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ORDINANCE NO. _6j
AN ORDINANCE AUTHORIZING THE CITY OF SALINA,
KANSAS, TO ACQUIRE A SITE FOR AND CONSTRUCT
AND EQUIP A BUILDING TO BE USED FOR COMMERCIAL
FACILITIES; AUTHORIZING AND DIRECTING THE IS-
SUANCE OF $1,500,000 PRINCIPAL AMOUNT OF SALINA,
KANSAS, COMMUNITY INN AND CONVENTION CENTER
REVENUE BONDS, SERIES A, OF SAID CITY FOR THE
PURPOSE OF CONSTRUCTING AND EQUIPPING A BUILD-
ING TO BE USED FOR COMMERCIAL FACILITIES; PRE-
SCRIBING THE FORM AND AUTHORIZING THE EXECUTION
OF A LEASE AGREEMENT BY AND BETWEEN SAID CITY
AND SALINA COMMUNITY INN OF AMERICA, INC., A
KANSAS CORPORATION.
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.
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
advisable 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 $1,500,000 be authorized and issued,
for the purpose of providing funds to pay the cost of construct-
ing and equipping a building to be used for commercial facilitlos
to be leased to Salina Community Inn of America, Inc., a Kansas
corporation, hereinafter sometimes referred to as the "Company",
the proceeds of said Series A Bonds to be used for said purpose
in conjunction with an issue of Salina, Kansas, Community Inn and
Convention Center Revenue Bonds, Series B, and the sum of $900,000
less (1) $200,000 to be retained by said Company for operating
capital and (2) all proper expenditures by the Company for the
construction of the building to date of issuance of the Bonds,
otherwise made available for said purpose, and
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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:
SECTION 1. That the City of Salina, Kansas, is hereby
authorized to acquire a site for and pay for the construction and
equipping of a building to be used for commercial facilities on
the following described real property, to wit:
All of Lots Eighty-four (84), Eighty-six (86), Eighty-
eight (88), Ninety (90), Ninety-two (92), Ninety-four
(94), Ninety-six (9b) 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 104), One Hundred Six (106), and One
Hundred Eight (108), Except that part taken for Rail-
road Right-of-way, all on Fourth Street, in the Original
Town (now City) of Salina, Saline County, Kansas.
The South one-half (S 1/2) of Lot Eighty-nine (89),
and all of Lots Ninety-one (91), Ninety-three (93),
Ninety-five (95) Ninety-seven (97), Ninety-nine (99),
One Hundred One 101), One Hundred Three103 , 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 re-
servations 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 high-
ways.
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said real estate and building and any other improvements relating
thereto being sometimes hereinafter described as the "Facility"
in accordance with the provisions of the Lease dated June 1, 1966,
between said City and said Salina Community Inn of America, Inc.,
hereinafter sometimes referred to as the "Lease", said Lease being
authorized by the provisions of this ordinance, (said Facility
being referred to in the Lease as the "Project"), all at an amount
which shall not exceed the cost of $2,100,000 to said City.
SECTION 2. That for the purpose of constructing and
equipping a building to be used for commercial facilities to be
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leased to Salina Community Inn of America, Inc., a Kansas corpora-
tion, there shall be issued and hereby are authorized and directed
to be issued a series of Salina, Kansas, Community Inn and Conven-
tion Center Revenue Bonds, Series A, of the City of Salina, Kansas,
in the principal amount of $1,500,000. Said bonds herein authoriz-
ed, 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 to the payment of the bonds and
the interest thereon.
SECTION 3. Said Revenue Bonds, Series A, of the City
of Salina, Kansas, shall consist of 300 bonds, numbered from 1 to
300, inclusive, each of said bonds being in the denomination of
$5,000. All of said bonds shall be dated June 1, 1966, and said
bonds shall be numbered, shall become due serially on December 1
in each year and shall bear interest as follows:
NUMBERS AMOUNT
1
- 8
$40,000
9
- 16
40,000
17
- 25
4 5, 000
26
- 34
45,000
35
- 44
50,000
45
- 54
50,000
55
- 65
55,000
66
- 76
55,000
77
- 300
1,120,000
MATURITY
DECEMBER 1
INTEREST
1968
5
1/4j
1969
5
1/4%
1970
5
1/4%
1972
5
1%4/
1974
5
1/4%
1975 88
5
1%4%
Said bonds shall bear interest from date payable semi-
annually on December 1 and June 1 in each year, at the rate herein-
above specified.
Bonds numbered 1 to 76, inclusive, shall become due
without option of prior payment, except as hereinafter specified.
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Bonds numbered 77 to 300, inclusive, shall be subject
to redemption and payment in whole, or in part on selection by
lot, as hereinafter provided and from moneys that may be avail-
able for such purpose, on June 1, 1976, or on any interest
payment date thereafter, at the par value thereof, plus accrued
interest thereon to date fixed for redemption and payment, to-
gether with a premium of 4% of the principal amount of bonds
so redeemed, and the City covenants and agrees to redeem and
pay such bonds in mandatory minimum amounts in each year as
follows:
AMOUNT REQUIRED
YEAR TO BE REDEEMED
1976
$ 60,000
1977
65,000
1978
70,000
1979
70,000
1980
7 5, 000
1981
80,000
1982
85,000
1983
90,000
1984
95,000
1985
100,000
1986
105,000
1987
110,000
1988
115,000
, said mandatory minimum amounts to be redeemed each year being
hereinafter referred to as the "Schedule of Mandatory Bond
Retirement." The City covenants and agrees to deposit not less
than the above amounts in each of the years specified into the
Principal and Interest Account for Series A Bonds established
by subparagraph (b) of Section 7 of this Ordinance and any
moneys in said Account available for redemption of bonds shall
be used to retire bonds by call for redemption prior to maturity
on the next date upon which the bonds are redeemable, the bonds
to be redeemed being selected by lot by the City Clerk of the
City in such manner as he shall deem appropriate and fair.
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Each of said bonds numbered 1 to 300, 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 pay-
ment 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 1/4y of the principal amount of bonds
so redeemed and paid.
Notice of any redemption provided for by this Ordinance
shall be given by United States registered mail to the paying
agent herein designated, to the registered holder, if registered
and to McKinney, Rose & Company, Inc. and to Almon & Co., both
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. Notice
of such redemption shall also be given by publication once not
less than 30 days prior to the date fixed for redemption in a
financial journal published in the City of New York, New York.
Interest shall cease on any of said bonds so called for redemption
and payment as of the redemption date, provided funds are avail-
able to pay the same according 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 Bank at Dallas,
in the City of Dallas, Texas, hereinafter sometimes referred to
as the "Paying Agent."
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SECTION 4. Said bonds and each of them shall be execut-
ed 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 thereon, 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.
$5,000
UNITED STATES OF AMERICA
STATE OF KANSAS
COUNTY OF SALINE
CITY OF SALINA
SALINA, KANSAS, COMMUNITY INN AND
CONVENTION CENTER REVENUE BOND
SERIES A
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
hereof at the rate of five and one quarter per cent (5 1/4%) per
annum (likewise payable out of said revenues), payable 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 300 bonds of
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like date and tenor, except as to number., privilege of redemption,
and maturity, aggregating the principal amount of $1,500,000,
numbered from 1 to 300, inclusive, each in the denomination of
$5,000, authorized by ordinance of said City, issued for the pur--
pose of providing funds to pay the cost of constructing and equip-
ping a building to be used for commercial facilities (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 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 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 wi-ch respect
to the collection, segregation and application of the revenues of
said Facility, the nature and extent of the security of said bonds,
the right 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.
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Bonds numbered 77 to 300, inclusive, of the series
of bonds of which this bond is one, may be called for redemp-
tion and payment prior to maturity, in whole, or in part on
selection by lot, in the manner specified in the ordinance of
the City authorizing said issue of bonds, on June 1, 1976, or
on any interest payment date thereafter, at the par value
thereof and accrued interest to date.of redemption, together
with a premium of 4% of the principal amount of 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,
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 leased to said tenant be condemned by any au-
thority having the power of eminent domain; or (2) If substan-
tially all of the improvements and equipment constituting a
part of such Facility be damaged or destroyed by fire or other
casualty. In any of such events said bonds shall be subject
to redemption and payment 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
for redemption and payment.
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, and to the Registered Holder hereof if re-
gistered, not less than 30 days prior to the date fixed for redemp-
tion and payment, and by publication once not less than 30 days
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prior to the date fixed for redemption in a financial journal
published in the City of New York, New York, and as otherwise
provided in the bond ordinance.
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 June, 1966.
Mayor
ATTEST:
City Clerk
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Coupon No.
(FORM OF COUPON)
All Coupons for 6
months due June 1
and December 1
$131-25
Unless previously called for prior
redemption and payment thereof duly made or
June
provided for, on the first day of December,
19 the City of Salina, Kansas, will pay
bearer, solely from the money and revenue
June 1,
December 1, 19
City of Salina,
Kansas
Salina, Kansas,
Community Inn
and Convention
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received from the fees charged and rentals
received for the use of the Facility des-
cribed in the bond to which this coupon
is attached, and not from any other fund
or source,
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 A, dated June 1, 1966. No.
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ATTEST:
(facsimile)
City Clerk
STATE OF KANSAS
SS.
COUNTY OF SALINE
facsimile
vor
Center Revenue
Bond, Series A.
$131.25
I, the undersigned, the 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.
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City Clerk
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CERTIFICATE OF REGISTRATION
For the purpose of receiving notice of the Cityfs
intention to redeem and pay this bond prior to maturity pursuant
to any of the aforesaid redemption provisions, this bond may be
registered on the books of the City kept in the office of the
paying agent, and by an appropriate notation in the registration
blank below, and is subject to successive registrations at the
option of the holder. Registration of this bond shall not affect
the negotiability of this bond or the interest coupons attached
hereto which shall be transferable by delivery.
lYAM0 vr- nZU.L0TZrML)
OWNER
DATE OF REGISTRATION
SIGNATURE OF
REGISTER
SECTION 6. The Mayor and City Clerk are hereby authoriz-
ed and directed to prepare and execute in the manner hereinbefore
specified the Salina, Kansas, Community Inn and Convention Center
Revenue Bonds, Series A, of the City herein authorized, and to
deliver said bonds to McKinney, Rose & Company, Inc. and to
Almon & Co., both of Dallas, Texas, the purchasers thereof, on
payment of the purchase price which shall be deposited with the
Fiscal Agent hereinafter designated.
SECTION 7. The City hereby designates (1) Mercantile
National Bank at Dallas in the City of Dallas, Texas, as the
Cityls Fiscal Agent, hereinafter referred to as the Fiscal Agent
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and (2) Planters State Bank in the City of Salina, Kansas as
its Co -Fiscal Agent, hereinafter referred to as the Co -Fiscal
Agent.
There is hereby authorized and ordered to be established
in the hands of the Fiscal Agent five separate accounts, as
follows:
(a) "Salina Community Inn of America, Inc. Construction
Fund" (hereinafter referred to as the "Construction Fund.")
(b) "City of Salina, Kansas, Principal and Interest
Account for Salina, Kansas, Community Inn and Convention Center
Revenue Bonds, Series A. Dated June 1, 1966" (hereinafter re-
ferred to as the "Principal and Interest Account for Series A
Bonds.")
(c) "Reserve Account for Salina, Kansas, Community
Inn and Convention Center Revenue Bonds, Series A, Dated June 1,
1966" (hereinafter referred to as the "Reserve Account for Series
A Bonds.")
(d) "City of Salina, Kansas, Principal and Interest
Account for Salina, Kansas, Community Inn and Convention Center
Revenue Bonds, Series B, Dated June 1, 1966" (hereinafter re-
ferred to as the "Principal and Interest Account for Series B
Bonds.")
(e) "Redemption Account for Salina, Kansas, Community
Inn and Convention Center Revenue Bonds, Series A, Dated June 1,
1966" (hereinafter referred to as "Redemption Account for Series
A Bonds.")
There is hereby authorized and ordered to be establish-
ed in the hands of the Co -Fiscal Agent two separate accounts, as
follows:
(f) "Salina Community Inn of America, Inc., Revenue
Account" (hereinafter referred to as the "Revenue Account.")
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(g) "Replacement and Maintenance Account - Salina
Community Inn and Convention Center Revenue Bonds, Dated June 11,
1966" (hereinafter referred to as the "Replacement and Maintenance
Account.")
SECTION 8. The proceeds from the sale of said bonds
(less any expenses incurred by said City in connection with the
issuance and sale thereof, including but not limited to under-
writing expenses, legal fees and expenses of counsel and publica-
tion expenses, which expenses shall be paid out of said proceeds
by the Fiscal Agent as directed by the City and any accrued
interest received by said City from the sale of said bonds, plus
such additional amount as may be necessary, together with such
accrued interest, to pay the interest becoming due on the Series
A and Series B Bonds on December 1, 1966, June 1 and December 1,
1967 and June 1, 1968, and deposit same in "Principal and
Interest Account for Series A Bonds," and "Principal and Interest
Account for Series B Bonds," respectively, hereinafter created,
said deposit representing interest during the construction of
the Facility), together with $900,000 less (1) $200,000 to be
retained by the Company for operating capital and (2) all proper
expenditures by the Company for the construction of the building
to date of issuance of the bonds, from the Company, shall be
deposited in the "Construction Fund." The Fiscal Agent shall
make disbursements from said Construction Fund for the completion
of the Facility in accordance with the terms and provisions of
the Lease dated June 1, 1966, between said City and said Salina
Community Inn of America, Inc., and authorized by the provisions
of this ordinance. Any moneys in said Fund not required for such
purpose shall be deposited in the "Principal and Interest Account
for Series A Bonds" at such time as the Company shall certify
that the Facility is complete.
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SECTION 9. The City covenants and agrees that from and
after the delivery of the Series A Revenue Bonds herein authorized
and continuing so long as any of said bonds shall remain outstand-
ing, said City will maintain said accounts referred to in Section
7, hereinbefore set out.
SECTION 10. As long as any of the Bonds herein authoriz-
ed remain outstanding and unpaid, Salina Community Inn of America,
Inc., shall deposit with the Co -Fiscal Agent in the "Revenue
Account" as hereinbefore provided, monthly, beginning on the 10th
day of the month following the date the project is put into opera-
tion, but in no case later than December 10, 1967, and on the 10th
day of each month thereafter (a) 1/12 of the aggregate require-
ments as called for by Exhibits C, D, E and F hereto being the
aggregate of all basic rent as provided for under Article II of
the Lease, and (b) such additional amounts as may constitute ad-
ditional rent as provided for in Article II of said Lease. Ad-
ditionally, Salina Community Inn of America, Inc., shall deposit
semi-annually on May 1 and November 1 of each year with the Co -
Paying Agent in said "Revenue Account" (c) all remaining net
revenues derived from the operation of the project after paying
expenses of operating and maintaining the project as provided for
in Article II of the Lease.
The Co -Fiscal Agent is hereby directed to transmit to
Fiscal Agent on May 15 and November 15 of each year beginning in
that semi-annual period following which the project is put into
operation, but in no case later than November 15, 1967, all amounts
then residing in its "Revenue Account." The Fiscal Agent shall
apply and allocate these funds immediately upon receipt of same
from the Co -Fiscal Agent, as long as any of the Revenue Bonds
herein authorized remain outstanding and unpaid, as follows:
(a) There shall first be credited to and deposited in
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the "Principal and Interest Account for Series A Bonds," as here-
inbefore established, all moneys due under Exhibit C to said Lease.
(b) There shall next be credited to and deposited in
the "Reserve Account for Series A Bonds," as hereinbefore establish-
ed, all moneys due under Exhibit D to said Lease.
(c) There shall next be transmitted to the Co -Fiscal
Agent and the said Co -Fiscal Agent will credit to and deposit in
the "Replacement and Maintenance Account," as hereinbefore
established, all moneys required under Exhibit F to said Lease.
(d) There shall next be credited to and deposited in
the "Principal and Interest Account for Series B Bonds," as here-
inbefore provided, all moneys due under Exhibit E to said Lease.
The City's obligations to make payments to said Principal and
Interest Account for Series B Bonds shall be junior and subordinate
in all respects to the City's obligation to make the payments
provided for in subparagraphs (a), (b) and (c) above.
(e) There shall next be credited to and deposited in
the "Redemption Account for Series A Bonds," as hereinbefore pro-
vided, all remaining uncredited and unallocated funds held by
the Fiscal Agent; PROVIDED, HOWEVER, if the Company shall ever be
compelled to use or expend its operating capital to such an extent
as to reduce the amount thereof available at any time to less
than the amount required to be maintained by the Company under
Article II of the Lease, to wit the sum of $150,000, then and in
such event, upon an appropriate certificate signed by an executive
officer of the Company, such remaining and unallocated funds held
by the Fiscal Agent shall be paid out to the Company for that
purpose and to the extent necessary to restore operating capital
to the amount required by said Article II of the Lease, before
any such funds are allocated to said Redemption Account for Series
A Bonds.
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All amounts credited to and deposited in said "Principal
and Interest Account for Series A Bonds" (Sub -Paragraph (a) above)
shall be expended and used for the sole purpose of paying the
principal of and interest on said Bonds herein authorized as the
same become due: All moneys credited to and deposited in said
"Principal and Interest Account for Series B Bonds" (Sub -Paragraph
(d) above) shall be expended and used solely for the purpose of
paying interest on and principal of said Series B Bonds in manner
provided for by the ordinance authorizing said Bonds.
All amounts credited to and deposited in said "Reserve
Account for Series A Bonds (Sub -Paragraph (b) above) shall be
expended and used by the Fiscal Agent solely to prevent any de-
fault in the payment of interest on or principal of said Series
A Bonds if moneys in the "Principal and Interest Account for
Series A Bonds" are insufficient to pay said principal or interest
as and when the same become due. When the amount in said "Reserve
Account for Series A Bonds" aggregates the principal amount of
$130,000, the Fiscal Agent shall not be required to make any
further deposits to said account, but if the Fiscal Agent shall
ever be compelled to use or expend any part of said deposits for
the purpose of paying interest on or principal of the Series A
Revenue Bonds herein authorized, then the Fiscal Agent shall,
after making all deposits or credits at the time required to be
made under the provisions of Sub -Paragraph (a) hereof, out of
the first moneys available for that purpose, thereafter credit
and deposit in said "Reserve Account for Series A Bonds" sufficient
funds until said withdrawals are restored. Said "Reserve Account
for Series A Bonds" shall be used by the Fiscal Agent for the pur-
pose of redeeming and paying the Revenue Bonds herein authorized
prior to their ultimate maturity provided all of such outstanding
Bonds are subject to payment and funds are available to pay the
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herein authorized prior to their ultimate maturity provided all of
such outstanding Bonds are subject to payment and funds are avail-
able to pay the same, according to their terms.
All amounts credited to and deposited in said "Replace-
ment and Maintenance Account" (Sub -Paragraph (c) above) shall be
expended and used for making replacements or repairs to the Facility
from time to time. Moneys in the said account shall be paid out to
the Company for that purpose upon an appropriate certificate signed
by an executive officer of the Company, that such replacements and/
or repairs are necessary. Moneys in the said "Replacement and
Maintenance Account shall be allowed to accumulate without limita-
tion from deposits made therein according to the provisions of Sub -
Paragraph (g) of Section 7 and Sub -Paragraph (c) of Section 10 in
this Ordinance and under Exhibit F to the Lease and may be used to
the limit available for replacements and/or repairs from time to
time as the same are necessary. Moneys in the said "Replacement and
Maintenance Account" shall also be used by the Fiscal Agent for the
purpose of paying the principal of and interest on the Series A
Revenue Bonds herein authorized if no other funds are available for
that purpose.
All amounts credited to and deposited in said "Redemption
Account for Series A Bonds' shall be used by the Fiscal Agent for
the purpose of calling any of said bonds for redemption and payment,
if the same be subject to redemption, and said Fiscal Agent shall
act for the City in so calling said bonds, said redemption to be
made by the City by lot in the manner and after the notice herein
provided for. Moneys in said Redemption Account for Series A Bonds
shall also be used by the Fiscal Agent to pay principal of and in-
terest on said Series A Bonds herein authorized, as the same become
due or are called for redemption and payment according to the Sched-
ule of Mandatory Bond Retirement referred to in Section 3 of this
ordinance, if no other funds are available for that purpose.
SECTION 11. When moneys accumulated in Principal and
Interest Account for Series A Bonds, Reserve Account for Series A
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Bonds and Redemption Account for Series A Bonds shall aggregate an
amount sufficient to pay the principal of all of said Series A
revenue bonds then outstanding, and all interest accrued to date
fixed for redemption and payment, together with the premium re-
quired to pay the same upon call for redemption and payment, and
when said bonds become subject to redemption, said City shall pro-
ceed to give notice of such redemption in the manner herein speci-
fied, and said Fiscal Agent, as Paying Agent, shall use moneys in
said Accounts for said purpose. Any balance in said accounts not
required for said purpose shdll be returned to Salina Community
Inn of America, Inc.
SECTION 12. Moneys in the Construction Fund shall,
upon instructions from the Company, be invested by the Fiscal Agent
in direct obligations of the United States Government becoming due
within twelve months from date of purchase. Moneys allocated and
credited to and deposited in Principal and Interest Account for
Series A Bonds may be invested by the Fiscal Agent, upon instruc-
tions from the Company, in any such obligations becoming due not
later than twenty days prior to the next principal and interest
paying date. Moneys in the Reserve Account for Series A Bonds,
in the Replacement Account and in the Redemption Account- for Series
A Bonds shall be invested by the Fiscal Agent or Co -Fiscal Agent
upon the instructions from the Company, in any such obligations
becoming due within five years from the date of purchase. No
investment shall be made pursuant to this Section for a period
longer than the time the Fiscal Agent shall determine that said
funds are not required for the purpose for which they are intended.
All interest on any bonds or other investments held in any account
authorized and established by this ordinance shall accrue to and
become a part of such account.
SECTION 13. So long as any of the principal of and
interest on the revenue bonds herein authorized remain outstanding
and unpaid, the City covenants with each of the purchasers and
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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
default to occur on the part of the City; that it will fully and
promptly enforce, and permit the Fiscal Agent to enforce on its
behalf and on behalf of the bondholders, all of the terms, pro-
visions 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, and permit the Fiscal Agent to exercise on
its behalf and on behalf of the bondholders, all rights, and
remedies conferred by the Lease for the full and complete pro-
tection 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 Oommunity Inn
of America, Inc. is required to make under the Lease dated June 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 at a price not less than the amount of then outstanding
revenue bonds plus interest then unpaid.
(B) The City will enforce, and will permit the Fiscal
Agent to enforce on its behalf and on behalf of the bondholders,
collection of the rental payments 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 the 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
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payable under said Lease. The Cityts obligation to pay the ex-
penses of such enforcement shall be limited to funds made available
to it for that purpose by the bondholders or other interested
parties.
(C) That uhtil payment of all the bonds and interest
thereon has been duly made or provided for, the City will not
consent 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 bondholderv�,.
(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 intended
for the purpose of paying said bonds will be used first solely and
exclusively 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. Upon receipt of any such funds, if said bonds be
then subject to redemption and payment, the City shall proceed
promptly to call said revenue bonds for redemption and payment
according to their terms and shall give notice thereof provided
for by the terms of this ordinance. Such funds shall be deposited
with the Fiscal Agent, and the same shall be used first solely
for the payment of the revenue bonds herein authorized, accrued
interest thereon, any premium provided for by this ordinance and
the charges of the Fiscal Agent for paying the same.
(E) The City will not issue any other obligations pay -
able 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
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Lease sell or otherwise dispose of the Facility or any part thereof;
provided, however, that said City may issue from time to time
additional revenue bonds for the purpose of extending and improv-
ing the facilities financed out of the proceeds of the revenue
bonds herein authorized or completing the construction or ac-
quisition thereof, or constructing and equipping additional improve-
ments which extensions 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 agree -
ment 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, and provided
Salina Community Inn of America, Inc. first enters into a license
agreement with Statler-Hilton Hotels and Motels, Inc., a Delaware
corporation, or an affiliate of said corporation, or a recognized
hotel -motel management firm concerning the operation of said
addition, which firm and agreement shall be subject to the approval
of McKinney, Rose & Company, Inc. and Almon & Co., both of Dallas,
Texas, or their successors.
(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.
(c) That the annual aggregate deposits made by the Com -
pany into the Revenue Account maintained by the Co -Fiscal Agent
as provided for in Section 10 of this ordinance, including the
sum of all basic rents, additional rents and surplus earnings
from operations, shall as shown by a certificate of a certified
public accountant, have exceeded for the two fiscal years prior
to issuance of any additional bonds, total annual requirements
into the Principal and Interest Account for Series A Bonds, Prin-
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cipal and Interest Account for Series B Bonds as required in
Exhibits C and E to the Lease, and any additional bonds issued
pursuant to subparagraph (d) below by not less than one and one-
half times, including the average annual requirements on any bonds
then proposed to be issued.
(d) Nothing contained in this Section 13 shall prevent
the City from issuing, not to exceed One Hundred Fifty Thousand
Dollars ($150,000), additional principal amount of bonds under
the terms of this ordinance having a parity charge or lien on
the revenues of the Facility with the Series A Bonds authorized
herein; provided, however, such additional Bonds may only be
issued for the purpose of completing the Facility. Any such
issuance of additional Bonds shall be accompanied by a revision
of basic rents under Exhibit C to the Lease and mature sub-
stantially pro rata with the bonds authorized herein.
(e) Nothing contained in this Section 13 shall prevent
the City from issuing, not to exceed $600,000, principal amount
of revenue bonds to finance the purchase of land described in
Section 1 of this Ordinance, which bonds are to be paid out of
rentals due under the Lease, provided said additional bonds are
junior and subordinate in all respects to the Bonds herein
authorized, including the payment of the principal and interest
and said additional bonds become due after December 1, 1988.
(f) The City will cause the Company to keep constantly
insured all buildings and improvements from time to time, con-
stituting a part of the property and premises leased by the
Company, in the manner provided for by the Lease herein authorized.
The Cityts share of the proceeds of any such insurance policies
shall be payable to and deposited with the Fiscal Agent as
Insurance Trustee. Any of the proceeds of such policies shall
be used and applied in the manner set forth in Article XX of said
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Lease.
(g) The City will cause the Fiscal Agent to keep books
and records relating to the Facility, which shall be separate and
apart from all other books, records and accounts maintained for
the City, in which complete and correct entries shall be made in
accordance with standard principles of accounting of all trans-
actions relating to the leased property and improvements and the
original purchasers of the revenue bonds herein authorized, any
bondholder of the bonds authorized herein, 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.
The City shall cause the Fiscal Agent, at least once
a year, to compile a summary of all transactions relating to the
various accounts maintained with it relating to these Bonds and
to mail a copy of such summary to the Co -Fiscal Agent and to
McKinney, Rose & Company, Inc. and to Almon & Co., both of Dallas,
Texas, the purchasers.
SECTION 14. The provisions of the bonds authorized by
this ordinance and provisions of this ordinance may be modified
or amended at any time by the City with the written consent of
the holders of not less than seventy-five per cent (75%) in
aggregate principal amount of the bonds herein authorized at the
time outstanding; provided, that no such modification or amendment
shall permit or be construed as permitting.
(a) The extension of the maturity of the principal of
any of the bonds issued hereunder, or the extension of the
maturity of any interest on any bonds issued hereunder, (b) a
reduction 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
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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 sup-
plementing the provisions of this ordinance and shall be deemed
to be a part of this ordinance. It shall not be necessary to note
on any of the outstanding bonds any reference to such amendment
or modification, if any. A certified copy of every such amendatory
or supplemental ordinance, if any, and a certified copy of this
ordinance shall always 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 prospective purchaser or holder of any bond authoriz-
ed by this ordinance, 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 re-
quired by this ordinance to be done or performed by said City.
Nothing contained in this ordinance, shall, however, be con-
strued to impose on said City any duty or obligations to levy any
taxes either to meet any obligation contained herein or to pay
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the principal of or interest on the revenue bonds of the City
herein authorized.
SECTION 16. That the tract of land hereinbefore des-
cribed 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 a
Lease dated June 1, 1966, substantially in the form attached to
this ordinance, which Lease the Mayor and City Clerk are hereby
authorized and directed to execute for and on behalf of and as
the act and deed of the City.
SECTION 17. If any one or more of the covenants, agree-
ments or provisions of this ordinance or of said Lease dated
June 1, 1966, should be held contrary to any express provision
of law or contrary to the policy of express law, though not
expressly prohibited, or against public policy, or shall for any
reason whatsoever be held invalid, then such covenants, agree-
ments 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.
PASSED by the Governing Body of the City of Salina,
Kansas, this �` day of 1966.
Mayor
ATTEST:
city Clerk
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APPROVED by the Mayor this � I day of ,
1966.
ATTEST:
City Clerk'
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mayor —�
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EXHIBIT C
Schedule of Rent Installments Necessary for the Payment of Inter-
est on and Retirement of the Industrial Revenue Bonds; Series A
YEAR ENDING
DECEMBER 1 AMOUNT
1968
$ 79,375.00'
1969
116,650.00
1970
119,550.00
1971
117,187.50
1972
119,825.00
1973
117,200.00
1974
119,575.00
1975
116,687.50
1976
121, 200.00
1977
123,250.00
1978
125,037.50
1979
121,362-50
1980
122,887.50
1981
124,150.00
1982
125,150.00
1983
125,887.50
198+
126,362-50
1985
126,575.00
1986
126,525.00
1987
126,212.50
1988
125,637.50
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EXHIBIT D
Schedule of Rent Installments Necessary
for the Payments into the Reserve Account
for Series A Bonds
YEAR ENDING
DECEMBER 1 AMOUNT
1968
$303000
1969
30,000
1970
30,000
1971
30,000
1972
10;0001
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EXHIBIT E
Schedule of Rent Installments Necessary
for the Payment of Interest on and Retirement
of the Industrial Revenue Bonds, Series B
YEAR ENDING
DECEMBER 1 AMOUNT
1968
$15,750-00
1969
31,500.00
1970
31,500.00
1971
315500.00
1972
31,500.00
1973
31,500.00
1974
315500-00
1975
313500.00
1976
315500.00
1977
31,500.00
1978
31,500.00
1979
31,500.00
1980
31,500.00
1981
313500.00
1982
31,500.00
1983
31,500.00
1984
31,500.00
1985
31,500.00
1986
31,500.00
1987
31,500.00
1988
31,500.00
1989
151,500.00
1990
145,200.00
1991
138,900.00
1992
132,600.00
1993
126,300.00
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EXHIBIT F
Schedule of R=nt Installments Necessary
for the Payments into the Replacement Account
YEAR ENDING
DECEMBER 1
AMOUNT
1968
$30,000
1969
30,000
1970
30,000
1971
30,000
1972
30,OMO
1973
30,000
1974
30,000
1975
30,000
1976
30,000
1977
30,000
1978
30,000
1979
30,000
1980
30,000
1981
30,000
1982
30,000
1983
30,000
1984
30,000
1985
30,000
1986
305000
1.987
30,000
1988
305000
1989
30,000
1990
305000
1991
30,000
1992
30,000
1993
30,000