numbered from 1 to 120, inclusive,
each of said bonds being in the denomination of $53000. All of
said bonds shall be dated April. 1, 1966, and said bonds shall be
numbered, shall become due serially on December 1 in each year and
shall bear interest as follows:
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MATURITY
NUMBERS
AMOUNT
DECEMBER 1
INTEREST
1
- 24
$120,000
1989
5
1/4y
25
- 48
1203000
1990
5
1/4%
49
- 72
1203000
1991
5
1/4y
73
- 96
120,000
1992
5
1/4q
97
- 120
120,000
1993
5
1/4%
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Said bonds shall bear interest from date, payable June 1,
1966 and thereafter semiannually on December 1 and June 1 in each
year, at the rate hereinabove specified.
Each of said bonds numbered 1 to 120, inclusive, may
be called for redemption and payment at the option of said City
in whole or in part, in inverse numerical order, December 1, 1988,
or on any interest payment date thereafter at the par value thereof,
plus accrued interest thereon to date fixed for redemption and
payment, together with a premium which shall be equal to 5 1/4%
of the principal amount of bonds so redeemed and paid.
Each of said bonds numbered 1 to 120, inclusive, shall
be subject to redemption and payment on any interest payment date
upon either of the following conditions or events, provided all
of said bonds are so redeemed and paid: (1) If title to, or the
use for a limited period of, substantially all of the Facility
subject to said Lease be condemned by any authority having the
power of eminent domain; or (2) If substantially all of the im-
provements and equipment constituting a part of such Facility
are damaged or destroyed by fire or other casualty. In either
of such events all of said bonds shall be subject to redemption
and payment at the par value thereof, plus accrued interest thereon
to date fixed for redemption and payment, together with a premium
which shall be equal to 2 1/4% of the principal amount of bonds
so redeemed and paid.
None of the bonds herein authorized shall be called for
redemption and payment as long as any of the Salina, Kansas,
Community Inn and Convention Center Revenue Bonds, Series A,
dated April 1, 1966, remain outstanding and unpaid, or provision
made for the payment thereof.
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Notice of any redemption provided for by this Ordinance
shall be given by United States registered mail to the paying agent
herein designated and to Almon McKinney & Dudley, Inc., in the City
of Dallas, Texas, such notice to be mailed at least 30 days prior
to the date fixed for redemption and payment and to specify the
numbers of the bonds to be redeemed and paid. Interest shall cease
on any of said bonds so called for redemption and payment as of the
redemption date, provided funds are available to pay the same ac-
cording to their terms.
Said bonds and interest coupons to be attached thereto
as hereinafter provided shall be payable in lawful money of the
United States of America at Mercantile National Flank at Dallas, in
the City of Dallas, Texas, hereinafter sometimes referred to as the
"Paying Agent".
Section 4. Said bonds and each of them shall be executed
for and on behalf of the City by the Mayor and attested by the City
Clerk, with the seal of the City affixed. Interest coupons shall
be attached to said bonds representing the interest to mature there-
on, and said interest coupons shall bear the facsimile signatures
of the Mayor and City Clerk of said City.
Section 5. Each of said Bonds and interest coupons and
the certificates attached thereto shall be in substantially the
following form:
No.
UNITED STATES OF AMERICA
STATE OF KANSAS
COUNTY OF SALINE
CITY OF SALINA
SALINA, KANSAS,COMMUNITY INN
AND CONVENTION CENTER REVENUE BOND,
SERIES B
$5,000
KNOW ALL MEN BY THESE PRESENTS; That the City of Salina,
in the County of Saline, State of Kansas, for value received, hereby
promises to pay, out of the revenues hereinafter specified, to the
bearer the sum of
FIVE THOUSAND DOLLARS
in lawful money of the United States of America, on the first day
of December, 19 , and to pay interest thereon from the date here-
of at the rate of five and one quarter per cent (5 1/4%) per annum,
payable June 1, 1966 and thereafter semiannually on December 1 and
June 1 in each year after the date hereof until the said principal
sum shall have been paid, upon presentation and surrender of the
interest coupons hereto attached, bearing the facsimile signatures
of the Mayor and City Clerk of said City as said coupons severally
become due, both principal of and interest on this bond being
payable at Mercantile National Bank at Dallas, in the City of
Dallas, Texas.
THIS BOND is one of an authorized series of 120 bonds of
like date and tenor, except as to number and maturity,
aggregating the principal amount of $600,000, numbered
from 1 to 120, inclusive, each in the denomination of $5,000,
authorized by ordinance of said City, issued for the purpose of
providing funds to pay the cost of acquiring a site for a building to
be used for commercial facilities (said site and building hereinafter
sometimes referred to as the "Facility") to be leased to Salina
Community Inn of America, Inc., a Kansas corporation authorized to
do business in the State of Kansas, by the authority of and in
conformity with the provisions, restrictions and limitations of
the Constitution and statutes of the State of Kansas, including
K.S.A. 12-1740 to 12-1749, and all amendments thereof and acts
supplemental thereto, and all other provisions of the laws of said
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State applicable thereto, and this bond and all interest hereon
are to be paid by said City of Salina, Kansas, solely and only from
the money and revenue received from the fees charged and rental
received for the use of the Facility and not from any other fund or
source. Pursuant to the provisions of said statute, the governing
body of the City has pledged said facility and said rentals, income
and other moneys therefrom to the payment of the series of bonds of
which this bond is a part, and the interest thereon. Reference is
hereby made to the ordinance aforesaid and to said Lease for a
description of the covenants of the City with respect to the collec-
tion, segregation and application of the revenues of said Facility,
the nature and extent of the security of said bonds, the rights of
the City to issue additional bonds to finance the Facility, the
rights, duties and obligations of the City and of the Fiscal Agent
with respect thereto, and the rights of the holders thereof.
At the option of the City, bonds numbered 1 to 120,
inclusive, of the series of bonds of which this bond is one, may be
called for redemption and payment prior to maturity, in whole or in
part, in inverse numerical order, on December 1, 1988, or on any
interest payment date thereafter, at the par value thereof and
accrued interest to date of redemption, together with a premium
which shall be equal to one year's interest on the bonds so redeemed
and paid.
Each of the bonds of the series of which this bond is
one is subject to redemption and payment prior to maturity at
any time upon any of the following conditions or events, pro-
vided all of said bonds are so redeemed and paid; (1) If title
to, or the use for a limited period of, substantially all of the
Facility leased to said tenant be condemned by any authority hav-
ing the power of eminent domain, or (2) If substantially all of
the improvements and equipment constituting a part of such Facil-
ity be damaged or destroyed by fire or other casualty. In any
o -n such events said bonds shad be subject to redemption and pay-
ment at the par value thereof, plus accrued interest thereon to
date of redemption, together with a premium of 2 1/4% of the
principal amount of bonds so called `'or redemption and payment.
None of the series of bondj of which this bond is one
shall be called for redemption and payment as long as any of the
Salina, Kansas, Community Inn and Convention Center Revenue Bonds,
Series A, Dated April 1, 1966, remain outstanding and unpaid
or provision made for the payment thereof.
Notice of the City's intention to redeem and pay said
bonds pursuant to any of the redemption provisions aforesaid,
specifying the numbers of the bonds to be redeemed and paid, shall
be given by United States registered mail to the Paying Agent herein
named not less than 30 days prior to the date fixed for redemption
and payment and as otherwise provided in the bond ordinance.
This bond and the series of which it is one are junior
and subordinate in all respects, including the payment of prin-
cipal and interest, to an issue of Salina, Kansas, Community Inn
and Convention Center Revenue Bonds, Series h, dated April 1,
1566, in the principal amount of $1,500,000, and if there shall
be any default in the payment of the principal of or interest in
said bonds, no payment of the principal of or interest on this
bond and the series of which it is one, until all such defaults
be cured.
-
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AND IT IS HEREBY DECLARED AND CERTIFIED that all acts,
conditions and things required to be done and to exist precedent
to and in the issuance of this bond have been properly done and
performed and do exist in due and regular form and manner as
required by the Constitution and laws of the State of Kansas.
IN WITNESS WHEREOF, the City of Salina, Kansas, by
its governing body, has caused this bond to be signed by its
Mayor and attested by its City Clerk, and its corporate seal to
be hereto affixed and the interest coupons hereto attached to be
signed with the facsimile signatures of said officers, and this
bond to be dated this First day of April, 1966.
ATTEST:
City Clerk
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Mayor
(FORM OF COUPON)
Coupon No.
First Coupon for 2 All other coupons for
months from April 1, 6 months due June 1
1966 due June 1, 1966 and December 1
3.75 1131.25
Unless previously called for prior
redemption and payment thereof duly made or pro-
vided for, on the First day of December, 19
the City of Salina, Kansas, will pay bearer,
solely from the money and revenue received for
the use of the Facility described in the bond
to which this coupon is attached, and not from
any other fund or source,
Dollars, in lawful money of
the United States of America, at Mercantile
National Bank at Dallas in the City of Dallas,
Texas, being interest due on its Salina, Kansas,
Community Inn and Convention Center Revenue Bond,
Series B, dated April 1, 1966, No.
ATTEST:
City Clerk
Mayor
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June 1,
December 1, 19
----------------
City of Salina
Kansas
Salina, Kansas,
Community Inn and
Convention Center
Revenue Bond
Series B
------------------
STATE OF KANSAS
SS.
COUNTY OF SALINE
I, the undersigned, City Clerk of the City of Salina,
Kansas, hereby certify that the within Bond of the City of Salina,
Kansas, has been duly registered in my office according to law.
WITNESS my hand and official seal this day of
, 1966.
City Clerk
Section 6. The Mayor and City Clerk are hereby authorized
and directed to prepare and execute in the manner hereinbefore
specified the Salina, Kansas, Community Inn and Convention Center
Revenue Bonds, Series B, of the City herein authorized, and to
deliver said bonds to the purchaser thereof, on payment of the
purchase price which shall be deposited with the Fiscal Agent.
Section 7. There is hereby authorized and ordered to
be established in the hands of Mercantile National Bank at Dallas,
in the City of Dallas, Texas, hereby designated as the City's fiscal
agent, and hereinafter referred to as the "Fiscal Agent", a
separate fund or account designated as the "Salina Community Inn
of America, Inc. Site Acquisition Fund," hereinafter referred to
as the "Site Acquisition Fund." The proceeds from the sale of
said bonds shall be deposited in said Fund. The City further
designates Planters State Bank in the City of Salina as its Co -
Fiscal. Agent, hereinafter referred to as the Co --Fiscal Agent.
Section 8. Concurrently with the issuance of said bonds
the Fiscal Agent shall withdraw from said Site Acquisition Fund
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any accrued interest received by said City from the sale of said
Series B bonds, plus some additional amount of the proceeds from the
sale of the Series A Bonds as provided by Section 8 of Ordinance No.
6911 of said City to pay the interest becoming due on the Series B
Bonds on June 1 and December 1, 1966, June 1 and December 1, 1967
and June 1, 1968, and deposit the same in the "City of Salina,Kansas,
Principal and Interest Account for Salina, Kansas, Community Inn and
Convention Center Revenue Bonds, Series B, dated April 1, 1966,"
hereinafter created.
Section 9. The Fiscal Agent shall make disbursements from
said Site Acquisition Fund for the acquisition of the site in accord-
ance with the terms and provisions of the lease dated April 1, 1966,
between said City and said Salina Community Inn of America, Inc.
authorized by the provisions of said Ordinance No. 6911.
Section 10. There is hereby authorized and ordered to be
established in the hands of the Fiscal Agent a separate account to
be known as the "City of Salina, Kansas, Principal and Interest Ac-
count for Salina, Kansas, Community Inn and Convention Center Reve-
nue Bonds, Series B, dated April 1, 1966," hereinafter referred to as
the "Principal and Interest Account for Series B Bonds". The City
covenants and agrees that from and after the delivery of any of the
revenue bonds herein authorized and continuing so long as any of
said bonds shall remain outstanding, said City will maintain said
account with the Fiscal Agent.
All moneys due under Exhibit E of said lease shall be paid
to and deposited monthly in the Revenue Account maintained at
Planters State Bank, Salina, Kansas, Co -Fiscal Agent and said Co -
Fiscal Agent shall transmit such funds to Mercantile National Bank
at Dallas, the Fiscal Agent, as provided by Section 10 of Ordinance
No. 6911 and shall be used by said Fiscal Agent to pay the principal
of and interest on the bonds herein authorized as the same become
due; PROVIDED, HOWEVER, that on June 1 and December 1 in each year
the Fiscal Agent shall make no payments of principal or interest
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on the bona of Series B authorized by this ordinance unless it has
on hand sufficient funds to pay said Salina Community Inn and Conven-
tion Center Revenue Bonds, Series A. and the interest thereon, and
to make the deposits into the Reserve Account for Series A Bonds and
the Replacement and Maintenance Account created by subparagraphs (b)
and (c) of Section 10 of Ordinance No. 6g11 .
Section 11. When moneys accumulated in Principal and
Interest Account for Series B Bonds shall aggregate an amount suf-
ficient to pay the principal of all of said revenue bonds then
outstanding, and all interest accrued to date fixed for redemption
and payment, together with the premium required to pay the same
upon call for redemption and payment, and when said bonds become
subject to redemption, said City shall proceed to give notice of
such redemption in the manner herein specified, and the Fiscal Agent
shall transfer the necessary funds in said Account to the Paying
Agent for said purpose. Any balance in said accounts not required
for said purpose shall be returned to Salina Community Inn of America,
Inc. ti
Section 12. Moneys in the Salina Community Inn of Amer-
ica, Inc. Site Acquisition Fund shall, upon instructions from the
Company, be invested by the Fiscal Agent in direct obligations of
the United States Government becoming due within three months from
the date of purchase. Moneys allocated and credited to and de-
posited in the Principal and Interest Account for Series B Bonds
in any amount in excess of the amount necessary to pay the amount
of principal and interest next becoming due shall be invested by
the Co -Fiscal Agent, upon instructions from the Company, if at the
time permitted by law, in bonds or other direct obligations of the
United States Government or agencies thereof having a fixed re-
demption value or becoming due without loss of principal not later
than December 1, 1988. No investment shall be made pursuant to this
section for a period longer than the time the Fiscal Agent or Co-
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Fiscal Agent shall determine that said funds are not required for
the purpose for which they are intended. All interest on any bonds
or obligations held in the Site requisition Fund shall be deposit-
ed in said Principal and Interest Account for Series B Bonds and
interest on any bonds or other obligations held in any other ac-
count shall accrue to and become a part of such fund or account.
Section 13. So long as any of the principal of and in-
terest on the revenue bonds herein authorized remain outstanding
and unpaid, or provision made for the payment thereof, the City
covenants with each of the purchasers and owners of said bonds as
follows:
(A) The City will comply fully with all the terms, pro-
visions, and conditions of the Lease which require performance by,
or impose duties on the City and that it will not permit any de-
fault to occur on the part of the City; that it will fully and
promptly enforce all of the terms, provisions and conditions of
the Lease which require performance by, or impose duties on Salina
Community Inn of America, Inc , and in the event of the occurrence
of a default, as defined in the Lease, will exercise all rights,
and remedies conferred by the Lease for the full and complete pro
Lection of the security and rights of the bondholders and to the
extent permitted by the Lease, will use its best efforts to pro-
cure a new tenant or tenants for the leased property under lease
provisions which will provide funds sufficient in amount to make
the rental payments and other charges which Salina Community Inn
of America, Inc. is required to make under the Lease dated January
1, 1966. If the City is unable to procure a new tenant who will
enter into such a lease the City may, with the consent of the
holders of not less than seventy --five per cent (75%) of the bonds
herein authorized at the time outstanding, sell the Facility leased
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at a, price not less than the amount of then outstanding revenue
bonds ,plus interest then unpaid.
(B) The City will enforce collection of the rental pay-
ments and other charges in the amounts and at the times set forth
in the Lease authorized hereby and will not reduce or cause or
permit to be reduced rile rental payments and other charges fixed,
established and required by the Lease nor change or alter the time
or times when the same are due and payable under said Lease. The
City's obligation to pay the expenses of such enforcement shall be
limited to funds made available to it for that purpose by the bond-
holders or other interested parties.
(C) That until payment of all the bonds and interest
thereon has been duly made or provided for, the City will not con-
sent to any change, amendment, modification or termination of said
Lease, except as provided therein, which will in any manner affect
adversely the rights, remedies or interest of the bondholder.
(D) Any purchase price of the leased property received
by City pursuant to the termination of the Lease, any proceeds of
condemnation awards, insurance proceeds or any other funds intend-
ed for the purpose of paying said bonds will be used solely and
exclusively, first to pay the Salina, Kansas, Community Inn and
Convention Center Revenue Bonds, Series A, and the interest there-
on and then to pay the bonds herein authorized and the interest
thereon according to their terms or to redeem and pay any of said
bonds then outstanding and unpaid and then subject to redemption and
payment in the order named. Upon receipt of any such funds, if said
bonds be then subject to redemption and payment, the City shall
proceed promptly to call said bonds for redemption and payment ac-
cording to their terms and shall give notice thereon' provided for
by the terms of this ordinance. Such funds shall be deposited with
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the Fiscal Agent, and the same shall be used first for the payment
of the Salina, Kansas, Community Inn and Convention Center Revenue
Bonds, Series A, and then for the payment of the revenue bonds here-
in authorized, accrued interest on said issues and any premiums
provided for by the ordinances authorizing said bond issues and
the charges of the Fiscal Agent for paying the same.
(E) Except as otherwise provided in Section 13(e) of
Ordinance No. 6911, the City will not issue any other obligations
payable from payments made by Salina Community Inn of America, Inc.,
pursuant to the Lease, nor voluntarily create or cause to be created
any debt, lien, pledge, assignment, encumbrance, or any other
charge on said payments or on the property subject to said Lease
nor will it, unless required by law or by the terms of said Lease
sell or otherwise dispose of the Facility or any part thereof;
provided, however, that said City may issue from time to time
additional bonds for the purpose of extending and improving the
facilities financed out of the proceeds of the revenue bonds herein
authorized or completing the construction or acquisition thereof,
or constructing and equipping additional improvements which exten-
sions and improvements may be located on the land hereinbefore
described, provided the following terms and conditions are met:
(a) The City shall have entered into a lease or agreement
with Salina Community Inn of America, Inc. with rentals or payments
at least sufficient to pay the principal of and interest on said
additional bonds as the same become due;
(b) Salina Community Inn of America, Inc. is not in de-
fault with respect to the payment of rent or with respect to any
other material obligation or covenant contained in said Lease.
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(F) The City will cause the Company to keep constantly
insured all buildings and im1provements from time to time, con-
stituting a part of the property and premises leased by the Com-
pany, in the manner provided for by the Lease herein authorized
The City's share of the proceeds of any such insurance policies
shall be payable to and deposited with the Fiscal Agent as Insur-
ance Trustee. Any of the proceeds of such policies shall be used
and applied in the manner set forth in Article XX of said Lease
(G) The City will keep books and records, or cause the
Fiscal Agent to keep books and records relating to the Facility,
which shall be separate and apert from all other books, records
and accounts of the City, in which complete and correct entries
shall be made in accordance with standard principles of accounting
of all transactions relating to the leased property and improve-
ments and the original purchasers of the revenue bonds herein
authorized, any bondholder or Salina Community Inn of. America, Inc.,
or their agents, shall have the right at all reasonable times to
inspect all records, accounts and data of the City relating to the
leased property and improvements.
In the event said books and records are maintained by
the City rather than by the Fiscal Agent, the City shall, at least
once a year cause such books, records and accounts to be properly
audited by a competent auditor or accountant of recognized stand-
ing or by the City Clerk and shall make said audit available at
all reasonable times to any bondholder or to the Company,
Section 14. The provisions of the bonds authorized by
this ordinance and provisions of this ordinance may be modified or
- 18 .-
amended at any time by the City with the written consent of the
holders of not less than seven -y-,five per cent (75ij) in aggregate
principal amount of the bonds herein authorized at the time out-
standing; provided, that no such modification or amendment shall
permit or be construed as permitting
(a) The el.tension of the maturity of the principal of
any of the bonds issued hereunder, or the extension of the matur-
ity of any interest on any bonds issued hereunder, (b) a reduc-
tion in the principal amount of any bonds or the rate of interest
thereon, or (c) a reduction in the aggregate principal amount of
bonds, the consent of the holders of which is required for any
such amendment or modification.. Any provision of the bonds or of
this ordinance may, however, be modified or amended in any respect
with the written consent of the holders of all of the bonds then
outstanding. Every amendment or modification of a provision of
the bonds or of this ordinance to which the written consent of
the bondholders is given as above provided shall. be expressed in
an ordinance of the City amending or supplementing the provisions
of this ordinance and shall be deemed to be a part of this ordi-
nance. It shall not be necessary to note on any of the outstand-
ing bonds any reference to such amendment or modification, if any.
A certified copy of every such amendatory or supplemental ordi-
nance, if any, and a certified copy of this ordinance shall al-
ways be kept on file in the office of the City Clerk and shall be
made available for inspection by the holder of any bond or pros-
pective purchaser or holder of any bond authorized by this ordi
nance, and upon payment of the reasonable cost of preparing the
same. A certified copy of any such amendatory or supplemental
ordinance or of this ordinance will. be sent by the City Clerk to
any such bondholder or prospective bondholder.
Section 15. The provisions of this ordinance shall con-
stitute a contract between the City of Salina, Kansas, and the
holders of the revenue bonds herein authorized, and the holder of
any one or more of said bonds may sue, in any action, in mandamus,
injunction, or other proceedings, either at law or in equity, to
enforce or compel performance of all duties and obligations required
by this ordinance to be done or performed by said City. Nothing
contained in this ordinance, shall, however, be construed to impose
on said City any duty or obligations to levy any taxes either to
meet any obligation contained herein or to pay the principal of or
interest on the revenue bonds of the City herein authorized.
Section 16. That the tract of land hereinbefore described
and the improvements and equipment to be acquired, installed and
constructed thereon pursuant to this ordinance shall be leased to
Salina Community Inn of America, Inc., under and pursuant to the
Lease dated April 1, 1966, substantially in the form attached to
this ordinance.
Section 17. If any one or more of the covenants, agree-
ments or provisions of this ordinance or of said Lease dated April
1, 1966, should be held contrary to any express provision of law or
contrary to the policy of express law, though not expressly pro-
hibited, or against public policy, or shall for any reason whatso-
ever be held invalid, then such covenants, agreements or provisions
shall be null and void and shall be deemed separate from the
remaining covenants, agreements or provisions, and shall in no way
affect the validity of the other provisions of this ordinance or of
the bonds or coupons issued hereunder, or the Lease.
Section 18. This ordinance shall take effect and be in
force from and after its passage and publication in the official
City paper.
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PASSED by the Governing Body of the City of Salina,
Kansas, this 8th day of March, 1.966.
ATTEST:
City Clerk
APPROVED by the Mayor this 8Lh day of March, 1966.
ATTEST: /
City Clerk
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Mayor'